Does Fidelity Offer IPO Stocks in 2021?

Investing in IPO stocks on Fidelity. Can you buy initial public offerings before they hit the market?

Investing in IPO Stocks on Fidelity

IPO trading at Fidelity has many benefits for highly capitalized investors looking to take advantage of the volatility that IPOs bring to the table. However, most retail traders will likely find it difficult to participate in IPOs at Fidelity thanks to the high minimum account balance requirements.

For investors who meet Fidelity’s requirements, we will cover several notable features. For those who do not have the capital required to unlock IPOs at Fidelity, read on to see our favorite alternative broker for IPO trading.

Account Requirements for IPO Trading at Fidelity

Investors interested in IPO trading at Fidelity should have an account minimum of either $100,000 or $500,000, depending on the underwriter of the IPO in question. Account minimums are calculated on a per week basis and include the total value held across all accounts bearing the same name and social security number. Any account that an investor uses for an IPO bid should also have a minimum of $2,000.

Alternatively, investors who are members of certain premium account services at Fidelity can also take advantage, although account minimums for those services are high as well. There are several Premium Services (Wealth Management) to choose from at Fidelity and the account minimum for the base level is $50,000.

Participating in IPOs at Fidelity

For qualifying investors who would like to invest in IPOs at Fidelity, here is the process to follow.

Step 1 – (optional) Set alerts for new IPOs. Doing this ensures that IPOs do not slip under the radar. Each time fidelity lists a new IPO, an alert is sent out with a link to review. IPO alerts are also useful to learn about changes to the IPO, its stages of development, and any price changes that occur.

Step 2 – Navigate to the IPO listings. Each IPO listed under the heading “Current Offerings” features helpful information, such as when the price is expected, the price range for the bid, the dates available for the Indication of Interest (IOI), and industry. Each listing has a link for “Participate” and “Prospectus.”

Step 3 – After reading the Prospectus, investors should click on the link for “Participate.” This will open a multi-page IPO bid wizard to assist is the process. Here are the steps to bid on an IPO.

Choose the account from the dropdown list of available accounts. Note that all accounts will show up, whether they are eligible for IPO investing or not.

Choose the action that is desired – New Bid, Change Current Bid, View Open Bids.

On the next page, select an available IPO from the list by clicking on “Participate”.

If eligible, an IOI entry form is presented and investors can select the number of shares they want to receive, as well as the price that they would be happy paying. After filling in the form and submitting the request, investors must wait to see if their bid will be fulfilled. If alerts were previously set up, any changes to the status of the bid or the price of the stock will be sent via text or email.

Alternative to IPO Trading at Fidelity

Fidelity is certainly a viable option for investors with enough capital to take part. For many, however, there are better brokerage options for ‘average’ traders looking to take advantage of IPO price swings. The IPO account minimums required by Fidelity equate to a small fortune for many of today’s traders.

Fidelity has not taken any steps to make IPO investing more accessible, but brokerages like Webull certainly have. In fact, Webull is one of our favorite options for IPO investing. There are no fees or account minimums.

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IPO Investing at Webull

The first thing to know about IPO investing at Webull is that the mobile app is required. Another thing to note is that IPO investing on Webull is not significantly different from Fidelity’s services. All the same benefits that IPOs provide are there, front and center. The big difference is the lower cost and greater accessibility.

There is a very good desktop and web trading platform that traders can use to track their IPO investments once they have them, but placing bids is currently reserved for the mobile platform.

WeBull Buy IPO

Webull offers a good selection of IPOs and bidding on them is very easy. Interested traders only need to select an IPO that they want to take part in, decide how many shares they would like to purchase, and then place a bid.

To get started with IPO investing at Webull, read about IPOs on Webull or open an account here: Grab your last chance to get 2 free stocks valued up to $2,300 and $5 of Bitcoin.

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