Fidelity Netbenefits: Choosing The Right Investment For You

Fidelity Investments offers a wide range of investment options, including commission-free stock and ETF trades, alongside industry-leading research. It is one of the most well-rounded brokerages available, offering no-commission stock or ETF trades and a selection of no-expense-ratio index funds suited to both beginner and active investors. Fidelity offers $0 trading commissions, a selection of more than 3,300 no-transaction-fee mutual funds, top-notch research tools, and a mobile platform. Its zero-fee index funds and strong customer service reputation are just icing on the cake. Whether you are an active trader or investing for the future, Fidelity can help you reach your goals.

No fees or minimums to open a retail brokerage account

Fidelity offers a range of investment options, including stocks, bonds, mutual funds, exchange-traded funds (ETFs), options, and more. With Fidelity, you can invest in both domestic and international markets, giving you a wide range of choices to diversify your portfolio.

One of the key advantages of choosing Fidelity for your investments is that they charge no fees or minimums to open a retail brokerage account. This means you can get started with investing without having to worry about any upfront costs or meeting a minimum balance requirement.

• Zero account fees and minimums: As mentioned earlier, Fidelity does not charge any fees or require a minimum balance to open a retail brokerage account. This makes it easier for anyone to get started with investing, regardless of the initial investment amount.
• Commission-free trades: Fidelity offers commission-free trades for online US stock, ETF, and option trades. This means you can buy and sell these securities without paying any additional fees, maximizing your potential returns.
• Fractional shares: With Fidelity, you can invest in fractional shares, allowing you to buy a slice of a share of a company or ETF instead of the full share. This is especially beneficial for investing in higher-cost stocks, as it provides an opportunity to diversify your portfolio without needing a large amount of capital.
• Research and analysis tools: Fidelity provides industry-leading research and analysis tools to help you make informed investment decisions. They offer insights from over 20 independent providers, giving you a comprehensive view of the market and specific securities.
• Flexible trading platforms: Fidelity offers flexible and powerful trading platforms, including an easy-to-use mobile app, that allow you to trade the way you want. Their platforms provide real-time market data, research ideas, and the ability to execute trades seamlessly.
• Educational resources: Fidelity also offers a wealth of educational resources through their Learning Center, which provides videos, articles, and professional insights for investors of all experience levels. This can be especially beneficial if you're new to investing and want to learn more about different investment strategies.
• Customer support: Fidelity has a dedicated team of professionals available through various channels, including phone, chat, email, and in-person at their branches. This ensures that you can get the support you need when navigating your investments.

In summary, Fidelity's no-fee and no-minimum policy for opening a retail brokerage account, combined with their wide range of investment options, competitive fees, and robust research and educational tools, makes it a compelling choice for investors. Their platform caters to both beginners and experienced investors, providing the tools and resources needed to grow as an investor.

Customised plans to grow and protect wealth

Fidelity offers a range of services to help you grow and protect your wealth, including customised plans. Here are some key features:

Customised Plans

Fidelity offers customised plans designed to help you grow and protect your wealth. You can work with a dedicated advisor to create a plan tailored to your financial goals and needs. Whether you are an active trader or investing for the future, Fidelity can provide guidance and resources to help you along the way.

Wide Range of Investment Options

Fidelity provides a broad selection of investment choices, including stocks, bonds, mutual funds, ETFs, options, forex, and cryptocurrencies. You can trade on both domestic and international markets and buy precious metals to diversify your portfolio. Fidelity also offers commission-free stock and ETF trades, giving you more flexibility in managing your investments.

Educational Resources and Research Tools

Fidelity provides industry-leading research tools and educational resources for investors at all levels, from beginners to active traders. Their platform offers advanced screeners, research, and strategy-testing tools based on extensive historical data. This enables you to make informed investment decisions and build a robust investment strategy.

Low Fees and No Account Fees

Fidelity stands out by eliminating account fees, including transfer and account closure fees commonly charged by other brokers. They also offer $0 trading commissions on U.S. stock, ETFs, and options trades. This makes Fidelity an attractive option for cost-conscious investors.

Strong Customer Service

Fidelity is known for its strong customer support, providing 24/7 assistance via phone, email, chat, social media, and physical branches. Their Online Learning Centre uses machine learning to provide customised educational materials based on your investing behaviour. This personalised approach ensures you receive relevant information to support your investment journey.

Protection for Your Investments

Fidelity provides protection for your investments through Securities Investor Protection Corporation (SPIC) insurance and Federal Deposit Insurance Corporation (FDIC) insurance. These measures safeguard your investments and give you peace of mind.

