Investing » Fidelity Investments Review 2024: More Expensive But Worth It
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Fidelity Investments Review 2024: More Expensive But Worth It

While not the cheapest brokerage house you may find in the United States, Fidelity Investments excels at many points where others don't.
Author: Baruch Mann (Silvermann)
Baruch Mann (Silvermann)

Writer, Contributor

Experience

Baruch Silvermann is a financial expert, experienced analyst, and founder of The Smart Investor.  Silvermann has contributed to Yahoo Finance and cited as an authoritative source in financial outlets like Forbes, Business Insider, CNBC Select, CNET, Bankrate, Fox Business, The Street, and more.
Interest Rates Last Update: October 20, 2024
The banking product interest rates, including savings, CDs, and money market, are accurate as of this date.
Author: Baruch Mann (Silvermann)
Baruch Mann (Silvermann)

Writer, Contributor

Experience

Baruch Silvermann is a financial expert, experienced analyst, and founder of The Smart Investor.  Silvermann has contributed to Yahoo Finance and cited as an authoritative source in financial outlets like Forbes, Business Insider, CNBC Select, CNET, Bankrate, Fox Business, The Street, and more.
Interest Rates Last Update: October 20, 2024

The banking product interest rates, including savings, CDs, and money market, are accurate as of this date.

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Fidelity

fidelity-logo
fidelity-logo

Fidelity

Monthly Fee

0% – 1.04% Fidelity Go® Robo advisor: $0: under $25,000, 0.35%/yr: $25,000 and above Fidelity® Wealth Management dedicated advisor: 0.50%–1.50% Fidelity Private Wealth Management® advisor-led team: 0.20%–1.04%

Minimum Deposit

$0 – $2M No minimum for Fidelity Go® and brokerage, $500,000 for Fidelity® Wealth Management, $2 million for Fidelity Private Wealth Management®

Our Rating

4.5
4.5/5

APY Cash Account

4.61%

Fidelity is a well known name in the investing industry, with a history dating back to 1946. However, the company has moved with the times and is not stuck in the traditional brokerage model.

The Fidelity app and investing platform offer innovative features designed to appeal to a wide variety of investors, from total newbies to frequent traders.

While Fidelity may have established its name as a traditional brokerage with bricks and mortar locations around the country, it is now possible to access its experience and expertise from the comfort of your own home.

In this Fidelity review, I’ll walk you through my experiences using the platform with the features I found most useful and where I’ve identified areas where Fidelity could make some improvements to help you decide if it is the right choice for you.

Are there any account minimums at Fidelity?

Fidelity has no account minimums for most of its accounts, including individual brokerage accounts and IRAs, making it accessible for investors at all levels. However, Robo advisor and weakth management options do require fee, depend on the chosen plan.

Can I access international markets through Fidelity?

Fidelity offers access to some international markets, but its range of international investment options is more limited compared to global-focused brokerages.

What is Fidelity’s cash management account?

Fidelity’s cash management account is a hybrid checking and savings account offering features like ATM fee reimbursements, check writing, and FDIC insurance through partner banks.

Does Fidelity offer fractional shares?

Yes, Fidelity allows investors to purchase fractional shares of stocks and ETFs, enabling them to invest in high-priced securities with as little as $1.

What retirement account options does Fidelity provide?

Fidelity offers traditional IRAs, Roth IRAs, SEP IRAs, and rollover IRAs, as well as 401(k) plans for businesses and self-employed individuals.

What is Fidelity’s stance on socially responsible investing (SRI)?

Fidelity offers a range of socially responsible investment (SRI) options, including mutual funds and ETFs that focus on environmental, social, and governance (ESG) criteria.

Pros
Cons
Wide Range of Investment Options
Low Interest Rates On Uninvested Cash
Access to annuities, CDs and IPOs
Robo-Advisor/Wealth Management Fees
Comprehensive Retirement Planning
No Paper Trading
Strong Research and Educational Resources
No Futures Trading

Fidelity Features I Mostly Liked

Here are the key features that I found most appealing in Fidelity:

Fidelity Go is the brokerage’s robo advisor. To use this service, all I needed to do was answer a couple of questions and Fidelity built a strategy around my specific needs. I could then enjoy my money being professionally managed in a completely hands off approach.

Fidelity Go overview
Fidelity Go (Screenshot taken by our team from Fidelity)

Fidelity monitors the markets and automatically rebalances my portfolio to keep it on track. However, the best thing is that Fidelity Go is a tiered program. If my balance is under $25,000, I don’t incur any advisory fees.

