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Fidelity review 2010: very expensive commissions but great research tools
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Fidelity Commissions and Investment Products
- Equities: $19.95 if 1-36 trades/year. $10.95 if 37-120 trades/year. $8 if over 120 trades/year
- Options commission: $19.95+$0.75/contract if 1-36 trades/year. $10.95+$0.75/contract if 37-120 trades/year. $8.00+$0.75/contract if over 120 trades/year
- Mutual Funds: No transaction fee when trading over 1,400 Fidelity and non–Fidelity mutual funds. $75 for all others
- 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): $1.00/bond.
- Commercial Paper: $50 per transaction
- Investment products: stocks, bonds, mutual funds, options, Commercial Paper, ETFs
Fidelity.com Trading Tools Review
Fidelity.com website is not well-organized. It feels cluttered and you often have to look around to find
what you need. This is the only brokerage website where I had problem finding Fees page.
Fidelity trading experience is disappointing. You can't even modify your orders! Trade confirmations do not
contain time when order was executed. Average charting and users have no ability to save chart settings,
unlike what is available at competitors.
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.
- Great research tools. Biggest selection of independent research
- Low-cost Fidelity mutual funds
- Many asset classes to invest
- Very high trading commissions
- Minimum initial account deposit: $2,500 (cash and margin accounts)
- Website is going down on crucial days
- Trading commissions and fees are tied to how often you trade and your net worth
- Annual fees: $25 for Simple IRA, $48 for Fidelity HSA
- Mutual Funds: $75 per short term redemption. $12 annual Low Balance Fee for each noncore Fidelity fund under $2,000
Fidelity Investments is obviously targeting wealthy individuals: firm's commissions and fees depend on
customer's net worth. This, obviously, means that there is no reason to go with Fidelity if you don't have at
least $1 million in assets or $25K in assets and make 120+ trades a year.
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.
Fidelity commissions are very high on all asset classes except Fidelity mutual funds.
But even with mutual funds there is $75 short term redemption fee and steep commission for non-Fidelity
mutual fund families.
There are much less expensive companies in our
best brokerage firms list
that offer better trading platforms and more reliable service.
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