Fidelity Investments' Customer Base: How Large Is It?

Fidelity Investments, formerly known as Fidelity Management & Research (FMR), is an American multinational financial services corporation based in Boston, Massachusetts. As of September 2024, the company reported $5.8 trillion in assets under management and $15 trillion in assets under administration. With a strong history of growth, Fidelity has expanded its services to include brokerage, mutual funds, fund distribution, investment advice, retirement services, and more. The company's recent performance and initiatives have attracted attention, leaving many curious about its customer base. This raises the question: How many customers does Fidelity Investments have?

Fidelity Investments' customers: direct vs indirect relationships

Fidelity Investments, formerly known as Fidelity Management & Research (FMR), is an American multinational financial services corporation based in Boston, Massachusetts. Established in 1946, the company is one of the largest asset managers in the world, with trillions of dollars in assets under management and administration.

As of 2023, Fidelity Investments had over 45 million brokerage accounts, with over $4.5 trillion in assets under management (AUM) and nearly $12 trillion in assets under administration (AUA). The company operates a major brokerage firm and has investor centers in over 140 locations across the United States.

In terms of customer relationships, Fidelity Investments had 44.2 million customers with direct relationships as of 2023. These customers interact with Fidelity through retail, workplace, and the Health Care Group. Additionally, there were 5.6 million customers with indirect relationships, including those served by advisors who have clearing and custody relationships with Fidelity Institutional Wealth Management Services.

Fidelity's direct customers have a more immediate connection to the company, utilizing its various financial products and services. On the other hand, indirect customers have a less direct association, often interacting through intermediaries or utilizing specific services that facilitate their relationship with other financial advisors or institutions.

Fidelity Investments' customer base is diverse, catering to individual investors, employers, and institutional clients. The company's products and services include mutual funds, managed accounts, retirement services, wealth management, and more. They also provide services to correspondent broker-dealers, institutional investment firms, banks, trusts, and financial advisors.

Total number of customers in 2023

Fidelity Investments has a large customer base, and as of 2023, it serves 51.5 million individual customers in total. This includes 44.2 million customers with direct relationships through retail, workplace, and the Health Care Group, and 5.6 million customers with indirect relationships, including those served by advisors with clearing and custody relationships with Fidelity Institutional Wealth Management Services.

Fidelity's diverse businesses and independence give the company insight into the entire market, and its stability and scale allow it to focus on strengthening and securing the financial well-being of its customers. The company has a presence in 11 countries across North America, Europe, Asia, and Australia and serves both individual investors and business-to-business clients.

Fidelity continues to innovate and adapt to meet the evolving financial needs of its customers. For example, in 2023, they expanded their youth offering with the Fidelity YouthTM mobile app for teens aged 13-17 to make, manage, and invest their money, while also allowing parents to stay connected. They also premiered season two of Bright Ideas, a web series that provides relatable approaches to understanding various financial strategies for the next generation.

Fidelity's commitment to its customers is further demonstrated by its recognition and awards. In 2023, the company ranked highly in various categories, including being named the #6 Best Employer for Women by Forbes and Kiplinger, and receiving recognition from Investor's Business Daily as the #1 Most Trusted Financial Company in several categories.

Customers by Fidelity's different services

Fidelity Investments, formerly known as Fidelity Management & Research (FMR), is an American multinational financial services corporation based in Boston, Massachusetts. It is one of the largest asset managers in the world, with trillions of dollars in assets under management and administration. As of 2023, the company reported having 44.2 million customers with direct relationships and 5.6 million customers with indirect relationships. Here is a breakdown of customers by Fidelity's different services:

Brokerage Services:

Fidelity Investments operates a major brokerage firm and has investor centers across the United States. By 2023, the firm had over 45 million brokerage accounts, indicating that a significant portion of their customers utilize their brokerage services.

Mutual Funds:

Fidelity offers a wide range of mutual funds, including the Fidelity Contrafund, which is the largest non-indexed fund in the US with $107.4 billion in assets as of 2022. While the exact number of customers investing in mutual funds is not specified, the large assets under management suggest a substantial customer base for this service.

Retirement Services:

Fidelity Personal, Workplace and Institutional Services (PWIS) is a significant provider of 401(k) retirement plans, with $1.4 trillion in assets under administration as of 2015. The company has been a pioneer in offering 401(k) products, starting in 1982. Many customers likely utilize Fidelity's retirement services through their workplace plans.

Wealth Management:

Fidelity provides wealth management services, catering to high-net-worth individuals and families. While the exact number of customers in this segment is not disclosed, it contributes to their overall assets under management and administration.

Cryptoasset Custody and Trading:

Fidelity has been actively expanding into the cryptocurrency space since 2018, launching Fidelity Digital Asset Services in 2019. They were the first major 401(k) provider to offer Bitcoin as a retirement investment option in 2022. The number of customers utilizing their crypto services is likely growing as they continue to innovate in this area.

Other Services:

Fidelity also offers a range of other services, including index funds, securities execution and clearance, asset custody, life insurance, and more. The number of customers utilizing these services contributes to their overall customer base, with specific numbers not publicly available.

