Fidelity is a US brokerage offering investors zero commission online trading on Stocks, Exchange-traded Funds (ETFs) and Options. They implement the latest smart trading technologies and also have competitive fees on Mutual Funds, Bonds, IPOs, Metals and Certificates of Deposit (CDs).
Founded in 1946, Fidelity are widely regarded for consistently providing investors with low rates and good customer service. They also offer independent professional research along with a range of powerful trading tools and educational resources.
With a Fidelity brokerage account, you are free to conduct self-directed investments or request them to manage your finances for you via the investment advisory offerings. There is a wide range of different account types to cater to different financial goals.
Pros / Cons
- Federal Deposit Insurance Corporation (FDIC)
- Securities Investor Protection Corporation (SIPC)
- Broad choice of investments
- Multiple account base currencies
- Advanced trading tools
- No MetaTrader platform
- No Forex, CFDs or Cryptos
- Restricted leverage
- Limited funding options
- Long account opening process
- Account benefits require larger deposits
Fidelity is regulated under U.S. securities law, is registered with the Securities Exchange Commission (SEC) and is a member of the Financial Industry Regulatory Authority (FINRA). They are also listed on the New York Stock Exchange (NYSE).
Fidelity take clients security and privacy very seriously. They implement industry leading security standards and top-class technologies to help ensure that you portfolio is kept safe.
Fidelity clients are covered by the Customer Protection Guarantee, where they will reimburse eligible clients for losses that occur from unauthorized activity within their accounts. In addition to this, they are also participating in asset protection programs such as the Federal Deposit Insurance Corporation (FDIC) and Securities Investor Protection Corporation (SIPC) to help provide the best services possible to clients.
Whilst Fidelity is a US broker that is primarily catering for US clients, they do welcome investors from other countries through their subsidiary companies. Fidelity Investments Canada caters to Canadian investors, whilst Fidelity International offer its products and services throughout Europe and South-East Asia. The services can differentiate between countries, including the products available to trade and account types.
Fidelity Trading Platforms
Clients of Fidelity gain access to a selection of cutting-edge desktop and web trading platforms. You can stay in tune with all of your accounts, research, and trade from anywhere in the world provided that you have an internet connection.
Active Trader Pro®
Active Trader Pro® is Fidelity’s advanced trading platform, with implemented tools that can help with making informed trading decisions. Tools include the all-in-one Daily Dashboard, a thematic stock screener, customized newsfeeds, find smart entry and exit points, and more.
Fidelity Active Trader Pro® features:
- Real-time, streaming market updates
- Fully customisable
- Place and manage trades with advanced order types
- View real-time insights to help assist with analysis
- Visual snapshots for monitoring your investments in real-time
- In-built powerful trading tools
- Market insights to help with trade decisions
- Free research from more than 20+ independent providers
- Find potential trading setups with real-time alerts
- Portfolio management tools
- Monitor economical events that can have an impact on your portfolio
Fidelity Mobile Trading Platform
The mobile platform is useful for those who need to access and manage their account whilst on the go. You can view your portfolio, watch lists, conduct research and trade multiple assets all from the palm of your hands. You also get news, videos, real-time quotes, and advanced charting, helping you to always remain in touch with the markets from anywhere in the world where you have an internet connection. The mobile platform is available for download on both Android and iOS compatible devices.
Fidelity mobile trading platform features:
- Real time market quotes
- Personalised feed
- View and manage portfolio whilst on the go
- Market research
- Watch lists
- Customised news and push alert notifications
Fidelity Trading Tools & Education
When you open a Fidelity account you have access to a suite of easy-to-use yet sophisticated online trading tools to assist you with your analysis and to help you plan, evaluate and track your finances so that you can reach your full trading potential.
You can also get the latest expert insights from an in-house team of specialists. They offer investment research and analysis to assist clients with their different trading strategies. Fidelity Viewpoints® provides articles and some of the latest financial commentary to help traders make informed investing decisions.
Stock Research Dashboard
Using the stock research dashboard, you are able to search and find potential investment opportunities via third-party expert research and data visualization tools. This includes a combination of fundamental and technical analysis, social trends, advanced charting with price action, technical events from Recognia, Social Sentiment Score and more.
The stock screener can be used on desktop or mobile and makes it quick and easy to find investments that match your chosen criteria. You can search stocks and ETFs using hundreds of different criteria to narrow down your options. You may also search using independent expert strategies.
Equity Summary Score
Unique to Fidelity is the investment validation tool equity summary score by Thomson Reuters Starmine®. This gives you stock ratings from selected independent analysts which is then consolidated into a single score.
Strategy Testing Tools
Fidelity offer back testing strategies on Fidelity.com and Wealth-Lab Pro® utilising historical market data over 20 years to see how different strategies would have performed historically before you invest. Of course, historical performance is by no means any guarantee of future performance. Use of Wealth-Lab Pro’s automated trading feature is for investors trading a minimum of 36 times a year and subject to additional terms, conditions, and eligibility requirements.
