A Beginner's Guide To Signing Up For Fidelity Investments

Signing up for Fidelity Investments is a simple process that can be done online. You will need to provide some personal information, such as your Social Security Number, residency, and employment status, and choose an account type that suits your needs. There are no account fees or minimums to open an account with Fidelity, and you can choose from multiple base currencies. The process typically takes 1-3 days, and you will need to prove your identity and residency with documents.

Choosing an account type

The first step in signing up for Fidelity Investments is choosing the right account type for your needs. Fidelity offers a wide range of account options, including:

• Brokerage account: This is a standard taxable brokerage account that allows you to invest in a variety of options such as stocks, bonds, ETFs, and mutual funds. With this account, you can invest any amount, starting with as little as $1. However, you will owe capital gains taxes when you sell securities for a profit, and there are no tax benefits associated with this type of account.
• Traditional IRA: This is a retirement account that offers tax benefits, allowing your money to grow with tax deferral. You will be able to cut your tax bill by deferring it until it is time to withdraw.
• Roth IRA: This is another type of retirement account with tax benefits. You fund this account with after-tax dollars, and the money can grow tax-free. With a Roth IRA, you don't have to pay taxes when you withdraw your money in retirement.
• Rollover IRA: This account is designed for individuals who are changing or leaving a job or retiring. It allows you to consolidate your old 401(k) and workplace accounts into a centralized account without taxes or penalties.
• Inherited IRA: This account is specifically designed for retirement plan beneficiaries who have inherited an IRA or workplace savings plan, such as a 401(k). It helps to continue the tax-deferred growth of the inherited retirement account.
• Fidelity Cash Management Account: This account offers features similar to a traditional checking account but with more competitive rates on your 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 Youth Account: This account is designed for teens aged 13 to 17, allowing them to learn about saving and investing under parental oversight. It has no account or subscription fees, and teens can start investing with as little as $1.
• 529 Account: This is a flexible, tax-advantaged account designed for saving for education. It can be used for qualified educational expenses at schools nationwide, and there are no account minimums or annual fees.
• Trust Account: This account helps you protect your legacy and provides greater control over how your wealth is distributed. There is no investment minimum.
• Fidelity Crypto: With this account, you can start trading bitcoin and ethereum, and it also offers educational resources to help you navigate the world of cryptocurrency.

These are just a few examples of the many account types offered by Fidelity. When choosing an account, consider your investment goals, risk tolerance, trading frequency, and any associated fees or account balance minimums. If you are a beginner, it is generally recommended to select the most basic account offered.

Providing personal information

Signing up for Fidelity Investments involves providing personal information, such as your email address, street address, Social Security Number, residency, and employment status. You will also need to create security questions and answers, and provide employment information if applicable.

Fidelity will ask you to estimate how often you plan to trade and whether you are associated with a broker-dealer, a stock exchange, or the Financial Industry Regulatory Authority. They will also inquire about your relationship with any publicly held companies.

Additionally, if you choose joint ownership for your account, you will need to provide the same personal information for your spouse or partner.

Before submitting your application, you will need to review and confirm your personal information, accept the terms and conditions, and acknowledge any relevant agreements.

Creating security questions

When creating your security questions, choose questions that are not easily found through a simple internet search or social media stalking. Avoid questions that have obvious answers, such as your favourite colour or the name of your first pet. Instead, opt for questions that would be difficult for someone else to answer, even if they know you well.

Additionally, when creating your security questions, try to use a mix of different question types. For example, you can include questions about your favourite things, places you've visited, or specific details that only you would know. You can also make up your own questions that are unique to you. The more personalised and specific your security questions are, the better protection they will provide.

It is also important to provide unique and unpredictable answers to your security questions. Avoid using common phrases or answers that can be easily guessed, such as "password" or "12345". Instead, try to create answers that are memorable to you but difficult for others to predict. You can use special characters, numbers, and uppercase letters to create stronger answers.

Remember, the security of your Fidelity account is important. Taking the time to create thoughtful and unique security questions will help protect your personal information and assets.

Adding account settings

Once you've filled in your personal information, you'll move on to the account settings stage. Here, you'll decide if you want the account to be jointly owned or individual. If you choose joint ownership, you'll need to enter your spouse or partner's information, including their name, Social Security number, and address. If you choose individual ownership, Fidelity will take you to the next page.

If you're opening a brokerage account, you'll be asked to estimate how often you'll be trading. You'll also be asked whether you're associated with a broker-dealer, a stock exchange, or the Financial Industry Regulatory Authority, as well as whether you or any immediate family members are a director or a 10% shareholder of a publicly held company. Most people will answer "no" to these questions.

You'll also need to select your investment or trading preferences. This is where you can choose from multiple base currencies. If possible, try to deposit money into your brokerage account in your account's base currency to avoid conversion fees.

Reviewing and confirming

You're almost done! In this section, you'll review your personal information, the account type you selected, your employment information, and some general account settings.

You'll also go through some technical information, such as the customer agreement, terms and conditions, and the electronic delivery agreement. Take the time to read through these documents carefully before clicking the "yes" button at the bottom to indicate your agreement.

The next page will display a taxpayer identification agreement and some additional terms. Once you have read and understood these, click "Open account."

At this point, you've successfully opened your Fidelity account! Congratulations!

From here, you'll need to link your bank account and fund your new brokerage account. It usually takes about two business days for electronic transfers to become available for trading. Once the funds are available, you can start investing in stocks, funds, or other securities.

While the process of opening a Fidelity brokerage account is simple, the decisions you make afterward will require careful strategy and knowledge. Be sure to do your research or consult a financial advisor before making any significant investment decisions.

Frequently asked questions