Fidelity vs USAA Brokerage: Commissions, Fees and Investments 2012
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- Stocks and ETFs: $7.95
- Stocks and ETFs broker assisted: $32.95
- Stocks and ETFs FAST (automated service phone): $12.95
- Options: $7.95 plus $0.75/contract
- Mutual Funds: $75 per transaction, 1,400 NTF mutual funds
- Bonds: U.S. Treasury Auctions, incl. TIPS Auctions, U.S. Treasury Bills, Notes, Bonds, incl. TIPS - free
- GSE (Agency Securities), secondary CDs, Municipals, Corporates (BBB- or higher), CATS/TIGRS, Corporates (BB+ or lower): $1 per bond, $8 minimum,
$250 maximum
- Commercial Paper: $50 per transaction
- Investment products: stocks, bonds, mutual funds, options, commercial paper, forex, foreign stocks, UITs, precious metals, ETFs
- Minimum to open Fidelity account: $2,500
- All Fidelity fees
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- Stocks and ETFs: $8.95 for Gold members and $5.95 for Platinum members (an additional $0.01 per share and $0.005 is charged for each share over 1,000 for Gold and Platinum, respectively)
- Stocks and ETFs broker assisted: $50 (an additional $0.005 per share is charged for each share over 1,000)
- Options: $8.95 + $0.75 per contract for Gold members and $5.95 + $0.75 per contract for Platinum members
- Transaction-Fee No-Load Funds: $45 minimum
- All Listed Corporate Bonds: $25 plus $3 per bond
- U.S. Treasury Securities at Auction: $45
- Investment products: stocks, options, mutual funds, bonds, U.S. Treasury Securities, ETFs
- Minimum to open USAA Brokerage account: $0
- All USAA Brokerage fees
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Fidelity vs USAA Brokerage: Pros
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- Great research tools with largest selection of independent research
- Low-cost Fidelity mutual funds
- Rich selection of investment products
- No surcharges, except for $0.0192 per $1,000 of principal in addition to commission that is added to sell orders
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- No account maintenance, inactivity or hidden fees
- Good banking services
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Fidelity vs USAA Brokerage: Cons
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- Extremely high commission ($75 per transaction) on non-Fidelity mutual funds
- Website is going down or becoming slow on high-volume days
- $12 annual Low Balance Fee for each noncore Fidelity mutual fund if balance is under $2,000
- $75 (minimum) mutual fund Short Term Redemption Fee (if mutual fund sold in less than 180 days after purchase)
- High margin rates
- Foreign currency wires: up to 3% of principal
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- Higher than average commissions for Gold Members
- Surcharge of $0.01 per share and $0.005 is charged for each share over 1,000 for Gold and Platinum, respectively
- Poor trading platform
- Few educational resources
- Few research services
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USAA vs Fidelity: Comparison Summary
USAA Brokerage (USAA Brokerage Review) offers a little higher commissions
than Fidelity (Fidelity Review): $8.95 for stock and ETF trades
versus $7.95 at Fidelity. Both online brokerage houses don't have surcharges on extended hours trading and large size
orders. USAA Brokerage, however, has additional commission on penny stock orders.
Fidelity mutual fund commissions are still the highest of all online brokers - $75 per transaction. There are also plenty of free
Fidelity and non-Fidelity mutual funds to choose from. Keep in mind, that there is a $75 short term redemption fee for mutual funds
sold less than 180 days after being purchased. There is also $12 annual Low Balance Fee for any noncore Fidelity fund with
balance under $2,000.
Fidelity and USAA Brokerage don't have IRA fees (annual and setup), but they were not included in our list of
Best Traditional IRA Accounts 2012 .
If you want comprehensive independent research, USAA Brokerage has little to offer. Fidelity, on the other
hand, offers great selection of independent, third-party research.
In summary, Fidelity is a better option than USAA Brokerage for an investment account. We suggest investors take a look
at Best Online Brokerage Firms article and research higher rated online brokers.
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