Investment options include stocks, ETFs, mutual funds, CDs, and more

Stocks

Stocks, also known as equities, represent shares of ownership in a company. When you buy a stock, you become a partial owner of the company and have a claim on its earnings and assets. The value of stocks fluctuates with the performance of the company, and they are typically bought and sold electronically through stock exchanges. Stocks offer the potential for growth and higher returns but come with risks, as the price can fall, and there is no guarantee of making money. It's important to consider your financial goals, risk tolerance, and investment horizon when investing in stocks.

ETFs (Exchange-Traded Funds)

ETFs are investment vehicles that pool a group of securities, such as stocks, bonds, or commodities, into a fund. They can be traded on exchanges like individual stocks, offering flexibility and diversification. ETFs have lower expense ratios and broker commissions than buying individual stocks. There are various types of ETFs, including stock ETFs, bond ETFs, industry or sector ETFs, commodity ETFs, and more. ETFs provide access to a diverse range of investments and are known for their tax efficiency.

Mutual Funds

Mutual funds are investment vehicles that pool money from multiple investors to purchase a diversified portfolio of stocks, bonds, or other securities. They are managed by professional fund managers and offer individual investors access to a wide range of assets. Mutual funds are known for their diversification benefits, providing exposure to different industries, sectors, and asset classes. They are subject to regulations and provide transparency to investors. However, mutual funds typically have higher fees and expenses than ETFs, and they are traded only once a day after the market closes.

CDs (Certificates of Deposit)

CDs are a type of savings account offered by banks and credit unions. When you open a CD, you agree to keep your money deposited for a fixed period, such as 3 months, 6 months, or a year. In return, you earn a guaranteed interest rate, often higher than regular savings accounts. CDs are considered a safe and conservative investment option, but they offer limited flexibility as withdrawing funds early usually results in a penalty. CDs are suitable for those who want to save for specific goals or invest their money with lower risk and volatility.

Other Investment Options

In addition to stocks, ETFs, mutual funds, and CDs, there are other investment options available, such as options, futures, real estate, and more. Each investment option has its own characteristics, risks, and potential rewards. It's important to understand the pros and cons of each investment type and consider how they align with your financial goals, risk tolerance, and investment horizon.

$0 trading commissions

Fidelity offers $0 trading commissions for online US stock, ETF, and option trades. This means that investors can trade US stocks, ETFs, and options without paying any commission fees. However, there is a $0.65 per contract fee for options trades.

Fidelity's $0 trading commissions provide investors with industry-leading value, removing any barriers between your money and your investments. With no account fees and no minimums required to open a retail brokerage account, including IRAs, Fidelity offers a highly accessible platform for traders.

The $0 trading commissions apply to Fidelity Brokerage Services LLC retail clients with a Fidelity retail account. It's important to note that sell orders are subject to an activity assessment fee, which has historically ranged from $0.01 to $0.03 per $1,000 of principal. Additionally, a limited number of ETFs are subject to a transaction-based service fee of $100.

Fidelity's $0 trading commissions are just one aspect of their comprehensive investment services. They also offer a wide range of investment options, advanced trading platforms, industry-leading research tools, and educational resources for investors of all levels.

By eliminating trading commissions, Fidelity provides a cost-effective and accessible platform for investors to manage their portfolios and make informed trading decisions.

No-expense-ratio index funds

Fidelity was the first broker to introduce zero-expense-ratio index mutual funds, and they currently offer four such funds:

• Fidelity® ZERO Large Cap Index Fund (FNILX): This fund seeks to provide investment results that correspond to the total return of a broad range of large-capitalization U.S. companies. It has a 0% expense ratio and no minimum investment.
• Fidelity® ZERO Extended Market Index Fund (FZIPX): This fund seeks to provide investment results that correspond to the total return of a broad range of mid- to small-capitalization U.S. companies. It also has a 0% expense ratio and no minimum investment.
• Fidelity® ZERO Total Market Index Fund (FZROX): This fund seeks to provide investment results that correspond to the total return of a broad range of publicly traded companies in the US. It has a 0% expense ratio and no minimum investment.
• Fidelity® ZERO International Index Fund (FZILX): This fund seeks to provide investment results that correspond to the total return of foreign developed and emerging stocks. It has a 0% expense ratio and no minimum investment.

These funds allow investors to build a well-diversified, balanced, and virtually free retirement portfolio. They are a great option for those looking to keep costs low and are well-suited to both beginner and active investors.

Frequently asked questions