Among the multitude of investment companies, Fidelity Investments shines as a reliable guide, leading both new and experienced investors to financial prosperity. Founded in 1946, Fidelity has maintained its base in the United States, dedicated to offering top-tier investment assistance.
This broker review will give you a comprehensive view of Fidelity’s offerings, encompassing its customer service, account features, and overall trading experience, to ensure informed decision-making for your investment strategies.
Fidelity Investments: Overview
Established: 1946
Headquarters: United States
Trading Platforms: Active Trader Pro
Mobile Trading: Yes
Minimum Deposit: $0
Account Types: Brokerage account,401(k), Individual retirement account (IRA), Roth IRAs
Fidelity opened its digital doors in 1995. After its founding in 1946, Fidelity swiftly ascended to prominence in the online brokerage space. It has consistently offered investors top-notch research, effective tools, and extensive educational resources.
Fidelity stands out for its exceptionally cost-effective and high-quality trade executions. It’s rare to see a broker permit commission-free trades of stocks, ETFs, and options while also not engaging in the sale of order flow. Remarkably, 85% of trades are executed at a price better than the National Best Bid and Offer (NBBO), and that too, within an impressive average time of 0.07 seconds.
Regulation and Registration
Fidelity Investments lays its regulatory foundation firmly within the jurisdiction of the United States, upholding transparency and accountability at its registration address of 155 Congress Street, Boston.
As a leading force in the industry, it is meticulously supervised by the U.S. Securities Commission (SEC) and is in full compliance with the protocols of the Securities Investor Protection Corporation (SIPC). This commitment to stringent regulatory standards bolsters the trust of investors and provides a solid foundation for Fidelity to deliver its wide range of investment services and opportunities.
Account Types of Fidelity Investments
Fidelity Investments offers three primary account types tailored to suit various investment objectives. For flexible trading of stocks and a plethora of other investment options, their brokerage account stands out.
Brokerage Account
The brokerage account is Ideal for unrestricted stock trading with no deposit limits and flexible cash withdrawals, though with tax implications on profits.
401(k)
401(k) is an employer-sponsored retirement plan offering tax benefits and possible employer contributions but with contribution and withdrawal limitations and less investment diversity.
Individual Retirement Account (IRA)
IRA is a self-managed retirement account allowing for tax-deferred growth, with more investment flexibility than a 401(k) but accompanied by certain eligibility criteria.
Deposit and Withdrawal
Fidelity Investments presents an efficient and economical process for clients to withdraw their funds. This broker stands out by charging zero commission on withdrawals, which enhances the overall investment experience.
In the U.S, investors benefit from not having to pay extra for ATM withdrawals. Fidelity offers 24/7 online withdrawal requests, even on holidays and weekends. Transfers to cards are processed within a day, and bank transfers are completed within five business days.
Products in Fidelity Investments
Their product range covers various asset classes and global markets, ensuring that every investor finds the right tools to construct their portfolio. Here’s a list of products in Fidelity Investments:
- Stocks
- Mutual Funds
- Exchange-Traded Funds (ETFs)
- Options
- Bonds and Certificates of Deposit (CDs)
- Precious Metals
- International Investments
- Custom Basket Portfolios
Trading Platform of Fidelity Investments
Fidelity Investments offers robust trading platforms that cater to the needs of active traders, prioritizing efficiency, real-time data, and customization.
- Active Trader Pro PlatformsSM
Fees of Fidelity Investments
Fidelity Investments stands out with a fee model that caters to the investor’s advantage. With no commissions on online trades involving U.S. stocks, ETFs, and options, it enables investors to execute their trading strategies efficiently, free from the burden of high costs.
They also offer notably competitive margin rates, which can be as low as 9.25%. Furthermore, Fidelity removes barriers to entry by not enforcing any account opening minimums, inviting a broad spectrum of investors to embark on their investment journey with ease.
Fidelity Investments Promotions
In Fidelity Investments, customers can take advantage of ongoing special promotions designed for various account types, ensuring there’s something for everyone.
- Open a Fidelity Youth™ account and your teen will get a $50 reward.
Customer Support
- Email: [email protected]
- Live Chat: Monday to Friday from 8:00 AM to 10:00 PM Eastern Time, Saturday to Sunday from 9:00 AM to 4:00 PM Eastern Time
- Phone: 800-343-3548
Pros & Cons
Pros
- No commission fees
- Superior execution of trades
- Strong retirement services
- Quality customer service
Cons
- Limited services for U.S residents and main island territories
- Lack of real-time news and financial data on their website
- Higher fees for transactions conducted through a broker
Pros Explained
- Fidelity offers $0 commission fees for online U.S. stock, ETF, and options trades, appealing to cost-conscious traders.
- With advanced technology, Fidelity provides swift and reliable execution of trades, ensuring that clients receive the best possible outcomes for their transactions.
- Fidelity is a leader in retirement planning, with exceptional IRA options and resources for long-term financial planning.
- Fidelity provides reliable and accessible customer support, including in-person assistance at physical branches.
Cons Explained
- The brokerage’s services are restricted, excluding potential international clients outside of the U.S. and its principal islands.
- Investors may need to rely on external sources for live updates, as Fidelity’s online platform does not provide this service.
- Although self-directed online trading is cost-effective, transactions made with the assistance of a broker come with higher fees, which can add up for those preferring personal guidance.
Is Fidelity Investments Worth Considering?
Fidelity Investments is a prominent player in the financial realm, known for its extensive investment options and commitment to low fees, including zero commission on several trades. With its acclaimed customer service, accessible technology, and vast educational resources, it suits a wide range of investors.
Although its mutual funds have a strong performance history, investors should remember that past results do not guarantee future performance. With no minimum account balance required, Fidelity is approachable for investors at any level, making it a considerable choice for those seeking a robust and supportive investment platform.
FAQs
Fidelity Investments is a comprehensive financial services firm, renowned for its diverse range of options, including mutual funds, retirement services, and investment brokerage. It’s designed to cater to the financial needs of various investors, from individuals to large institutions.
Yes, Fidelity offers the opportunity to trade international stocks, allowing investors to diversify their portfolios across global markets through its platform.
Yes, Fidelity facilitates options trading, providing investors with the tools to hedge, leverage, or speculate in various markets, complete with educational support for both novice and experienced traders.
Yes, Fidelity Investments provides comprehensive retirement planning services. These services include individual retirement accounts (IRAs), 401(k) plans, and guidance on retirement planning strategies. Fidelity is known for its personalized approach to retirement planning, catering to the unique needs of each investor.
Yes, Fidelity Investments provides access to professional financial advice. This service ranges from digital advice and robo-advisors to one-on-one guidance from financial advisors, catering to the varying levels of assistance and expertise investors may seek.
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