Fidelity Investments is a well-known brokerage firm that has been around since 1946. It offers a wide range of investment options, including stocks, mutual funds, and exchange-traded funds (ETFs). Fidelity is known for its low fees and commissions, making it a popular choice for investors looking to keep their costs low.

In this article, we will take a closer look at Fidelity and provide an unbiased review of its services. We will examine its investment options, fees, and customer service, as well as any potential drawbacks. Whether you are a seasoned investor or just starting out, this review will help you determine if Fidelity is the right choice for your investment needs.

Overview

Fidelity is a financial services company that offers a wide range of investment options, including stocks, bonds, mutual funds, and exchange-traded funds (ETFs). The company was founded in 1946 and has since grown to become one of the largest investment firms in the world, with over $4.9 trillion in assets under management as of March 2023.

One of the key features of Fidelity is its low fees. The company offers $0 trading commissions on stocks, options, and ETFs, and has a large selection of no-transaction-fee mutual funds. This makes it an attractive option for investors who are looking to save on fees and expenses.

In addition to its low fees, Fidelity also offers a wide range of investment tools and resources. The company’s website and mobile app provide investors with access to research and analysis, as well as educational resources to help them make informed investment decisions. Fidelity also offers a robo-advisory service, which uses algorithms to create and manage a diversified investment portfolio for clients.

Overall, Fidelity is a solid choice for investors who are looking for low fees and a wide range of investment options and resources. The company’s size and reputation also make it a reliable option for those who are looking to invest for the long term.

Account Types

Fidelity offers a variety of account types to meet the needs of different investors. Here are some of the most common account types:

Individual Brokerage Account

Individual brokerage accounts are for investors who want to buy and sell securities, such as stocks, bonds, and mutual funds. These accounts are opened in the name of an individual and can be funded with cash or securities. Investors can choose from a wide range of investment options, including stocks, bonds, mutual funds, exchange-traded funds (ETFs), and options.

Joint Brokerage Account

Joint brokerage accounts are for investors who want to share an account with another person, such as a spouse or business partner. These accounts are opened in the names of two or more individuals and can be funded with cash or securities. Investors can choose from the same range of investment options as individual brokerage accounts.

Retirement Accounts

Fidelity offers a range of retirement accounts, including Traditional IRA, Roth IRA, SEP IRA, and SIMPLE IRA. These accounts are designed to help investors save for retirement and offer tax advantages. Traditional and Roth IRAs allow investors to contribute up to $6,000 per year ($7,000 for those age 50 or older) and offer tax-deferred or tax-free growth, respectively. SEP and SIMPLE IRAs are designed for small business owners and self-employed individuals and offer higher contribution limits.

In addition to these account types, Fidelity also offers custodial accounts for minors, trust accounts, and accounts for non-U.S. residents. Investors should carefully consider their investment goals and consult with a financial advisor before opening an account.

Investment Options

Fidelity provides a wide range of investment options for their clients. These options include stocks, ETFs, mutual funds, bonds, and options trading. Each of these investment types has its own unique characteristics and risks.

Stocks and ETFs

Fidelity offers access to a large variety of stocks and exchange-traded funds (ETFs) from various markets worldwide. Clients can trade stocks and ETFs commission-free on Fidelity’s platform. Additionally, Fidelity offers a customizable stock screener tool that allows clients to filter stocks based on various criteria such as market capitalization, dividend yield, and more.

Mutual Funds

Fidelity provides access to over 10,000 mutual funds, including Fidelity’s own mutual funds. Clients can choose from a variety of mutual fund types, including index funds, actively managed funds, and target-date funds. Fidelity’s mutual funds have no transaction fees, and many of them have no expense ratios, allowing clients to invest with minimal costs.

Bonds

Fidelity offers access to a wide range of bonds, including U.S. Treasury bonds, municipal bonds, and corporate bonds. Clients can buy and sell bonds commission-free on Fidelity’s platform. Additionally, Fidelity provides a bond ladder tool that helps clients build a diversified bond portfolio based on their investment goals and risk tolerance.

Options Trading

Fidelity provides options trading for clients who want to invest in derivatives. Clients can trade options on stocks, ETFs, and indexes. Fidelity’s platform provides a variety of options trading tools, including option chains, options strategies, and options probability calculators.

Overall, Fidelity provides a comprehensive range of investment options for their clients. Clients can choose from a variety of investment types and customize their portfolios based on their investment goals and risk tolerance.

