Fidelity Investments: How Does It Stack Up?

Fidelity Investments is one of the largest financial services corporations in the world, offering a wide range of services, including wealth management, life insurance, retirement planning, and education savings. With over $5.8 trillion in assets under management, the company has established itself as a leading player in the industry.

Fidelity offers a diverse range of investment options, such as stocks, bonds, mutual funds, ETFs, and cryptocurrencies, catering to both beginner and advanced investors. The company provides robust trading tools, brokerage accounts, and advanced trading features, including fractional share investing and international stock trading.

One of Fidelity's standout features is its commitment to low fees and transparent pricing. The company eliminated commissions for U.S. stock, ETF, and options trades, and offers a selection of no-expense-ratio index funds. This makes Fidelity highly competitive when compared to other financial services, particularly for investors seeking low-cost investment options.

In addition, Fidelity provides extensive research tools, educational resources, and customer support, making it a well-rounded choice for individuals looking to manage their finances and investments.

Investment options and fees

Fidelity Investments offers a wide range of investment options, including stocks, bonds, mutual funds, ETFs, options, forex, and cryptocurrencies such as Bitcoin, Ethereum, and Litecoin. The company also offers fractional share investing, allowing investors to purchase a slice of a share rather than the full amount. In addition, Fidelity supports trading in American depository receipts (ADRs), which enable investment in overseas companies.

Fidelity has a strong reputation for its mutual funds, with a large selection of no-transaction-fee funds, including its Fidelity Zero index funds, which have no expense ratio and no minimum investment requirement. The company was the first broker to introduce zero-expense-ratio index funds, and these funds alone can form a balanced and virtually free retirement portfolio. Even the funds that charge an expense ratio are competitively priced compared to other brokers.

Fidelity also offers a substantial selection of bonds, including FDIC-insured CDs and bond funds, as well as over 100,000 individual bonds, such as corporate, municipal, and government bonds.

Fidelity does not offer futures trading, and its cryptocurrency offering is limited compared to some other brokers.

Fidelity's fees are highly competitive, with $0 trading commissions on stocks, ETFs, and options trades. The options trades do carry a $0.65 per-contract charge, which is relatively high compared to other brokers. However, where Fidelity stands out is its lack of account fees, eliminating transfer and account closure fees commonly charged by other brokers.

Fidelity also offers a range of managed accounts with access to human advisors, such as Fidelity Wealth Services and Fidelity Strategic Disciplines. These accounts have higher minimums and fees but provide comprehensive financial management services and advanced features.

For investors looking for a robo-advisor, Fidelity Go is a good option, with a $0 account minimum and a 0.35% annual fee for accounts with balances of $25,000 or more.

Fidelity also provides retirement accounts, including small business retirement plans, IRAs, and 401(k) plans, which can include Bitcoin as an investment option.

Overall, Fidelity offers a comprehensive range of investment options with highly competitive fees, making it a good choice for investors seeking low-cost investment opportunities.

Trading platforms

Fidelity offers a range of trading platforms and tools to help investors make smarter trading decisions. Its platforms are flexible and can be used by investors of all experience levels, from beginners to advanced traders.

Fidelity's trading platforms include:

• A single-screen trade station that provides real-time market data, research ideas, and trade execution capabilities. It works on any browser, desktop, or tablet.
• An advanced trader platform that can be downloaded to help make smarter decisions throughout each trade. It includes real-time insights and visual snapshots to monitor investments.
• Fidelity's website, which provides award-winning research, in-depth analytics, and idea generation tools integrated with an easy-to-use trading ticket.
• Fidelity's mobile app, which allows users to view, manage, and take action on their portfolio 24/7. The app also provides a personalized news feed, alerts, retirement and goal planning, live TV and news, money management, and bill payment features.
• Active Trader Pro, a downloadable desktop platform with advanced screeners, research and strategy-testing tools based on 10 years of historical data. It includes intuitive shortcuts, a pre-built market, technical and options filters, advanced options tools, and a multi-trade ticket that can store orders and place up to 50 orders simultaneously.

Fidelity's trading platforms provide access to a wide range of investment options, including stocks, options, exchange-traded funds (ETFs), mutual funds, bonds, and cryptocurrencies. The platforms also offer industry-leading research and analysis tools, such as real-time data, dynamic visual analytics, and trading ideas.

Overall, Fidelity's trading platforms offer a comprehensive suite of tools and features that cater to the needs of diverse investors, making it a strong competitor in the financial services space.

Customer service

Fidelity Investments offers 24/7 customer service through a virtual assistant, as well as phone, email, and text chat support. Live team chat is available during normal business hours, and the company also provides support through social media channels such as Reddit, Facebook, Twitter, Instagram, and Discord. Fidelity has over 140 branch offices across the US, and customers can also meet with a dedicated advisor to help build a flexible plan.

