Is Fidelity Investments Safe and Legitimate Brokerage Firm? Is it Insured?
Is Fidelity Investments Safe?
After collapse of Lehman Brothers, Merrill Lynch, MF Global and other financial giants the sense of security many people had in most
of United States financial companies is gone. Maybe if the firm is considered "too big to fail" than one could put his or her savings there?
But who is "too big to fail"? With which companies could investors safely invest money and have a peace of mind?
Fidelity Investments is a company that never asked for a bailout and came out of Great Recession stronger than ever. It has been for many
years one of the five largest brokerage houses in the United States and it keeps growing. You can read more about the firm in
Fidelity Investments review.
Is Fidelity Investments Insured And Regulated?
As a member of FINRA, Fidelity Investments has to comply with strict government imposed rules aimed to keep brokerage companies and their
clients' accounts safe and sound. As a member of SIPC (The Securities Investor Protection Corporation),
Fidelity provides insurance in case of the firm's bankruptcy on customer accounts of up to $500K, including up to $250K for cash balances.
So unless client's balance is well over that amount he has nothing to worry about.
Is Fidelity FDIC Insured?
Fidelity Cash Management, Health Savings, and eligible IRA accounts have a Federal Deposit Insurance Corporation (FDIC, U.S. government
agency that insures cash deposits at FDIC member banks) insurance of up to $250,000 per account.
Fidelity BBB (Better Business Bureau) Rating
Fidelity Investments' BBB (Better Business Bureau) rating is B. The details could be seen at
Out of only 189 closed complaints at BBB, 138 were problems with service, and 18 were billing issues. Considering that Fidelity has many
millions of clients, this result is actually amazing.
Before opening an account at the firm, we advise to read Fidelity Investments review.
There we list investing commissions and important fees, areas where company excels and where it is lacking as well as trading and
research amenities review. Below the article Fidelity's customers posted dozens of their own reviews. It is important, however,
to remember that angry clients are much more likely to seek out websites and post reviews than those who are satisfied.
Fidelity somehow has trouble listing all their fees on their website, but they do provide a PDF document that has all of them:
Fidelity fees document.
Fidelity's Cash Management account review could be found here.
Updated on 11/30/2015.