Fidelity Review
4.8
Fidelity Broker stands as a notable player in the financial services arena, with a history of serving investors and traders for decades. Known for its extensive range of offerings and strong reputation, Fidelity is often a go-to choice for both beginners and experienced investors alike.
Fidelity's trading platform is renowned for its user-friendly interface. Whether you're a novice or an experienced trader, navigating through the platform is intuitive. The platform offers advanced charting tools, real-time data, and the ability to execute trades seamlessly.
Additionally, Fidelity's mobile app extends this convenience to traders on the go, enabling them to stay connected to their investments at all times.
One of Fidelity's standout features is its comprehensive selection of investment options. From stocks and bonds to mutual funds, ETFs, and options, Fidelity caters to a wide range of investment preferences. This diversity empowers users to construct a well-rounded and customized investment portfolio to suit their financial goals.
While Fidelity's offerings are robust, it's important to note that some services may come with associated fees.
Investors should review the fee structure carefully and consider how it aligns with their investment strategy.
In a nutshell, Fidelity Broker offers a compelling package for investors and traders of all levels. Its array of investment options, user-friendly platform, educational resources, and dedication to customer service make it a strong contender in the brokerage industry. While some fees should be considered, Fidelity's commitment to investor protection and its long-standing reputation in the financial sector make it a broker worth serious consideration. As with any financial decision, it's recommended to thoroughly assess how Fidelity's offerings align with your investment goals before making a commitment.
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Trading US stocks and ETFs without commissions
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Wide array of account options
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Majority of clients fall under the umbrella of a leading financial authority
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US and global stocks coverage
Overview
Year founded
Minimum deposit
Withdrawal fee amount
Available
Offerings
Platforms available
1946
0$
0$
Stock, ETF, Crypto, Fund, Bond, Options
Desktop, Mobile, Web
Account Opening
Opening an Fidelity account is very easy, thanks to its straightforward account opening process, backed by the perk of no minimum deposit requirement. While Fidelity boasts a variety of account types to cater to different needs, it's worth noting that the verification process might run a bit slow. Fidelity, primarily targeting US clients, operates as a US stockbroker. However, Fidelity's broad reach extends to various countries through its subsidiary entities. Fidelity Investments Canada specifically serves Canadian customers, while Fidelity International commands a robust presence across Western Europe and South-East Asia. The suite of products and services available does vary based on your geographic location. Fidelity offers a Multitude of Account Options - Investing and Trading: 1.Brokerage Account: Your standard go-to for trading. 2.Cash Management Account: An FDIC-insured alternative to traditional checking. 3.Brokerage and Cash Management: A comprehensive blend of both. 4.Fidelity Account for Businesses: Ideal for comprehensive business trading and cash management needs. Saving for Retirement: 1.Rollover IRA: Seamlessly consolidates your old 401(k) into a Fidelity account. 2.Traditional IRA: Optimized for tax-deductible contributions and eventual retirement withdrawals. 3.Roth IRA, Roth IRA for Kids: Tax-free withdrawals with certain conditions met, also available for minors under adult supervision. 4.Inherited IRA, Inherited Roth IRA: For seamlessly continuing inherited IRA accounts. 5.Self-Employed IRA, Self-Employed 401(k): Tailored for self-employed individuals or business owners. 6.Simple IRA: Offers tax advantages for small businesses with fewer than 100 employees. 7.Investment-Only Plans for Small Businesses: Expands qualified plans with Fidelity's investment offerings. 8.401(k) Plan for Small Businesses: Extends retirement plans to your employees. Managed Accounts: Accounts expertly managed by Fidelity's technology and professionals, including robo-advisor managed accounts. Education, Medical Expenses, and ABLE: 1.529 Account: Eligible for state tax reductions. 2.Custodial Account: Facilitating investments on behalf of a minor. 3.Health Savings Account: Designed to save money for medical expenses. 4.The Attainable Savings Plan: For disabled individuals and their families to save for disability-related expenses. Charitable Giving: 1.Fidelity Charitable: Offers tax deductions while supporting charitable causes. Estate Planning: 1.Trust, Estate Accounts: Invest and manage brokerage accounts for established trusts or estates. Annuities: 1.Fidelity Personal Retirement Annuity: A tax-deferred retirement savings account. 2.Deferred Fixed Annuities: Offers a rate of return over a specified period. 3.Immediate Fixed Income Annuities: Ensures a lifetime stream of income. 4.Deferred Income Annuities: Guarantees future income for you and your spouse. Life Insurance: 1.Universal Life, Term Life Insurance: Provides permanent life insurance coverage. Adding to the spectrum, Fidelity also extends a demo account to assist in acquainting you with their platform. Basic accounts demand no minimum, while margin accounts require a $2,000 minimum. If day trading is your aim, $25,000 is the stipulated minimum. Fidelity Managed Accounts range from $10 to $500,000 minimum deposits. You can open a Fidelity account in four simple steps: 1.Begin by choosing your preferred account type. 2.Write your personal information, including your name, residency, employment status, and contact number. 3.Tailor your investment and trading preferences to your liking. 4.Conclude by reviewing your provided information and acknowledging the terms and conditions.
