Fidelity Brokeragelink: Smart Investment Options For Your Money

Fidelity BrokerageLink® is a self-directed brokerage account that gives investors access to a wide range of investment options beyond the traditional offerings available within their retirement plans. BrokerageLink operates as a separate account within your existing retirement plan, allowing you to transfer funds and invest in a variety of securities, providing the opportunity to diversify your portfolio and enhance your investment returns. It is important to note that not all retirement plans offer BrokerageLink, so investors should check with their employer or plan administrator to see if it is available to them.

By using BrokerageLink, investors gain more control over their retirement investments and can actively manage their portfolios, make informed investment decisions, and react quickly to market changes. This flexibility is particularly advantageous for those with a deep understanding of the market who prefer a hands-on approach to investing.

Before enrolling in BrokerageLink, investors should review the account requirements and any associated fees to make an informed decision about whether it aligns with their investment goals and risk tolerance. It is also crucial to understand the potential risks and considerations, such as investment risk, market volatility, and additional fees and expenses associated with using the service.

Stocks, bonds, mutual funds, and ETFs

Fidelity BrokerageLink® is a self-directed brokerage account that gives investors access to a wide range of investment options beyond the traditional offerings available within their retirement plans. With BrokerageLink, investors can buy and sell individual stocks, bonds, mutual funds, exchange-traded funds (ETFs), and more.

Stocks

BrokerageLink allows investors to trade shares of publicly traded companies in both domestic and international markets. This gives investors the opportunity to buy and sell individual stocks and potentially achieve higher returns.

Bonds

Investors can also use BrokerageLink to buy and sell bonds, which are a type of security that represents a loan from an investor to a borrower, such as a corporation or government. Bonds can provide a steady source of income and help diversify an investor's portfolio.

Mutual Funds

BrokerageLink offers access to thousands of mutual funds from many different mutual fund companies. Mutual funds are a type of investment vehicle that pools money from multiple investors to purchase a diversified portfolio of stocks, bonds, or other securities. This gives investors the benefit of professional money management and a well-diversified portfolio.

ETFs

Exchange-Traded Funds (ETFs) are another type of investment vehicle that can be traded through BrokerageLink. ETFs are funds that trade on an exchange like a stock, and they can be bought and sold throughout the market day. ETFs offer investors the benefits of diversification, flexibility, and lower costs compared to traditional mutual funds.

By utilising BrokerageLink, investors can gain access to a wide range of investment options and take control of their retirement planning. It is important to carefully consider the risks and fees associated with using BrokerageLink and ensure that it aligns with your investment objectives and risk tolerance.

Precious metals

Fidelity offers investors the opportunity to purchase precious metals as part of a diversification strategy. The minimum initial investment is $2,500, and $1,000 for IRAs. Trading hours are from 8:00 a.m. to 3:00 p.m. ET. All trades must be placed by calling Fidelity.

Gold options include:

• Gold American Buffalo (99.99% pure)
• Gold American Eagle (91.6% pure)
• Gold Australian Kangaroo (99.99% pure)
• Gold Austrian Philharmonic (99.99% pure)
• Gold Canadian Maple Leaf (99.99% pure)
• Gold South African Krugerrand (91.6% pure)
• Gold Bullion Bars (99.5%–99.99% pure)

Silver options include:

• Silver American Eagle (99.9% pure)
• Silver Australian Kookaburra (99.9% pure)
• Silver Canadian Maple Leaf (99.99% pure)
• Silver Bullion Bars (99.9% pure)

Platinum options include:

• Platinum American Eagle (99.95% pure)
• Platinum Canadian Maple Leaf (99.95% pure)
• Platinum Bullion Bars (99.95% pure)

Palladium options include:

• Palladium Canadian Maple Leaf (99.95% pure)
• Palladium Bullion Bars (99.95% pure)

Fidelity also offers investors the opportunity to purchase mutual funds and exchange-traded funds (ETFs) that invest in the securities of companies involved in the production of gold and/or other precious metals. This provides investors with indirect exposure to precious metals and greater diversity than direct investment in a single commodity.

Some popular precious metals mutual funds include:

• Allspring Precious Metals Fund: This fund focuses on long-term capital growth and invests primarily in companies involved in the exploration, mining, and processing of gold and other precious metals.
• Fidelity Select Gold Portfolio Fund: This fund aims to provide investors with capital appreciation by investing in the common stocks of corporations involved in gold-related operations and physical gold.
• Gabelli Gold Fund: This fund seeks long-term capital appreciation by investing in the equity securities of corporations engaged in gold-related operations and gold bullion.
• Victory Capital Precious Metals and Minerals Fund: This fund aims to preserve purchasing power against inflation and reduce portfolio volatility by investing in companies involved in the exploration, mining, or processing of gold, silver, platinum, and other precious minerals.
• Invesco Gold and Special Minerals Fund: This fund seeks long-term capital appreciation by investing in the stocks of mining companies focused on gold and other precious metals.

