Fidelity Investments: Unlocking Your Financial Future

Fidelity Investments is an American multinational financial services corporation based in Boston, Massachusetts. It is one of the largest asset managers in the world, with $5.8 trillion in assets under management and $15 trillion in assets under administration as of September 2024. Fidelity offers a wide range of financial products and services, including brokerage services, mutual funds, investment advice, retirement services, and wealth management. The company has a strong reputation for its mutual funds, providing a large selection of no-transaction-fee funds, including its Fidelity Zero index funds, which have no expense ratio and no minimum investment requirement. In addition, Fidelity offers commission-free trades, straightforward pricing, and expert insights and investing tools. The company has also been recognized for its innovative use of technology and commitment to customer service, making it a top choice for investors seeking a well-rounded brokerage firm.

Zero commissions on stock or ETF trades

Fidelity Investments is a financial services corporation that offers zero commissions on stock or ETF trades. This means that investors can buy and sell stocks and ETFs without paying any fees or charges. This is a significant advantage for investors, as it reduces the cost of trading and makes it more accessible to those with smaller amounts to invest.

Fidelity's zero-commission policy is part of its commitment to providing straightforward pricing and value to its customers. The company has also eliminated account fees, such as transfer and account closure fees, which are commonly charged by other brokers. This makes Fidelity a very cost-effective option for investors.

In addition to zero commissions on stock and ETF trades, Fidelity also offers a range of other features that make it a popular choice for investors. These include:

• A large selection of mutual funds, including index funds with no expense ratio and no minimum investment requirement.
• Educational resources and research tools for both beginner and advanced investors.
• Trading platforms, such as Fidelity.com and Active Trader Pro, that offer advanced screening and customisation options.
• Customer support options, including a network of physical branches and 24/7 phone, chat and email support.
• A high interest rate on uninvested cash, with cash automatically directed into a money market fund.

Overall, Fidelity's zero-commission policy on stock and ETF trades, combined with its other features, makes it a very attractive option for investors. The company's commitment to providing value and its focus on meeting the needs of its customers have made it one of the largest and most well-respected financial services corporations in the world.

No-expense-ratio index funds

Fidelity Investments is a well-rounded brokerage that offers a range of no-expense-ratio index funds, making it an attractive option for investors seeking to minimize costs. These funds, known as Fidelity Zero index funds, include the Fidelity ZERO Total Market Index Fund (FZROX), the Fidelity ZERO International Index Fund (FZILX), the Fidelity ZERO Large Cap Index Fund (FNILX), and the Fidelity ZERO Extended Market Index Fund (FZIPX).

The key advantage of these funds is that they provide investors with broad market exposure at no additional cost. Traditional index funds typically charge an expense ratio, which is a percentage of assets under management used to cover fund expenses such as management fees and administrative costs. However, with a 0% expense ratio, investors in Fidelity Zero index funds can avoid these ongoing fees, maximizing their returns over time.

Fidelity Zero index funds also offer flexibility in terms of investment minimums. There are no minimum investments required to participate in these funds, making them accessible to a wide range of investors. This feature is particularly beneficial for those who are just starting their investment journey or those who wish to invest smaller amounts over time.

It is worth noting that while the Fidelity Zero index funds provide a cost-effective way to gain market exposure, they may not be as comprehensive as traditional index funds. Some investors have noted that these funds use statistical sampling methods to invest in a smaller selection of underlying stocks, which may result in slight deviations in performance compared to their counterparts. Additionally, these funds are only available through Fidelity retail accounts and are not portable to other brokerages.

Despite these considerations, the Fidelity Zero index funds can be a compelling option for cost-conscious investors. By eliminating expense ratios, Fidelity has made it easier for individuals to build a well-diversified portfolio without incurring ongoing fees. This offering aligns with Fidelity's commitment to providing straightforward pricing and value to its customers.

Top-notch research tools

Fidelity Investments is an American multinational financial services corporation based in Boston, Massachusetts. It is one of the largest asset managers in the world, with trillions of dollars in assets under management and administration.

Fidelity offers a range of investment products and services, including brokerage services, mutual funds, retirement services, index funds, wealth management, and life insurance. The company has been recognised for its top-notch research tools and educational resources, which are suitable for investors of all levels.

