Fidelity, one of the best-rounded brokerages today, has no commissions on stock, ETF, or trades and offers an assortment of low-expense index funds that are suitable for both novice and active investors. Fidelity has a wide range of no-transaction fees mutual funds, $0 trading Commissions, as well as top-notch research tools.
Fidelity’s zero-fee mutual funds and stellar customer service reputation is just the tip of the iceberg.
Pros & Cons
Pros
- Commission-free Stock, ETF, Options Trades
- Many research providers.
- Strong customer service.
- Index funds come with an exempt expense ratio
- Highly rated mobile app.
Cons
- Broker-assisted trade fees can be quite high.
Fidelity is the shining light
Fidelity Investments offer a broad range of services: Fidelity Investments pays no trading commissions, has no account fees that can affect returns, offers a variety of research opportunities, and has an easy-to–use platform that can also be customized to suit the needs of more experienced traders.
Mutual funds. Fidelity mutual funds has a strong track record. Fidelity brokers score well in all categories of mutual funds. They offer a wide variety of no transaction-fee funds including Fidelity Zero, which have a low expense ratio and a minimum investment requirement. Customers save a lot by investing in these investor-friendly funds.
Fidelity offers a range of educational resources to suit all investor levels. These include research options and educational materials that can be used by both active stock traders or beginning investors.
Fidelity has its limits
Tradable stocks: This company offers fractional shares as well as forex and options trading. However, the lack of futures trading options and cryptocurrency trading options give it a 4 star rating for tradable stock.
Broker assisted trade fees
It is best to be faithful for:
- Frequent traders.
- Beginner investors
- Research and data.
- Retirement planning assistance
At a glance: Fidelity
Account minimum – $0.
Stock trading costs – $0.
Option trades – No base commission; $0.65 per contract.
Account fees (annual, transfer, closing, inactivity) – None.
Number of mutual funds without transaction-fee
More than 3,300 mutual funds are available with no transaction fees.
Tradable securities
* Stocks. * Bonds. * Mutual funds. * ETFs. * Fractional share. * Options. * FOREX.
Trading platform
Fidelity.com & Active Trader Pro. Both services are available to all customers at no cost.
Mobile app
Available for iOS, Android; advanced capabilities
Research and data
You can be free and have a lot of fun.
Customer support options, including how easy it’s to find key information on your website
More than 200 local branches are available via email, phone and live chat.
Fidelity’s ratings are more detailed
Account minimum 5 stars
Fidelity’s minimum account requirement is $0*. This standard has been adopted by brokers we review. Most brokerages no longer require this minimum to open or maintain an account. For some investment options, like mutual funds, a minimum initial capital investment is required.
Stock trading costs: 5/5 stars
Fidelity was an established leader in low-cost, high-quality commissions. Fidelity removed commissions from U.S. stock and ETF trades in 2019, but it is still a leader.
Options trades: Rated 4 out of 5
Options trades don’t require commissions, but they do come with a $0.65 per month contract fee. Fidelity doesn’t offer volume discounts when you trade options.
Account fees: 5/5 stars
Fidelity eliminated nearly all account fee charges, including transfer and account closure fees. These fees are often charged by brokers.
Number of mutual funds with no transaction-fee: 4 stars
Fidelity has made positive changes due to the battle among brokers to reduce mutual funds fees. Fidelity Zero was the first broker in the world to offer to market index fund funds with zero expense ratios: the Fidelity Zero Total Market Index Fund. The Fidelity Zero Large Cap Index Fund. The Fidelity Zero Extended Market Index Fund.
The funds have a zero expense ratio so investors can build a good, balanced retirement portfolio. However the Fidelity Index funds do not charge any expenses. This allows them to be more competitive on price.
Fidelity offers more that 3,300 mutual money funds with no transaction fee. There are also over 950 funds which have expense ratios below 0.50%. Fidelity, as well other mutual fund companies, offers those funds. If mutual funds have transaction fees, they will cost $49.95 for purchase and $0 to be sold.
Available Tradable Securities: 4 of 5 stars
Fidelity allows investors trading stocks, bonds and mutual funds. Fidelity also allows traders to purchase fractional stocks. This gives investors the chance to diversify into more expensive stocks by purchasing a piece of a share, instead of the whole amount.
The company does offer neither futures nor cryptocurrency trading. The absence of these features wouldn’t dissuade retirement investors. But, active stock traders would be happy to have them in their toolbox.
5 stars for trading platform
Fidelity.com offers trading and Active Trader Pro. Both platforms are free for all customers. The highlights include advanced screeners using strategy-testing strategies and research tools based off 10 years of historical information.
ActiveTrader Pro platform offers both a downloadable desktop edition and a web option at ActiveTraderPro.com. Investors can easily switch between the two. The customizable platform has intuitive shortcuts, prebuilt options filters, technical and option filters, advanced options tools, and a multitrade ticket. This ticket can store orders and place upto 50 orders at once.
Mobile app 5 out 5 stars
Based on how iOS or Android users rate the broker’s mobile apps, our star rating here. Fidelity’s highly recommended app features real time quotes, multileg options trading and a consolidated edition of the company’s research offering. There’s also a notebook where you can store ideas and articles.
The company updated its apps recently to make trading, portfolio monitoring, and research easier. The app lets you schedule an appointment to meet with your Fidelity advisor.
Fidelity Spire, a new mobile app launched by Fidelity that is specifically designed for young adults, was not rated. The app offers the ability to trade with contextual explainers that provide more information on trading topics and terms such as “bid prices” and “dividends.”
Research and data are 5 out of 5 stars
Fidelity here is strong, with stock research available from more that 25 third party providers, including Zacks Investment Research. Morningstar. Moody’s Investment Service. The company offers ETF Research from Multiple Providers and Options Strategy Ideas from Options Analysis Software LiveVol.
Stock quote pages include an Equity Summary Score. This consolidates the ratings provided by these research providers. It provides an “accuracyweighted sentiment derived based on Fidelity.com rating of independent research providers.”
Although the number of research firms available may seem overwhelming, investors are able to take a short quiz and identify providers that suit their investment style. The provider’s recommendations are evaluated using a research firm scorecard.
Customer support options available: 5 outof 5 stars
Fidelity’s educational tools and customer services options are well-respected. This includes a network with more than 200 branches, which can be used to provide advice and educational options in person, as well as 24/7 phone, chat, and email support.
Fidelity’s Online Learning Center features a customized experience that uses machine learning and displays educational materials that fit the customer’s investing behavior.
Additional Fidelity details that you should know
Fidelity Youth Account. Fidelity opened the Fidelity Youth Account (an investment account designed specifically for teenagers aged 13-17 )**.) in 2021. The account can be monitored by a parent/guardian, and provides access to stocks as well as ETFs. This account also allows for fractional shares. Fidelity ZERO, which has no expense ratio, allows teens to invest in selected Fidelity mutual funds. Importantly the account can also limit risky investments and investment strategy, including margin trading and options.
Fidelity has a mobile app that offers personalized experiences, including the Fidelity youth account. It also provides in-app educational materials, articles on investing, and online research resources. The account will become standard brokerage once the account holder has reached 18 years of age.
Is Fidelity right?
Fidelity, a broker that is capable of serving both beginners and professionals in retirement investing, is rare. The company offers this at all levels, including a mutual fund selection which is unbeatable and free of charge.
Fidelity’s features are also important for stock traders. This includes strong trading platforms with zero trade costs and a broad range of research services. Fidelity provides a wide range of benefits that investors will appreciate.
