Fidelity Investments Review

Fidelity review: rating, brokerage fees and commissions, pros and cons, minimum requirements for opening a new investment account or an IRA.


Fidelity Rating:  Fidelity Investments rating


Overview of Fidelity Investments

One of the biggest names in the brokerage industry is Fidelity Investments. Here’s a look at how it stands out in important areas.


Investment Offerings

Fidelity Investments Rating

Fidelity clients can choose between self-directed brokerage accounts and managed accounts. The managed options include both robo-advisory and full-service accounts. The automated service trades a selection of Fidelity mutual funds with no expense ratios.

Self-directed investors have access to a broad range of assets, including:

Fixed income
Stocks (including OTC and international stocks)
Options
Funds (mutual, closed-end, and ETFs)
Cryptocurrencies (currently just Bitcoin and Ethereum)


fidelity Investments review


Securities in Fidelity accounts are protected by the Securities Investor Protection Corporation (SIPC). For larger accounts, Fidelity has additional coverage through Lloyd’s of London that kicks in if SIPC coverage is exhausted.

Fidelity offers both taxable and tax-advantaged account options, including:

  • 529 plans
  • Individual Retirement Accounts
  • Solo 401k plans
  • Business accounts
  • Youth accounts
  • Custodial accounts
  • Trust accounts
  • Charitable accounts
  • Estate accounts

Fidelity also provides life insurance and annuities.


Cash Management

Fidelity Management Rating

Fidelity has a strong cash-management service with two main account options. One is the Cash Management Account (CMA), and the other is the Bloom service, which offers both Save and Spend accounts. Bloom includes features like cash back, round-ups, and a savings match from Fidelity.

The CMA is a brokerage account with a debit card and SIPC insurance, offering checkwriting and unlimited U.S. ATM fee refunds. It also has access to Fidelity’s FDIC-sweep program, providing up to $5 million in government protection.


Fee Schedule

Fidelity Cost Rating

Fidelity’s extensive services come with low costs. Trades of U.S.-listed stocks and ETFs are free when placed online. Foreign stocks have varying fees by country.

Options trades are $0.65 per contract. Treasury securities are commission-free, and other bonds cost $1 each. Self-directed accounts have no minimums or ongoing fees.

Managed accounts, however, have fees. Fidelity Go, the robo-advisory service, costs 0.35% per year, with the first $25,000 managed for free. Minimums for full-service accounts start at $250,000 and go up to $10 million, with fees ranging from 0.20% to 1.5%.


Margin Service

Fidelity Margin Rating

Fidelity offers both cash and margin accounts, though margin details for specific stocks are not shown on the platform. However, stock profiles do display short interest information, like shares held short and days to cover.

Here are the current margin rates:

Debit Balance Margin Interest Rates
above $1,000,000 8.25%
$500,000 – $999,999 8.55%
$250,000 – $499,999 10.825%
$100,000 – $249,999 11.075%
$50,000 – $99,999 11.125%
$25,000 – $49,999 12.075%
$10,000 – $24,999 12.575%
$0 – $9,999 12.575%


Customer Service

Fidelity Customer Rating

Fidelity has a strong customer service network, with hundreds of branches across the U.S. for both self-directed and managed account holders.

Branch hours are limited to weekdays, but Fidelity offers 24/7 phone support. Service has consistently been reliable in this area.

The Fidelity website and mobile app also provide support through a virtual assistant, which can be accessed from the chat icon. The website’s customer service section offers many self-help tools, like beneficiary updates and money-transfer lockdowns.


Website Trading

Fidelity Trading Rating

Fidelity’s website offers tools for research and trading. The News & Research tab provides screening tools, and each asset’s profile has a full-screen chart option with indicators and company events.


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The order ticket on Fidelity’s website has account switching options, multiple trade types, and duration choices. Margin accounts have a toggle to switch between cash and margin on the order ticket.


Mobile App

Fidelity App Rating

Fidelity’s mobile app includes market news, a synced watchlist, educational resources, bill pay, and mobile check deposit. Bloomberg TV streams for free in HD.


fidelity app reviews


Investing features include charts with technical studies like SMA and Bollinger Bands, plus five plot styles. Option chains offer standard calls and puts as well as strategies like iron condors and butterflies. The trade ticket on the app matches the website’s features.

Fidelity also has a Beta app mode, accessible from the More tab.


Active Trader Pro

Fidelity Active Trader Pro Rating

Fidelity investors who want a more advanced platform than the mobile app or website can use Active Trader Pro, Fidelity’s desktop software. During our test run, we found it both user-friendly and feature-rich, with highlights like:

- Conditional trade ticket that lets you submit multiple orders at once
- Full-screen charting with a variety of tools
- Searchable news articles
- Advanced options tools
- Customizable layouts
- Time & sales data
- Direct-access routing with multiple choices


fidelity reviews


Active Trader Pro offers a lot of customization options. Through the settings menu in the upper-right corner, you can choose from three color themes: white, black, or blue. Many other features are adjustable in this menu.


Extra Services

Fidelity Service Rating

DRIP: Automatic dividend reinvestment can be set for individual securities or an entire self-directed account.

Fully-Paid Stock Lending: Fidelity offers a stock lending program that allows customers to earn extra income by loaning out their shares. A minimum account value of $250,000 is required.

IPO Access: Self-directed accounts can participate in upcoming stock launches through Fidelity’s IPO hub, located under the News & Research tab on the website.

Fractional-Share Trading: Available for stocks, ETFs, closed-end funds, cryptocurrencies, and mutual funds.

IRA Options: Fidelity offers several types of IRAs, including Traditional, Roth, Inherited, SEP, SIMPLE, and Minor accounts.

Extended Hours: Pre-market trading starts at 7:00 am EST, and after-hours trading ends at 8:00 pm. Bitcoin and Ethereum trade nearly 24/7. Foreign stocks are available during their respective market hours.

Automatic Mutual Fund Purchases: It’s possible to set up recurring purchases for mutual funds on a monthly, quarterly, or custom schedule, though this excludes funds with front-end sales charges.


Recommendations

Retirement Planning & Long-Term Investing: Fidelity provides extensive tools for retirement planning, including annuities, investment advice, target-date funds, life insurance, and bond ladders. However, Robinhood offers a 1% IRA match.

Frequent Equity Trading: With Active Trader Pro, fractional-share trading, and access to global exchanges, Fidelity is an excellent choice for frequent traders.

Beginning Investors: We recommend an advisory account at Fidelity in either automated or full-service mode for new investors.

Mutual Fund Investing: Fidelity offers over 9,000 mutual funds, a robust screener, and Fund Picks from Fidelity®, a pre-screened selection. Firstrade provides 11,000+ funds with no fees.

Small Accounts: Fidelity is a solid choice for small investors in both self-directed and robo accounts. However, Fidelity still charges commissions on certain products, whereas Webull does not.


Fidelity Review Summary

Overall, Fidelity excels in most areas. While it could expand its cryptocurrency offerings, it remains a top brokerage choice.


Fidelity Investments Commissions and Fees

InvestmentsPrice
Stocks and ETFs $0
Stocks and ETFs broker assisted $32.95
Stocks and ETFs FAST (automated service phone) $12.95
Options $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 2 months
Transaction Fee non-Fidelity funds$49.95 per purchase.* $0 on redemption

Fidelity Account Fees

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

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


Updated on 5/20/2025.