Fidelity Investments: Rated And Reviewed By Experts

Fidelity Investments is a well-regarded online brokerage platform that offers a range of tools, research and investment options. The platform has been recognised by third-party reviewers, including NerdWallet, StockBrokers.com and Kiplinger, who have rated it highly for its app and services for beginner investors. It offers a comprehensive suite of tools, research and investable assets, making it a great choice for both veteran traders and new investors.

Fidelity's fees and pricing

Fidelity Investments offers a range of accounts with different fee structures. Here is a breakdown of the fees and pricing for some of their most popular accounts:

Fidelity Go

Fidelity Go is a robo-advisor service that offers low-cost diversification strategies, online planning tools, and access to a certified financial planner (CFP) for accounts with balances of $25,000 or more. There is no account minimum, but you need at least $10 to start investing. The annual fee is 0.35% for accounts with balances of $25,000 or more, while accounts with balances under $25,000 are not charged an annual advisory fee.

Fidelity Managed FidFolios

Fidelity Managed FidFolios are portfolios of personalized stocks that are professionally managed by a team of Fidelity experts using a tax-smart investment strategy. There is a $5,000 minimum investment requirement and a 0.70% annual fee.

Fidelity Wealth Management

Fidelity Wealth Management provides financial planning and ongoing management through a dedicated Fidelity advisor. The minimum fee is $500,000, and the gross advisory fee ranges from 0.50% to 1.50%.

Fidelity Private Wealth Management

Fidelity Private Wealth Management is a service for investors who are not interested in using a robo-advisor. It provides immediate access to a financial advisor who offers personalized investment management. There is a $2 million minimum investment requirement, and the gross advisory fee ranges from 0.20% to 1.04%.

Fidelity Self-Directed Brokerage Account

The Fidelity Self-Directed Brokerage Account is designed for active traders who want complete control over their investments. It offers commission-free trades, fractional shares, and smart trading technology. There is no account minimum, and margin rates start as low as 8.50%.

Fidelity Youth Account

The Fidelity Youth Account is a DIY investing account for minors (teens aged 13-17) that is free to set up. It offers a limited selection of US stocks, ETFs, fractional shares, and Fidelity mutual funds. There is no account minimum, and you only need $1 to start investing.

Fidelity Cash Management Account

The Fidelity Cash Management Account is designed to complement an existing brokerage account. It includes the Cash Manager tool, which automatically moves funds between your Fidelity accounts to align with your investment goals. There is no account minimum, and you only need $1 to start investing.

Trading Commissions and Fees

Fidelity offers commission-free trades for online US stocks, ETFs, and options. However, there is a $0.65 per contract fee for options trades. There are also no account fees, no minimums to open a retail brokerage account, and no account closure fees.

Mutual Funds

Fidelity offers a range of mutual funds, including the Fidelity ZERO Total Market Index Fund, the Fidelity ZERO International Index Fund, the Fidelity ZERO Large Cap Index Fund, and the Fidelity ZERO Extended Market Index Fund, which have no expense ratio and no minimum investment requirement. They also offer over 3,300 mutual funds with no transaction fees and nearly 950 funds with expense ratios of 0.50% or less.

Other Fees

Fidelity also charges fees for various other services, such as electronic funds transfers, overnight check delivery, debit card annual fees, and foreign exchange wires. These fees vary depending on the specific service and the customer's account type.

Fidelity's investment selection

Fidelity offers a wide range of investment options, including stocks, bonds, mutual funds, exchange-traded funds (ETFs), options, forex, and cryptocurrencies. The company also allows traders to purchase fractional shares, allowing investors to diversify into higher-cost stocks by buying a slice of a share rather than the full amount.

Fidelity's mutual fund selection is particularly strong, with a large selection of no-transaction-fee funds and funds with low expense ratios. The company was the first broker to bring to market index funds with absolutely no expense ratio, including the Fidelity Zero Total Market Index Fund, the Fidelity Zero International Index Fund, the Fidelity Zero Large Cap Index Fund, and the Fidelity Zero Extended Market Index Fund.

In addition to its mutual funds, Fidelity offers investors the ability to trade stocks in both domestic and international markets. Investors can also choose from a wide range of ETFs, which are actively and passively managed funds that can be bought and sold throughout the market day.

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

For investors interested in foreign markets, Fidelity offers the ability to buy and sell gold, silver, platinum, and palladium, as well as trade individual stocks, ETFs, and mutual funds from international companies.

Fidelity's cryptocurrency offering, Fidelity Crypto, allows investors to buy and sell Bitcoin, Ethereum, and Litecoin, starting with as little as $1.

Overall, Fidelity's investment selection is well-rounded and suitable for both beginner and advanced investors. The company provides a wide range of investment options across various asset classes, making it a good choice for those looking to diversify their portfolios.

Fidelity's trading platforms

Fidelity offers two trading platforms, Fidelity.com and Active Trader Pro, which are free for all customers. Both platforms are highly customizable and include advanced screeners with research and strategy-testing tools based on 10 years of historical data.

Active Trader Pro is a downloadable desktop platform that includes intuitive shortcuts, a pre-built market, technical and options filters, advanced options tools, and a multi-trade ticket that can store orders for later and place up to 50 orders at a time. The platform also allows users to trade over-the-counter securities and access IPOs.

Fidelity's online trading platform is an excellent entry point for advanced traders and beginners who want an overview of their finances. Its intuitive and user-friendly interface allows users to explore Fidelity's offerings and compare investments without feeling pressured or confused. The platform also has a high execution quality on trades, with 98.87% of orders selling at or better than the National Best Bid and Offer.

Fidelity also offers a mobile app, Fidelity Mobile, which allows users to manage their individual and workplace accounts, monitor their portfolio, trade securities, input trades for fractional shares, pay bills, access tax forms, and receive customizable alerts. The app also provides a personalized feed of news based on the market and the user's holdings and access to Fidelity podcasts on finance and the economy.

Fidelity's customer service

Fidelity Investments offers 24/7 customer service through a virtual assistant, phone support, and live team chat during normal business hours. The company also provides in-person support through its network of over 140 branch offices across the U.S.

However, some users have complained about the quality of Fidelity's customer service, with reports of unhelpful responses and long wait times. Some have also noted that it can be challenging to navigate the platform and locate specific features.

Fidelity's security protocols include encryption software, intrusion protection systems, proxy servers, firewalls, 24/7 system surveillance, advanced anti-malware, and security alerts via text or email. The company also encourages users to enable multi-factor authentication, money transfer lockdown, and biometrics for added security.

Fidelity has received a rating of A+ from the Better Business Bureau, 4.6/5 on Google Play, and 4.8/5 on the Apple Store.

Fidelity's security and reliability

Fidelity is committed to high-level security and has a long history of trustworthiness. The company regularly monitors accounts for unusual activity and has updated its security protocols to require that third-party websites and apps connect through a secure connection.

Fidelity offers several security features to its users, including:

• Multi-factor authentication
• Symantec VIP Access
• Security text alerts
• The ability to manage access granted to third parties
• The ability to block electronic money transfers from your accounts

Fidelity is insured through the Securities Investor Protection Corporation (SPIC) up to $500,000 in securities, including a $250,000 limit for cash held in a brokerage account. The company also holds additional insurance for assets up to $1 billion. This insurance protects your money should Fidelity fail or go bankrupt, but not against investment losses. Cash accounts are also insured through the Federal Deposit Insurance Corporation (FDIC) up to $250,000 per account.

Frequently asked questions