Fidelity Review 2024
Website: www.fidelity.com
Min. Deposit: US$ 0
Leverage: Margin Trading
Trading Platforms: Active Trader Pro, Fidelity Go, Fidelity.com Web
Regulation: SEC, FINRA, IIROC, etc.
Headquarters: USA
Founded: 1946
Regulatory Licenses:
- Fidelity Management & Research Company LLC - authorized by SEC (USA) registration no CRD # 108281/SEC#:801-7884
- Fidelity Brokerage Services LLC - regulated by FINRA (USA) registration no CRD#: 7784/SEC#: 8-23292
- Fidelity Clearing Canada ULC - regulated by IIROC (Canada)
Updated on January 19, 2024
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Our review is meticulously conducted over a comprehensive framework that includes the examination and comparison of Fidelity against a wide selection of over 1000 brokers. We dive into the specifics of Fidelity's offerings, regulatory compliance, fee structures, platform functionalities, customer service quality, and trading conditions. Our objective is to provide a well-rounded view that assists potential traders and investors in making informed decisions.
Founded in 1946, Fidelity Investments is a renowned stock trading and investment firm headquartered in the USA. It offers a broad spectrum of services including a wide variety of mutual funds and ETFs, brokerage services for trading in stocks, securities, options, bonds, CDs, precious metals, cryptos, alongside retirement planning solutions, global investment research, wealth management, and online banking. Being under the stringent regulatory oversight of the US SEC and FINRA, Fidelity adheres to the highest standards of securities laws, ensuring transparency and integrity in its operations. With a global footprint, Fidelity is committed to serving its clients' best interests through low fees, competitive trading terms, and a long-term investment approach.
During our assessment, we identified several strengths that contribute to Fidelity's reputable standing in the investment sector.
Pros
Extensive range of trading products
Competitive fees and commissions
Comprehensive educational and research resources
High-quality customer service
User-friendly digital platforms
Cons
Complex fee structures for some accounts
High minimum investment requirements for certain funds
Fidelity is a legitimate stock and options trading company with a brokerage division that facilitates the buying and selling of stocks, bonds, options, mutual funds, ETFs, and other securities. Its regulatory oversight by the SEC, FINRA, IIROC, among others, underscores its compliance with stringent regulatory standards, making it a safe and reliable choice for investors and traders.
Fidelity offers Margin Trading, which enables traders and investors to borrow funds to leverage their investments. This facility is automated and the leverage levels are provided in accordance with regulations by the SEC, FINRA, IIROC, and others. Depending on the trader’s account equity and the specific stock being traded, leverage can vary. In the U.S., traders may access leverage up to 1:50 for major currency pairs, whereas Canadian and European traders have lower leverage caps up to 1:30 for major currency pairs, in line with local regulatory limits.
Based on our comprehensive analysis, the broker offers a variety of account types to meet different investment goals and requirements. These encompass individual brokerage accounts, retirement accounts such as IRAs and 401(k)s, custodial accounts for minors, trusts, and numerous specialized accounts. Each account category is specifically designed to offer investors distinct benefits and tax advantages, facilitating a tailored investment experience according to their unique situations and goals.
Fidelity presents a broad spectrum of trading products to suit a wide range of investment strategies. This includes stocks, bonds, mutual funds, cryptocurrencies, metals, forex, exchange-traded funds (ETFs), options, and fixed-income securities. Moreover, the broker grants access to international markets, allowing investors to engage in securities trading across the globe. It's important to note that the availability of certain trading instruments may differ based on the entity, and we recommend thorough research to identify the full array of options available, including any variations contingent upon your location. Fidelity's selection of trading products is highly regarded, with a score of 4.4 out of 5, reflecting its extensive offerings and the unique investment opportunities it provides.
Our findings indicate that Fidelity offers competitive fees, positioning it as an appealing option for cost-sensitive investors. While fees can vary by account type and investment product, the broker typically features competitive fee structures for its mutual funds and ETFs, often without transaction fees for investing in their funds. Its brokerage services also come with competitive commission rates for stock and ETF trades. Investors are encouraged to review the fee schedule pertinent to their specific accounts and investments, as certain products and services may carry associated costs. With an overall fee rating of 4.4 out of 5, Fidelity is considered to have low fees when benchmarked against over 1000 other brokers. Some deposit methods are exempt from charges, while others may incur fees. Detailed comparisons are available below for further insight.
In our evaluation, Fidelity operates as a commission broker, notably not imposing spreads on trades. The company promotes commission-free trading for US Stocks, ETFs, and options. Nonetheless, fees and commissions are subject to change and may differ according to the account type, specific investments, and prevailing market conditions. Margin rates offered are competitive, starting at a low 9.25%. Fidelity's commission structure is rated positively, with a score of 4.4 out of 5, signifying its attractiveness due to incorporated commission charges, transparency, and suitability for professional trading.
