Fidelity Investments

Fidelity Investments consistently ranks high, and this year is no exception. The big financial company does well in many areas: it has low costs, helpful customer service, good research, and educational resources. It’s a good choice for most investors, especially beginners and long-term investors. They might like fractional shares and no-commission mutual funds. Fidelity doesn’t have annoying fees like some other brokers. New investors will find lots of research and education here. This review will talk about the pros and cons of Fidelity’s broker service and if it’s right for you.

What is Fidelity?

Fidelity is a big financial company (stockbroker) in America. It started in 1946 and is now called Fidelity Investments. It’s in Boston, Massachusetts. Fidelity is really big; it’s one of the largest companies that manage money in the world. They manage about $4.9 trillion in money for people and companies. Also, they take care of around $12.6 trillion in assets for others. Fidelity Investments does lots of things.

They have a company that helps people buy and sell stocks and other investments. They also manage many different investment funds. These are like big pots of money that people put their savings into, and Fidelity helps them grow. Fidelity also gives advice on how to invest wisely and helps with retirement plans. They do other things too, like handling life insurance and taking care of people’s assets.

Fees

Having a brokerage account means paying more than just commissions. We looked at Fidelity’s list of fees and found some important ones to talk about.

$49.95 fee for certain funds: If you trade certain mutual funds often, watch out. Fidelity charges $49.95 if you sell shares within 60 days of buying them, but only for certain funds that don’t have a transaction fee.

ATM fees: You can get a free Fidelity debit card connected to your account. Each month, you can take out money from ATMs for free, even if they’re in other countries. The only fee you might pay is for converting money into different currencies.

Pros and Cons

Regulation and Security

Fidelity is trusted because it follows rules set by top authorities like the SEC and FINRA in the US. We checked every part of Fidelity’s services using both computer tests and real money. We did real trades, put money in and took it out, and talked to customer service in different ways. You can see what we found in our full review.

Fidelity takes security seriously. They keep an eye on accounts for anything strange. Their new security rules mean other websites and apps you allow have to connect safely through Fidelity.

In the Security Center, you can:

• Control multi-factor authentication
• Use Symantec VIP Access
• Tell about security issues
• Get security texts
• Manage third parties’ access
• Set up trusted devices
• Stop money from moving out of your accounts
• Get alerts about your account activity

Fidelity is insured by SIPC for up to $500,000 in stocks and $250,000 in cash in your account. They also have extra insurance for assets up to $1 billion. This insurance keeps your money safe if Fidelity has problems, but not if your investments lose money. Cash accounts are also insured by the FDIC for up to $250,000 per account.

Transparency

Fidelity is very clear about its fees and prices. You can easily find them on their website. When you make trades, you can see how the technology works and if your share prices improve. Fidelity is the only company that reports its full price improvements using FIF standards. They offer phone, chat, and FAQ help so investors can get information quickly.

Usability

Fidelity has made its website and user experience better in the last few years. It’s easy to use on computers, but using it on phones can be tricky at first. Setting up an online account is simple; you just need to provide your basic information, like your age and Social Security number. People who like to make their own investment choices can find lots of helpful tools and filters on the platform. You can quickly trade on your phone, computer, or by using the Active Trader Pro program.

The mobile app works on different devices, like Android, iPhone, Amazon, and Google Assistant. When you want to trade on your phone, you get information like company profiles, detailed prices, and ratings from analysts. But if you’re doing more in-depth research or using special features, the computer and Active Trader Pro are better than the mobile app. New users can watch videos and read articles to learn how to use the platform. However, the Fidelity app is mostly for people who trade a lot on their phones.

Account Types

At Fidelity, you can find different types of accounts that suit different people. These accounts are for individuals, couples, families with children, people saving for retirement, wealthy individuals, beginners, experienced investors, and even business owners. If you live outside the U.S., you’ll need to use a different financial company.

Here are the types of accounts you can get:

• Taxable brokerage account
• Rollover individual retirement account (IRA)
• Traditional IRA
• Roth IRA
• Inherited IRA
• Simplified employee pension (SEP) IRA
• Self-employed 401(k)
• SIMPLE IRA
• Cash management account
• Custodial account
• 529 account
• Health savings account (HSA)
• Youth account (these are not custodial accounts, as young investors make investment decisions)
• Trust and estate account
• Fully managed account
• Cryptocurrency account

Fidelity Margin Rates

Fidelity charges medium rates for margin. If you have a lot of money, you can get big discounts. It’s cheapest to borrow over $500,000 because the interest rate drops a lot. Not many people who invest for a long time use margins. It’s risky and expensive to invest with borrowed money. But if you really want to use margin, fidelity is good for people who use a lot of money at once.

