Fidelity Investments Review 2024

Stock Trade Fee:N/A

Account Minimum:$0

Promotion:N/A

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Trading involves substantial risk of loss

Eric Rosenberg

Last updated: Mar 04, 2021

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Fidelity is a popular brokerage for a large variety of investment needs. It offers competitive pricing and is perhaps best known for its family of low-cost mutual funds and ETFs. Fidelity is the largest 401(k) provider in the US. At the end of 2019, it ranked as the largest brokerage in the United States by assets under management. According to the Fidelity website, it holds $6.85 trillion in client assets of which $2.45 trillion are invested in its own funds.

Fidelity was founded in 1946 as Fidelity Management & Research. Fidelity is based in Boston and employs over 50,000 employees around the world. It is an innovative company offering several high-tech tools to help investors save for retirement and the nation’s first 0% fee ETFs. If you are looking for a low-cost provider with an emphasis on investor education, Fidelity may be a great choice for your needs.

Pros:	Cons:
Low $4.95 trade fee for stocks and ETFs Active Trader Pro platform gives you advanced tools at no added cost Four zero fee mutual funds with no expense ratio	Some very advanced traders don’t like Active Trader Pro Margin trading requires manual approval Some accounts and features have high minimum investments

Fidelity Investments Overall Rating

4.1

Here's how we rate brokers

Cost & Fees

4.5

Banking

2.5

Account Types

4.5

Customer Support

4.0

Tradable Securities

4.5

Promotions

2.5

Account Opening

4.5

Regulations, Reputation & Security

5.0

Trading Platforms

4.0

Research & Education

4.5

Order Types

4.0

Trading Specs
General Information
Trading Features

Official Site:www.fidelity.comDemo Account:Open Demo AccountAccount Minimum:N/AStock Trade Fee:$0Promotion:N/AETF Trade Fee:$0Mutual Fund Trade Fee:$49.95Options Base Fee:$0Options Per Contract Fee:$0.65Bonds Trade Fee:$0Futures Trade Fee:N/AForex Trade Fee:N/A
Phone Trades:$12.95Broker Assisted Trades Fee:$32.95Annual Account Fee:$0Account Transfer Fee:$50Account Closing Fee:$0Account Inactivity Fee:$0IRA Annual Fee:$0IRA Closure Fee:$0Tradable Securities:Stocks, Options, ETFs, Mutual Funds, Bonds, FOREXCommissions Free ETFs:N/ACommission Free Mutual Funds:3649
Number of Mutual Funds (Total):10520Complex Options Max Legs:4Account Types:529, Taxable, Joint, Custodial, Retirement Accounts, Traditional IRA, Roth IRA, Rollover IRA, SEP IRA, Solo 401k, Simple IRA, Trusts, Business Accounts, Partnerships, Non Profit, Annuities, Demo AccountOS compatibility :Windows, MacWeb Platform:YesMobile Trading:N/AOrder Types:Market, Limit, Stop, Trailing Stop, Contingent, Multi Contingent, OCO, OTO, OTOCO, Algo

Introduction

Fidelity is one of the largest brokerage firms in the world. It offers hundreds of funds, low fees, and useful tools that led to awards from reputable finance publications.

Fidelity is a larger broker-dealer that ranks among the largest asset managers in the world. Fidelity offers 504 managed funds. Its largest, the Fidelity 500 Index, holds $144.8 billion in assets. This company has 69.2 million active customer accounts and handles over 785,900 daily trades.

Trades fees are a very competitive $4.95 each. Among the largest brokers in the US, that places Fidelity at the very lowest cost, tied with Schwab for the best pricing. Fidelity also gives customers access to 329 ETFs commission-free including its own ETFs and funds through a partnership with Blackrock’s iShares. Its Magellan Fund is one of the best known actively managed mutual funds in the US.

Fidelity has won many awards from reputable publications like Barron’s, Kiplinger, and Investor’s Business Daily. This broker clearly handles the needs of a large number of active and passive investors. Whatever your needs, Fidelity likely offers something for you.

*Statistics from Fidelity website

Cost & Fees4.5

Fidelity is a low-cost brokerage that offers among the lowest trading fees in the industry. Standard stock trades cost $4.95 each.

Fidelity is tied for first place in the battle for the lowest trade commissions among major brokerages. The standard trade fee is just $4.95 for stocks and ETFs. Options trades are $4.95 plus $0.65 cents per contract. Bond and CD trades are $1 each on the secondary market and US Treasuries can be traded for free.

