Fidelity Investments Review 2020
Established in 1946, Fidelity is one of the oldest online brokers in the US. It is regulated by top-tier regulators like the Financial Industry Regulatory Authority (FINRA) and the Securities and Exchange Commission (SEC). Due to its long track record and the fact that top-tier authorities regulate it, Fidelity Investments is regarded as safe.
Fidelity Investments Account Types: 8
Fidelity offers its customers a lot of options in account types. Below are the account types available under the broker:
- Trading and Investing Accounts
- Brokerage Account
- Cash Management Account
- Brokerage and Cash Management
- Fidelity Account for Business
- Saving for Retirement Account
- Rollover IRA
- Traditional IRA
- Roth IRA and Roth IRA for Kids
- Inherited IRA and Inherited Roth IRA
- Self-Employed IRA and Self-Employed 401(k)
- Simple IRA
- Investment-Only Plans for Small Businesses
- Managed Accounts
- Saving for Medical Expenses/ Education/ ABLE (Achieve a Better Life Experience)
- 529 Account
- Custodial Account
- Health Savings Account
- The Attainable Savings Plan
- Charitable Giving
- Fidelity Charitable
- Estate Planning
- Trust and Estate Accounts
Annuities include the Fidelity Personal Retirement Annuity, Deferred Income Annuity, Deferred Fixed Annuity, and the Immediate Fixed income Annuity. Life insurance is also available under the Universal Life, and Term Life Insurance covers.
Demo Account: 7
A demo account is available for traders to try new strategies and familiarize themselves with the platforms and tools. Demo accounts also make for good educational tools for newcomers to trading and investing. Fidelity offers its customers access to a demo account.
Trading Costs and Commissions: 8
Fidelity Investments’ clients can trade US stocks and ETFs commission-free. Fidelity Investments charge higher fees for German and UK stocks than Interactive Brokers. Fidelity’s margins fees are similar to tastyworks (base rate approximately 7%).
Fidelity offers about 3,600 mutual funds commission-free; however, selling the funds within 60 days will attract a $49.95 charge. The fee charged on other funds vary depending on the fund. In general, Fidelity’s fee structure on mutual funds is higher than competitors like Charles Schwab and Interactive Brokers.
Fidelity does not charge commissions on treasury bonds. Other bonds like corporate equivalents attract a $1 per bond fee with a $250 cap on fees. The maximum charge on bonds maturing in a year or less is $50.
At $0.65 per contract, Fidelity’s cost for trading options is relatively low.
Non-trading fees are quite competitive. Fidelity Investments does not charge account fees, inactivity fees, deposit or withdrawal fees.
Assets to Trade: 8
Fidelity is a full-service firm, and it offers a wide range of financial products that span across different asset classes. You can trade in stocks, ETFs, forex, funds, bonds, options, futures, CFDs, and cryptocurrencies. While most US brokers do not offer access to international stocks, Fidelity does. This is one of the reasons why Fidelity Investments stands out.
Fidelity Investments Trading Platforms: 9
You will find everything you need to manage a portfolio on Fidelity’s website. Active Trader Pro is the broker’s flagship desktop platform, and it caters to the needs of the active trader. This platform features a bundle of unique in-house tools like Real-Time Analytics and Trade Armor. With all these tools, options trading is impressive on the Active Trader Pro platform.
Mobile trading: 10
Fidelity’s mobile trading experience is clean, bug-free, and easy to use. The broker probably the best mobile trading platform in the industry. Active traders may be left wanting more, but Fidelity delivers the best mobile app for investors. The app has a customizable dashboard and robust research features.
Deposits and Withdrawals: 7
Customers have a choice from 16 base currencies as the primary currency of their accounts. Funding accounts are free and available via checks, electronic (ACH) avenues, wire transfers, and PayPal. It is worth noting that bank transfers take several business days and credit/debit card transactions are instant.
ACH withdrawals are free of charge, while domestic and international wire withdrawals attract a $10 fee. ACH bank transfer withdrawals take two business days to process and complete.
Research and Education: 8
Fidelity offers trading research by offering trading ideas, fundamental data, charting tools, news feeds, and more. The broker also offers sophisticated screeners for stocks, mutual funds, and ETFs. These are some of the best screeners in the industry. You can use filters like technical indicators and basic company information to fine-tune your search.
Fidelity Investments offers education via a demo account, platform tutorial videos, webinars, general educative videos, and high-quality educational articles. The webinars target traders and investors from across different levels of experience. The firm churns out five to ten new educational videos per month.
Customer Support: 8
Customer support is available in English via live chat, phone lines, and email. The response rates on the broker’s live chat platform are quite slow. Maybe there are way too many customers in the queue, but it may take up to 20 minutes to get a response from the operator. Telephone and email avenues are quite responsive.
Fidelity Investments is probably the best broker overall in the United States. Top-tier regulators regulate the company, and it is trustworthy. Fidelity’s research offerings are vast and outstanding. Fidelity Investments is a full-service broker, and it offers a wide range of products.
Fidelity’s downsides come in its relatively high mutual fund fees and that the account opening process is not fully digital. With low costs and many options in account types, Fidelity accommodates a wide variety of traders.