Fidelity Investments: A Reliable Financial Partner?

Fidelity Investments is a well-regarded online broker and wealth management company that offers both robo-advisor and advisor-led wealth management accounts. It is considered one of the best online brokerage platforms available, with a comprehensive suite of tools, research and investable assets. It is highly rated for its customer service, educational resources, and user-friendly mobile app.

Fidelity offers $0 trading commissions, a large selection of no-transaction-fee mutual funds, and top-notch research tools. It also has a highly-rated mobile app, and a high interest rate on uninvested cash.

The company has a strong reputation for its mutual funds, with a large selection of no-transaction-fee funds, including its own Fidelity Zero index funds, which have no expense ratio and no minimum investment requirement.

Fidelity also offers a wide range of account types, including individual and joint accounts, business accounts, health savings accounts, and 529 education savings plans.

The company has eliminated many of the nuisance fees that other brokers charge, such as transfer-out fees, and offers a robo-advisor service for cost-conscious and beginning investors.

Overall, Fidelity is a safe and reliable choice for investors, with a stellar reputation and full regulation in the U.S. with the SEC and FINRA. It is trusted by over 43 million people and holds over $11.5 trillion in assets under administration.

Fidelity's fees and commissions

Fidelity offers $0 trading commissions and a wide range of no-transaction-fee mutual funds, including its own Fidelity Zero index funds, which have no expense ratio and no minimum investment requirement. These investor-friendly practices save customers a lot of money.

Fidelity offers four zero expense ratio, zero minimum investment index funds: 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.

Fidelity also offers a slate of mutual funds, including all Fidelity mutual funds, that trade fee-free with zero minimums so long as you own the funds for at least 60 days. However, many non-Fidelity mutual funds are subject to commissions—a high $$49.95 commission at purchase, although redemptions are free.

Fidelity offers $0 per stock or options trade, plus $0.65 per contract on options. There is no account fee and no minimum to open a retail brokerage account, including IRAs.

Fidelity's margin rates are among the most competitive in the industry, as low as 8.25%. The margin rate you pay depends on your outstanding margin balance—the higher your balance, the lower the margin rate you are charged. Fidelity's current base margin rate, effective since December 20, 2024, is 11.325%.

Fidelity offers a highly-rated mobile app that includes real-time quotes, multi-leg options trading, and a consolidated version of the company's research offerings. The app also includes a notebook to save ideas and articles from your mobile browser.

Fidelity's Active Trader Pro platform is a downloadable desktop platform with 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.

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 investors to purchase fractional shares of stocks and trade in American depository receipts (ADRs).

Fidelity's mutual fund selection is particularly strong, with a large number of no-transaction-fee funds, including several index funds with absolutely no expense ratio. These funds can help investors save money on management fees and build a low-cost, balanced retirement portfolio.

In addition to its extensive investment options, Fidelity also provides investors with powerful tools and resources to make informed decisions. The company offers advanced screeners, market commentary, and analysis, as well as extensive third-party research reports from major financial firms.

• Stocks: Investors can trade shares of publicly traded companies in both domestic and international markets.
• Bonds: Fidelity offers a substantial selection of bonds, including FDIC-insured CDs, bond funds, and over 100,000 individual bonds (corporate, municipal, and government).
• Mutual Funds: Fidelity offers a wide range of mutual funds from its own company and other firms, with various investing interests, daily priced fund shares, and potential benefits such as income, diversification, and tax efficiencies.
• ETFs: Exchange-traded funds are actively and passively managed funds that can be bought and sold throughout the market day.
• Options: Fidelity offers options trading, although there is a $0.65 per-contract charge, which is higher than some other brokers.
• Forex: Fidelity allows investors to trade in 25 different currencies.
• Cryptocurrencies: Clients can trade Bitcoin, Ethereum, and Litecoin through a Fidelity Crypto account, although it should be noted that crypto is highly volatile and not suitable for all investors.
• Fractional Shares: Investors can purchase a fraction of a share instead of a whole share, allowing for diversification into higher-cost stocks.
• ADRs: American depository receipts allow investors to purchase stock in overseas companies.
• Precious Metals: Investors can buy gold, silver, platinum, and palladium to diversify their portfolios.

