Fidelity Investments: A Prestigious Financial Powerhouse?

Fidelity Investments is a well-regarded and trusted financial services brand with a reputation for good service and well-priced funds. It has been in business for over 50 years and currently provides over 1.6 million customers with investment and savings products. The company serves roughly 50 million individuals, 28,000 businesses, and 16,000 wealth management firms.

Fidelity offers a range of account types, including individual and joint accounts, business accounts, health savings accounts, and 529 education savings plans. It also provides international trading, forex, and fractional shares.

The company has won numerous awards, including being named the Best Online Broker by Kiplinger in 2024 and the Best Broker for Low Costs by Investopedia in 2023. It has also been recognised for its user-friendly website and app, excellent research tools, and competitive fund fees and non-trading fees.

Fidelity's zero-commission trading of stocks and ETFs is standard across the industry, but the company stands out by offering zero-commission trading for over-the-counter (OTC) stocks as well. Options trade for free, with a $0.65 per contract charge.

Overall, Fidelity is a prestigious and well-respected investment company with a comprehensive suite of tools, research, and investable assets.

Fidelity's reputation and history

Fidelity Investments is a well-established financial services brand, having been in business for over 50 years. It currently provides over 1.6 million customers with investment and savings products, including ISAs, Junior ISAs, SIPPs, Junior SIPPs, general investment accounts, and personalised financial advice. It is a long-standing trusted provider with a reputation for good service and well-priced funds.

Fidelity was founded in 1946 by Edward C. Johnson in Boston. Johnson was president for over 25 years and the company continues as a family-run firm today. Since 2014, Abby Johnson has sat in the Chairman and CEO chair. The company has 38 million clients and employs more than 52,000 associates across the globe.

Fidelity has a strong reputation for its mutual funds and is known for its low-cost and fee-free services. It has excellent research tools and a simple pricing structure. It is also known for its high level of customer service. The company has over 140 branch offices throughout the US.

Fidelity has a great mobile trading platform that is user-friendly and well-designed. It offers a safer, two-step login for its mobile platform. The search functions are good, and it provides a wide range of order types.

Fidelity's desktop platform is highly customisable, offering many order types and a clear fee report. It is not as quick to load as competing platforms, however.

Fidelity offers a lot of different trading products, from stocks to options, including international stocks. However, forex and futures trading is not available.

Fidelity has an exceptionally wide range of base currencies. On the negative side, credit/debit cards are not accepted.

Fidelity offers an extensive range of bonds. The bond selection includes both government and corporate bonds.

Fidelity is a great choice for beginner investors who are just getting started and sophisticated day traders. Fundamental and technical traders who need comprehensive research capabilities for stocks, exchange-traded funds (ETFs) and fixed income will find everything they need on this platform.

Fidelity has average trading and low non-trading fees, including commission-free US stock trading. On the negative side, margin rates and fees for some mutual funds can be high.

Fidelity is a legit brokerage. It is regulated by top-tier financial authorities and has a high level of investor protection. However, there is no negative balance protection and its financial information is not public.

Fidelity's fees and pricing structure

Fidelity also offers a range of mutual funds, with some funds carrying no transaction fees. However, there is a $49.95 fee if these funds are sold within 60 days of purchase. For all other funds, a purchase costs either $49.95 or $75.

For bond trading, there is a $1 per bond fee with a $250 maximum, and US Treasury bonds are free to trade.

Fidelity also provides a range of research and investment tools, as well as educational resources for beginner and advanced investors. These features may come with additional costs, depending on the specific product or service.

Fidelity's pricing structure for other products and services, such as managed accounts, financial advice, and retirement accounts, may vary and are available on their website. Overall, Fidelity's fees and pricing structure are straightforward and transparent, making it a good choice for those concerned about fees.

