Fidelity Review 2011-2012: Commissions, Fees and Investment Products
- 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
New account opening process is very well designed and quick - it took us 10 minutes to open regular brokerage (non-IRA) account. The application
includes designating a beneficiary, setting up document delivery options (we always use email) and setup of ACH to transfer money from/to a bank.
After account is opened, to actually transfer money from your bank account, go to Account -> Transfer Money/Shares in the main menu of Fidelity's
website. The ACH deposit you''l make will generally not be available for trading (or withdrawal) for up to 4-6 business days, which is much longer
than with most other brokers.
Fidelity Website (Fidelity.com)/Trading Tools Review
Fidelity.com website is neither well-organized nor intuitive. It feels cluttered and we often have to look
around for a while to find what we needed.
Fidelity trading experience is disappointing. You can't even modify your orders! Trade confirmations do not
contain time when order was executed.
On the other hand, Fidelity research tools, like stock screening, historical trading strategy,
daily market commentary and individual stock research are impressive. There are research reports from 13
different independent firms, covering over 4,500 companies.
Fidelity Investments Pros
- 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
Fidelity Investments Cons
- 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
Fidelity Review Summary
In 2011 Fidelity lowered its commissions and left the ranks of one of the most expensive brokerage houses in the nation. The new commissions
for stocks and ETFs are $7.95 per trade, which is just slightly above the average in the industry. Options trading costs are $7.95 plus
$0.75 per contract. Company does not charge account maintenance and inactivity fees, and does not have surcharges on penny stocks,
extended hours trading and large-size 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's trading tools are disappointing but research is one of the best. There is a serious issue with firm's
website becoming very slow or going down on high-volume days, right when many investors really need to be able
to access their accounts and execute orders promptly.
We only recommend opening account with Fidelity to someone who wants to invest in Fidelity mutual funds for a long run, provided there is
enough money to avoid Low Balance Fee. For everything else there are better priced companies in our
Best Brokerages list, which offer better trading platforms, online
communities and virtual trading.
Fidelity
Reviewed by Brokerage Review on
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Rating: 3.5
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