Fidelity offers free trades on over 300 ETFs from Fidelity and iShares. Fidelity mutual funds and many others on Fidelity’s no transaction fee fund list can be bought and sold with no commissions.

One place where Fidelity is a true leader is low cost mutual funds. While Vanguard pioneered the low-cost fund industry, Fidelity lept ahead with its new Fidelity ZERO funds, four index mutual funds with zero expense ratio.

There are no account service fees, minimum initial investments for most accounts, or minimum balances to avoid a fee. You can use this brokerage while only paying commissions and fund fees where applicable. For managed accounts, you’ll pay 0.20% to 0.90% depending on the account type. Fidelity Go, the robo-advisor account, charges 0.35% with no minimum to open.

Account Types4.5

Fidelity offers brokerage accounts including taxable, retirement, managed, education, and more. Fidelity offers personal and business accounts for nearly any situation.

Fidelity has strong offerings for traditional brokerage accounts, retirement accounts, and other specialties like health savings accounts and estate planning accounts. Pretty much any investment or trading need is covered in some way by Fidelity.

Here’s a list of accounts available from Fidelity

Brokerage account
Cash management account
Brokerage account for businesses
Rollover IRA, Traditional IRA, Roth IRA
Roth IRA for minors
Inherited IRA / Roth IRA
SEP IRA
Self Employed 401(k)
SIMPLE IRA
Investment-Only Plans for Small Business
401(k) Plan for Small Businesses
Fidelity Go (Robo-advisor account)
Managed portfolio accounts (different investment focuses and strategies)
529 account
Custodial account
Health Savings Account (HSA)
Trust and estate accounts
Charitable giving account
Accounts for disabled individuals
Annuities
Life insurance

Brokerage accounts give you access to a variety of investments outlined in the next section. This list makes it clear that Fidelity has a strong offering of retirement accounts. Regular brokerage accounts offer plenty for active traders, but retirement is the biggest focus.

Tradable Securities4.5

Fidelity offers access to a wide range of assets including stocks, mutual funds, ETFs, options, bonds and CDs, precious metals, and international securities.

Fidelity gives account holders a range of investment choices including US and foreign stocks, ETFs, and mutual funds. International stock trades are available from 25 countries. Mutual funds and ETFs from Fidelity and other supported fund families include just about any combination of equities, fixed income, and other investments to meet your needs.

This brokerage supports over 10,000 different mutual funds and a large number of ETFs, including its own commission-free Fidelity and iShares ETFs. Its selection of mutual funds and ETFs sets Fidelity apart from many large competitors. There are 3,649 no transaction fee mutual funds and 357 commission-free ETFs.

40,000 new issue and secondary market bonds and CDs are accessible in Fidelity brokerage accounts.

Active traders will enjoy access to options at a competitive price as well as 35+ foreign currencies (forex) through Fidelity Capital Markets. You may also want to trade in precious metals like gold, silver, platinum, and palladium, of which you have a diverse range of coins and bullion bars.

Account Opening4.5

Opening a new Fidelity account is easy and straightforward through the Fidelity website. You can also open an account by phone or at any of Fidelity’s 140+ office locations in major metropolitan areas around the US.

Fidelity accounts are easy to open if you are a US resident. Accounts are suitable for beginner to advanced investors and traders. The easiest and fastest way to open a new account is online at the Fidelity website.

Fidelity does not offer accounts for new customers who reside outside of the United States. If you have existing Fidelity accounts and move outside of the US, you may have limited access to certain accounts and asset management services. Those who live outside of the United States are not allowed to purchase mutual fund shares through Fidelity or contribute to any 529 or HSA account.

Opening a new account requires personal information including your Social Security number, address, phone number, and other relevant contact details.

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Trading Platforms4.0

Trading platforms at Fidelity offer something for everyone. Beginners will find online trading and mobile apps easy to use while experts will enjoy pro-level Active Trader Pro.

Fidelity offers something for everyone. The premier platform at Fidelity is Active Trader Pro, a professional level platform that puts research, charting, and trading just a few clicks away. You can get access to all Fidelity research and trading platforms for 30 days with a free demo account under a program called “guest access.”

Guest access gives you access to all of the above resources for a month at no cost without opening a live account

Guest access includes access to Fidelity’s retirement planning and self assessment tools. These are market-leading tools in this area. If you are working on detailed retirement plan, it’s tough to beat the excellent resources and calculators from Fidelity. After all, they are known for their retirement accounts and funds, so retirement planning resources are a natural extension.

