||Stocks, ETFs, options, bonds, mutual funds, cryptocurrencies, and more
||Various, including IRAs, brokerage accounts, crypto accounts, and more
||None (No minimum deposit for retail brokerage accounts)
||Information not specified
||- Commission-free trades for U.S. stocks, ETFs, and options - Zero expense ratio index mutual funds - No account fees or minimums - $0 trading fees for ETFs - $1 per bond or CD in secondary trading - Potential savings averaging around $15 per bond
||Electronic Funds Transfer (EFT), direct deposit, check deposit, wire transfer
||Fidelity.com (web-based), Active Trader Pro (desktop), Fidelity Mobile (mobile app)
||Virtual Assistant (24/7), live chat, phone support (24/7), Crypto Help Desk
||Learning Center, webinars, online courses, investment tools
Fidelity Brokerage Services LLC is an online broker offering financial services to individual investors, employers, institutions, charitable donors and innovators. Fidelity manages employee benefit programs for over 22,000 businesses, and supports more than 13,500 financial institutions with investment and technology solutions to grow their businesses. Headquartered in Boston, Fidelity serves customers through 12 regional sites across the globe and more than 200 Investor Centers.
Is Fidelity Legit？
Fidelity is not regulated by any recognized financial regulatory authority. As an unregulated broker, it operates without oversight from regulatory bodies that are responsible for ensuring compliance with industry standards and protecting the interests of traders. This lack of regulation raises concerns about the safety and security of funds, as well as the transparency of the broker's business practices.
Trading with an unregulated broker like Fidelity carries inherent risks. Without regulatory supervision, there may be limited avenues for dispute resolution, and traders may face challenges in seeking recourse in case of any issues or disputes. Additionally, unregulated brokers may not be subject to stringent financial and operational standards, potentially leading to inadequate client fund protection and unfair trading practices.
Pros and Cons
Fidelity offers a wide array of financial services and investment products, making it a versatile choice for investors. Its comprehensive range of account types, commission-free trading options, and innovative zero expense ratio index funds are significant advantages. Additionally, the availability of educational resources enhances its appeal for both new and experienced investors. However, Fidelity's lack of regulatory oversight is a notable concern, as it raises questions about the safety and transparency of the platform. Furthermore, limited information about leverage options and the absence of bonus offerings may be viewed as drawbacks for some traders. It's essential for potential investors to carefully weigh these pros and cons to determine if Fidelity aligns with their specific financial goals and risk tolerance.
- Diverse Trading Instruments
- Lack of Regulatory Oversight
- Comprehensive Account Types
- Limited Leverage Information
- No Account Fees or Minimums
- Innovative Zero Expense Ratio Index Funds
With a Fidelity Account (no minimums to open), clients can trade stocks, mutual funds, exchange-traded funds (ETFs), options, bonds & certificates of deposit (CDs), precious metals, international investments. Fidelity now offers the Fidelity ZERO Total Market Index Fund (FZROX), Fidelity ZERO International Index Fund (FZILX), Fidelity ZERO Large Cap Index Fund (FNILX), and Fidelity ZERO Extended Market Index Fund (FZIPX) available to individual retail investors who purchase their shares through a Fidelity brokerage account.
Fidelity offers a comprehensive selection of account types to meet the diverse financial needs of its clients. Here's a structured overview of the various account types offered by Fidelity:
1. Rollover IRA: Ideal for consolidating retirement savings from previous employer plans into a tax-advantaged account.
2. Traditional IRA: Offers tax-deferred growth and a wide range of investment choices for retirement savings.
3. Roth IRA: Provides tax-free withdrawals in retirement and flexible investment options.
Investment and Trading Accounts:
4. Brokerage Account (Fidelity Account®): Access to a wide variety of investment options, including stocks, ETFs, mutual funds, bonds, and options for building and managing investment portfolios.
5. Crypto Account (Fidelity Crypto®): Designed for clients interested in cryptocurrency trading.
Spending and Saving Accounts:
6. Fidelity® Cash Management Account: Combines features of a checking account with high-yield savings benefits, facilitating convenient cash management.
7. Fidelity Bloom®: A financial wellness account that helps clients take control of their financial habits and well-being.
Self-Employed and Business Accounts:
8. SEP IRA (Simplified Employee Pension IRA): Offers tax advantages and retirement savings options for self-employed individuals and business owners.
