Clark Galvan
Fidelity Investments is one of the best online brokerage platforms available, offering a comprehensive suite of tools, research, and investable assets. The platform is a great choice for both veteran traders and new investors—it has top ratings from several financial publications.
Fidelity offers commission-free stock and ETF trading, no account fees, and a large selection of no-expense-ratio index funds. It also provides top-notch research tools and a highly-rated mobile app.
The platform has excellent investment platforms for active traders and investors of all types, including mobile, desktop, and the downloadable Active Trader Pro. It also offers international trading, forex, and fractional shares.
Fidelity has over 140 branch offices throughout the U.S. It is regulated by top-tier financial authorities and has a high level of investor protection. The company has 43 million clients and holds over $11.5 trillion in assets under administration.
| Characteristics | Values |
|---|---|
| Brokerage type | Online |
| Investment options | Stocks, ETFs, bonds, mutual funds, options, forex, cryptocurrencies |
| Number of base currencies | 16 |
| Deposit options | Check, electronic (ACH), wire transfer, PayPal, Venmo |
| Withdrawal options | ACH, USD wire withdrawal |
| Account types | Individual retirement accounts (IRAs), saving and investing for a child, saving for medical expenses, annuities and life insurance, etc. |
| Customer service | Phone, email, text chat, in-person |
| Security | Two-factor authentication, voice recognition, Symantec VIP Access |
| Regulation | US Securities and Exchange Commission (SEC), Financial Industry Regulatory Authority (FINRA), Securities Investor Protection Corporation (SIPC) |
What You'll Learn
Fidelity's fees and commissions
Fidelity Investments offers a range of fee structures and commissions for its various financial products. Here is a detailed breakdown:
Trading Commissions
Fidelity offers commission-free trades for online US stocks, ETFs, and options. There is a $0.65 per contract fee for options trades. Margin rates are competitive within the industry, starting as low as 8.25%. There are no minimums required to open an account.
Mutual Funds
Fidelity offers a range of mutual funds with different fee structures. Some funds have no transaction fees, while others may charge up to $100 per transaction. There are also funds with expense ratios, which are annual fees based on a percentage of the fund's assets. Fidelity offers four mutual funds with zero expense ratios:
- Fidelity ZERO Total Market Index Fund
- Fidelity ZERO International Index Fund
- Fidelity ZERO Extended Market Index Fund
- Fidelity ZERO Large Cap Index Fund
Account Fees
Fidelity has eliminated most account fees. There are no account or activity fees, and no transfer-out or IRA closeout fees.
Other Fees
Fidelity charges a range of other fees for specific services, such as $100 for a stock certificate transfer, a $50 foreign settlement fee per trade, and $19.95 for representative-assisted treasury auction orders. There may also be fees for services like electronic statements, early IRA withdrawals, and cash management.
Robo-Advisor Service
Fidelity Go is Fidelity's robo-advisor service, which offers digital investment management for a gross advisory fee. The fee is waived for accounts under $10,000, and 0.35% per year for accounts over $25,000.
Wealth Management Services
Fidelity Wealth Management is a dedicated advisory service for clients with at least $500,000 in managed assets. The gross advisory fee ranges from 0.50% to 1.50% per year, depending on the amount of assets under management.
Crypto Trading
Fidelity Crypto offers commission-free trading on Bitcoin and Ethereum, but there is a 1% spread markup included in the price of each trade.
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Fidelity's investment selection
Fidelity offers over 100,000 individual bonds, including corporate, municipal, and government bonds. The company also provides access to FDIC-insured CDs and bond funds.
Fidelity's mutual fund selection is also impressive. The company was the first broker to introduce index funds with no expense ratio, and investors can build a balanced and virtually free retirement portfolio with these funds. In addition to its own funds, Fidelity offers nearly 950 funds from other mutual fund companies, with expense ratios of 0.50% or less.
Fidelity's cryptocurrency offering is more limited, with only Bitcoin, Ethereum, and Litecoin available for trading. The company's crypto offering is also subject to a 1% spread markup, which is relatively high compared to other crypto exchanges.
Overall, Fidelity's investment selection is diverse and robust, providing investors with numerous options to build their portfolios.
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Fidelity's trading platforms
Fidelity offers a range of trading platforms and tools to cater to the needs of different types of investors, from beginners to advanced traders. Here is an overview of Fidelity's trading platforms:
Fidelity.com
Fidelity's website provides an intuitive and easy-to-use trading platform. It offers award-winning research, in-depth analytics, and idea generation tools integrated with a user-friendly trading ticket. The website is suitable for intermediate to advanced investors and allows them to tackle all their trading needs in a single screen. It provides real-time market data, research ideas, and trade execution capabilities and is compatible with any browser.