In summary, investing in precious metals through Fidelity's BrokerageLink service can be a good way to diversify your portfolio and hedge against inflation. However, it is important to keep in mind the volatility of the market and the associated risks and fees.

Cryptocurrency

Fidelity offers the opportunity to trade cryptocurrency in the same place where you trade stocks. With Fidelity Crypto®, you can trade and secure crypto like bitcoin, ethereum, and litecoin for as little as $1. You can open a Fidelity Crypto® account if you're a US citizen over the age of 18 and reside in a state where Fidelity Digital Assets® can serve customers.

Fidelity Crypto® is built into the award-winning Fidelity® mobile app, so you'll have all your traditional and crypto investments in one place. Fidelity also offers a range of educational resources to help you grow your crypto knowledge, including news, articles, podcasts, webinars, and on-demand education.

Fidelity Digital Assets® has offered institution-level security and services since 2018, and the company has been an innovator in crypto since 2014 when it began mining bitcoin. As crypto evolves, Fidelity is committed to unlocking new investment opportunities for its clients.

It is important to note that crypto is for investors with a high-risk tolerance. Crypto is highly volatile, can become illiquid at any time, and investors could lose their entire investment. Crypto may also be more susceptible to market manipulation than securities and does not have the same regulatory protections as registered securities.

Self-directed investing

Fidelity BrokerageLink® is a self-directed brokerage account that gives investors access to a wide range of investment options beyond the traditional offerings available within their retirement plans. It is a do-it-yourself option designed for investors who want more choice in their investments. With BrokerageLink, investors can buy and sell individual stocks, bonds, mutual funds, exchange-traded funds (ETFs), and more. This flexibility allows investors to tailor their investment strategies to their specific needs and goals.

BrokerageLink operates as a separate account within your existing retirement plan. It is important to note that not all retirement plans offer BrokerageLink, so investors should check with their employer or plan administrator to see if it is available to them. Once enrolled, investors can transfer funds from their retirement plan into the BrokerageLink account and start investing in a wide range of securities.

One of the primary benefits of using BrokerageLink is the expanded investment options it offers. While traditional retirement plans typically limit investors to a selection of mutual funds and other pre-determined investment vehicles, BrokerageLink provides access to thousands of mutual funds and securities, including individual stocks, bonds, and ETFs, allowing for greater diversification and the potential for higher returns.

Another advantage of BrokerageLink is the flexibility and control it gives to investors. They can actively manage their portfolios, make informed investment decisions, and react quickly to market changes. This flexibility is particularly beneficial for those with a deep understanding of the market and a preference for a hands-on approach to investing.

Additionally, BrokerageLink enables investors to create a personalized investment strategy that aligns with their individual needs and preferences. Whether an investor is conservative and seeks steady growth or more aggressive and aims for higher returns, BrokerageLink allows them to tailor their portfolio accordingly.

It is important to consider the potential risks and considerations of using BrokerageLink. Investing in securities involves risks, including the potential loss of principal. The stock market is subject to fluctuations, and investments can experience significant volatility. There may also be additional fees and expenses associated with using the service, so it is crucial to understand these costs and factor them into the investment strategy and overall financial plan.

Cost savings

Fidelity's BrokerageLink® is a self-directed brokerage account within your 401(k) or 403(b) plan, offering a wider selection of investment options. It can be a cost-saving option for investors in several ways:

Low Fees

Fidelity's BrokerageLink® has the same low prices as its retail brokerage accounts. There are no annual fees, and commissions are the same as retail. For example, Fidelity funds, treasury bonds, new-issue brokered CDs, and select iShares ETFs are free, while Vanguard ETFs cost $5 per trade. In comparison, other 401(k) providers often charge high annual maintenance fees and trading commissions for self-directed brokerage accounts, typically ranging from $100 to $200 per year.

Exchange-Traded Funds (ETFs)

BrokerageLink® provides access to a broader range of investment options, including ETFs. ETFs are typically known for having lower expense ratios than comparable mutual funds. By investing in ETFs with lower fees, investors can reduce their overall investment costs.

Institutional Share Class Mutual Funds

Through the brokerage window, investors may be able to access institutional share class mutual funds, which often have lower fees and higher investment minimums than their retail counterparts.

Index Funds

Fidelity's BrokerageLink® offers access to a range of index funds, which are known for having lower fees than actively managed funds. By investing in index funds through BrokerageLink®, investors can benefit from a more cost-effective option compared to the limited range of pre-selected mutual funds typically offered by traditional retirement plans.

Diversification

The expanded investment universe offered by BrokerageLink® allows investors to pursue a more diversified portfolio. Diversification can help reduce overall investment risk and potentially lower the impact of individual security or sector-specific losses.

While BrokerageLink® offers cost-saving opportunities, it's important to carefully analyse fees and investment options to ensure they align with your financial goals and risk tolerance.

Frequently asked questions