Trading through Fidelity’s website is simple and easy. If you can send an email, you have enough computer skills to enter any buy or sell order online. If you want the full professional experience, however, you need to download a program for Windows or Mac. The Mac version is 32-bit, which means it runs a little slower than a 64-bit app and won’t work on future version of Mac OS X beyond Mojave. However, you can likely expect Fidelity to make an update before the app becomes unusable on Mac computers.

On my Macbook Pro, it took about 10 minutes to get the app downloaded, installed, and click yes on all of the approvals. From there, however, the experience was fast and efficient. It has five pre-built layouts for different invetor or trader focus areas and comes with white, blue, or black color schemes. These screenshots use the black theme as it is easier on your eyes if you spend a lot of time on the computer. Once you are logged in and everything is loaded, you can further customize and save views to feature the information you need most.

The default view for active traders gives you quotes, charts, and lists in one dashboard.

The desktop app gives you the ability to enter a single trade or multiple on the same screen. It also features conditional trades and advanced trades.

The entry screen for conditional trades allows you to create “if this then that” chains of trades that can execute when your conditions are met.

The charting tool features the ability to draw, compare, and overlay a large number of technical indicators. Once you get familiar with the indicator and technical analysis menus, adding something to a chart takes just a few moments.

Charts are customizable with many features, overlays, and technical analysis features.

Options chains are just a click away

Load additional layouts in two clicks to quickly analyze any major security supported by Active Trader Pro. You can trade nearly anything outside of fixed income and international investments in this platform.

Some very active traders suggest that they have a better experience at TD Ameritrade using Thinkorswim or at TradeStation using their native platform. But overall, most users give Fidelity’s Active Trader Pro glowing reviews.

Fidelity offers mobile apps with native support for Android, Apple, and Amazon devices. That includes mobile and tablet layouts and Apple Watch. You can access and manage most account features directly in those mobile apps, including charting, options trading, and other advanced features.

As more of our lives move onto our smartphones and other connected devices, you can handle most of your account needs without ever opening a laptop or sitting down at a desktop PC.

Order Types4.0

Fidelity supports popular order types including market, limit, stop, and more advanced order entry.

Common order types like market orders, limit orders, stop orders, and good ‘til canceled orders are all part of the Fidelity system. For more advanced orders, you can enter trailing stops, conditional orders, and short sales. The conditional order support from Fidelity is extensive and gives you a lot of flexibility to set future contingent orders or multi-contingent orders based on time, other orders, or specific market conditions.

Through the basket trading feature, you can enter orders on up to 5 0stocks at once and track, trade, and manage them as if they were all the same security. That helps with larger portfolios and more complex strategies.

Day trading is allowed, but there are some restrictions put in place by FINRA that apply to all brokers. If you are a day trader, you will have to meet minimum equity and margin call requirements to stay active.

To help you stay safe, Fidelity offers a tool called Trade Armor that can help you make the best active trading decisions and avoid some common pitfalls.

You can trade the large list of free mutual funds and ETFs through the same account and trade entry methods as any other security.

Banking2.5

Fidelity blurs the lines between its accounts, making Fidelity Cash Management an extension of your existing brokerage account. The low-cost account has no minimum requirements and no monthly fees.

Fidelity doesn’t have a bank but does offer the Fidelity Cash Management Account, which is essentially a checking account from the brokerage. It has no minimum balance or monthly fees, is FDIC insured, and reimburses other ATM’s fees nationwide.

Fidelity makes a point of making the integration between brokerage and cash management accounts seamless. This is a benefit for users looking for the simplest banking experience.

Customer Support4.0

Fidelity is great for customer service and receives generally good reviews. You can get help via phone, chat, or email.

Fidelity customer service is open 24/7 for most general questions. It also offers an option for screen sharing on your computer with a Fidelity customer service agent. Many common questions can be answered by a Virtual Assistant chatbot built into the Fidelity help section of the website.

The company currenlty holds a 2.4 out of 5 rating on TrustPilot. Most negative reviews focus on long wait times and some technical issues with the website and trading platforms, but many of the negative reviews look to be spam, so take that rating with a gain of salt.

If you search for Fidelity data breaches online, you’ll find a huge breach impacting millions of people at Fidelity National Information Services or Fidelity NIS. This is a different company from Fidelity Investments and has no relationship to the investment company. In 2013, however, some clients of Fidelity’s retirement accounts products through employer plans were victim to a data breach.

