Fidelity Investments Review: Weigh the Pros and Cons


For nearly a century, Fidelity Investments has helped all types of investors achieve their financial goals. At Fidelity, you can find a wealth of financial products, from stocks and listed funds (ETFs) to theft advisers and retirement plans. Its wide range has helped the Boston-based company get the top spot in the overall Money ranking. Best online stock trading platforms.

Some of Fidelity’s highlights include no-commission shares, ETFs and options trading, as well as zero-expense ratio mutual funds. Fidelity offers an automated wallet, or theft-advisor, that charges no advisory fee on your balance up to $ 10,000. You can also open a managed account and work directly with a Fidelity financial advisor to create a complete financial plan.

Fidelity at a glance

  • Minimum account investment: $ 0
  • Fees: $ 0 online trading fees for stocks, ETFs and options listed in the United States
  • Marketable securities: stocks, ETFs, mutual funds, options, bonds, CDs, currencies
  • Account types: taxable brokerage accounts, traditional IRAs, Roth IRAs, managed accounts, 529 college savings plans, health savings accounts (HSAs), annuities.
  • No commissions to trade stocks and ETFs
  • Fractional shares up to $ 1
  • Competitive theft-advisor
  • Loyalty funds with zero expense ratios
  • High fees for managed accounts and financial advisor assistance
  • There is no direct access to cryptocurrencies like bitcoin and ethereum

Where Fidelity stands out

Fidelity stands out for its wide range of products and low rates. It’s pretty easy to build a diversified, low-cost portfolio in Fidelity. Here’s what to expect.

Zero commission mutual funds: Fidelity’s proprietary mutual funds are among the most affordable in the industry, and many are even competitive with Vanguard, which is known for its low-cost funds. Fidelity Zero mutual funds do not charge any expenses. This is an annual management fee charged by fund companies. High spending rates can seriously affect your income. But in Fidelity, you can find four index funds with 0% expense ratios. These funds invest in US stocks and international companies.

No minimum investment mutual funds: Throughout the universe of securities, you can find mutual funds that require minimum investments of up to $ 5,000. But Fidelity has a selection of funds that do not require a minimum investment. Fidelity also offers a range of funds with no transaction fees. This means that you do not owe commissions for buying shares of these funds.

Robo-advisor: Fidelity GO is the brokerage robbery advisor offer. Here’s how it works: You answer a short questionnaire, and a computer algorithm uses your answers to build a diversified portfolio using no-commission mutual funds. The theft advisor automatically manages and rebalances your portfolio when deemed necessary. Fidelity GO’s annual management fee is competitive and ranges from $ 0 to $ 0.35%, depending on your balance.

Fractional actions: A single share of a stock from one of the largest companies can cost hundreds or even thousands of dollars. This makes it very difficult for the average investor to get into individual stock ownership. But with split shares on Fidelity, you can buy US shares and portions of shares and ETFs for as little as $ 1.

Bank account: Those who want to keep all of their finances in Fidelity have access to an interest-free checking account that pays interest and includes a Visa debit card. The Fidelity Cash Management account even reimburses U.S. ATM fees and does not require a minimum balance. Interest rates may vary, depending on the partner bank that holds your money.

Credit card: Fidelity Visa Signature Rewards Card offers unlimited 2% refund rewards on your Fidelity account.

Where Fidelity lags behind

Despite offering a lot of products at low cost, Fidelity has its drawbacks. Here are some potential disadvantages you may want to consider.

No cryptocurrency: Sorry, fans of cryptography. At the moment, Fidelity does not offer direct access to cryptocurrencies such as bitcoin, ethereum and dogecoin. But it has recently launched cryptocurrency-themed funds that invest in blockchain technology-related companies and other crypto-related industries.

High rates for managed accounts: If you want to launch a personalized investment strategy with a financial advisor or Fidelity team, you need a lot of assets. Minimum investments for different financial advisory plans range from $ 25,000 to $ 250,000.