For those with a balance over $25,000, there is a 0.35% advisory fee, but this also includes access to the Fidelity advisor team and unlimited 20-minute one-on-one phone calls to discuss all aspects of investing and finance, including retirement planning, budgeting, and even managing debt.

Fidelity Go questionnaire
Fidelity Go questionnaire (Screenshot taken by our team from Fidelity app)

There are no minimums to open an account and there is just a $10 minimum investment. But, I can also set auto fund deposits, so I can set and forget my portfolio.

Fidelity offers a solid variety of IRAs, including Traditional and Roth IRAs, as well as retirement products for the self-employed. This is an attractive feature of Fidelity, as many low-cost brokerage platforms are limited to a very basic selection of IRAs.

Fidelity retirement details
(Screenshot taken by our team from Fidelity app)

There are no fees or minimums to open a Fidelity retirement account and the platform has a number of tools to help me plan my retirement fund. 

As you can see in these screenshots, I can use the retirement planning tool to create an estimate of how much I’ll need and I can keep an eye on my contributions to see if I’m on track.

Fidelity retirement cash flow
Fidelity retirement cash flow (Screenshot taken by our team from Fidelity app)

I can also track my IRA activity to check my contributions and the movements of the assets in my IRA portfolio.

Fidelity financial planning
Fidelity financial planning (Screenshot taken by our team from Fidelity app)

What is really nice about Fidelity retirement products is that while I can manage my IRA, if I have any queries or issues, I can reach out to the Fidelity team for help.

Fidelity also offers wealth management services to help address the full financial picture.

I have the option to work one on one with a professional to create a personalized plan that includes retirement, health care, estate planning and more. The Fidelity team can manage my portfolio to grow and protect my funds.

There are two wealth management options that depend on financial status. The general Wealth Management is available to those with a fund of $500,000 or more, but there is also Private Wealth Management.

This does require a managed fund of $2 million or more with Fidelity Wealth Services or $10 million plus with Fidelity Strategic Disciplines.

Fidelity has an impressive array of research tools that means that I don’t need to rely on a third party site to decide on my next purchase.

As with many platforms, I can look at specific stocks with an overview chart.

Fidelity technical stock analysis
(Screenshot taken by our team from Fidelity app)

However, Fidelity goes beyond this. As you can see in these screenshots, I can get more in depth information about companies including a financial overview with key statistics and financial report information.

Fidelity stock research
(Screenshot taken by our team from Fidelity app)

Each company is also allocated an analyst rating based on independent firm opinions.

I can also consult lists of market movers, the top rated companies by sector and even the companies that other Fidelity customers are buying and selling, so I can spot upcoming trends.

There are times when I am researching assets but I’m not quite ready to pull the trigger and place a buy order. So, I really like that Fidelity has included watchlists on its platform.

Fidelity watchlists
(Screenshot taken by our team from Fidelity app)

I can create multiple watchlists and get an instant view of movements in stocks of interest to me. I can also click for a more detailed view if I need further information when I’m ready to buy.

Fidelity edit watch list
(Screenshot taken by our team from Fidelity app)

The platform also makes it easy to edit my watchlists, so I can refine my search and not need to trawl through lists of companies that I am no longer interested in.

In addition to the research tools, the Active Trader Pro dashboard provides analytics for before, during and after trades. It uses real time data and insights with dozens of filters to make it easier to see opportunities.

I like how I can customize the layout to suit my personal preferences and create my own shortcuts to make the workflow easier for me. There is even a feature to create and save trade orders so I can place them in one go with just one click when I’m ready.

You do need a Windows 10 or Mac OS 12 or higher to download Active Trader Pro and it is worth checking the system requirements to ensure that your computer has sufficient memory and graphics card to support the dashboard.

Like many brokerages, Fidelity offers a cash management account for its clients. However, with this platform, there is a choice of two accounts.

The Fidelity Government Money Market Fund allows me to maximize any cash I’ve not currently invested, but this account does not offer FDIC protection, so Fidelity also offers the FDIC Insured Deposit Sweep Program.

The Deposit Sweep Program offers a lower rate, but it is still competitive compared to many high yield savings accounts in the marketplace.

Fidelity cash management
(Screenshot taken by our team from Fidelity app)

Both accounts have no account minimums or fees, and I can access my funds via ATM with unlimited reimbursement for ATM withdrawal fees. The platform includes a comprehensive panel to manage my account with real time spending views.

I can also access Bill Pay, mobile check deposit and a digital wallet compatible debit card. There are also payment apps integrated into the system, making it easy to move my money around.

Smart Money is Fidelity’s learning resource center. There are lots of articles that not only cover investing and retirement planning, but also money management, budgeting and small businesses.

