"Take intelligent risks rather than follow the crowd." This was the inspiration with which Edward C. Johnson 2d founded the company, and it continues to guide us forward as a pioneer in the world of investing. As the financial industry evolves and customer needs become more complex, Fidelity has and continues to innovate, and transform itself to be ready for the financial landscape of tomorrow, while ensuring we are meeting the needs of our customers today.
What is Fidelity？
Founded in 1946, Fidelity is one of the largest financial services companies globally, known for its wide array of investment products, robust trading platforms, and diverse financial services. With its headquarters in Boston, Massachusetts, Fidelity offers a client-centric approach, providing resources and tools to help investors achieve their financial goals. Fidelitys customer service is highly rated, offering 24/7 support through various channels.
Pros and Cons of Fidelity
Fidelity stands out with its extensive range of investment products and services, catering to various investor needs and strategies. With zero commissions on online U.S. stock and ETF trades, it appeals to cost-conscious investors. The platform offers advanced trading tools and features, including Mobile App, Website, and Active Trader Pro, along with various research and educational resources, making it suitable for both beginners and experienced traders. Additionally, Fidelity's diverse customer service, available 24/7, provides valuable support to users.
However, fees for some managed account services can be higher than industry averages, which may be a drawback for investors seeking these services. Finally, the extensive range of tools and resources offered by Fidelity might feel overwhelming to some users, especially those who are new to investing in or prefer a simpler interface.
Is Fidelity safe？
Regulations
Fidelity is officially licensed and regulated by The Financial Industry RegulatoryAuthority (FINRA) in the United States under license number CRD#: 7784/SEC#: 8-23292.
This firm was previously listed on the New York Stock Exchange with a Global Market designation, but its listing is currently closed.
Funds Safety
Fidelity ensures the safety of client funds through multiple measures. Client assets are held in separate accounts from Fidelity‘s own assets, ensuring that customer funds are protected even in the unlikely event of the company’s insolvency. Additionally, Fidelity is a member of the Securities Investor Protection Corporation (SIPC), which protects up to $500,000 in securities and cash (including a $250,000 limit for cash only) for each customer in case of a brokerage firm's failure.
Safety Measures
Fidelity employs advanced security measures to protect client accounts and personal information. This includes two-factor authentication, secure encryption technologies, and constant monitoring for suspicious activity. The firm also offers security guarantees, promising to reimburse any losses due to unauthorized activity that occurs through no fault of the customer. Fidelitys commitment to security is further demonstrated by its continuous investment in cybersecurity infrastructure and practices.
What are securities to trade with Fidelity？
Fidelity offers a variety of trading instruments, including stocks, bonds & fixed income, ETFs, annuities, options, and mutual funds. However, the broker does not provide trading in Futures or Margin Loans.
Stocks: Investors can trade U.S. and international stocks with zero commission for online U.S. equity trades. Fidelity also provides access to IPOs and secondary offerings.
Bonds & fixed income: A variety of bonds are available, including U.S. Treasury, municipal, corporate, agency, and foreign bonds. Fidelity offers competitive pricing and extensive tools for bond analysis and trading.
ETFs: Fidelity offers a broad selection of ETFs, many of which are commission-free. These ETFs cover various asset classes, sectors, and investment strategies.
Mutual Funds: Investors have access to thousands of mutual funds, including Fidelity's own funds with no transaction fees. These funds span a wide range of investment styles and objectives.
Options: Fidelity provides options trading with advanced tools for strategy development and execution. The commission for options trading is $0.65 per contract.
Annuities: Fidelity also offers annuities that can provide a stable, guaranteed lifetime income stream, making them suitable for investors seeking financial security in retirement.
Fidelity Accounts
Fidelity provides a variety of account types to suit different investment goals and needs:
Brokerage Accounts: Standard accounts for trading stocks, bonds, ETFs, options, and other securities.
Retirement Accounts: Fidelity offers Traditional IRAs, Roth IRAs, SEP IRAs, SIMPLE IRAs, and rollover IRAs designed for tax-advantaged retirement savings.
Education Savings Accounts: Fidelity provides 529 college savings plans, custodial accounts (UTMA/UGMA), and Coverdell Education Savings Accounts.
Cash Management Accounts: These accounts combine features of checking and savings accounts, offering competitive interest rates and integrated investment options.
