Fidelity Investments, founded in 1946, is an American company that specializes in asset management and pension funds. It is one of the most complete brokers or brokers today. Its headquarters are in Boston.
Even if Fidelity Investments stands out for its investment funds, it also includes Mutual Funds, IRAs, Stocks, Fixed Income, Bonds, CDs, ETFs and Options.
- 1 Fidelity Investments: Advantages and Disadvantages
- 2 Fidelity Investments: Comparison with other brokers
- 3 Fidelity Investments: Complete Review
- 4 What is the best thing about Fidelity Investments?
- 5 Where does Fidelity Investments fail?
- 6 conclusion
Fidelity Investments: Advantages and Disadvantages
- Trade stocks, ETFs and options with no commission.
- Large selection of research providers.
- Excellent customer service.
- No Fee Index Funds
- A relatively high commission from broker-assisted trading.
Fidelity Investments: Comparison with other brokers
up to 600 dollars
Cash credit with qualified deposit
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There are no promotions available at this time
Fidelity Investments: Complete Review
Fidelity Investments has a great reputation for its mutual funds, although as a Broker it is not far behind either: It offers $0 commissions, a series of analysis offers and an easy-to-use platform that can also be customized for the most advanced traders.
His reputation for funds isn’t bad either: Fidelity Investments has a large selection of funds with no transaction fee, including its Fidelity Zero Index Funds, which have no expense ratio and no minimum investment requirement. These conditions are excellent for investors to save a lot of money.
Fidelity Investments is ideal for:
- retirement investors
- Active merchants
- Premium Analysis
- Get low commissions
- Trade stocks, ETFs and options commission-free.
Fidelity Investments at a glance:
|Commission for minimum account balance||$0|
|Commission for trading shares||$0|
|Options trading commission||No basic commission; $0.65 per contract|
|Account fees (annual, transfer, closing, inactivity)||None|
|Commission for operations with ETF.||All ETFs trade commission-free|
|Number of investment funds without transaction fees||More than 3,500 investment funds with no transaction fees.|
|Negotiable values||– The actions
– Investment funds
|trading platform||Fidelity.com, Active Trader Pro for desktop and browser. They are free for all customers.|
|Mobile app||Available for iOS and Android; with advanced features.|
|Research and data||Unrestricted and extensive|
|Customer support options (includes website transparency)||Phone, email and live chat 24/7; 197 local branches. Some information may be difficult to find on the website.|
What is the best thing about Fidelity Investments?
Fidelity was already a leader in low-cost commissions, but as of October 2019 the company completely eliminated commissions for stocks, ETFs and options. Before that, the company eliminated almost all account fees, including transfer and account closing fees commonly charged by brokers.
High cash transfer rate
fidelity automatically redirects all cash from new brokerage accounts retail and retirement to your SPAXX Government Money Market Fund (MMF). This had an interest rate of 1.61% as of October 6, 2019. Customers can also choose to move their cash into an FDIC-insured account with a lower rate.
The commission war between investment fund brokers led Fidelity to greatly improve its conditions. The company was the first to bring index funds to market with no expense ratio: the Fidelity Zero Total Market Index Fund, the Fidelity Zero International Index Fund, the Fidelity Zero Large Cap Index Fund and the Fidelity Zero Extended Market Index Fund.
It’s important to note that investors can build a balanced (and virtually free) retirement portfolio using these zero expense ratio funds. But even Fidelity index funds that do charge an expense ratio are one of the best options on the market, with almost no competition.
In total, Fidelity investors have access to more than 3,500 mutual funds with no transaction fees and more than 700 mutual funds and index funds with expense ratios of 0.50% or less. Those funds come from Fidelity and other companies that offer mutual funds.
Fidelity also offers a large selection of funds with very little or no minimum investment, none of Fidelity’s funds for individual investors require a minimum investment.
Fidelity Investments is unbeatable in this area due to the support it receives from 20 third party stock research providers. including Recognia, Ned Davis, Thomson Reuters and McLean Capital Management. The company offers ETF (Exchange-Traded Fund) analysis from six different providers, as well as options strategy proposals from LiveVol options analysis software.
Stock quote pages display a Stock Summary Score, which is a consolidation of the ratings from these research providers.
It might seem like too many analytics companies to tap into all of them, so investors can do a little testing to identify the providers that best match their investment style. A scorecard from each analytics company helps assess the reliability of the recommendations they offer.
Customer service and educational support
long time ago Fidelity Investments has earned high marks for its customer service. In addition, the company offers personal orientation and free seminars for investors in all its branches. Seminars include topics such as how to navigate the company’s website, when to take social security, and the basics of technical analysis. Fidelity’s Learning Center also offers online guides and webinars related to topics in your industry.
Platforms and tools
Like other runners, Fidelity Investments offers trading through its website and mobile apps, as well as a desktop platform for the most active traders.
The company’s online trading platform is very easy to use and quite comprehensive. The most outstanding aspects of this platform are the advanced screens that use the analysis tools and the possibility of testing the different strategies, for which it has 10 years of historical data.
The mobile application of Fidelity Investments it’s equally impressive, with real-time quotes, multi-stage options trading, a consolidated version of the research offerings made by Fidelity Investments, and a notebook where you can save ideas and articles from your mobile browser.
The most active traders will surely prefer the platform ActiveTrader Pro of the company, which is available to all investors free of charge starting this year. Active Trader Pro includes both a downloadable desktop version and a web alternative. Investors can seamlessly switch between both options. The customizable platform includes intuitive shortcuts, pre-built market, technical and option filters, advanced options tools, and a multi-trade ticket that can store orders and place up to 50 at a time.
By last, The company’s Wealth-Lab Pro is desktop testing software that allows investors to customize strategies and access up to 20 years of historical data. Wealth-Lab Pro is a premium product, available only to clients who trade more than 36 times in a rolling 12-month period and have a minimum of $25,000 in assets in Fidelity brokerage accounts. The company offers a 30-day free trial to those who are not yet able to access this tool.
Cash management account
Fidelity Investments offers an FDIC insured cash management account (Federal Deposit Insurance Corporation) that may be associated with a Fidelity brokerage account. The account offers many of the features of a checking account, including an extensive ATM network and has no monthly or overdraft fees, but pays a lower interest rate than other cash management accounts.
Where does Fidelity Investments fail?
There really isn’t much criticism that can be made of Fidelity Investments: This broker always works very well and this year has been no different. This means that more than negative or critical points, we really only make some observations, which we will indicate for transparency. Fidelity got its lowest marks for the following two points:
- Difficulties in getting information on the web. An important part of the customer service rating is how easy it is to find key information on the website, without having to contact customer support. In the case of the Fidelity website, difficulties are observed in finding instructions on how to close an account.
- Broker assisted trading fee is a bit high, when compared to other brokers.
Fidelity Investments is a very useful broker that can serve both the most active traders and retired investors.. On the one hand, the company offers a selection of mutual funds that surpasses any other broker, even offering totally free operations.
On the other hand, it offers invaluable tools for stock traders, such as robust trading platforms, zero trading fees, and a wide range of analysis options. All of the above makes it difficult for an investor to feel poorly served by Fidelity Investments.