Fidelity is a well-rounded brokerage that offers no commissions on stock and ETF trades, and a range of index funds with low-expense ratios that are suitable for both active and beginner investors.
Broker Fidelity offers $0 in trading commissions, more than 3300 mutual funds that are free of transaction fees, top-notch research tools, and a mobile platform. Fidelity’s strong customer service reputation and zero-fee index funds are only the icing on top.
Pros & Cons
Pros
- Commission-free options, ETF, and stock trades
- There are many research providers to choose from.
- Strong customer service.
- Index funds that do not have an expense ratio
- Highly rated mobile application.
Cons
- Broker-assisted trade fees are relatively high
Where Fidelity shines
Fidelity Investments has a well-rounded offering. They offer $0 in trading commissions, no account fee that could reduce returns, and a wide range of research offerings. The platform is also easy to customize for advanced traders.
Mutual funds: Fidelity is a well-respected broker for mutual funds. The broker has a wide range of funds that are free from transaction fees, including Fidelity Zero index funds. These funds have no expense ratios and no minimum investment requirements. Customers can save a lot of money by using these investor-friendly strategies.
Fidelity offers educational resources for investors of all levels: Fidelity’s research and education options are among the best of the brokers that we reviewed. They offer strong resources for active stock traders and beginning retirement investors.
Fidelity is where it fails
Tradable securities: It offers fractional shares, forex, options trading, but it lacks futures or cryptocurrency trading options. This gives it a rating of 4 stars for tradable security.
Broker-assisted trade fees: Fidelity’s brokerage-assisted fee for trade is $32.95.
For:
- Frequent traders.
- For beginners.
- Data and research.
- Assistance with retirement planning.
A glance at Fidelity
Account minimum
$0.
Costs of stock trading
$0.
Options trades
No base commission; $0.65 per contract.
Trading platform
Fidelity.com, Active Trader Pro. Both are free to all customers
Mobile app
Available for iOS or Android; advanced features.
Check out our review on JP Morgan if you are interested in similar options.
Fidelity ratings: More details
Minimum 5 stars
Fidelity’s minimum account investment is $0*. This has been the industry standard for brokers that we review. Many other brokerages do not have to make a minimum deposit in order to open an account or maintain it. Certain investment options, such as mutual funds may require a minimum investment.
Stock trading costs: 5 stars out of 5.
Fidelity was already a leader in low-cost commissions. However, the company has eliminated commissions for U.S. stock, ETFs, and options trades in 2019.
Option trades: 4 stars out of 5.
Options trades can be done without commission, but there is a $0.65 contract fee. Fidelity does not offer volume discounts for options.
Account fees: 5 stars out of 5.
Fidelity has eliminated almost all account fees, even the transfer and account closure charges that brokers commonly charge.
Out of 5 stars, 4 mutual funds have no transaction fees
Fidelity has seen positive changes in the past few years due to the war between brokers to reduce mutual fund fees. Fidelity was the first broker that introduced to the market index funds without any expense ratio: the Fidelity Zero Total Market Index Fund; the Fidelity Zero Large Cap Index Fund; and the Fidelity Zero Extended Market Index Fund.
These funds are virtually cost-free and can be used to build a retirement portfolio. However, Fidelity index funds do have an expense ratio that is lower than the rest.
Fidelity has more than 3,300 mutual fund options that don’t have a transaction fee, and more than 950 funds with an expense ratio of 0.50% or lower. These funds are offered by Fidelity as well as other mutual fund companies. Mutual funds that have transaction fees will be $49.95 to purchase and $0 to sell.
Available in Tradable Securities: 4 out 5 stars
Fidelity lets investors trade stocks, options, forex, mutual funds, ETFs and bonds. Fidelity also offers fractional shares that allow investors to diversify into high-cost stocks. This allows them to buy a portion of the share instead of the entire amount.
The company doesn’t offer cryptocurrency trading or futures. Although these features are not necessary for retirement investors, active stock traders would appreciate having them in their investment toolkit.
Trading platform 5 out of 5 stars
Fidelity offers two trading platforms: Active Trader Pro and Fidelity.com. All customers have access to both platforms for free. Highlights include advanced screening using strategy-testing and research tools, based on 10 year of historical data.
ActiveTrader Pro includes both a desktop and a web version of the platform. ActiveTraderPro.com is also available. Investors can switch seamlessly between them. This customizable platform features intuitive shortcuts, prebuilt market, technical, and options filters, advanced options instruments, and a multitrade ticket that can store orders for later or place up to 50 orders simultaneously.
Mobile app 5 out of 5 stars
This star rating is based on the user ratings of Fidelity’s mobile apps on iOS and Android. Fidelity’s app is highly rated and includes real-time quotes and multi-leg options trading. It also offers a consolidated version and research offerings. You can also save ideas and articles to your notebook from your mobile browser.
Recent updates to the company’s apps include a customized newsfeed, portfolio monitoring, trading and research. The app allows you to make an appointment with your Fidelity advisor.
Fidelity Spire is a mobile app that Fidelity launched, although it’s not rated. You can trade using the app with contextual explanations on trading terms and topics like “bid price” or “dividends”.
Data and research: 5 out 5 stars
This stock research is backed by more than 25 third-party vendors, such as Zacks Investment Research and Morningstar, which ensures that Fidelity is strong. The company provides ETF research from several providers as well as options strategy ideas using options analysis software LiveVol.
The Equity Summary Score is a combination of ratings from these research companies and displayed on stock quote pages. It provides an “accuracy weighted sentiment” based on the Fidelity.com ratings.
Although this may seem overwhelming, investors can still take a quick quiz to find providers that best suit their investment style. The accuracy of provider recommendations is evaluated by a research firm scorecard.
Customer Support Options: 5 out 5 stars
Fidelity scores high for its educational tools and customer support options. There are more than 200 branches that can provide in-person advice, educational options and support via chat, phone and email. Fidelity’s Online Learning Center has been redesigned to offer a personalized experience. Machine learning is used to present educational materials that are suited to the customer’s investment behavior.
You should also be aware of other Fidelity details
Fidelity Youth Account – Fidelity introduced the Fidelity Youth Account in 2021. This investment account was created for teens (13-17 ). This account allows parents or guardians to monitor their teenager’s activities and gives them access to stocks, ETFs, and fractional shares. The account can be used to invest in Fidelity ZERO mutual funds and other Fidelity funds. The account does not allow for risky investments or investment strategies. This includes options and margin trading.
Fidelity also offers the Fidelity Youth Account. Fidelity’s mobile app provides a personalized experience with educational resources, articles about investing, and online research tools. The account will become a standard brokerage account once the account holder turns 18 years old.
Are you a Fidelity user?
Fidelity is a rare broker that can serve both beginner and experienced investors. Fidelity has it all, from a mutual fund selection that is superior to other brokers and includes free offers to investors. Fidelity offers stock traders many features, such as strong trading platforms and zero trade commissions. Fidelity will serve every investor we know.
