Fidelity Investments: Trade Free Funds And Their Benefits

Fidelity is a well-rounded brokerage that offers no commissions on stock or ETF trades and a selection of no-expense-ratio index funds. It provides investors with a range of investment options, including stocks, bonds, mutual funds, ETFs, options, forex, and cryptocurrencies such as Bitcoin and Ethereum.

Fidelity offers over 3,300 no-transaction-fee mutual funds, including its own Fidelity Zero index funds, which have no expense ratio or minimum investment requirement. The company also provides investors with the opportunity to purchase fractional shares, allowing for greater diversification.

Fidelity's trading platforms, Fidelity.com and Active Trader Pro, are free for all customers and include advanced screeners, research and strategy-testing tools, and customisable features.

With its range of investment options, user-friendly platforms, and low fees, Fidelity is an attractive choice for both beginner and active investors.

Zero expense ratio index funds

Fidelity offers a range of zero expense ratio index funds, which means there are no fees to invest in these funds. Here are some examples:

Fidelity ZERO Large Cap Index Fund (FNILX)

FNILX seeks to provide investment results that correspond to the total return of a broad range of large-capitalization US companies. There is a 0% expense ratio and no minimum investment required to invest in FNILX.

Fidelity ZERO Extended Market Index Fund (FZIPX)

FZIPX aims to provide investment results that match the total return of a broad range of mid- to small-capitalization US companies. It has a 0% expense ratio, and there is no minimum investment required.

Fidelity ZERO Total Market Index Fund (FZROX)

FZROX seeks to provide investment results that correspond to the total return of a broad range of publicly traded companies in the US. This fund also has a 0% expense ratio and no minimum investment requirement.

Fidelity ZERO International Index Fund (FZILX)

FZILX aims to provide investment results that match the total return of foreign developed and emerging stocks. It has a 0% expense ratio, and there is no minimum investment needed.

Fidelity introduced these zero expense ratio index funds to offer value that cannot be found elsewhere. These funds provide broad diversification, lower management and transaction costs, and no sales charges. They are well-suited for investors looking to build a balanced and affordable retirement portfolio.

No account fees

Fidelity offers no-account fees for its retail brokerage accounts. This means that there are no fees to open or maintain a Fidelity account. However, certain expenses charged by investments, such as funds, managed accounts, and specific health savings accounts (HSAs), may still apply. These expenses are outlined in detail on the Fidelity website.

Fidelity also offers zero expense ratio index mutual funds, including the Fidelity ZERO Total Market Index Fund, the Fidelity ZERO International Index Fund, the Fidelity ZERO Large Cap Index Fund, and the Fidelity ZERO Extended Market Index Fund. These funds are available to individual retail investors who purchase their shares through a Fidelity brokerage account and carry no expense ratio or minimum investment requirement.

In addition to no-account fees, Fidelity also offers $0 trading commissions on U.S. stock, ETF, and option trades. This means that investors can buy and sell stocks, ETFs, and options without paying any commission fees. However, options trades do carry a $0.65 per-contract charge, which is considered relatively high compared to other brokers.

Fidelity also provides a wide range of no-transaction-fee mutual funds, including its own Fidelity Zero index funds, which carry no expense ratio and have no minimum investment requirement. This means that investors can buy and sell these funds without paying any transaction fees, making them a cost-effective option for investors.

Overall, Fidelity's lack of account fees, commission-free trades, and extensive selection of no-transaction-fee mutual funds make it an attractive option for investors looking to minimize costs.

No minimum investment

Fidelity offers a range of investment options with no minimum investment. These include:

Fidelity ZERO Index Funds

Fidelity offers four zero expense ratio index mutual funds with no minimum investment requirement:

• Fidelity ZERO Large Cap Index Fund (FNILX): Seeks to provide investment results that correspond to the total return of a broad range of large-capitalization U.S. companies.
• Fidelity ZERO Extended Market Index Fund (FZIPX): Seeks to provide investment results that correspond to the total return of a broad range of mid- to small-capitalization U.S. companies.
• Fidelity ZERO Total Market Index Fund (FZROX): Seeks to provide investment results that correspond to the total return of a broad range of publicly traded companies in the US.
• Fidelity ZERO International Index Fund (FZILX): Seeks to provide investment results that correspond to the total return of foreign developed and emerging stocks.

Fidelity FundsNetwork

Fidelity's FundsNetwork allows investors to invest in mutual funds from hundreds of fund companies outside of Fidelity, with no transaction fees and no minimum investment.

Fractional Shares

Fidelity offers the ability to buy US stocks and ETFs for as little as $1 with fractional shares. This allows investors to diversify into higher-cost stocks by buying a slice of a share rather than the full amount.

Fidelity Youth Account

The Fidelity Youth Account is an investment account designed for teenagers (aged 13 to 17). It allows a parent or guardian to monitor the teenager's activity and offers access to stocks and ETFs, including fractional shares, and select Fidelity mutual funds (including Fidelity ZERO funds) with no minimum investment.

Wide range of investment options

Fidelity offers a wide range of investment options, including commission-free stock, options, and ETF trades. With over 70 years in the business, Fidelity has the tools and experience to help investors build an investment strategy that matches their investing style.

Fidelity's investment options include:

• Stocks: Trade shares of publicly traded companies in both domestic and international markets, with access to over 7,000 US stocks and ETFs through fractional share trading.
• Exchange-Traded Funds (ETFs): Actively and passively managed funds that can be bought and sold throughout the market day. Fidelity offers a wide selection of ETFs that may help with potential income, diversification, and tax efficiencies.
• Mutual Funds: Fidelity offers a strong selection of mutual funds, including its own Fidelity Zero index funds, which have no expense ratio and minimum investment requirement. Investors can also choose from over 10,000 funds from other companies, many of which are available with no transaction fees through Fidelity's FundsNetwork.
• Options: Options trading is available on Fidelity, although it does carry a $0.65 per-contract charge.
• FOREX: Fidelity allows investors to trade in foreign currencies.
• Precious Metals: Investors can buy gold, silver, platinum, and palladium through Fidelity to help diversify their portfolios.
• Cryptocurrencies: Fidelity Crypto offers investors the ability to buy and sell Bitcoin and Ethereum, starting with as little as $1. However, it is important to note that crypto is a highly volatile asset class and is not suitable for all investors.
• Bonds: Fidelity offers a substantial selection of bonds, including FDIC-insured CDs and bond funds. Investors can also buy over 100,000 individual bonds, including corporate, municipal, and government bonds.

Fidelity also provides industry-leading research and analysis tools to help investors make informed decisions. With flexible trading platforms, investors can choose the technology that best suits their needs, including an easy-to-use, award-winning app that puts all investment activity in one place.

Industry-leading research

Fidelity's research and analysis tools are ranked #1 by Investor's Business Daily. The company offers in-depth research from over 20 independent providers, including Zacks Investment Research, Argus, and LiveVol. This includes research on stocks, ETFs, and options strategy ideas.

Fidelity's stock quote pages show an Equity Summary Score, which consolidates ratings from these research providers, giving an "accuracy-weighted sentiment" derived from their recommendations. Investors can also take a short quiz to identify providers that match their investment style and evaluate the accuracy of providers' recommendations using a research firm scorecard.

Fidelity's research capabilities are further enhanced by its global network of analysts and one of the industry's largest research departments, allowing investors to take advantage of ideas from fund managers and global research.

The company's trading platforms, Fidelity.com and Active Trader Pro, also provide advanced screeners with research and strategy-testing tools based on 10 years of historical data.

Frequently asked questions