There is also a cool little “Fact or Fiction” section, which details common theories with whether they are based in reality or have become a myth. For example, there is currently a card covering whether you can pay into a Traditional IRA along with a Roth IRA.

I subscribed to the Smart Money newsletter to receive the latest industry news along with tips for spending, saving and investing.

I prefer to browse the assets to find my next investment purchase, as you can see from this screenshot.

Fidelity browse stocks and ETFs
Browse stocks and ETFs (Screenshot taken by our team from Fidelity app)

However, I did find the Fidelity collections a helpful feature. Essentially, these are groups of investment assets to help me to quickly find my next purchase. The collections include new issue CDs and income stocks, but there are also sustainable investments.

This is a nice touch as I can invest in these companies without worrying about their environment, social or governance policies.

Fidelity collections
Fidelity collections (Screenshot taken by our team from Fidelity app)

 While this may not be a priority for every investor, sustainable investments tend to have a better long term track record. So, it is nice that Fidelity has done the research for me.

Fidelity offers Certificates of Deposit (CDs) with competitive interest rates, often higher than traditional bank CD

These CDs are FDIC-insured up to applicable limits, ensuring your investment's safety. Fidelity provides a broad range of CD options, including new issue CDs and secondary market CDs, allowing investors to choose terms and rates that best fit their financial goals.

Fidelity CDs
Fidelity CDs (Screenshot taken by our team from Fidelity app, rates may not be updated)

Additionally, Fidelity provides a CD laddering tool, which helps you build a strategy to maximize returns while maintaining liquidity.

Additional Features That Helped Me

Besides the main features I use regularly, there are additional features for investors:

Since Fidelity is such a well established name in investment products, it should be no surprise that you can access a decent selection of mutual funds. However, that is impressive is that Fidelity offers two ways to invest in mutual funds.

Fidelity how to buy mutual funds on app
(Screenshot taken by our team from Fidelity app)

There are approximately 3,400 mutual funds that don’t carry a transaction fee. So, although there are still expense ratio charges, you can buy and sell these funds without fees.

Fidelity also has several fee free funds with no transaction fees or annual expense ratios. As you can see in the following screenshot, customers can also exchange mutual funds:

(Screenshot taken by our team from Fidelity app)

You don’t even need to be a Fidelity brokerage customer to access these fee free funds, making them a solid choice even if you’re not completely sold on the brokerage services.

Fidelity Crypto allows me to buy and sell ethereum, litecoin and bitcoin within the same app as my stock trades. I can also access crypto ETFs.

(Screenshot taken by our team from Fidelity app)

What is nice about Fidelity Crypto is that I can get started in this niche with just $1. This is helpful if you’re new to crypto and don’t want to commit a large portion of your investment fund.

(Screenshot taken by our team from Fidelity app)

While Fidelity may lack the long list of cryptocurrencies that some other platforms offer, there are plenty of helpful resources including crypto news, market updates and even a helpdesk.

The trades are free of commission and there is just a 1% spread included in the trade execution prices to cover Fidelity’s costs.

Fidelity provides opportunities for both IPO investments and annuities to help diversify and secure your financial future. IPOs (Initial Public Offerings) offer a chance to invest in companies as they go public, potentially benefiting from early growth.

Fidelity supports this with an IPO calendar, detailed company information, and alerts, though participation requires a portfolio of at least $100,000 and no guarantee of share allocation.

For retirement planning, Annuities are available through The Fidelity Insurance Network, offering income, fixed, and variable annuities. Investors can work with Fidelity advisors to tailor plans that meet their specific needs.

How's Fidelity Customer Support?

Fidelity also has a solid reputation for its customer support. If I run into any issues, there is a comprehensive help section on the platform with dozens of topics. I can even share my screen with the support team if the issue is a little complex and I need help.

(Screenshot taken by our team from Fidelity app)

If the help section doesn’t provide an answer, I can ask the Fidelity virtual assistant or call the helpline 24/7. Fidelity also offers live chat with specialized support for any technical or account issues.

This service is available 8 am to 10 pm Monday to Friday and 9 am to 4 pm on weekends.

What Can Be Improved

No platform or company is perfect and there are a couple of areas where Fidelity could make some improvements. These include:

  • No Paper Trading: While Fidelity is fairly beginner friendly with resources for investors of all experience levels, it does lack paper trading. Paper trading is not only great for building initial investing confidence, but it is also remarkably helpful for testing out new investing strategies, so this is an obvious gap in the Fidelity feature set.
  • No Futures Trading: Although Fidelity offers options, forex and fractional share trading, it does not offer any futures trading. Considering the product list is quite comprehensive including retirement and student accounts, charitable giving and more, it would be nice if I could also access futures.
  • Limited Crypto: It is nice that Fidelity does make it easy to access crypto trading with low minimums and minimal fees. However, the selection of coins is quite basic. It is possible to expand this with crypto ETFs, but it would be good if I could trade in more coins directly.

