Fidelity offers a complete brokerage service. It does not charge commissions for ETFs or stock trades. Also, it has a selection of no-expense-ratio funds that can be used by both beginners and more experienced investors.
Fidelity Broker offers $0 commissions on trading, a selection of more than 3,300 mutual funds with no transaction fee and top-notch tools, and a mobile app. Its zero-fee index funds and excellent customer service reputation are just the cherries on top.
Pros & Cons
Pros
- Commission-free stock, ETF, or options trading
- Numerous research providers are available.
- Strong customer service.
- Index funds with no expense ratio
- Highly rated mobile apps
Cons
- Relatively high broker-assisted Trade Fee
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Where Fidelity shines
Fidelity Investments provides a complete offering. Fidelity Investments offers $0 in trading commissions.
There are no account fees that can impact returns. A wide range of research options is available. Fidelity Investments also has an easy-to-use platform that can be tailored for advanced traders.
Mutual funds. Fidelity has a strong reputation in mutual funds. Fidelity scores well in every category of funds with a large number of no-transaction-fee funds. Fidelity Zero index fund funds also have no minimum or expense requirement.
These investor-friendly policies save customers a lot.
Fidelity provides educational resources for all levels of investors.
Fidelity fails where it counts
Tradable securities – It offers fractional share, forex, and options trading but lacks futures and cryptocurrency trading options.
Broker-assisted Trade Fees: Fidelity’s broker-assisted trade fee is $32.95.
Fidelity is the best for:
- Frequent traders.
- Investors who are just starting out.
- Research and data.
- Retirement planning support.
Check out our review on Vanguard if you are interested in similar options.
Fidelity’s rating system: more details
Minimum account: 5 stars
Fidelity’s minimum account opening or maintenance requirement is $0*. It has now become the industry standard. A minimum initial investment may be required for some investment options such as mutual funds.
Stock trading costs: 5 of 5 stars
Fidelity had been a leader in low-cost commissions. But, Fidelity has now eliminated commissions for U.S. stocks, ETFs, and options trades.
Options trades: 4 of 5 stars
Options trades are free of the commission but still have a $0.65 contract charge. Fidelity does offer volume discounts on options trades.
Account fees are 5 out of 5 stars
Fidelity has eliminated most account fees, except for the account closure and transfer fees.
4 stars for no-transaction-fee mutual funds
Fidelity saw positive results from the fight among mutual fund brokers to lower fees. Fidelity introduced index funds to the market with no expense ratio as the Fidelity Zero Total Market Index Fund.
Fidelity Zero Large Cap Index Fund. Fidelity Zero Extended Market Index Fund.
This fund is virtually free and investors could still build a well-balanced retirement portfolio. Even the Fidelity funds, which have an expense ratio, are much cheaper than their competition.
Fidelity provides more than 3300 mutual funds, with no transaction fees and over 950 funds having expense ratios less than 0.50%. Fidelity is one of the mutual fund companies that offer these funds. The cost to buy mutual funds with transaction fees is $49.95, and $0 for selling.
4 out of 5 stars Tradable securities
Fidelity makes it possible for investors to trade stocks as well as bonds, mutual funds, and ETFs.
Fidelity offers traders the option of fractional shares. This allows investors to diversify their portfolio into higher-cost stocks, by buying a small portion of a share and not the entire amount.
The company does not offer cryptocurrency trading and futures. These features will not deter retirement investors. However, they are options that active stock traders would like to have in the investing toolkit.
5 out Of 5 Stars – Trading platform
Fidelity.com has one trading platform and Active Trader Pro has another. Both platforms are available for free to all customers. Highlights include advanced screeners based on research and strategy testing tools based on 10 years’ worth of historical data.
ActiveTrader Pro offers both a desktop version and a Web alternative. Visit ActiveTraderPro.com to see the web version.
Investors can seamlessly switch between the two versions. The customizable platform offers intuitive shortcuts as well as pre-built technical and options filters. Advanced options tools are also available.
Mobile app 5/5 stars
Based on how iOS and Android users rate the broker’s apps, this star rating was created.
Fidelity’s highly-rated app offers real-time prices, multi-leg options trading, a consolidated version of the company’s research offerings, as well as a notebook where ideas and articles can be saved from your mobile device.
The company just updated its apps with a custom newsfeed and portfolio monitoring. The app can be used to schedule an appointment with your Fidelity advisor.
Fidelity Spire was launched by Fidelity, though it is not recommended. It was created for young adults. You can trade with additional contextual explainers on trading topics such as “bid-price” and “dividends”.
Research and data: 5/5 stars
Fidelity is strong in this area, as stock research comes from more than 25 providers including Zacks Investment Research (Morningstar), Moody’s Investment Service (Moody’s Investment Service), and Moody’s Investment Service (Zacks Investment Research).
The company offers ETF research and options strategy ideas via the options analysis software LiveVol.
Stock quote pages display an Equity Summary score, which consolidation the ratings from these research agencies. It displays an “accuracy weighted” sentiment that has been derived using the Fidelity.com ratings.
It may seem overwhelming to read through all the research firm offerings, but investors can complete a short quiz to identify those that are best suited for their investment style. A research firm scorecard is a way to assess the accuracy of the provider’s recommendations.
Customer support options: 5 stars out of 5.
Fidelity has high marks for customer service and education tools. The company boasts a network that includes more than 200 branch offices for in-person assistance and educational options. It also offers 24/7 chat, phone, and email support.
Fidelity’s Online Learning Center was redesigned to deliver a more personalized experience. Fidelity uses machine learning to create educational materials that best match customer investing behaviors.
You need to be familiar with other details about Fidelity
Fidelity Youth Account. Fidelity’s Fidelity Youth Account was launched in 2021. It is an investment account for teenagers between 13 and 17. The account gives a guardian or parent the ability to monitor the teenager’s activities.
It allows them to access stocks and ETFs including fractional shares. Fidelity ZERO and select Fidelity mutual fund holders can also invest in the account. Importantly, the account prohibits risky investments, options, margin trading, and other investment strategies.
Fidelity offers an in-app experience on mobile with customized educational resources, articles, and research tools, as well as the Fidelity Young Account. When the account holder is 18 years old, it will be a standard broker account.
Is Fidelity right for you?
Fidelity has the rare ability to both serve active traders as well as beginner retirement investors. Fidelity offers it at every level. It starts with a mutual-fund selection that’s superior to all other brokers and even offers free options.
Fidelity also has features that will be of value to stock traders. They offer strong trading platforms as well as zero trade commissions. Fidelity can provide a wealth of services that will benefit investors.