Fidelity 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 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)
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 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’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 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 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’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.
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’s mobile app includes market news, a synced watchlist, educational resources, bill pay, and mobile check deposit. Bloomberg TV streams for free in HD.
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 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
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
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
| Investments | Price |
|---|
| 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
| Fee | Amount |
|---|
| 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.