Customers by Fidelity's different investment options

Fidelity Investments offers a wide range of investment options to its customers. These include:

Brokerage Accounts

Brokerage accounts allow customers to buy investments like stocks, bonds, mutual funds, and ETFs. There are no contribution or income limits, and anyone can open an account regardless of their income. Fidelity's brokerage account doesn't charge commission fees for online US stock, ETF, and option trades.

Cash Management Accounts

These accounts combine the features of a bank checking or savings account with the flexibility of a brokerage account. Fidelity's cash management account offers check writing, bill pay, a debit card, and a choice of a money market mutual fund or FDIC-insured deposit sweep option for uninvested cash. It also allows customers to buy and sell certain investments within the account.

Retirement Accounts

Fidelity offers various retirement account options, including Traditional IRAs, Roth IRAs, SEP IRAs, Solo 401(k)s, and SIMPLE IRAs. Each type of account has different features, eligibility requirements, tax implications, and contribution limits. For example, Traditional IRAs offer tax-deferred growth, while Roth IRAs offer tax-free growth and withdrawals if certain conditions are met.

Health Savings Accounts (HSAs)

HSAs are tax-advantaged savings accounts designed for eligible individuals with high-deductible health plans. Contributions are tax-deductible, withdrawals for qualified medical expenses are tax-free, and any investment growth is tax-free when used for qualified medical expenses.

529 Plans

529 plans are tax-advantaged investment plans designed for saving and investing for future education expenses, including K-12 and college tuition, room and board, books, technology expenses, and student loan repayments.

The Fidelity Youth® Account

This is a teen-owned brokerage account for teens ages 13 to 17, which allows them to save and invest their money while giving parents supervision and notification of account activity. There are no subscription, account fees, or minimum balances, and teens can invest with as little as $1.

UGMA/UTMA Brokerage Accounts

These are custodial accounts that allow adults to save and invest for minors. There are no contribution limits, and adults can transfer various types of assets to the account, including stocks, bonds, mutual funds, and other securities. Once the minor reaches adulthood, they gain full control of the account and the assets.

Roth IRA for Kids

This is a tax-advantaged retirement account for children under 18, managed by an adult custodian until the child reaches adulthood. It offers tax-free growth and the potential for compound growth over time. Contributions can be withdrawn at any time without taxes or penalties.

Crypto

Fidelity Crypto® offers customers the ability to buy and sell bitcoin and ethereum, starting with as little as $1. Crypto is a highly volatile asset class and is not suitable for all investors.

Customers by Fidelity's different accounts

Fidelity Investments has over 49.8 million customers, including 44.2 million with direct relationships through retail, workplace, and the Health Care Group, and 5.6 million with indirect relationships, including customers served by advisors who have clearing and custody relationships with Fidelity Institutional Wealth Management Services.

Fidelity offers a range of different accounts to cater to the diverse needs of its customers. Here is an overview of some of their account options:

Brokerage–The Fidelity Account®:

This multi-feature trading and investing account offers a broad range of investment choices, including stocks, bonds, ETFs, options, and mutual funds. It has no account fees or minimums to open an account, and customers can invest with as little as $1. It also offers potential tax-free growth and withdrawals.

Roth IRA:

This account is ideal for those who want to save for retirement with after-tax dollars and withdraw their money tax-free. It has no account fees or minimums and offers a wide range of investment options. It is a good option for individuals who are changing or leaving a job or getting ready to retire.

Rollover IRA:

The Rollover IRA account is designed for those who want to consolidate their old 401(k) and workplace accounts into a centralized account without taxes or penalties. It offers tax-deferred investing for retirement and has no account fees or minimums to open an account.

Traditional IRA:

This account is for those who want to save for retirement and reduce their taxable income. Potential earnings can grow tax-deferred, and there are no account fees or minimums to open an account.

Fidelity Cash Management Account:

The Fidelity Cash Management Account offers all the features of a traditional checking account but with more competitive rates on cash. It has no account fees or minimums, offers global reimbursement on ATM withdrawals, and includes a free debit card, check writing, and Bill Pay.

Fidelity Go®:

Fidelity Go is a robo-advisor service that makes investing quick, simple, and affordable. It has no minimum to open an account and a low fee structure, with no fee for under $25,000 and 0.35%/yr for $25,000+.

Fidelity Youth® Account:

This account is designed for teens aged 13 to 17, who can learn to save and invest with parental oversight. It has no account or subscription fees, and teens can invest with as little as $1.

529 Account:

The 529 Account is a flexible, tax-advantaged account specifically designed for education savings. It has no account minimums or annual fees, and funds can be withdrawn tax-free to pay for qualified expenses.

Trust Account:

A Trust Account helps individuals protect their legacy and provide greater control over how their wealth is distributed. It has no investment minimum and helps secure what is left behind, controlling the legacy and minimizing estate taxes.

Custodial Account:

The Custodial Account is an option for those who want to invest for a child's future while retaining control of the account until they reach adulthood. It has no account fees or minimums to open an account and no contribution limits or withdrawal penalties.

These are just a few examples of the different types of accounts offered by Fidelity to meet the diverse needs of its customers. Each account is designed to help individuals achieve their financial goals, whether it's saving for retirement, investing for growth, or planning for a child's future.

Frequently asked questions