Fidelity review

Is Fidelity Investments Safe and Legitimate Brokerage Firm? Is Fidelity a Scam? Are Your Money and Investments Insured?


We are sometimes being asked the following questions: Is Fidelity Investments safe to use, to keep my money and investments? Is Fidelity account SIPC/FDIC insured? The short answer: Fidelity Investments is a legitimate, safe online brokerage house. The firm is not in bankruptcy. Fidelity Investments is one of the five largest brokerage houses in the United States (you can read about it in 2014 Fidelity Investments Review).

Fidelity Investments is a member of FINRA/SIPC. FINRA (Financial Industry Regulatory Authority - http://www.finra.org/) is the largest independent regulator for all securities firms doing business in the United States. Its chief role is to protect investors by maintaining the fairness of the U.S. capital markets.

SIPC (The Securities Investor Protection Corporation - http://www.sipc.org/) either acts as trustee or works with an independent court-appointed trustee in a missing asset case to recover funds. The statute that created SIPC provides that customers of a failed brokerage firm receive all non-negotiable securities that are already registered in their names or in the process of being registered. SIPC is an important part of the overall system of investor protection in the United States. While a number of federal, self-regulatory and state securities agencies deal with cases of investment fraud, SIPC's focus is both different and narrow: restoring funds to investors with assets in the hands of bankrupt and otherwise financially troubled brokerage firms.

It means that Fidelity Investments brokerage accounts are insured by the government in case of brokerage firm failure, very similarly to the way bank accounts are insured by the FDIC. The insurance is limited to $500,000 per customer, including up to $250,000 for cash.


Fidelity Investments BBB (Better Business Bureau) rating: A+


Total Closed Complaints - 168: Problems with Product/Service - 122, Advertising/Sales Issues - 25, Billing/Collection Issues - 11, Delivery Issues - 10, Guarantee / Warranty Issues - 0.

Read full Fidelity Review.


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This article was updated on 3/27/2014.


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