When it comes to investing, choosing the right brokerage firm is crucial to achieving your financial goals. With so many options available, it can be overwhelming to decide where to put your hard-earned money. One of the most popular investment platforms is Fidelity Investments, a well-established online brokerage firm that offers a wide range of investment products and services. But, is Fidelity good to invest with? In this review, we’ll delve into the features, benefits, and drawbacks of Fidelity Investments to help you make an informed decision.
Overview of Fidelity Investments
Fidelity Investments is a Boston-based multinational financial services corporation that was founded in 1946. With over 75 years of experience, Fidelity has grown to become one of the largest online brokerage firms in the United States, managing over $2.7 trillion in assets. The company offers a diverse range of investment products, including stocks, bonds, ETFs, options, mutual funds, and index funds, among others.
Investment Products and Services
One of the key advantages of Fidelity Investments is its vast array of investment products and services. Whether you’re a novice or experienced investor, Fidelity has something to offer:
- Brokerage Accounts: Fidelity offers various types of brokerage accounts, including individual, joint, IRA, and rollover accounts.
- Investment Products: Fidelity provides access to a wide range of investment products, including stocks, bonds, ETFs, options, mutual funds, and index funds.
- Retirement Accounts: Fidelity offers traditional IRA, Roth IRA, and Rollover IRA accounts to help you plan for your retirement.
- Robo-Advisors: Fidelity’s robo-advisor, Fidelity Go, provides automated investment management at a low cost.
- Trading Platforms: Fidelity’s trading platforms, including Active Trader Pro and Web Trading, offer advanced tools and features for active traders.
Fees and Commissions
Fidelity Investments is known for its competitive pricing and low fees. Here are some of the key fees and commissions:
| Service | Fee |
|---|---|
| Stock Trades | $0 per trade (online) |
| Options Trades | $0.65 per contract (online) |
| Mutual Fund Trades | $49.95 per trade (online) |
| Management Fees (Fidelity Go) | 0.35% – 0.50% annually |
Benefits of Investing with Fidelity
There are several benefits to investing with Fidelity Investments:
Research and Tools
Fidelity offers a wide range of research tools and resources to help you make informed investment decisions:
- Screeners and Sorters: Fidelity’s screeners and sorters help you find investment opportunities that match your criteria.
- Charting and Technical Analysis: Fidelity’s charting tools and technical analysis features help you analyze market trends and patterns.
- News and Commentary: Fidelity provides access to news and commentary from leading financial publications and experts.
Customer Support
Fidelity Investments is known for its excellent customer support:
- 24/7 Phone Support: Fidelity offers 24/7 phone support to help you with any questions or issues.
- Online Chat: Fidelity’s online chat feature allows you to get quick answers to your questions.
- Branch Network: Fidelity has a large network of branches across the United States, providing in-person support and guidance.
Awards and Recognition
Fidelity Investments has received numerous awards and recognitions from leading financial publications:
- Best Online Broker: Fidelity has been named the Best Online Broker by Kiplinger’s Personal Finance and Barron’s.
- Lowest Cost Index Funds: Fidelity’s index funds have been recognized as the lowest cost index funds by Morningstar.
- Best RIA Custodian: Fidelity has been named the Best RIA Custodian by WealthManagement.com.
Drawbacks of Investing with Fidelity
While Fidelity Investments offers many benefits, there are some drawbacks to consider:
Inactivity Fees
Fidelity charges inactivity fees on certain accounts:
- $0.25 per month: Fidelity charges $0.25 per month for accounts with low balances or infrequent trading activity.
Minimum Balance Requirements
Fidelity has minimum balance requirements for some accounts:
- $2,500: Fidelity requires a minimum balance of $2,500 to open a brokerage account.
Limited International Trading
Fidelity’s international trading capabilities are limited:
- Only 25 Markets: Fidelity only offers trading in 25 international markets, which is limited compared to other brokerages.
Conclusion
Is Fidelity good to invest with? The answer is yes. Fidelity Investments offers a wide range of investment products and services, competitive pricing, and excellent customer support. While there are some drawbacks, such as inactivity fees and minimum balance requirements, Fidelity is an excellent choice for both novice and experienced investors. With its long history, strong reputation, and commitment to innovation, Fidelity is a trustworthy partner for your investment journey.
Final Verdict: Fidelity Investments is a top-notch online brokerage firm that is well-suited for investors of all levels. With its comprehensive range of investment products and services, competitive pricing, and excellent customer support, Fidelity is an excellent choice for anyone looking to achieve their financial goals.
