Fennel.com Review: Key Takeaways
• Fennel Financials LLC is a new broker-dealer on the scene offering securities trading on a mobile app.
• Fennel does not offer investment advice, portfolio management, cash accounts, or financial planning.
• Fennel is regulated by multiple watchdogs in the securities industry.
If you found Fennel online and are thinking about opening an account with this very new outfit, you’ve come to the right place in cyberspace. We’ve done a lot of research for you, and here are the results:
History of Fennel
Fennel Financials was established in 2022 with the aim to “drive positive change and create a more sustainable future” in the brokerage industry. Obviously, this new broker is somewhat ideologically driven. It provides its customers with ESG data and shareholder voting info along with a trading app.
B Corp Status
Fennel has B Corp certification, which means it has passed through various tests by B Lab to ascertain its social, business, and political stances. Tests include:
- Commitment to stakeholders, not just shareholders
- Analysis of Fennel’s impact on workers, the environment, customers, and the community
- Compatibility with B Lab’s Theory of Change
B Corp certification does not tell us much about Fennel’s performance as a broker-dealer, although it does attest to Fennel’s legitimacy as a company. It has been certified since 2023.
Is Fennel.com Safe?
Besides its certification with B Lab, Fennel is tightly regulated by the U.S. securities watchdogs. It is registered with the Securities and Exchange Commission as a broker-dealer (since 2022). Its SEC registration number is 8-70779. It is also registered with the Financial Industry Regulatory Authority (FINRA) with registration number 316281.
On Fennel’s BrokerCheck profile, we see zero disclosures. This impressive number is primarily due to Fennel’s short history rather than business performance, which is rather limited at this point.
Fennel is registered to do business in all 50 U.S. states plus Puerto Rico, the District of Columbia, and the U.S. Virgin Islands. Registration does not imply any skill or level of reliability, but it does mean the brokerage firm is being watched by the regulators. Such oversight provides a significant level of protection for the brokerage firm’s clients.
Fennel is not registered as an investment advisor because it does not provide managed accounts or financial planning.
Clearing Firm
Fennel has partnered with Apex Clearing Corporation to perform its back-office duties, including the custody of client assets, a very important job. Like Fennel, this clearing firm is registered with the SEC and FINRA (with IDs of 8-23522 and 13071, respectively). Apex has been in business since 1979 and has worked with many brokerage firms, so it’s very well-known in the industry.
Is Fennel.com Insured?
One more organization needs to be mentioned here: the Securities Investor Protection Corporation (SIPC). Fennel accounts are insured by SIPC up to $500,000 (excluding market decline). Through Apex, Fennel has an excess SIPC policy for accounts larger than this amount.
Fennel.com Reviews
Fennel does not yet have profiles at Trustpilot or the Better Business Bureau. We’ll keep you posted, though.
Is Fennel.com Safe Judgment
Fennel is a legitimate company doing business as a broker-dealer. There are many safeguards in place for its clients, although remember that securities investing always involves risk. And speaking of securities trading, let’s now take a look at how Fennel performs in this area.
Fennel Review Highlights
• Fennel offers securities trading on a mobile app (only).
• There are no commissions at Fennel, although the broker does have a monthly fee.
• Fennel does not accept payment for order flow (PFOF).
Overview of Fennel
A new brokerage firm is on the scene: Fennel. With a basic mobile app, customers can trade stocks and ETFs. Many other services are missing, though. Here’s the full scoop:
Investments Choices
Stocks and ETFs can be traded inside self-directed brokerage accounts at Fennel. There is no investment-advisory service or financial planning, and other asset classes, such as bonds and mutual funds, are missing in action.
Cash Management
Fennel offers no notable banking tools. An external checking or savings account can be linked for ACH transfers.
Opening an Account
Fennel currently offers just one account type: the individual taxable account. There are no joint accounts or tax-deferred accounts. It is not possible to add a beneficiary to an account, either.
To open an individual account, you first need to download the Fennel mobile app. Log in with an email address, and you can try out the app for 7 days. Within this time, if you decide you want to start live trading, tap on the button at the bottom of the screen to open an account and supply all requested data. Currently, only U.S. citizens and non-professional traders can open accounts.
Software
Trading and research at Fennel occur on the broker’s mobile app. The website is used for advertising and does not have a login. There are no other software platforms.
During our test drive of Fennel’s mobile app, we found it user-friendly and intuitive. At the bottom, the main menu contains five icons:
Portfolio:
Here, information on the account will be found. Details include positions, ESG averages for the entire portfolio, market-cap breakdown, and more.
Watchlist:
Self-explanatory. Multiple lists can be created.
Explore:
On this tab, Fennel presents categories of potential investments. It’s easy to scroll through and tap on a sector. Examples include:
- Cybersecurity
- