Fidelity has the best brokerage services available. There are no commissions for stock or ETF trades. They also offer a wide range of index funds at no cost to active and beginner investors.
Fidelity Brokerage provides $0 trading commissions and more than 3,300 non-transaction-fee mutual fund selections. It also offers top-quality research tools and a mobile platform. The icing on this cake is Fidelity’s zero-fee Index Funds and its strong customer service record.
Pros & Cons
- Commission-free ETF, stock and option trades
- A large selection of research providers.
- Strong customer service.
- Index funds are exempt from expenses
- Highly rated mobile app.
- Broker-assisted trading fees relatively high
Where Fidelity shines
Fidelity Investments is a comprehensive offering. There are no trading commissions and no account fees that can reduce returns. You also have access to a wide array of research options. It also offers a simple-to-use platform that can be customized for advanced traders.
Mutual funds. Fidelity’s mutual funds are well-respected. Fidelity offers a wide selection of no-transaction fees funds. This includes its Fidelity Zero Index funds which have no minimum investment requirement and an expense ratio of zero. These customer-friendly practices can help customers save a lot.
Fidelity has educational resources that are suitable for every level of investor.
Tradable Securities: Although it offers fractional shares and forex trading, it is not able to trade futures or cryptocurrency. It has a 4-star rating in tradable securities.
Broker-assisted trading fees: Fidelity charges a $32.95 broker-assisted transaction fee.
The best thing about integrity is:
- Frequent traders.
- Investors for beginners
- Research and data.
- Retirement planning assistance
Our review of the Charles Schwab will show you similar options.
Fidelity’s Ratings: More Details
Minimum Account: 5 stars
Fidelity has a $0* account minimum, which is the industry standard. We review brokers who do not require a minimum amount to open and maintain an account. You may need to make a minimum initial investment for certain investment options like mutual funds.
Stock trading costs are 5 out 5 stars
Fidelity was a pioneer in low-cost Commissions. In 2019, Fidelity eliminated commissions on U.S. Stock, ETFs and Options trades.
Options trades are rated 4 out 5 stars
Options trades do not incur commissions but carry a contract cost of $0.65. Fidelity offers no volume discounts on options.
Account fees: 5 of 5 stars
Fidelity has eliminated nearly all account fees. This includes transfer and account closing fees commonly charged by brokers.
4 stars out of 5 for mutual funds that do not charge transaction fees
Fidelity’s success in reducing mutual fund fees is a good thing. Fidelity became the first broker to introduce to market index funds that had no expense ratio. These include the Fidelity Zero Total Market Index Fund (Fidelity Zero International Index Fund), the Fidelity Zero Large Cap Index Fund, and the Fidelity Zero Extended Market Index Fund.
An investor could create a balanced, virtually-free retirement portfolio by using these funds. But even Fidelity’s index funds which do charge an expense ratio are less expensive than many of their competitors.
Fidelity offers over 3,300 mutual funds without transaction fees and more than 950 funds with lower expense ratios (0.50% or less) Fidelity and other mutual funds companies offer these funds. The transaction fee for mutual funds will cost you $49.95 to buy and $0 when you sell them.
Tradable securities are available: 4 stars out of 5.
Fidelity offers investors the ability to trade stocks and options as well as mutual funds, ETFs, options, and forex. Fidelity allows investors to buy fractional shares. This gives them the opportunity to diversify and purchase a smaller share of the stock, rather than the whole amount.
The company does NOT offer futures trading. These features wouldn’t deter most retirement investors but they are options active stock traders would love to have in their investing toolkit.
Trade platform 5 out 5 stars
Fidelity.com is one of two trading platforms. Active Trader Pro is the other. All customers can use both for free. Highlights include advanced screeners that use research and strategy-testing tools that are based upon 10 years of historical data.
ActiveTrader Pro Platform includes both a downloadable desktop version as well as a web-based alternative at ActiveTraderPro.com. Investors have the option to switch between both versions. The platform is customizable and includes intuitive shortcuts and pre-built options, technical and options filters as well as advanced options tools. Investors can also use a multi-trade ticket to store orders and place up 50 orders at once.
Mobile app 5 stars
The star rating of the broker’s mobile app is based upon how users rate it on both Android and iOS. Fidelity’s highly-rated app features real-time trading, multi-leg options trade, a consolidated copy of the company’s research offerings and a notebook that allows you to save ideas or articles directly from your mobile browser.
The company has recently updated its apps to simplify trading, portfolio tracking, and research. To schedule an appointment, you can use the app.
Fidelity Spire launched a new mobile application, Fidelity Spire. Although not listed here, it is worth noting. The app allows you to trade with more context-specific explainers about trading terms and topics, such as “bid price” & “dividends”.
Research and data: 5 of 5 stars
With stock research from over 25 third-party providers such as Morningstar, Zacks Investment Research, and Moody’s Investment Service, Fidelity is high here. The company offers ETF research by multiple providers, as well options strategy ideas from options analysis program LiveVol.
An Equity Summary Score can be found on stock quote pages. This is a consolidation from the ratings of these research providers. It is a “accuracy-weighted sentiment” that is derived from Fidelity.com’s ratings.
It might seem overwhelming to go through so many research firms, but investors can do a quick quiz to identify the best providers for their investment style. A research firm scorecard assesses the provider’s accuracy.
Customer support options: 5/5 stars
Fidelity is praised for its customer service options and educational tools. They have more than 200 branches to offer in-person education and advice. They also offer 24/7 chat, email, and phone support. Fidelity’s Online Learning Center is now more personalized. It uses machine learning to provide educational materials that correspond to customer’s investing habits.
Additional Fidelity information you should be aware
Fidelity Youth Account. Fidelity created the Fidelity Youth Account for teenagers aged 13-17 )**. in 2021. The account is monitored by a parent/guardian and allows access to stocks and ETFs. It also includes fractional shares. Fidelity ZERO funds have no expense ratio and can also be invested in by teens. Importantly, this account allows for some risky investments and investment strategies that are not allowed by law, such as options and margin trades.
Fidelity provides an exclusive mobile app experience that includes in-app educational resources and articles about investing. After 18 years, the account becomes a standard brokerage account.
Is Fidelity the right choice for you?
Fidelity can help both novice and professional traders. It has everything, starting with a mutual funds selection that rivals any other broker. This includes free offerings. Fidelity has many other features that are important to stock traders. These include strong trading platforms, zero commissions, and a wide variety of research options. Fidelity is a great choice for investors.