Fidelity Mobile
Fidelity's mobile app, Fidelity Mobile, offers a high level of functionality and is available on the Apple App Store, Google Play Store, and Amazon devices. With the app, users can manage their individual and workplace accounts, monitor their portfolio, trade securities (including stocks, ETFs, mutual funds, and options), input trades for fractional shares, pay bills, access tax forms, and receive customizable alerts. The app also provides a personalized news feed based on the market and the user's holdings and gives access to Fidelity podcasts on finance and the economy.
Active Trader Pro
Active Trader Pro is Fidelity's flagship trading platform, suitable for intermediate to advanced traders. It is a downloadable desktop platform that offers a customizable interface, allowing users to set up the layout according to their preferences. It includes features such as stock charting, technical indicators, and the ability to place multiple trades simultaneously. Active Trader Pro also integrates other trading tools offered by Fidelity, such as Real-Time Analytics and Trade Armor, and provides access to streaming Bloomberg TV.
Trading Dashboard
The Trading Dashboard is a single-screen platform that provides a comprehensive view of trading activities. It offers real-time market data, custom watchlists, and trade execution capabilities. It is recommended for intermediate to advanced traders and works on any browser.
Other Tools
In addition to the main platforms, Fidelity offers a suite of free, cutting-edge tech solutions to enhance the trading experience. These include:
- Real-Time Analytics: This tool provides real-time trade signals based on historical price movements and alerts users when a stock hits a new high or low or crosses a key technical level.
- Trade Armor: This tool visualizes trading opportunities on a chart and allows users to set alerts, determine entry and exit prices, and place orders.
- Daily Dashboard: This tool provides real-time news, earnings, and economic updates when the Active Trader Pro platform is launched.
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Fidelity's customer service and security
Fidelity's customer service is highly rated, with responsive and helpful support available 24/7 by phone, email, live chat, and social media. They also have over 200 physical branches for in-person advice and educational options. Their online learning centre offers a customised experience, using machine learning to provide educational materials tailored to the customer's investing behaviour.
Fidelity offers a Virtual Assistant, which is an automated natural language search engine to help customers find information on the Fidelity website. This is available 24/7. Live chat with the team is available during more limited hours: Mon-Fri, 8 am-10 pm ET, and Sat-Sun, 9 am-4 pm ET.
Fidelity's security measures include strong encryption, firewalls, secure email, and proactive 24/7 system surveillance. They also offer multi-factor authentication, money transfer lockdown, and security text alerts.
Fidelity uses voice biometric technology to verify clients by voiceprint over the phone or through any microphone-enabled digital device.
They also offer a Customer Protection Guarantee, which means they will reimburse customers for any financial losses resulting from unauthorised activity on their accounts.
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Fidelity's suitability for beginners
Fidelity is a good choice for beginners. It has a user-friendly mobile platform, low transaction costs, and a minimum deposit of $0. The account opening process is also straightforward, taking 1-3 days.
Fidelity offers a range of investment options, including stocks, bonds, mutual funds, ETFs, options, forex, and cryptocurrencies. It also provides investors with fractional shares, allowing for diversification into higher-cost stocks.
Fidelity's educational resources are well-suited for beginners, with a comprehensive library of articles, videos, and webinars. Its customer service is also highly rated, with 24/7 phone, email, and live chat support.
Overall, Fidelity is an excellent choice for beginners due to its low fees, user-friendly platform, educational resources, and wide range of investment options.
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Frequently asked questions
Yes, Fidelity is one of the safest brokerages to invest with. It’s an industry leader with a stellar reputation and fully regulated in the U.S. with the SEC and FINRA, is trusted by over 43 million people and holds over $11.5 trillion in assets under administration.
Unusual for the industry, Fidelity does not make money through payment for order flow. It also offers several zero-expense mutual funds where it essentially pays the management fees for you. Instead, Fidelity's profit is derived from earned interest on your uninvested cash balances, interest on margin loans, loaning your stock to short sellers if you opt in (which also earns you interest), incidental fees (which are still lower than average), and wealth management services.
Yes, Fidelity is an excellent platform for beginners, thanks to a solid combination of educational content and easily navigated mobile apps and web pages. Fidelity also offers fractional share stock and trading, but it doesn’t let you practice trading with a virtual portfolio.
There is no minimum to open a Fidelity brokerage account or monthly service charges for an open account, but, as at most brokers, some investments do have minimum initial purchases.