Overall, Fidelity's investment selection is comprehensive and suitable for various investor needs, whether they are beginner retirement investors or active traders. The company's mutual fund selection, in particular, stands out for its range of no-transaction-fee and no-expense-ratio funds.

Fidelity's trading platforms and tools

Fidelity offers a range of trading platforms and tools to cater to the needs of different investors. Here is an overview of the platforms and their features:

Fidelity.com

Fidelity's website provides users with award-winning research, in-depth analytics, and idea generation tools integrated with an easy-to-use trading ticket. It is recommended for intermediate and advanced investors. The website offers a single-screen Trading Dashboard that allows users to get real-time market data, research ideas, and execute trades on any browser.

Active Trader Pro

Active Trader Pro is a downloadable desktop platform that offers real-time insights, dynamic visual analytics, and powerful trading tools. It is recommended for advanced users. The platform includes features such as real-time analytics, trade journals, and over 45 market filters. It also enables multi-leg options trading, extended hours trading, and customizable layouts.

Fidelity Mobile App

Fidelity's mobile app is designed for beginners, intermediate, and advanced investors. It puts all investment activity in one place, allowing users to view, manage, and take action on their portfolio anytime, anywhere. The app includes features such as a customizable news feed, retirement planning, live TV and webinars, and money management. It also provides access to research and educational resources.

Fidelity Youth App

The Fidelity Youth App is a separate mobile app designed for teenagers (aged 13-17) to learn about investing and manage their money. It offers a curated and parent-friendly savings, spending, and investing experience. While it does not support all the features of the regular Fidelity app, it provides educational resources, articles, and online research tools.

Fidelity's research and education

Fidelity's research offerings are also comprehensive and recently updated. They are categorised by asset class and include tools, screeners, lists, and reports for stocks, ETFs, options, IPOs, and fixed income investors. The company provides third-party research reports and scorecards from major financial firms like Compustat, Zacks, Argus, and Reuters.

Fidelity's stock research covers 12 reports from various providers, allowing investors to find a source that aligns with their investing style. The company also offers fund research, with PDF reports from Morningstar and FactSet for ETFs and open-end mutual fund data sourced from Morningstar.

The company's market news and research are exceptional, with Fidelity curating third-party news and thought pieces from across the web. Their stock, ETF, and mutual fund screeners are user-friendly and data-rich, making it easy for investors to find investment ideas.

In addition to its extensive research and educational offerings, Fidelity also provides retirement planning tools and calculators. Their financial planning tool can pull information from outside accounts, helping individuals track their progress toward retirement and other financial goals.

Fidelity's customer service and security

Fidelity's customer service is highly regarded and easily accessible. The company offers 24/7 customer support through its Virtual Assistant, phone, email, and social media channels like Reddit, Facebook, Twitter, Instagram, and Discord. They also have over 140 physical branch offices across the US.

Fidelity's phone support is available 24/7, with short wait times outside of market hours (Monday–Friday, 9:30 am–4:00 pm ET). Live chat with the team is available from Monday to Friday, 8 am–10 pm ET, and on weekends from 9 am–4 pm ET.

Fidelity's security measures are also robust and comprehensive. They employ strong encryption, firewalls, secure email, and proactive 24/7 system surveillance to safeguard customer accounts. Additionally, they offer multi-factor authentication, push notifications, security codes, and voice biometric technology for added protection during logins and sensitive transactions.

Fidelity also provides a Customer Protection Guarantee, offering reimbursement for any financial losses resulting from unauthorized account activity. This guarantee includes $500,000 of Securities Investor Protection Corporation (SIPC) coverage and up to $1.9 million in additional coverage for cash assets.

Frequently asked questions