Fees and Commissions

Fidelity is known for its affordable fees and commissions, making it an attractive option for investors looking to minimize their costs. Here are some of the fees and commissions that investors should be aware of when considering Fidelity:

• Commissions: Fidelity offers $0 trading commissions for stocks, ETFs, and options, making it a great choice for investors who want to keep their costs low. However, there is a $0.65 per contract fee for options trades, which can add up for frequent traders.
• Mutual Fund Fees: Fidelity offers over 3,300 no-transaction-fee mutual funds, which means that investors can buy and sell these funds without paying any fees. However, if investors choose to buy or sell a mutual fund that is not on the no-transaction-fee list, they will be charged a transaction fee of $49.95 per trade.
• Account Fees: Fidelity does not charge any account opening, closing, or maintenance fees. However, there is a $75 fee for outgoing account transfers, which is higher than some other brokers.
• Margin Rates: Fidelity’s margin rates are competitive, with a base rate of 6.825% for accounts with a balance of less than $1 million. However, rates can vary depending on the account balance and other factors.

Overall, Fidelity’s fees and commissions are very competitive, especially for investors who trade stocks, ETFs, and options frequently. However, investors should be aware of the fees associated with mutual funds and outgoing account transfers.

Research and Tools

Fidelity is well-known for providing its customers with a wide range of research and investment tools to help them make informed decisions. Here are some of the key tools and resources that Fidelity offers:

Market Research

Fidelity provides its customers with a wealth of market research and analysis tools to help them stay informed about the latest trends and developments in the financial markets. Some of the features that Fidelity offers include:

• Real-time quotes and news feeds
• Customizable watchlists and alerts
• Detailed market and sector analysis
• Interactive charting and technical analysis tools

Investment Screening Tools

Fidelity’s investment screening tools are designed to help customers find the right investments for their specific needs and goals. Some of the key features of Fidelity’s investment screening tools include:

• Customizable search criteria based on investment goals, risk tolerance, and other factors
• Access to more than 3,300 no-transaction-fee mutual funds
• Comprehensive fund and ETF research, including performance data, expense ratios, and risk metrics
• Advanced options screening tools for options traders

Portfolio Analysis Tools

Fidelity’s portfolio analysis tools are designed to help customers monitor and optimize their investment portfolios. Some of the key features of Fidelity’s portfolio analysis tools include:

• Detailed portfolio performance analysis, including asset allocation, sector exposure, and risk metrics
• Customizable portfolio tracking and reporting
• Tax analysis tools to help customers optimize their tax strategies
• Retirement planning tools to help customers plan for their long-term financial goals

Overall, Fidelity’s research and investment tools are among the best in the industry, providing customers with a wealth of information and resources to help them make informed investment decisions.

Mobile App

Fidelity offers a mobile app that allows investors to trade stocks, ETFs, crypto, and mutual funds using industry-leading research and market analysis. The app is available for both iOS and Android devices and has received high ratings from users on both platforms.

The Fidelity mobile app provides a range of features that make it easy for investors to manage their portfolios on the go. Users can deposit checks, pay bills, track spending, and more, all backed by Fidelity’s financial expertise. The app also allows investors to trade smarter with advanced charts and on-the-go technical analysis.

One of the standout features of the Fidelity mobile app is its user-friendliness. The app is easy to navigate and provides investors with all the tools they need to make informed trading decisions. The app’s interface is clean and intuitive, and users can access all of the app’s features with just a few taps.

Another benefit of the Fidelity mobile app is its integration with other devices. Users can integrate the app with their Apple Watch to view quotes and get push alerts on their watch. The app also allows users to send stock quotes, market data, and charts through iMessage, making it easy to share information with friends and family.

Overall, the Fidelity mobile app is a powerful tool for investors who want to manage their portfolios on the go. With its user-friendly interface, advanced trading features, and integration with other devices, the app is a must-have for serious investors.

Customer Service

Fidelity is known for its excellent customer service, offering multiple ways for clients to get in touch with representatives. The company provides 24/7 phone, chat, and email support, as well as a virtual assistant available through its website. Additionally, Fidelity has over 200 branches across the United States where clients can receive in-person advice and guidance.

One of the unique features of Fidelity’s customer service is its use of a virtual assistant called “Ask Fidelity.” This AI-powered tool can help clients with a variety of tasks, including account management, trading, and research. Clients can ask questions using natural language, and the virtual assistant will respond with helpful information and resources.

Fidelity’s customer service representatives are also highly knowledgeable and responsive. They are trained to help clients with a range of issues, from basic account questions to complex investment strategies. Clients can expect prompt and professional service from Fidelity’s representatives, whether they are communicating over the phone, chat, or email.

Overall, Fidelity’s customer service is top-notch, offering a variety of convenient and effective ways for clients to get the help they need. Whether clients prefer to communicate online or in person, they can expect knowledgeable and responsive support from Fidelity’s team of experts.