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Fidelity might be for you if: You're looking for a broker with low fees and deep research tools. Fidelity offers $0 commission stock trades and thousands of $0 commission mutual funds. In short, it's big, smart, and affordable. In this Fidelity review, we'll cover everything you need to know to decide whether this brokerage is for you.
Fidelity
Fidelity is massively popular because it works for beginners and advanced investors. You get $0 commission trades, tons of investment types, and good customer services you can meet in-person. Fidelity's research is top-notch without being overwhelming. Open an account with Fidelity to invest on an affordable platform that grows with you.
$0 commission for online U.S. stock and ETF trades; trade fractional shares for as little as $1
$0
We recommend comparing brokerage options to ensure the account you're selecting is the best fit for you. To make your search easier, here's a short list of our best trading platforms of 2024.
Author's note: My favorite brokers are those that make investing in stocks and ETFs easy and affordable. I've been investing for four years, and I plan on holding my investments for decades. Robinhood is my go-to platform. Top perks include an IRA match and a no-frills interface. I don't day trade or dabble in mutual funds, but I do invest in Bitcoin; it's a must-have option.
Here at The Motley Fool Ascent, we pride ourselves as real users of most of the products across our site. Writers Dana George and Brittney Myers use Fidelity personally -- here's a summary of their experience:
The "Transact" page on the Fidelity app could not be better designed. From that single page, you can do everything from deposit checks and make trades to chat with customer service. It's such a clean and user-friendly site that beginners would not immediately feel lost.
Fidelity is one of those brokerages that has so much to offer it can be a little overwhelming at first. But after using it for a few years, I've come to appreciate all of the features and tools, and I'm happy with my account overall.
Fidelity offers basic and advanced investment types, plus fractional shares. You can even buy crypto on the Fidelity app, though you must open a separate crypto account.
TIP
Fidelity has expanded to offer more than stock trading. It also offers banking services, all of which can be accessed in the Fidelity app.
Fidelity offers $0 commission trades. You can save big by sticking to no-transaction-fee funds. One thing to watch out for is Fidelity charges you $49.95 for redeeming No Transaction Fee (NTF) non-Fidelity funds within 60 days of buying them -- so hold onto them to save money.
Fidelity is as cheap as it gets when it comes to miscellaneous expenses like statement fees, closing IRA account fees, and returned check fees. Most of that stuff is free.
Reason | Cost |
---|---|
U.S. stock and ETF commission fees | $0 |
Fidelity mutual fund commission fees | $0 |
No Transaction Fee (NTF) non-Fidelity funds commission fees | $0 |
Transaction Fee non-Fidelity funds commission fees | $49.95 per purchase, $0 per redemption |
Options per-contract fee | $0.65 |
Foreign market fees | Variable |
Margin rates are on the high side for small account balances, but if you borrow more than $500,000, rates begin to get competitive with the best brokers for options.
Amount you borrow | Rate |
---|---|
$0 to $24,999 | 13.575% |
$25,000 to $49,999 | 13.075% |
$50,000 to $99,999 | 12.125% |
$100,000 to $249,999 | 12.075% |
$250,000 to $499,999 | 11.825% |
$500,000 to $999,999 | 9.50% |
$1.000.000 or more | 9.25% |
One area where Fidelity really shines is in research. The company boasts that it offers more research than other similarly sized discount brokerage firms. Here are a few of its research capabilities:
Fidelity also offers a number of stock, fund, and ETF screeners so you can quickly search for companies with rapidly growing earnings, funds with low expense ratios with long-tenured managers, ETFs that are highly correlated to another fund you own, and more.
Fidelity offers a web-based trading platform in addition to a platform for active traders. The advanced platform (Fidelity Active Trader Pro®) does not have any fees or additional costs associated with it and has no eligibility requirements.
Both its trading dashboard on the web and its mobile apps (available on iOS, Android, and Windows) offer the functionality you'd expect, with live streaming quotes, charting tools, and the ability to trade stocks, ETFs, mutual funds, and options right from your browser, tablet, or smartphone.
Fidelity's iOS and Android apps both receive high marks from users, mainly for the versatility that lets you manage your account on the go. Here are the current app store ratings.
Discount brokers may forgo sending you a holiday card every year, but that doesn't mean they skimp on customer support. Fidelity has 24/7 phone support for brokerage accounts, plus an online chat service. (We used its live chat feature to ask about its support hours and received a response within 30 seconds.)
There are a few ways to contact customer service:
Fidelity is a safe place to invest. All Fidelity accounts are covered by SIPC protection up to $500,000, so if Fidelity goes bankrupt, you're covered up to that amount. Plus, Fidelity offers a "Customer Protection Guarantee" that promises to refund you if someone messes with your account and it's not your fault. You can send encrypted messages to Fidelity through the platform, and Fidelity offers you the option to activate multi-factor authentication to further secure your account.
Fidelity is one of the biggest and most well-known investment platforms out there. It manages over $5 trillion in assets, a staggering number. As of writing, Fidelity operates 215 Investment Centers in the U.S. It's a one-stop-shop for beginners and advanced investors of all kinds.
Keep reading about Fidelity on these pages:
At The Motley Fool Ascent, brokerages are rated on a scale of one to five stars. We primarily focus on fees, available assets, and account types; however, we also take into account features like research, education, tax-loss harvesting, and highly rated mobile apps. Our highest-rated brokerages generally include low fees, a diverse range of assets and account types, and useful platform features.
See our full methodology here: Ratings Methodology
We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent, a Motley Fool service, does not cover all offers on the market. The Ascent has a dedicated team of editors and analysts focused on personal finance, and they follow the same set of publishing standards and editorial integrity while maintaining professional separation from the analysts and editors on other Motley Fool brands.
Fidelity disclosure
Fractional share quantities can be entered out to 3 decimal places (.001) as long as the value of the order is at least $1.00. Dollar-based trades can be entered out to 2 decimal places (e.g. $250.00)
E*TRADE services are available just to U.S. residents.
Robinhood disclosure
All investments involve risk and loss of principal is possible.
Securities are offered through Robinhood Financial LLC, member FINRA/SIPC. Cryptocurrency services are offered through an account with Robinhood Crypto, LLC (NMLS ID 1702840). Robinhood Crypto is licensed to engage in virtual currency business activity by the New York State Department of Financial Services. Cryptocurrency held through Robinhood Crypto is not FDIC insured or SIPC protected. For more information see the Robinhood Crypto Risk Disclosure.
Trades of stocks, ETFs and options are commission-free at Robinhood Financial LLC. Other fees may apply. Please see Robinhood Financial’s Fee Schedule to learn more.
Fractional shares are illiquid outside of Robinhood and are not transferable. Not all securities available through Robinhood are eligible for fractional share orders. For a complete explanation of conditions, restrictions and limitations associated with fractional shares, see the Fractional Shares section of our Customer Agreement.
Robinhood Gold is an account offering premium services available for a $5 monthly fee. Not all investors will be eligible to trade on Margin. Margin investing involves the risk of greater investment losses. Additional interest charges may apply depending on the amount of margin used. Bigger Instant Deposits are only available if your Instant Deposits status is in good standing.