Fidelity Go is a robo-advisor that can digitally manage your investments for you according to your specifications, risk tolerance and overall goals.
Fidelity® Personalized Planning & Advice
This is a hybrid robo-advisor that combines digital planning and investment management alongside a professional advisor when required.
Fidelity® Wealth Services
This service offers wealth management with personalised planning and advice from a professional advisor.
Fidelity Learning Centre
The Fidelity learning centre contains a vast array of useful information and online courses covering a variety of different topics suitable for all experience levels. Topics covered include trading, investing, products and more.
The brokerage runs frequent free webinars where you can get helpful insights from the comfort of your own home. Users can subscribe to get update notifications for upcoming webinars.
Active Investor eNewsletter
Traders can sign up to receive the latest news and offers, delivered directly into your inbox.
Interactive Coaching Sessions
Clients can join the Trading Strategy Desk® to help improve their knowledge on a variety of different trading and investment topics such as technical analysis, trading platforms, risk management, strategies and more.
Fidelity Trading Instruments
Traders can trade with competitive fees a selection of Stocks, Mutual Funds, Options, Bonds, CDs, ETFs and more. You should carefully read their fee schedule before opening an account as there may be limitations whilst other fees may apply.
Stocks & Options: US and global stocks, REITs, IPOs and more. $0 per stock or options trade plus $0.65 per contract on options and margin rates as low as 5.00%.
ETFs: Includes 11 Fidelity sector ETFs, 5 Fidelity bond ETFs, and 13 Fidelity factor ETFs. $0 per trade for all ETFs
Bonds & Certificates of Deposit (CDs): 40,000 new-issue and secondary market bonds and CDs, and 60,000 total offerings. $1 per bond or CD in secondary trading and free for US Treasuries traded online.
Mutual Funds: 10,000+ Fidelity and non-Fidelity mutual funds covering companies worldwide. Zero expense ratio index mutual funds with no minimal investment. $0 for Fidelity funds and hundreds of other funds with no other transaction fees.
Fidelity Trading Accounts & Fees
Fidelity offer a vast choice of self-directed and managed accounts, suitable for different investor goals and strategies. Compared to some other online brokers, Fidelity accounts have no fees and can be opened with no minimum deposit requirements.
There are different service levels offered depending on the amount traded by each client. An active trader is classified by having 120+ trades per year and has access to exclusive tools and services. Those who conduct more than 500+ trades per year are classified as active trader VIPs and are thus granted with the highest level of service for high net worth individuals.
Some of the main Fidelity account types offered are:
- Individual Account (one person)
- Joint Account (two or more persons)
- Business Account (for legal entities)
- Retirement Accounts (Roth IRA, Traditional IRA, Rollover IRA).
- Automated & Managed Account
- Trust, Estate & Charitable Planning Accounts
- Banking Accounts
- Education Savings & Custodial Accounts
Fidelity Customer Service
The Fidelity customer service team is available 24/7 via online chat, telephone and email. This provides convenient options for getting in touch with an investment professional who can help you with all your technical, general or account questions. The also have Investor Centres located throughout the USA where they welcome visitors.
Fidelity Deposit & Withdrawal
Fidelity funding options include wire transfers, ACH, check and online digital payment processors such as PayPal, Apply Pay, Google Pay and Samsung Pay. Please note that some methods may only be available to specific countries and not all are available for both deposit and withdrawal.
Some fees may be charged when using certain payment methods. The withdrawal time can vary depending on the payment provider and method. Bank transfers may take a few business days to clear whilst some methods can be instant.
Some payment systems may have transaction limits, restrictions, and requirements which are indicated on their respective websites. You may need to verify your account to remove limits on particular methods in some countries. Fidelity strictly do not accept third-party payments. All funds deposited into your trading account must be under the same name as your Fidelity trading account.
Accounts can be opened in USD, EUR, GBP, CAD, AUD, DEN, HKD, JPY, MXN, NZD, NOK, PLN, ZAR, SGD, SEK, CHF. The different currency options are beneficial as currency conversion fees do not apply when using an account in your own currency.
Fidelity Account Opening
Opening a Fidelity account takes longer than the majority of other online brokers due to the fact it is not all done online and does require physical documents to be sent out along with the required identification copies for verification purposes.
There is no minimum deposit required for a basic account but you need a $2,000 account to trade with margin, a $25,000 for day trading and an account between $10,000 – $50,000 for the fidelity managed accounts.
When clients open a new retail brokerage account with Fidelity, their cash is automatically placed into a money market mutual fund so that it can earn a potentially higher rate than other competitors.
Fidelity is a popular US based online brokerage with a broad choice of investments, advanced trading platforms and innovative tools. Their fees are very competitive and there are a variety of different accounts and investment services to suit different investor needs. Despite this, the account opening process is longer than usual. They also do not offer the MetaTrader platform and there is no Forex, CFD or Cryptocurrency trading.
Trading complex instruments can come with a high risk. You should consider whether you understand how investments and trading work and whether you can afford to take the high risk of losing all of your money.