9. Small Business HSA (Health Savings Account): Provides tax-advantaged healthcare savings solutions for small business owners.
Accounts for Children and Education Savings:
10. 529 Account: Designed for saving and investing in a child's education, offering tax benefits and flexibility.
11. Fidelity® Youth Account: An account tailored to young investors, encouraging financial education and early investing.
12. Fidelity Go®: A robo-advisor service that offers automated portfolio management based on individual financial goals and risk tolerance.
13. Fidelity Managed FidFolios℠: Allows clients to invest in professionally managed portfolios aligned with their financial objectives.
14. Portfolio Advisory Services Accounts: Offers personalized investment advice and guidance for clients seeking tailored portfolio management.
How to Open an Account？
Opening an account with Fidelity is a straightforward process:
1. Visit the Fidelity website. Look for the “OPEN AN ACCOUNT” button on the homepage and click on it.
2. Online Application: Visit Fidelity's official website and fill out the online application form with your personal information and desired account type.
3. Choose Account Type: Select the specific type of account you want to open, such as an individual brokerage account or retirement account.
4.. Provide Documentation: Submit required documents for identity verification, like a government-issued ID and proof of your Social Security number.
5.. Fund Your Account: Once approved, fund your account using various options, including electronic transfers, checks, or asset transfers.
6.. Start Investing: Access Fidelity's platform to invest in stocks, bonds, mutual funds, ETFs, and more.
7.. Consider Fidelity Go: If you prefer a managed portfolio, explore Fidelity Go, their robo-advisor service.
Commissions & Fees
There are $0 commissions for online US stock, ETF, and option trades.
Commission-Free Trades: Fidelity offers commission-free online trading for U.S. stocks, ETFs, and options. Clients can execute online U.S. stock, ETF, and option trades with a commission of $0.01 per trade, along with an additional $0.65 per contract on options.
Zero Expense Ratio Index Funds: Fidelity introduced the industry's first zero expense ratio index mutual funds directly available to investors. These funds include the Fidelity® ZERO Total Market Index Fund, Fidelity® ZERO International Index Fund, Fidelity® ZERO Extended Market Index Fund, and Fidelity® ZERO Large Cap Index Fund.
Industry-Leading Value: Fidelity prides itself on offering industry-leading value to its clients. There are no account fees and no minimums required to open a retail brokerage account, including IRAs, making it accessible to a wide range of investors.
Trading Fees for Other Assets: Fidelity's fee structure includes $0 trading fees for all ETFs. For secondary trading of bonds and CDs, there is a fee of $1 per bond or CD, with U.S. Treasuries traded online being free. This fee structure provides potential savings, averaging around $15 per bond.
Zero Minimums for Fidelity Mutual Funds: Fidelity offers clients the opportunity to invest in Fidelity mutual funds with no minimum investment requirements. Additionally, clients can access hundreds of other funds with no transaction fees.
Fidelity provides clients with access to the worlds financial markets through the Active Trader Pro platform.
Deposit & Withdrawal
There are several ways to deposit money to a Fidelity account:
Send money to or from a bank account with an electronic funds transfer (EFT);
Wire money from a bank or third party account;
Deposit a check via mobile upload or mail a paper check;
Transfer money from one Fidelity account to another;
Transfer money via a third-party payment app like Venmo® or PayPal®.
Deposit & Withdraw Methods
Fidelity offers a variety of deposit and withdrawal methods, including:
Electronic Funds Transfer (EFT): EFT is the most common way to deposit money into a Fidelity account. You can initiate an EFT from your bank account or another Fidelity account. EFTs typically take 1-3 business days to process.
Direct deposit: You can set up direct deposit to have your paycheck or government benefits deposited directly into your Fidelity account. Direct deposit is typically processed on the same day or the next business day.
Check deposit: You can deposit a check into your Fidelity account by mail or in person at a Fidelity Investor Center. Check deposits typically take 4-6 business days to process.
Wire transfer: Wire transfers are the fastest way to deposit money into a Fidelity account, but they are also the most expensive. Wire transfers typically take 1-2 business days to process.
EFT: You can initiate an EFT to withdraw money from your Fidelity account to your bank account. EFTs typically take 1-3 business days to process.
Check: You can request a check to be mailed to you or to another recipient. Check withdrawals typically take 4-6 business days to process.