Fidelity offers a variety of funding options to meet the diverse financial preferences of its clients, including electronic funds transfers (EFT), wire transfers, Fidelity credit cards, check deposits, among others. The firm also enables clients to automate their deposits for regular investments or opt for asset transfers to consolidate their assets from other financial institutions. Additionally, Fidelity facilitates cash or check contributions to retirement accounts and supports IRA rollovers, aiding individuals in managing their retirement savings with ease.
Fidelity's funding methods received a commendable rating, scoring 4.2 out of 5. The firm stands out for its low fees and support for multiple account-based currencies.
Here are some notable points regarding Fidelity's funding methods:
Fidelity Minimum Deposit
The broker excels by not requiring a minimum deposit to open an account, setting it apart from many competitors that typically require a $500 minimum deposit.
Fidelity Withdrawals
Our evaluation found that Fidelity offers a range of withdrawal options to provide flexibility for clients in accessing their funds. Withdrawals can be requested via electronic funds transfers (EFT), wire transfers, or by having checks mailed to their registered addresses. Clients also have the option to set up recurring withdrawals for consistent income or initiate one-time withdrawals as needed. It's important to note that withdrawal processes may entail specific requirements and processing times; thus, consulting Fidelity’s official website or contacting customer service is recommended for detailed guidance on withdrawal procedures and any associated fees or timelines.
To withdraw funds from Fidelity, clients can follow these typical steps:
1. Log in to your account
2. Select 'Withdraw Funds' from the menu
3. Enter the withdrawal amount
4. Choose your preferred withdrawal method
5. Complete the electronic request with the necessary details
6. Confirm the withdrawal information and submit
7. Check the current status of your withdrawal through the Dashboard
Fidelity Bank, though sharing the Fidelity name, operates as an independent financial institution offering savings and checking accounts, loans, and mortgages, distinct from Fidelity Investments.
The broker provides access to the Fidelity website and mobile app for traders and investors who prefer straightforward access to their accounts and real-time market data via web browsers or mobile devices. Furthermore, Fidelity Active Trader Pro is an advanced desktop trading platform tailored for active traders, featuring sophisticated charting tools, research capabilities, and customizable interfaces.
Fidelity Go, an automated investing platform, is also available, offering portfolio management services based on clients’ financial objectives and risk tolerance.
The Fidelity Platform received a strong rating of 4.3 out of 5, distinguishing itself with advanced trading platforms and mobile application capabilities.
Fidelity App
Our findings indicate that the broker’s mobile app is an effective tool for investors and traders on the move. It grants easy access to account details, real-time market data, and a comprehensive suite of trading tools from the convenience of a smartphone or tablet. Users can perform trades, monitor their portfolios, access research and market news, and manage retirement and investment accounts effortlessly. The Fidelity mobile app is praised for its user-friendly interface and extensive features, making it an invaluable asset for staying connected to investments and financial goals on the go.
Fidelity’s customer support is available around the clock through phone and virtual assistant, and during weekdays through live chat. The brokerage can also be contacted via social media platforms. The customer support team is equipped with trading experts ready to offer technical assistance, analysis recommendations, general inquiries, and address operational concerns. Fidelity’s customer support scored 4.0 out of 5 in our evaluation, reflecting the team's responsiveness and efficiency in providing assistance.
Fidelity emphasizes investor education by providing a wealth of educational resources and tools. These include webinars, articles, videos, and interactive tools aimed at enabling clients to make informed financial decisions. The educational content spans a broad spectrum of topics, from fundamental investing principles to sophisticated trading strategies. With an overall rating of 4.3 out of 5, Fidelity’s educational offerings are of high quality, offering valuable research and analysis to enhance investors’ trading strategy knowledge.
Fidelity emerges as a reputable and comprehensive real stock trading provider, known for its longstanding history since 1946. The firm offers a wide array of investment products, competitive trading options, and a dedication to low fees. Its commitment to investor education and robust research tools further enriches its service offerings.
While offerings and fees may change over time, Fidelity's unwavering focus on trustworthiness, innovation, and customer service positions it as a reliable choice for investors aiming to manage and grow their financial assets.
Despite its strengths, Fidelity has some limitations, such as the unavailability of some popular trading products. Therefore, it is recommended that potential clients conduct thorough research and evaluate if Fidelity’s offerings align with their specific trading needs.
According to our analysis and financial expert opinions, Fidelity is well-suited for:
Traders from the USA, Canada, Europe, and beyond
Real stock trading
Investing
Fractional shares
Currency trading
Advanced and professional traders
Commission based trading
Access to quality education and trading tools
Comprehensive 24/7 customer support
