Fidelity Investments brokerage firm review. Fees & commissions, advantages & disadvantages, minimum requirements & promotion offers for opening a new online account with the online discount stock broker.

4-star brokerage firm rating

  • Stocks & ETFs: $4.95
  • Options: $4.95 + $0.65 per contract
  • Mutual Funds: $49.95

Fidelity Investments Review

Fidelity is one of the larger brokerage companies in the US, and as such, provides an astounding array of services and benefits to their investors. Fidelity offers advice in wealth management, investment guidance, college savings, charitable giving and provides top-notch educational content for novice and professional investors alike. Fidelity goes above and beyond many brokerage services online, as evidenced by offering over 12,000 mutual funds (Scottrade and TD Ameritrade offer even more), life life insurance, college savings plans and more.

 

Fidelity Investments Commissions & Fees Review

Fidelity’s base trade price is $4.95. For instance, Ally Invest and Optionshouse offer the same very low base commission.

Given the tools and benefits that Fidelity provides over other brokers though, the extra dollar or two in trade costs tends to worth it. However, the minimum $2,500 mutual fund purchase price will keep some investors from being able to make use of the Fidelity services. Opening an account on the front end is free though.

Fidelity does offer a selection of 90 commission-free ETF’s from two ETF providers - Fidelity and iShare. For instance, TD Ameritrade offers a larger list of commission-free ETFs (101 in total) from thirteen major ETF providers, which makes it a great brokerage firms for investing in ETFs.

 

Fidelity Investments Trading Platform Review

Fidelity Investments review 2017

Fidelity Investments provides customers with a good trading platform. Investors can access their accounts and execute trades via Fidelity's website, mobile app or advanced trading platform Active Trader Pro.

The layout of the website was remodeled in recent years to keep up with the current industry standards. It is much friendlier and less-cluttered than it used to be. Investors can simply login to their accounts through Fidelity's website to execute trades, and get access to charts, screeners and educational materials. Fidelity's Guided Portfolio Summary tool, otherwise known as the Fidelity “GPS,” provides a quick yet informative snapshot overview of selected accounts. With this tool, investors can have an in-depth analysis of their current portfolio and identify areas that may need more attention. The friendly layout offers all sorts of little upgrades in the form of graphics and extra information. The graphic displaying each asset’s current value relative to its respective 52-week high and low gives a very helpful visual cue for investors.

The platform allows instant access to recent and past account activity, which makes looking up purchases, sales, dividends and distributions a breeze.

Upon clicking the Analysis tab, users are directed to an in-depth look at their assets, along with asset allocation information and the investor’s top holdings. Within the Analysis tab, users can begin to really study up on their positions by using the stock and fixed-income analysis features, and even customized ratings from Morningstar. The ratings section is divided into a helpful graphic illustration showing fund performance relative to the market and a list of investor positions with their individual rating information. The research doesn’t end there though. Upon clicking individual stocks and mutual funds, in-depth Morningstar ratings for each position are brought up. On the specific asset research screens, users are shown detailed information regarding the asset such as annual returns, ratings, fees and even a graphic projecting hypothetical growth for 10 years.

Fidelity's Active Trader Pro Platforms are available as the web-based streaming platform and desktop application. Both platforms provide streaming market data, interactive charts and advanced trading features such as multi-trade tickets, integrated access to positions, charts, news, alerts, orders and more. Unlike thinkorswim and Trade Architect, the two of the best in the industry advanced trading platforms offered absolutely free by TD Ameritrade, Fidelity's Active Trader Pro platforms have some limitations. Platforms are only available to customers trading 36 times or more in a rolling twelve-month period.

Fidelity's Active Trader Pro Platforms is available as the web-based, streaming platform and desktop application. Both platforms provide streaming market data, interactive charts, advanced trading features such as such as multi-trade tickets, integrated access to positions, charts, news, alerts, and orders and more. Unlike one of the best in the industry two advanced trading platforms, thinkorswim and Trade Architect, which both are offered absolutely free by TD Ameritrade, Fidelity's Active Trader Pro platforms have some limitations. Platforms are only available to customers trading 36 times or more in a rolling twelve-month period.

The Fidelity Learning Center is broken out nicely into easily-searchable categories, and Fidelity offers enough webinars to keep investors glued to their computers for weeks! The “News and Insights” tab helps keep investors abreast of current industry issues and trends, and aware of important information like IPO drops and mergers and acquisitions information.

Fidelity Investments review

For traders that don’t want to risk their savings by making all of their own investment choices, Fidelity’s Portfolio Advisory Service can be quite helpful. Despite the initial $50,000 minimum investment, more investors should be making their way to this service. Investors utilizing this service are assigned a personal account contact, and received customized communications throughout the year. The investment team at Fidelity making the investment decisions, based on individual client needs and situations, boast many years of experience and currently manage nearly half a million accounts!

 

Fidelity Investments Advantages

  • No inactivity, no account fees
  • Low trading commissons
  • 90 commission-free ETFs
  • Wide selection of investments
  • Free Dividend Reinvestment Plans (DRIPs)
  • Access to international markers 25 countries, 16 currencies
  • Great in-depth research amenities including third party sources
  • Banking products and services
  • Over 185 local branches around the country
  • Great customer services, good education resources

 

Fidelity Investments Disadvantages

  • 36+ trades per year are required to recieve an acces to Fidelity's advanced trading platform
  • High commissions for purchasing non-Fidelity mutual funds
  • $2,000 minimum mutual funds purchase price
  • Mutual funds low balance fee. $12 per year for each noncore Fidelity fund under $2,000

 

Fidelity Review Summary

Fidelity will not steer investors wrong. Although fees are a bit higher at Fidelity, the massive brokerage offers investors their money’s worth in options, benefits, education, research, customer service and ease-of-use. Fidelity is also a better option for more advanced traders.



Fidelity Investments Commissions and Fees

InvestmentsPrice
Stocks and ETFs $4.95
Stocks and ETFs broker assisted $32.95
Stocks and ETFs FAST (automated service phone) $12.95
Options $4.95 + $0.65 per contract
Fidelity Mutual Funds$0
No Transaction Fee (NTF) Non-Fidelity Mutual Funds$0 on purchase. $49.95 on redemption if held less than 60 days
Transaction Fee non-Fidelity funds$49.95 per purchase.* $0 on redemption

* - Certain funds will have a transaction fee of $75. To identify any applicable transaction fees associated with the purchase of a given fund, please refer to the "Fees and Distributions" tab on the individual fund page on Fidelity.com

Fidelity Investments IRA & Account Fees

FeeAmount
IRA Setup Fee$0
Annual IRA Fee $0, $25 for SIMPLE IRAs
IRA Termination Fee$50 (Excludes SIMPLE IRAs)
Full Account Transfer Out$0
Partial Account Transfer Out$0
Outgoing Wire Fees (Domestic)$10 online, $15 through representative
Account Closing Fee$50

* - per account for Fidelity IRAs (excluding SIMPLE IRAs), Fidelity Retirement Plan (Keogh) Accounts.

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