Fidelity Managed Accounts: These include Fidelity Go (a robo-advisor), Fidelity Personalized Planning & Advice (a hybrid robo-advisor with human financial advisors), and Fidelity Wealth Services for high-net-worth individuals requiring personalized wealth management.
Fidelity Fees Review
Fidelity is a relatively cost-effective platform for investors, offering $0 commissions for online US stock, ETF, and option trades, with no annual fee for maintaining a brokerage account. Additionally, Fidelity claims that their margin rates are among the lowest in the industry, starting at 9.25%, and there are no minimum balance requirements to open an account. Options traders will incur a $0.65 per contract fee, with the potential for additional fees like the Options Regulatory Fee.
Additionally, Fidelity mutual fund investors can benefit from no transaction fees for both Fidelity funds and thousands of other no-transaction-fee funds. For other funds, a transaction fee, typically around $49.95, may apply. Bond investors also enjoy competitive pricing, with no mark-up for online U.S. Treasury trades. However, fees for other bonds may vary and are often incorporated into the bond's yield.
Investors considering Fidelity Go or Personalized Planning and Advice accounts should be aware of management fees. Fidelity Go charges an annual advisory fee of 0.35% on assets under management, which translates to a monthly fee of $4.38 for a $15,000 investment.
Fidelity App Review
Fidelity offers both online and mobile access to its brokerage accounts.
Fidelity Mobile App: Available for both iOS and Android devices, the mobile app allows investors to trade on-the-go, manage their accounts, access market news, and perform research. It features an intuitive interface and integrates effortlessly with other Fidelity platforms.
Fidelity Website: The main website for account management, trading, and research. It provides a various suite of tools for investors to manage their portfolios, analyze the market, and execute trades.
Active Trader Pro: A downloadable platform designed for active traders, offering advanced charting, real-time analytics, customizable layouts, and powerful trading tools. It supports complex order types and provides enhanced trading capabilities.
Research and Education
Fidelity provides extensive research and educational resources to help investors make informed decisions:
Research Tools: Fidelity offers access to third-party research from reputable providers such as Morningstar, Thomson Reuters, and Zacks. Investors can utilize stock screeners, portfolio analysis tools, and market insights to guide their investment decisions.
Educational Resources: Fidelity's Learning Center features a wealth of information on various investment topics, including webinars, articles, tutorials, and interactive courses. The firm also offers personalized advice and planning sessions with financial advisors.
Market Insights: Fidelity regularly publishes market analysis, investment commentary, and economic reports to keep investors informed about market trends and opportunities. These insights are available through the Fidelity website, email newsletters, and social media channels.
Customer Service
Fidelity is highly regarded for its customer service, which is available 24/7 through multiple channels:
Phone Support: 800-343-3548, Fidelity offers toll-free numbers for direct assistance with various inquiries, including trading, account management, and technical support.
Live Chat: Investors can engage in real-time conversations with customer service representatives through the live chat feature on the Fidelity website.
Investor Centers: Fidelity operates over 190 investor centers across the U.S., where clients can receive in-person consultations and support from financial professionals.
Virtual Assistant: An AI-powered tool that helps clients with common inquiries and tasks, available on the Fidelity website and mobile app.
Conclusion
Fidelity Investments stands out as a diverse brokerage firm, offering a broad range of investment products, competitive fees, and excellent customer service. Its advanced trading platforms and extensive research tools make it a preferred choice for both novice and experienced investors. While there are some limitations, such as higher fees for certain managed accounts, the advantages far outweigh the drawbacks, making Fidelity a top choice for many investors.
FAQs
Q: What types of accounts can I open with Fidelity？ A: Fidelity offers various accounts including brokerage, retirement (Traditional IRA, Roth IRA, SEP IRA, Rollover IRA), education savings (529 plans, custodial accounts), and cash management accounts.
Q: Does Fidelity charge commissions for trading stocks and ETFs？ A: No, Fidelity does not charge commissions for online U.S. equity trades and ETFs.
Q: What research tools are available at Fidelity？ A: Fidelity provides access to third-party research from Morningstar, Thomson Reuters, Zacks, and more. Tools include stock screeners, portfolio analysis, and market insights.
Risk Warning
WikiStock's expert assessment of the brokerage's website data is subject to change and should not be taken as financial advice. Online trading carries substantial risks, including the potential loss of all invested capital, and it's crucial to fully understand these risks before investing.
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