Fidelity's investment options

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

• Stocks: Customers can trade shares of publicly traded companies in both domestic and international markets.
• Exchange-traded funds (ETFs): ETFs are actively and passively managed funds that can be bought and sold throughout the market day.
• Mutual funds: Fidelity offers a strong selection of mutual funds, which pool money from many investors to buy a collection of stocks, bonds, or other investments.
• Bonds: Investing in bonds is a lower-risk option, similar to giving out loans to companies or governments that agree to pay back with interest.
• Crypto: Customers can buy and sell Bitcoin and Ethereum, starting with as little as $1.
• Precious metals: Customers can buy gold, silver, platinum, and palladium to help diversify their portfolio.
• Retirement accounts: Fidelity offers various retirement accounts, such as IRAs and 401(k)s, to help individuals save for their future.
• Cash management: Fidelity provides cash management products to help individuals save and spend smarter, such as the Fidelity Cash Management Account.
• Managed accounts: Fidelity Go is a robo-advisor service that provides automated investing for customers.
• Annuities and life insurance: Fidelity offers annuities and life insurance products to its customers.
• Health savings accounts (HSAs): Fidelity also provides HSAs, which are tax-advantaged accounts for individuals to save for medical expenses.

Fidelity's trading platforms

Fidelity offers a range of trading platforms to suit different types of investors, from beginners to advanced active traders. Its platforms provide access to real-time market data, research and analytics tools, and the ability to execute trades. Here is an overview of Fidelity's trading platforms:

Fidelity Website

Fidelity's website is suitable for intermediate to advanced investors. It provides award-winning research, in-depth analytics, and idea generation tools integrated with an easy-to-use trading ticket. It allows users to tackle all their trading needs in a single screen and works on any browser.

Fidelity Mobile App

The Fidelity mobile app is recommended for beginners, intermediates, and advanced users. It puts all investment activity in one place, allowing users to view, manage, and take action on their portfolio 24/7. The app provides industry-leading research, analytics, and idea generation tools. It also enables users to receive real-time notifications and alerts.

Active Trader Pro

Active Trader Pro is a downloadable desktop platform suitable for advanced users. It offers real-time insights, dynamic visual analytics, powerful trading tools, and advanced charting indicators. It also includes multi-leg options trading and industry-leading order execution.

Trading Dashboard

The Trading Dashboard is part of a suite of free, cutting-edge tech solutions offered by Fidelity. It allows users to take control of their trading and monitor various data points in one place.

Fidelity's customer service and security

Fidelity is a well-regarded and trusted provider with a reputation for good service and well-priced funds. It has been in business for over 50 years and currently provides over 1.6 million customers with investment and savings products. The company offers a high level of customer service, with a network of over 200 branches for in-person advice and educational options, and 24/7 phone, chat, email, and social media support.

Fidelity's customer service options include:

• 24/7 Virtual Assistant: An automated natural language search engine to help users find information on the Fidelity website.
• Live Chat: Specialized support for accounts or technical issues, available Monday to Friday from 8 am to 10 pm ET and on weekends from 9 am to 4 pm ET.
• Phone Support: Customers can call 24/7 and will be directed to the appropriate team. Fidelity accepts TRS and VRS relay service calls.
• Social Media: Customers can get their questions answered quickly via Fidelity's social media channels, including Reddit, Facebook, Twitter, Instagram, Discord, and YouTube.
• In-Person Support: Fidelity has a network of over 200 branches where customers can receive in-person advice and support.
• Crypto Help Desk: A dedicated help desk for customers with questions or issues related to crypto trading.

In terms of security, Fidelity is committed to safeguarding its customers' accounts and information. Some of the security measures they employ include:

• Strong encryption, firewalls, and secure email.
• Proactive 24/7 system surveillance.
• Multi-factor authentication: Customers can enable push notifications or security codes for extra protection during logins and sensitive transactions.
• Money transfer lockdown: Customers can instantly lock their accounts to block electronic money transfers and protect their balances from unauthorized transfers.
• Security text alerts: Customers can receive instant security alerts on their mobile phones when certain transactions or profile updates are made to their accounts.
• Voice biometrics: Fidelity uses voice biometric technology to verify clients' identities over the phone or through any microphone-enabled digital device.
• Fidelity Customer Protection Guarantee: Fidelity offers to reimburse customers for any financial losses resulting from unauthorized activity on their accounts.

Frequently asked questions