Is Fidelity good for beginners?

Yes, fidelity is good for beginners. Fidelity has lots of helpful stuff for newbies, like articles, videos, and webinars. They don’t ask for a minimum amount of money to start, which is great for beginners. Fidelity also has low prices and really good customer service.

But, you need to be careful with option trading. It’s risky and might not be right for everyone. Some options and strategies are even riskier. Before you start trading options, make sure to read about the risks. If you need proof of anything they say, you can ask for it.

Also, there’s a fee for trading options. The fee can change over time.

Is Fidelity Right for You?

Are you trying to find a financial broker that has low fees, great research tools, and a trading platform for all levels of investors? Fidelity might be a good choice for you. Beginners can use Fidelity Go without paying any management fees of up to $20,000. Fidelity offers lots of investment options like stocks, mutual funds, ETFs, bonds, options, and crypto, so there’s something for most people.

Trading Platform

Fidelity has a trading platform that you can use online. They also have a special platform for people who trade a lot. The special platform is called Fidelity Active Trader Pro®. You don’t have to pay any extra fees for it, and there are no special requirements to use it. You can use Fidelity’s trading dashboard on the internet or on your phone. It works on iPhones, Android phones, and Windows phones. You can see live prices, use charts, and trade stocks, ETFs, mutual funds, and options right from your browser or phone.

We’re not traders who buy and sell quickly. We just want to be able to see prices and make trades easily. Different people might like different platforms better, depending on what they prefer.

Customer Service

At Fidelity, they offer customer service similar to that of big financial companies. You can reach them anytime through a 24/7 virtual assistant and phone service. If you prefer chatting, live chat is open seven days a week during normal work hours. If you have questions, you can find answers in the Help Center and on our YouTube channel. They also have a special help desk just for digital currency questions called the crypto help desk. And if you’re into bonds, their fixed-income desk is there to assist bond investors.

For even more help, you can visit profiles on Reddit, Facebook, X (formerly Twitter), Instagram, and Discord. The company’s social media customer service managers will be there to give you answers.

Education 

Go to the Learn tab under the News & Research menu to find lots of educational materials.

Here are the main things you can learn about:

• Financial basics
• Life events
• Investing and trading
• Different investment products
• Advanced trading techniques
• You’ll also find other sections with tips from experts, money advice, content for women, and Wealth Management Insights.

In each section, you can read articles, watch videos, join webinars, and ask questions. They cover how to use Fidelity’s website and all sorts of money topics. You can also get help from advisors and find out about special events at branches.

Research

Fidelity’s actively managed mutual funds come from deep research. Peter Lynch, a top manager at Fidelity, wrote about it in his book “One Up on Wall Street.” Fidelity still does a lot of research. It’s like a big library for investors.

For example, when we looked up Apple stocks, Fidelity had 12 reports to pick from. That might seem like a lot, but it helps you find the best info for how you invest. We like the reports from Zacks the most. Fidelity also has research from Merrill, E*TRADE, and J.P. Morgan, which go into more detail.

If you prefer buying funds instead of picking stocks, Fidelity also has you covered. They have reports from Morningstar and FactSet for funds like the SPDR S&P 500 (SPY) ETF. They get their information on mutual funds from Morningstar. Fidelity doesn’t just stop at reports. They also give you news and opinions about the market. They pick the best stuff from around the web, saving you time.

If you’re looking for trade ideas, Fidelity’s tools are top-notch. They’re easy to use and packed with information. You can find things like themes, ESG (environmental, social, and governance) data, and Morningstar ratings.

Our view

Fidelity is the best broker, according to us. It is best for ETFs. Individual investors will struggle to find a better broker for research and screening tools. Plus, if you’re careful about costs, you’ll appreciate the low or non-existent fees on many products and services. For learning and getting help, Fidelity offers education and live customer service. In short, Fidelity is a great investment broker for everyone, except professional traders. The only downside is that, because there are so many products and services, it might take you a bit of time to understand everything the platform offers.