Safety
Fidelity stands as a financial entity operating under the vigilant oversight of top-tier regulatory bodies, ensuring a robust level of investor protection. However, it's important to recognize certain limitations, such as the absence of negative balance protection and the non-public nature of its financial information. Regulation-wise, Fidelity falls under the purview of esteemed authorities, including the US Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA). This dual-regulatory framework underscores Fidelity's commitment to maintaining compliance and transparency. Within the United States, Fidelity's patrons find themselves embraced by Fidelity Brokerage Services LLC. As a result, they enjoy the shelter of the US investor protection scheme, SIPC. This security net acts as a bulwark against potential losses in the unfortunate event of broker insolvency. Notably, SIPC's coverage extends to $500,000, inclusive of $250,000 for cash holdings. This level of protection surpasses the offerings of many other investor protection schemes, providing a considerable safety net. It's important to be aware that while SIPC's coverage is extensive, not all investment types fall within its scope. SIPC protection blankets a range of instruments, including notes, stocks, bonds, mutual funds, and registered securities. However, it does not extend to unregistered investment contracts, unregistered limited partnerships, fixed annuity contracts, currency, or holdings in gold, silver, and other commodity futures contracts or commodity options. In an added layer of reassurance, Fidelity bolsters its safeguarding measures with an additional aggregate company-level coverage of up to $1 billion. Importantly, this supplemental coverage doesn't impose a per-customer limit on securities protection. However, there is a $1.9 million cap on cash coverage per account. It's noteworthy, though, that Fidelity does not provide negative balance protection. In practical terms, this implies that your account balance is susceptible to dipping into negative territory. As such, exercising prudent risk management practices remains essential for those trading and investing within the Fidelity platform. Established in 1946, Fidelity is headquartered in United States.
Risk Disclaimer
Trading securities carries a significant level of risk. When it comes to margin-based foreign exchange trading, off-exchange derivatives, and cryptocurrencies, there is substantial exposure to various risks. These risks include, but are not limited to, leverage, creditworthiness, limited regulatory protection, and market volatility. They can have a significant impact on the price or liquidity of a currency or related instrument. It is important to note that the methods, techniques, or indicators provided in these products may not necessarily yield profits, and there is a possibility of incurring losses. For more information on the risks associated with forex trading, please refer to further resources.
Summary
Fidelity proudly extends commission-free trading for both US stocks and ETFs. What sets them apart is their expansive product range that encompasses international stock exchanges, a feature not commonly found among US brokers.
However, alongside its strengths, Fidelity does exhibit a few limitations. While it's true that commission-free trading shines, some mutual funds within Fidelity's arsenal come with elevated fees. Additionally, the margin rates are noteworthy for their higher side. It's worth noting that trading in forex and futures is not supported within the Fidelity platform.
In a nutshell, Fidelity emerges as an inviting gateway into the dynamic realms of trading and investment. With its diverse array of account choices and a user-friendly account setup process, it proves an alluring choice catering to a wide spectrum of investors.