You can also go into any Fidelity branch for in-person customer support during branch hours. It may help to setup an appointment first to avoid a wait and ensure prompt service.

Promotions2.5

Fidelity offers up to 500 free trades for new and existing clients when you add funds to your account.

As of this writing, Fidelity has an offer for 300 or 500 free trades when you make a large deposit to your account. Deposit $50,000+ to get 300 free trades and $100,000+ to get 500 free trades. This is valued at up to $1,485 or $2,475 for active traders who take full advantage of the promotion.

Regulations, Reputation & Security5.0

Fidelity is a strong financial institution with a good reputation. It is regulated by the SIPC and is a member of the New York Stock Exchange.

Fidelity has a very strong reputation. It is regulated by several agencies including the SIPC, FINRA, and the Securities and Exchange Commission. As a member of the NYSE, it also adheres to the rules and regulations set forth by that body.

Fidelity is a privately held company, so you are not able to buy or sell Fidelity stock. Investment account funds are insured by the SIPC and bank accounts are insured by the FDIC. FDIC coverage is up to $250,000 per depositor per account. SIPC coverage is up to $500,000 in securities and $250,000 in cash per account. Fidelity holds an additional $1 billion excess insurance excess aggregate insurance.

Research & Education4.5

Fidelity accels in the research and education areas. Its retirement planning and education resources are among the best in the industry.

Fidelity offers leading reserach and eduaction tools. Many are custom tailored to retirement needs. But even outside of retirement, Fidelity offers extensive resources for you to learn more about managing your money, investments, and brokerage accounts.

Written articles, videos, webinars, and live events at Fidelity locations are all available. Major sections of the Fidelity Learning Center include investment products, trading and investing, personal finance, and tools. You can also follow along with a technical indicator guide and options strategy guide to learn more about those advanced topics.

Unlike most brokers, you get access to more than just the trading platforms with a demo account. You can access all of Fidelity’s research and education sections with a demo account as well, so feel free to kick the tires for 30 days risk free.

Economic calendars and market news are availble inside of Active Trader Pro. Also make sure to stop by and check out the Fidelity Retirement Score to learn more about how well you are doing to prepare for your golden years.

Trading experience

Fidelity is suitable for beginner to advanced traders, though some professional-level investors may not find the trading platform quite as powerful as some others.

The largest brokers in the US cater to both new and experienced investors, and Fidelity is no exception. Most resources are geared toward less experinced investors, but Active Trader Pro and deep education resources make it a good choice for any background.

A small number of very advanced traders complain that Active Trader Pro does not keep up with the platforms at TD Ameritrade or TradeStation, but most users are happy with what they get at Fidelity.

Beginners may struggle with Active Trader Pro, but if that’s the case you will do just fine using the web-based trading tools.

FAQ

Is Fidelity regulated?

Yes, Fidelity falls under the SEC, SIPC, and FDIC for most accounts. It is also a member of FINRA and the New York Stock Exchange. Some products, like options, may fall under other agencies.

Where is Fidelity based?

Boston, Massachusetts, USA.

When was Fidelity founded?

1946

How does Fidelity make money?

Trade commissions, fund fees, managed account fees

How do I deposit in Fidelity account?

Deposits are eaisest via electronic funds transfer (ACH). You can also deposit a check by mail or mobile device or send a wire transfer.

How do I withdraw money from Fidelity?

The easiest way to withdraw is via electronic funds transfer to any US bank account. You can also request a check or wire transfer. Some Fidelity accounts support their own checkbook as well.

How do I open an account with Fidelity?

You can open an account online, by phone, or visiting a Fidelity branch.

Does Fidelity offer margin accounts?

Fidelity supports margin accounts, though you have to be approved for access to this feature.

Are funds at Fidelity secured or insured?

Funds are insured by the SIPC and FDIC. Additional insurance is automatically offered through a parternship with Lloyd’s of London.

Overall4.1

Fidelity is arguably the best brokerage in the US for retirement accounts and one of the most popular overall brokerage account providers. Low costs and excellent tools and resources make it a good choice for most investment and trading needs.

There is a reason Fidelity holds more assets than any other brokerage in the US. It offers great pricing, a wide range of products, and good customer service. For all but very, very active traders, Fidelity is a market leader in nearly everything it does.

There is little negative to say about Fidelity. It is a good company with a strong reputation for putting customer needs first. That’s what you want in a brokerage, and Fidelity devliers.

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