Wire transfer: Wire transfers are the fastest way to withdraw money from a Fidelity account, but they are also the most expensive. Wire transfers typically take 1-2 business days to process.
Fidelity offers a variety of trading platforms to meet the needs of different investors. These platforms include:
Fidelity.com: Fidelity.com is Fidelity's web-based trading platform. It is easy to use and offers a variety of features, including real-time quotes, charting tools, and news and research.
Active Trader Pro: Active Trader Pro is Fidelity's desktop trading platform. It is designed for active traders and offers a variety of features, including advanced charting tools, order management tools, and streaming news and research.
Fidelity Mobile: Fidelity Mobile is Fidelity's mobile trading app. It is easy to use and offers a variety of features, including real-time quotes, charting tools, and the ability to place trades.
Fidelity does not provide discretionary asset management services to customers who reside outside the United States. Besides, customers residing outside the US will not be allowed to open new 529 Savings Plan Accounts or Health Savings Accounts (HSAs), or to continue to contribute to existing 529s or HSAs. Furthermore, Fidelity does not open accounts for any new customers residing outside the US.
If clients have any questions or concerns, please call 800-343-3548 (customer service available 24/7) for consultation.
Virtual Assistant: Fidelity provides a Virtual Assistant that is available 24/7 to help clients with their requests. This AI-powered tool is designed to provide quick and automated assistance.
Live Chat: Clients can engage in live chat with the Fidelity support team during specified operating hours. The live chat feature allows clients to get specialized support for their accounts or technical issues. Operating hours are Monday to Friday from 8 a.m. to 10 p.m. ET and Saturday to Sunday from 9 a.m. to 4 p.m. ET.
Phone Support: Fidelity offers phone support available 24/7. Clients can find the phone number or department that aligns with their specific needs on the Fidelity website.
Crypto Help Desk: For clients interested in cryptocurrency trading, Fidelity provides a dedicated Crypto Help Desk. Here, clients can find answers to their questions, access resources, and learn how crypto trading works at Fidelity.
Fidelity offers a variety of educational resources to help investors learn about the markets and how to invest. These resources include:
Learning Center: The Learning Center is a comprehensive resource for investors of all levels of experience. It offers articles, videos, and interactive tools on a variety of topics, including investing basics, technical analysis, and fundamental analysis.
Webinars: Fidelity offers regular webinars on a variety of topics, including market updates, investment strategies, and retirement planning. Webinars are a great way to learn from experts and get your questions answered in real time.
Online courses: Fidelity offers a variety of online courses on a variety of topics, including investing basics, technical analysis, and fundamental analysis. Online courses are a great way to learn at your own pace and in your own time.
Investment tools: Fidelity offers a variety of investment tools to help investors make informed investment decisions. These tools include screeners, calculators, and research reports.
In conclusion, Fidelity, founded in 1998 and headquartered in the United States, offers a robust suite of financial services and investment products. Its advantages lie in its extensive range of account types, commission-free trading, and pioneering zero expense ratio index funds, making it an attractive choice for a wide spectrum of investors. However, the absence of regulatory oversight raises concerns about fund safety and transparency, while limited information on leverage options and the absence of bonus offerings may deter some traders. Ultimately, the decision to use Fidelity should be made after careful consideration of its strengths and weaknesses, aligning with individual financial goals and risk tolerance.
Q: Is Fidelity a regulated brokerage？
A: No, Fidelity operates as an unregulated broker, which means it does not fall under the oversight of recognized financial regulatory authorities.
Q: What types of accounts can I open with Fidelity？
A: Fidelity provides various account options, including retirement accounts like IRAs, brokerage accounts, crypto accounts, spending and saving accounts, and managed portfolios through Fidelity Go.
Q: How can I fund my Fidelity account？
A: You can fund your Fidelity account through methods such as Electronic Funds Transfer (EFT), direct deposit, check deposit, and wire transfer.
Q: What trading platforms does Fidelity offer？
A: Fidelity offers multiple trading platforms, including Fidelity.com (web-based), Active Trader Pro (desktop), and Fidelity Mobile (mobile app).
Q: Is there customer support available at Fidelity？
A: Yes, Fidelity provides customer support through a Virtual Assistant available 24/7, live chat during specified hours, phone support 24/7, and a dedicated Crypto Help Desk.