Fidelity Investments: Free Or Fee-Based Services?

Fidelity Investments is a full-service financial brokerage firm that offers a range of investment options, including stocks, bonds, mutual funds, and ETFs. With no account fees and zero commissions on stock or ETF trades, it provides a platform for both beginner and active investors to manage their finances. The company has a strong reputation for its mutual funds, offering a large selection of no-transaction-fee funds, including its own zero-expense-ratio index funds. Additionally, Fidelity provides extensive research tools, a highly-rated mobile app, and educational resources for investors of all levels. While there is no fee to open a retail brokerage account, certain trades, such as options, incur a per-contract charge. Overall, Fidelity's comprehensive services and low-cost structure make it a popular choice for investors.

No fees or minimums to open a retail brokerage account

Fidelity Investments offers a range of investment options, from stocks and bonds to mutual funds and retirement accounts. One of the key advantages of Fidelity is its low costs and account fee structure.

When it comes to opening a retail brokerage account, Fidelity does not charge any fees or impose minimum balance requirements. This means that anyone can open a brokerage account with Fidelity without having to worry about upfront costs or maintaining a minimum balance. This makes Fidelity's brokerage services accessible to a wide range of investors, from beginners to those with more substantial funds.

The absence of account fees and minimums is a significant advantage, especially when compared to other investment platforms and brokers that may charge account maintenance fees or require a minimum balance to be maintained. This feature allows investors to maximize their investment potential without incurring additional costs.

In addition to the absence of account fees and minimums, Fidelity also offers commission-free trades for online US stocks, ETFs, and options. This further enhances the attractiveness of Fidelity's brokerage services, as investors can buy and sell these financial instruments without incurring transaction fees.

Fidelity's commitment to providing accessible and low-cost investment options extends beyond just brokerage accounts. For example, they also offer a range of no-transaction-fee mutual funds, including their Fidelity Zero index funds, which have no expense ratio and no minimum investment requirement. This means that investors can access a diverse range of investment options without incurring additional fees, making it easier to build a balanced portfolio.

Overall, Fidelity's approach to pricing and account structure is designed to be straightforward and transparent. By eliminating account fees and minimums for retail brokerage accounts, they have created an inclusive platform that empowers investors to take control of their financial future without worrying about excessive costs or balance requirements.

Zero expense ratio index funds

Fidelity Investments offers zero expense ratio index funds with no minimum investment requirement. These funds include:

• Fidelity ZERO Large Cap Index Fund (FNILX)
• Fidelity ZERO Extended Market Index Fund (FZIPX)
• Fidelity ZERO Total Market Index Fund (FZROX)
• Fidelity ZERO International Index Fund (FZILX)

These funds provide investors with exposure to a broad range of large-capitalization, mid- to small-capitalization, total market, and international companies, respectively, without charging any management fees. This means that investors can access the returns of these diversified portfolios without paying any ongoing expenses, making them a cost-effective option for building a long-term investment portfolio.

In addition to the zero expense ratio funds, Fidelity also offers a range of other low-cost investment options, including mutual funds and exchange-traded funds (ETFs), many of which have no transaction fees. This makes Fidelity a compelling choice for investors looking to minimize fees and maximize their returns.

Fidelity's commitment to providing value is further demonstrated by their offering of no-account fees for retail brokerage accounts, no minimums to open an account, and 24/7 live customer service. With competitive expenses and a wide range of investment options, Fidelity makes investing accessible and affordable for investors of all levels.

$0 commission for online US stock, ETF, and option trades

Fidelity offers $0 commission for online US stock, ETF, and option trades. This means that investors can trade US stocks, ETFs, and options without paying any commission fees. This feature is available 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. There is also an Options Regulatory Fee for both option buy and sell transactions, which is subject to change.

In addition to commission-free trades, Fidelity offers other benefits such as no account fees and no minimums to open a retail brokerage account, including IRAs. This means that investors can open an account without any initial deposit requirements.

Fidelity also provides a broad choice of investments, including stocks, options, ETFs, mutual funds, bonds, CDs, IPOs, and precious metals. Investors can access powerful tools and research through Fidelity, such as in-depth research from 20+ independent providers and trading technology like Active Trader Pro®.

With regards to options trading, it's important to note that there is a $0.65 per contract charge. This means that while the trade itself may be commission-free, there is an additional fee for each options contract involved in the trade.

Overall, Fidelity's $0 commission for online US stock, ETF, and option trades, along with its other features and benefits, makes it a competitive choice for investors.

24/7 customer service

Fidelity Investments offers 24/7 customer service, providing support to its customers whenever they need it. This includes access to experienced investment and trading consultants, with over 150 investor centres. Fidelity's customer service can be accessed by phone, email, chat, social media, or in person at a physical branch.

Fidelity's customer service is highly regarded, with the company receiving recognition and awards for its offerings. The company's customer support options also include an online learning centre, which uses machine learning to provide educational materials tailored to each customer's investing behaviour.

Fidelity's customer service team can provide assistance with a range of issues, from general inquiries to more complex matters such as investment advice and technical support. The company's website also features a virtual assistant, which can answer common questions and direct users to the appropriate resources.

In addition to its 24/7 customer service, Fidelity also offers a dedicated team of professionals who can provide personalized advice and support for those with specific investment needs. This team is available to help customers navigate the often complex world of investing and ensure they are making well-informed decisions.

Overall, Fidelity's commitment to customer service is evident in the range of options available to its customers, ensuring they can get the help they need, whenever they need it.

Wide range of investment choices

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

• Stocks: domestic and international
• Exchange-traded funds (ETFs): 28 from Fidelity, 329 from iShares, and 146 from additional industry leaders
• Options: equity, ETF, and index; includes weekly expirations
• Mutual Funds: 3,700+ no transaction fee/load funds from Fidelity and other companies
• Bonds and CDs: 30,000+ investment-grade bonds and other fixed-income securities
• Precious metals: gold, silver, platinum, and palladium
• Initial public offerings (IPOs)
• Real estate investment trusts (REITs)
• Fractional shares
• American depository receipts (ADRs)

Fidelity also offers a substantial selection of bonds, with investors having access to over 100,000 individual bonds, including corporate, municipal, and government bonds. In addition, customers can also buy FDIC-insured CDs and bond funds.

Frequently asked questions