• Third-party reports: Fidelity provides a large library of third-party research reports from well-known providers such as Argus, Zacks, Ford, and Refinitiv/Verus. These reports offer insights and analysis on various investments, helping investors make informed decisions.
• Analyst ratings and recommendations: The research tools provide analyst ratings and recommendations for different investments. This includes the Equity Summary Score, which consolidates ratings from multiple research providers, giving an accuracy-weighted sentiment for each investment.
• Screeners and filters: Fidelity's screeners allow investors to filter and select investments based on various criteria. For example, the stock screener has pre-made screens for strategies like growth, value, technical, and income, while also offering customisation options with 26 criteria to choose from.
• Option screener: Powered by LiveVol, the option screener allows users to choose from built-in scans or create their own criteria, such as volume, implied volatility, time spreads, and order flow.
• Fixed Income Screener: This tool helps investors find suitable fixed-income assets, including bonds, CDs, mutual funds, and ETFs. It provides a grid with average interest rates for different maturities and credit qualities, making it easy for investors to find assets that match their criteria.
• News and Guidance: Fidelity integrates a customisable newsfeed with curated news from major sources across the internet. The news is categorised into sections like U.S. Markets and Economy, Company News, Technology, International, and Investing Ideas, providing a comprehensive view of market trends and developments.
• Fractional Dividend Reinvestment Plan (DRIP): This feature allows investors to automatically reinvest their dividends, including fractional shares, to compound their investment returns over time.
• Cash sweep program: Fidelity offers a cash sweep program where customers can choose from a selection of money market mutual funds for their uninvested cash. This provides a decent return, with a seven-day yield of over 4% in some cases.

In summary, Fidelity Investments provides a comprehensive suite of research tools that offer insights, analysis, and data for investors. With its extensive third-party reports, screeners, news, and educational resources, Fidelity empowers investors to make informed decisions and build their investment portfolios with confidence.

Highly-rated mobile app

Fidelity Investments has a highly-rated mobile app that is suitable for all investors, from beginners to advanced active traders. The app includes real-time quotes, multi-leg options trading, a consolidated version of the company's research offerings, and a notebook to save ideas and articles from a mobile browser. It also includes a customisable newsfeed and the ability to schedule appointments with an existing Fidelity advisor.

The app has been streamlined and simplified to support better trading, portfolio monitoring, and research. It is available on iOS and Android devices.

NerdWallet has rated Fidelity the Best App for Investing in 2022, 2023, and 2024. StockBrokers.com also rated it the No. 1 Overall Broker in 2022, 2023, and 2024.

Fidelity also offers a customised mobile app experience for the Fidelity Youth Account, an investment account designed for teenagers aged 13 to 17.

No account fees

Fidelity Investments is a financial services corporation based in Boston, Massachusetts. It is one of the largest asset managers in the world, with trillions of dollars in assets under management and administration.

Fidelity offers a range of financial products and services, including brokerage services, mutual funds, investment advice, retirement services, and wealth management. The company has been recognised for its low-cost or no-fee structure, user-friendly platforms, and comprehensive research tools.

One of the key advantages of Fidelity is its commitment to eliminating account fees. This means that customers do not have to pay any annual, transfer, closing, or inactivity fees. This is especially beneficial for those who want to avoid unnecessary costs that can erode their investment returns.

• Enhanced Return on Investment: By eliminating account fees, Fidelity ensures that customers' returns are not diminished by transaction costs. This means that investors get to keep more of their profits, which can compound over time.
• Accessibility: The absence of account fees makes Fidelity's services more accessible to a wider range of individuals. This includes first-time investors or those with limited funds, as there are no minimum balance requirements or maintenance fees.
• Simplicity: Fidelity's straightforward pricing structure makes it easier for customers to understand the costs associated with their investments. There are no hidden fees or surprise charges, providing transparency and peace of mind.
• Flexibility: With no account fees, customers have greater flexibility in how they manage their investments. They can open and close accounts without incurring penalties, allowing them to adapt their investment strategies as needed.
• Cost Savings: Eliminating account fees can result in significant cost savings over time, especially for those with multiple or large accounts. This allows investors to allocate more of their funds towards their investments rather than administrative costs.
• Encouraging Long-Term Investing: The absence of account fees encourages long-term investing. Without the burden of annual or maintenance fees, investors are more likely to maintain their positions over the long term, potentially benefiting from compound growth.
• Competitive Advantage: By eliminating account fees, Fidelity sets itself apart from competitors. This no-fee structure can attract more customers and strengthen customer loyalty, as it demonstrates a commitment to providing value and keeping costs low.

In summary, Fidelity's no-account-fee policy is a significant advantage for investors. It removes barriers to entry, encourages long-term investing, enhances returns, and provides a simple and transparent pricing structure. This approach aligns with Fidelity's mission to make investing and financial planning clear and accessible to all.

Frequently asked questions