What Type of Investor is Best Suited to Fidelity?

While Fidelity is a good all round investing option, there are a few types of investors who are likely to get the most from the platform. These include:

Although Fidelity is beginner friendly, it does offer comprehensive research capabilities for ETFs, stocks and fixed income assets.

I can find pretty much everything I need for fundamental or technical trading without needing to seek out third party resources.

Fidelity is a leader in retirement planning services, offering a variety of retirement accounts (like IRAs and 401(k) plans) with comprehensive planning tools.

Investors focused on retirement can benefit from Fidelity's target-date funds, retirement calculators, and personalized advice, helping them stay on track with their long-term goals.

Fidelity is an excellent choice for investors who need a dedicated advisor, particularly through its Wealth Management and Private Wealth Management services. These services are tailored for high-net-worth individuals who require personalized and comprehensive financial planning and investment management.

Fidelity offers excellent options for investors who prefer the convenience and efficiency of robo-advisors, particularly through Fidelity Go® and Fidelity Managed FidFolios℠.

These services are designed to provide professional investment management with minimal effort required from the investor and can be combined with self directed investing.

Fidelity Trading Platforms

Fidelity Investment's trading platform, Active Trader Pro, has a bundle of features enabling the investor to closely monitor the account and easily find the desired products to trade.

It comes in all versions (desktop, web-based, and as an app for trading on-the-go).

It makes it easier to discover trading opportunities using various filters (e.g., social sentiment) and has an options trade builder feature that helps traders in the learning process of trading options.

The platform also enables simple and complex multi-leg option orders, which typically is a complex feature for options trading.

Fidelity Customer Service

Fidelity Investments puts customer service at the top of its agenda.

It may charge higher margin rates than competitors, but the customer service makes you feel it earns a higher commission with interest.

A 24/7 customer service rule applies, and there's a representative standing by to help, regardless of the time during the day or night. One can also use the live chat options within certain working hours, send a secure email or use the virtual assistant for the most common questions and answers.

Trading Education

Fidelity Investments built a state of the art learning center that focuses on five different areas: Active Trader Pro, options, technical analysis, trading basics, and volatility.

Literally, the broker offers virtual courses to learn about each individual area. All those with an active account at Fidelity Investments can register in advance and take part in the course.

What's interesting is that the courses address all types of investors and cover a wide range of topics, from beginner trading strategies to complex features of the trading platform, for example.

How to Open a Brockerage Account With Fidelity?

Step 1:  

Visit the Fidelity Investments homepage and click “Open an account.”

1_Fidelity Investments_Homepage

Step 2:  

Next, indicate whether it is a joint or an individual account.

2_Fidelity Investments_Account type

Step 3: 

Create a new account, inserting your name and email address.

3_Fidelity Investments_Get started

Step 4:

The next page comes up, insert your security number, date of birth, and phone details.

4_Fidelity Investments_Personal Info

Step 5:  

Type in your residential address, and the city, state, and zip code of your location, then click “Next.”

Once your identity is verified, you are good to go.

FAQs

Fidelity's trading education division is strong and often surpasses competitors, offering valuable resources for improving trading skills and understanding financial markets.

Yes, beginners can benefit from Fidelity's educational resources and user-friendly platform, which help them understand and navigate the world of investing. However, fees may be a bit high for beginners.

Yes, Fidelity is known for its excellent customer service, offering prompt assistance and guidance to investors, which can be especially valuable during market fluctuations.

Fidelity stands out for its exceptional customer service, comprehensive trading education, and a diverse array of investment products.

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Picture of Baruch Mann (Silvermann)

Baruch Mann (Silvermann)

Baruch Silvermann is a financial expert, experienced analyst, and founder of The Smart Investor.  Silvermann has contributed to Yahoo Finance and cited as an authoritative source in financial outlets like Forbes, Business Insider, CNBC Select, CNET, Bankrate, Fox Business, The Street, and more.
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Wide Range of Cryptocurrencies
Supports a large number of cryptocurrencies, including Bitcoin, Ethereum, Litecoin, and many altcoins.
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Provides a non-custodial wallet where users have control over their private keys, supports a wide range of crypto assets and decentralized applications (DApps).

Buy and Sell Crypto witH IRA
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