Is Fidelity a reputable investment company?
Fidelity Investments is a well-established financial services company with a long history dating back to 1946. It is one of the largest investment companies in the world, with over $2.7 trillion in assets under management. Fidelity has built a strong reputation for its commitment to providing high-quality investment products and services to individual investors, institutional investors, and financial advisors.
Throughout its history, Fidelity has demonstrated a strong track record of stability, security, and reliability, earning the trust of millions of investors worldwide. Fidelity is a member of the Securities Investor Protection Corporation (SIPC) and is registered with the Securities and Exchange Commission (SEC), ensuring that investors’ accounts are protected up to $500,000, including $250,000 in cash claims.
What types of investment products does Fidelity offer?
Fidelity offers a wide range of investment products and services, catering to diverse investor needs and goals. The company provides access to a vast selection of mutual funds, exchange-traded funds (ETFs), index funds, options, and fixed-income securities. Fidelity also offers a variety of brokerage accounts, including individual and joint accounts, IRAs, 401(k) plans, and custodial accounts.
In addition to traditional investment products, Fidelity offers more sophisticated investment options, such as robo-advisory services, automated investment management, and wealth management services. The company’s platform is designed to be user-friendly, allowing investors to easily navigate and manage their investments online or through its mobile app.
What are the fees associated with Fidelity investment accounts?
Fidelity is known for its competitive pricing structure, offering some of the lowest fees in the industry. The company has eliminated commissions on online U.S. stock, ETF, and option trades, making it an attractive option for frequent traders. Fidelity’s mutual fund and index fund lineup also boasts low expense ratios, with many options featuring no minimums or fees.
Fidelity’s brokerage accounts come with no monthly maintenance fees, and there are no required minimum balances to open an account. However, some accounts may have underlying fund expenses or other fees associated with specific investment products. Investors can review Fidelity’s pricing and fees on its website or consult with a financial advisor to determine the costs associated with their investment portfolio.
Does Fidelity offer any research tools and resources?
Fidelity provides its customers with an extensive range of research tools and resources to help them make informed investment decisions. The company’s website features a comprehensive research center, offering in-depth analysis, market insights, and real-time news from reputable sources. Investors can access Fidelity’s proprietary research, including ETF and mutual fund screens, technical analysis, and portfolio analysis tools.
Fidelity also offers a variety of educational resources, including online workshops, webinars, and interactive guides. The company’s mobile app allows investors to stay connected to the markets and track their portfolios on-the-go. Additionally, Fidelity’s investment professionals and financial advisors are available to provide personalized guidance and support to help investors achieve their investment goals.
Can I open a Fidelity account online?
Yes, Fidelity allows investors to easily open a brokerage account online in just a few minutes. The online application process is secure and straightforward, requiring basic personal and financial information. Investors can fund their accounts electronically, and Fidelity offers a variety of funding options, including wire transfers, mobile check deposit, and rollovers from other brokerage accounts.
Once the account is open, investors can begin exploring Fidelity’s platform, accessing its research tools, and starting to build their investment portfolios. Fidelity’s customer service team is available to assist with any questions or issues that may arise during the account-opening process.
Is Fidelity’s platform user-friendly?
Fidelity’s platform is designed to be intuitive and easy to use, catering to investors of all experience levels. The company’s website and mobile app feature a clean and organized layout, allowing investors to quickly navigate and access their accounts, research, and investment products. Fidelity’s platform is highly customizable, enabling investors to personalize their experience and tailor it to their individual needs and preferences.
Fidelity’s platform also offers a range of advanced features, including customizable dashboards, real-time quotes, and advanced charting capabilities. The company’s platform is highly secure, utilizing robust encryption and two-factor authentication to protect investor accounts and personal information.
How is Fidelity’s customer service?
Fidelity is renowned for its exceptional customer service, providing investors with multiple channels to access support and guidance. The company’s customer service team is available 24/7 via phone, email, and online chat, offering prompt and knowledgeable assistance. Fidelity also offers a network of branch locations, allowing investors to meet with financial advisors and investment professionals in person.
In addition to its customer service team, Fidelity provides an extensive online knowledge base, featuring FAQs, tutorials, and educational resources. The company’s mobile app also offers a “Contact Us” feature, enabling investors to quickly get in touch with customer service representatives. Fidelity’s commitment to customer service has earned the company numerous awards and industry recognition.