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What you can find in Fidelity

Offering Details
Stocks $ 0 trading commissions
ETFs $ 0 trading commissions
Options $ 0 commission and $ 0.65 contract fee
Mutual funds Range of mutual funds with no minimum investment, including four indexed funds with 0% expense ratios.
Bonuses 75,000 new issues and secondary market bonds, including corporate and municipal bonds
Robbery Advisor (Fidelity GO) Automated portfolio built with mutual funds. It does not charge any annual advice fee on balances below $ 10,000. The annual fee is $ 3 for balances of $ 10,000 to $ 49,999 and 0.35% for balances of more than $ 50,000

Research and loyalty tools

Fidelity offers a complete set of research and news tools. When you sign in to your account, you get a sleek picture of the performance of major indices like the S&P 500 and the NASDAQ through charts. You can also see the top news of the day, data specifically about your investments, a list of the major market drivers, and a bar chart showing how your returns compare to the global market.

By clicking on the “News and Research” tools, you can access Fidelity’s fund analyzers. Its simple mutual fund filter allows you to search for funds based on your criteria preferences such as asset class, Morningstar risk and return ratings, and investment strategy as an asset or index. When you click on a background, you can click on different tabs to delve into aspects such as your management fees and your performance over time.

Fidelity Filter allows you to filter funds based on topics such as Fidelity’s own funds, fixed income funds, and socially responsible or environmental, social, and government (ESG) funds. You can also find ETFs that invest in specific stocks of your choice.

Fidelity also offers a complete Stock Market Research Center. When you open this page, you can quickly see the top market makers by industry. In the left pane, you can click a link to access the simple Fidelity action filter. You can use it to filter values ​​based on more than 140 criteria, such as market capitalization, dividend yield, and recent price performance. You can also see stocks in different categories, such as “most popular,” growth stocks, and dividend-paying stocks.

Beginners have access to an extensive library of educational resources through the FIdelity website. This includes articles, videos, infographics, webinars, calculators, and more.

More advanced traders can use Active Trader Pro. This platform offers investors various analytical capabilities. Through a single interface, you can track stock market performance, real-time market news, and even company-specific news that you may want to invest in. You can also access customizable graphics and perform technical analysis of various actions., which is more functionality that some of Fidelity’s competitors offer to active marketers. The platform allows you to trade stocks, options and ETFs and mutual funds.

Mobile fidelity

The Fidelity mobile app allows you to buy and sell stocks, mutual funds and ETFs. It also provides real-time market research and tailored news. You can trade and monitor your wallet through a single panel. In addition, you can set up watchlists, get quotes for streaming, and access the learning center, which contains a wealth of personal finance content. One feature that stands out is its personalized tax schedule, which shows the tax forms available and when to wait for additional forms.

The Fidelity app is compatible with Android and iOS. It is compatible with iPhone, iPad and Apple Watch. The Fidelity app currently has a score of 4.8 / 5 on the Apple Store and 4.3 on the Google Play Store.

Fidelity customer service

Fidelity is available by phone, live online chat, and in more than 200 offices across the country. You can call customer service specialists at 800-343-3548. Availability will vary depending on the type of account requested. But you can always access Fidleity live chat on their website 24/7. To receive specialized assistance via live chat, Fidelity is open Monday to Friday from 8:00 to 22:00 ET and from Saturday to Sunday from 9:00 to 16:00 ET.

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Offer valid for U.S. residents over the age of 18 and subject to account approval. There may be other fees associated with trading. See Public.com/disclosures.

How do I open an account with Fidelity?

You can open a Fidelity account through their website in minutes. And your options are wide-ranging, including a brokerage account, a traditional IRA, a Roth IRA, a 529 college savings plan, a managed account, and more. When you leave a job, you can transfer your 401 (k) business to a Fidelity IRA.

What is the fastest way to start trading with Fidelity?

According to the Fidelity website, the best way to transfer money to your account is by bank transfer. The transfer will usually be processed on the same day. Then your money is ready to be used to trade securities within your Fidelity account. Although Fidelity will charge a fee for sending a cable, Fidelity will not charge for receiving money.

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