Inaya Mclaughlin
Fidelity Investments offers $0 commission trades for online US stock, ETF, and option trades. There are no account fees or minimums to open a retail brokerage account, including IRAs. The company also offers a range of no-expense-ratio index funds, which are free to investors. With no account fees, a wide range of investment options, and industry-leading pricing, Fidelity is a great choice for investors looking for a well-rounded brokerage.
| Characteristics | Values |
|---|---|
| Commission-free trades | $0 for online US stock, ETF, and option trades |
| Zero expense ratio index funds | Fidelity® ZERO Total Market Index Fund, Fidelity® ZERO International Index Fund, Fidelity® ZERO Extended Market Index Fund, Fidelity® ZERO Large Cap Index Fund |
| Zero account minimums | No minimums to open a retail brokerage account |
| Zero account fees | No account fees to open a Fidelity retail IRA |
| Options trades | $0.65 per contract |
| US Treasury trades | $0 |
| Bond trades | $1 per bond or CD in secondary trading |
| Non-Fidelity funds | $0 on purchase, $49.95 on redemption if held less than 60 days |
| Margin rates | As low as 9.25% |
| ETF trades | $0 |
What You'll Learn
Zero commission trades
Fidelity offers zero-commission trades for online US stocks, exchange-traded funds (ETFs), and options, with a $0.65 per contract fee for the latter. This means that investors can buy and sell these financial products without having to pay a fee for each transaction.
Fidelity's zero-commission trades are part of its straightforward pricing strategy, which also includes no account fees and no minimums to open a retail brokerage account, including IRAs. This means that investors can keep more of their money invested without incurring additional costs.
In addition to zero-commission trades, Fidelity also offers other benefits such as industry-leading margin rates, a broad range of investment options, powerful tools and research, and fractional share trading.
Fidelity has received numerous awards and recognition for its services, including being rated the "#1 Overall Broker" by multiple publications. Its zero-commission trades and low fees make it an attractive option for investors looking to minimize costs.
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Zero expense ratio index funds
Fidelity Investments offers zero-expense-ratio index funds with no minimum investment requirements. These include:
- Fidelity® ZERO Total Market Index Fund (FZROX)
- Fidelity® ZERO International Index Fund (FZILX)
- Fidelity® ZERO Large Cap Index Fund (FNILX)
- Fidelity® ZERO Extended Market Index Fund (FZIPX)
These funds are designed to provide investment results that correspond to the total return of a broad range of publicly traded companies in the US and foreign developed and emerging stocks, with a 0% expense ratio.
Fidelity's zero-expense-ratio index funds are part of the company's commitment to providing value to its customers. The company also offers zero minimum investment mutual funds, no minimums to open an account, no account fees for retail brokerage accounts, and 24/7 live customer service.
Fidelity's zero-expense-ratio index funds are unique in the industry, and the company was the first broker to bring such funds to market. These funds offer investors a way to access a diverse range of investments with no additional fees, making them a compelling option for those seeking to minimise costs while investing.
In addition to its zero-expense-ratio index funds, Fidelity also offers a range of other investment options, including commission-free trades on stocks, options, and ETFs, as well as a large selection of no-transaction-fee mutual funds. The company has a strong reputation for its mutual funds, educational resources, and research offerings, making it a well-rounded choice for both beginner and active investors.
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Margin rates
Fidelity's current base margin rate, effective since 28 July 2023, is 12.325%. The 9.25% rate is available for debit balances over $1 million.
Margin trading is not suitable for all investors. It is important to assess your financial circumstances and risk tolerance before trading on margin.
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No account minimums
Fidelity offers no-account-minimum brokerage accounts, which means you can open an account and start investing with any amount. This flexibility allows investors to choose from a wide range of investment options, including stocks, bonds, ETFs, options, and mutual funds.
The Fidelity Account® is a multi-feature trading and investing account that provides access to various investment choices with no account fees or minimums. You can invest with as little as $1, making it an excellent option for those who want to trade any amount. This account also offers potential tax-free growth and withdrawals, providing flexibility to withdraw contributions at any time for any reason, without penalties.
Fidelity also offers a Roth IRA, which allows you to save for retirement with after-tax dollars, and the Rollover IRA helps you consolidate old 401(k) and workplace accounts into a centralized account without taxes or penalties. Both these accounts have no account fees or minimums, providing an accessible way to save for retirement and continue investing with a wide range of options.
Additionally, the Traditional IRA and Inherited IRA options have no account fees or minimums, providing flexibility in retirement planning.
The Fidelity Cash Management Account is another attractive option with no account fees or minimums. It offers features similar to a traditional checking account but with more competitive rates on your cash. This account includes global reimbursement on ATM withdrawals, a free debit card, check writing, and Bill Pay, along with an FDIC-insured option on cash balances.
Fidelity also offers a range of investment accounts for specific purposes, such as the SEP IRA for self-employed individuals and small business owners, the 529 Account for education savings, and the Custodial Account for investing for a child's future, all of which have no account minimums.
With no account minimums, Fidelity provides investors with the flexibility to start investing and saving for their future, regardless of the amount they have to invest initially.
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Zero account fees
Fidelity offers zero account fees for its retail brokerage accounts. This means that there are no account fees to open a Fidelity retail IRA, and no minimums to open a retail brokerage account, including IRAs.
Fidelity's account minimum is $0, which has become the industry standard for brokers. Some investment choices, such as mutual funds, may require a minimum initial investment.
Fidelity offers $0 trading commissions, a selection of more than 3,300 no-transaction-fee mutual funds, top-notch research tools, and a mobile platform.
Fidelity has eliminated nearly all account fees, including the transfer and account closure fees commonly charged by brokers.
The company's zero-fee index funds and strong customer service reputation are just icing on the cake.
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Frequently asked questions
Yes, Fidelity Investments offers $0 commission trades for online US stock, ETF, and option trades.
Yes, there is a $0.65 per contract fee for options trades, and a $19.95 transaction fee for representative-assisted treasury auction orders.
Fidelity Investments offers a broad range of investments, including stocks, options, ETFs, mutual funds, bonds, CDs, IPOs, and precious metals. They also provide in-depth research from 20+ independent providers and sophisticated trading technology like Active Trader Pro.
Fidelity Investments offers zero expense ratio index mutual funds, and their margin rates are among the most competitive in the industry, as low as 9.25%.
