Fidelity Commissions, Fees, and Minimum Deposit
|Stocks and ETFs|| $7.95|
|Stocks and ETFs broker assisted|| $32.95|
|Stocks and ETFs FAST (automated service phone)|| $12.95|
|Options|| $7.95 + $0.75 per contract|
|Mutual funds||$49.95 ($75 for some funds; Fidelity funds are commission free) to buy, $0 to sell ($49.95 if sold within 60 days)|
|Bonds (U.S. Treasury Auctions, including TIPS Auctions, U.S. Treasury Bills, Notes), primary market CDs|| on a net yield basis|
|GSE (Agency Securities), secondary CDs, Municipals, Corporates (BBB- or higher), CATS/TIGRS, Corporates (BB+ or lower)|| $1 per bond ($250 max.; $50 max if maturing in one year)|
|Commercial Paper|| $50 per transaction|
|Investments|| stocks, bonds, mutual funds, options, commercial paper, forex, foreign stocks, UITs, precious metals, ETFs|
|Fidelity minimum deposit to open account|| $2,500 ($0 for Rollover IRA; $2,500 or $200 per month for ROTH and Traditional IRA)|
|Promotion and login links||Fidelity login, Fidelity promotions|
Fidelity's account opening process is very well designed and quick - it took only ten minutes to open a regular brokerage (non-IRA) account. The application
includes designating a beneficiary, setting up document delivery options (we always choose email) and ACH information to transfer money from/to a bank.
After the account is opened, transferring money from your bank is a simple matter of going to Accounts & Trade -> Transfer Money/Shares in the main menu of
the homepage. The main downside is that the ACH deposits you make with Fidelity will generally not be available for trading (or withdrawal) for up to 4-6 business days, which is much longer
than with many other brokers.
Fidelity Mutual Funds Review
Fidelity Investments is one of the largest mutual fund companies in the world, with 430 mutual funds under management, that target dozens of asset classes:
index funds, U.S. stocks and international stocks funds,
asset allocation funds, sector funds and others. In total, the firm offers over 10,000
mutual funds for clients to invest in.
Fidelity's own mutual funds and funds in NTF program are commission free. All other mutual funds can be
purchased for $49.95 or $75. Selling mutual funds is free unless client sells within 60 days of purchasing - then Short Term Trading Fee of $49.95 applies
(does not apply to Fidelity family funds). There is a Low Balance Fee of $12 per year for each noncore Fidelity fund with balance under $2,000.
Fidelity.com Website/Trading Platform/Tools Review
Fidelity.com website is now much better designed, less cluttered, and more intuitive than it used to be. But some parts of it are still using old design
and parts of it are missing navigation menu. Fidelity can't even list all the fees on the website - instead provides
a 6-page PDF document
with all the charges.
All Fidelity accounts, including cash management and retirement accounts, are accessible with a single login. Orders can be placed on the website for a variety
of securities. There is a trade ticket, although it's not quite as advanced as TD Ameritrade's and Merrill Edge's.
The site has good screeners for ETF's, mutual funds, and stocks. A fixed-income screener searches for over 50,000 bonds. After selecting an individual product,
placing the trade is straightforward using the broker's web page. Important information is displayed, including third-party prices and the current bid-ask spread.
The Fidelity website has better features than the app, as might be expected. This is true particularly for research. Charting on the website is also more advanced than what the mobile app offers.
Active Trader Pro
Fidelity's most advanced trading system is Active Trader Pro. It is available via the web at ActiveTraderPro.com. It is also available as a desktop program, which the broker recommends. The platform has many useful features that active traders will enjoy, such as streaming market data. Charts are interactive and have event and pattern recognition. The platform can trade stocks, ETF's, and options.
Active Trader Pro has the ability to save as many as 50 orders and place them all at the same time using a multi-trade ticket. Conditional orders and triggers can also be used on the platform. Day trading and using unsettled funds are both possible with this program.
Fidelity requires certain minimums in order to use the platform. Customers must execute at least 36 trades per year. In comparison, TD Ameritrade has no frequent trader requirement for its advanced platform, and Merrill Edge requires 60 trades per year.
Fidelity clients can buy and sell securities on several devices. These include Android phones and tablets, iPhone, iPad, Apple Watch, and Windows Phone 8. The broker recently launched an application for Apple TV as well.
The mobile platform is intuitive. It takes just a few minutes to learn where everything is at and how to trade. The software has many valuable features. Of course, there is order placement. Users can trade ETF's, stocks, options, and mutual funds. There is also position and balance information, market news, mobile check deposit, and funds transfer. Minimal research can also be conducted on a mobile device.
Charts can be displayed for ETF's and stocks. The chart is able to rotate if the phone or tablet is rotated. Candlesticks, bars, area, and line format
can be used for the graph's display. Read detailed Fidelity mobile app review.
Fidelity Investments Review: Company Pros
- No surcharges on penny stocks, large orders, or after-hours trading
- Great investment research tools with large selection of independent research from 12 firms
- Huge selection of commission-free mutual funds
- Free DRIPs (dividend reinvestment plans)
- No account maintenance or inactivity fees
- Great customer service
- Rich selection of investment products
- Good banking services (checking, savings accounts, and credit cards)
- 84 commission-free ETFs
Fidelity Investments Review: Company Cons
- Very high commissions - $49.95 ($75 for some funds) - to purchase non-Fidelity mutual funds
- $12 annual Low Balance Fee for each noncore Fidelity mutual fund if balance is under $2,000
- High margin rates
- Advanced trading platform, Active Trader Pro, is available only to clients making 36+ trades per year
- High $2,500 minimum to open an account
Fidelity Review Summary
Fidelity Investments is one of the largest brokerage companies in the U.S., and as such, provides a wide array of services to their investors. Fidelity offers
advice in wealth management and charitable giving; investment guidance; and provides lots of educational content for novice and professional
investors alike. The firm is offering over 10,000 mutual funds; life insurance; college savings plans and more.
Fidelity's commission for stocks and ETFs is $7.95 per trade, which is just slightly above the average in the industry. Options trading costs $7.95 plus
$0.75 per contract. The company does not charge account maintenance (except $25 year for SIMPLE IRA) or inactivity fees, and does not add surcharges on penny stocks, large orders or
extended hours trading. But the minimum initial deposit for most accounts is somewhat high $2,500.
Fidelity's mutual fund commission varies from $0 for Fidelity and NTF mutual funds to $75 per transaction for some non-Fidelity funds. Investors should keep in mind
a $50 short-term redemption fee for mutual funds sold less than 60 days after being purchased. There is also a $12 annual Low Balance
Fee for any non-core Fidelity fund with balance under $2,000.
Fidelity's website needs more work, but their independent investment research from third parties is among the best in the industry.
The firm created powerful, advanced trading platforms but these are only available to clients making at least 36 trades per year. In contrast,
the best trading platform on the market, TD Ameritrade's ThinkorSwim, is available to
all TD Ameritrade clients.
We recommend opening an account with Fidelity to someone who wants to invest in Fidelity ETFs and mutual funds for the long run, provided there is
enough money to avoid the Low Balance Fee.
Reviewed by Brokerage-Review.com on
Reviewed by Editor and 40+ Fidelity customers.