Fidelity's customer service has received praise for its accessibility and knowledgeability. Round-the-clock live customer support is available seven days a week, and the company also offers specialised trading and fixed-income customer service. The virtual assistant, however, has received some criticism for being unsatisfactory.

Fidelity's customer service also extends to its online Learning Center, where customers can read articles and watch videos on a range of helpful topics. The company's customer support options are further enhanced by its network of over 200 branches for in-person advice and educational resources.

In terms of response times, Fidelity generally provides prompt service, with phone calls and emails typically receiving a response within a few minutes to a few hours. Wait times to speak with a representative may vary, and it is recommended to contact them outside of market hours to avoid long wait times.

Overall, Fidelity's customer service offerings are comprehensive and easily accessible through various communication channels. The company's support team is knowledgeable and provides guidance on a range of financial topics, making it a good choice for both beginner and advanced investors.

Security and protection

Fidelity also offers multi-factor authentication, where you can receive a push notification or security code to verify your identity during logins and sensitive transactions. You can also set up a money transfer lockdown, instantly blocking electronic money movement out of your accounts to protect your balances from unauthorized transfers.

Fidelity's voice biometric technology allows clients to access accounts with their voice. The company uses voice biometric technology in two ways: verifying clients by voiceprint over the phone or through any microphone-enabled digital device.

Fidelity also offers a Customer Protection Guarantee, where they will reimburse you for losses from unauthorized activity in your accounts. This includes your Fidelity brokerage accounts, your Fidelity Crypto accounts, and your Fidelity retirement plan accounts (e.g., 401(k), 403(b), 457, or profit-sharing plans).

Fidelity also participates in asset protection programs such as the Federal Deposit Insurance Corporation (FDIC) and the Securities Investor Protection Corporation (SPIC). The FDIC insures cash deposits at FDIC member banks, generally up to $250,000 per account. SPIC will cover up to $500,000 in securities, including a $250,000 limit for cash held in a brokerage account.

Fidelity also provides tips for customers to protect themselves, including using strong, unique passwords for online accounts and changing them regularly. They also recommend monitoring your accounts and being vigilant for suspicious emails and other online activity.

Investment accounts

Fidelity offers a wide range of investment accounts to suit different financial goals and investor profiles. Here are some of the most common types of investment accounts available through Fidelity:

• Brokerage Account: This is a general investment account that allows you to buy various assets such as stocks, bonds, mutual funds, and ETFs. There are no contribution or income limits, and you can withdraw funds without penalties at any time. However, brokerage accounts do not offer the tax advantages that some other types of accounts provide.
• Individual Retirement Account (IRA): An IRA is designed for retirement savings, offering tax benefits such as tax-deductible contributions and tax-deferred growth. There are two main types: Traditional IRAs, where contributions may be tax-deductible, and Roth IRAs, where withdrawals in retirement are tax-free.
• Cash Management Account: This account combines features of a bank account and a brokerage account, allowing you to save, spend, and invest. It offers a competitive rate of return, low or no fees, and higher FDIC protection limits than traditional bank accounts.
• SEP IRA: A Simplified Employee Pension Individual Retirement Account is for self-employed individuals and small business owners. It offers tax deductions on contributions, high contribution limits, and lower administrative fees than typical workplace plans.
• Solo 401(k): This is a retirement account for self-employed individuals or small business owners with no employees (except their spouses). It allows for both employee and employer contributions, offers tax benefits, and provides a wide range of investment options.
• SIMPLE IRA: A Savings Incentive Match Plan for Employees IRA is for self-employed individuals or small businesses with fewer than 100 employees. It offers tax benefits, a low-cost setup, and a wide range of investment options.
• Health Savings Account (HSA): An HSA is a tax-advantaged account designed for saving for eligible medical expenses. It offers triple tax benefits (tax-deductible contributions, tax-free withdrawals for qualified medical expenses, and tax-free investment growth).
• 529 Plan: This is a tax-advantaged investment plan for saving and investing for future education expenses, including K-12 and college tuition. It offers tax-free withdrawals for qualified education expenses and broad flexibility in how the funds can be used.
• Fidelity Youth Account: This account gives teens ages 13 to 17 the power to save and invest their money, while parents can monitor activity and provide guidance. It offers educational content and the ability to invest with as little as $1.
• UGMA/UTMA Brokerage Account: These are custodial accounts that allow adults to save and invest for minors. There is no contribution limit, and adults can transfer various types of assets to the account. Once the child reaches a certain age, assets and control of the account are transferred to them.
• Roth IRA for Kids: This is a tax-advantaged retirement account for children under 18, managed by an adult custodian. It offers tax-free investment growth and the potential for a longer time horizon for compound growth.

Fidelity also offers a range of managed account services, where investors can choose the level of digital or human advice they want, from digital investment management to working directly with a dedicated Fidelity advisor.

Frequently asked questions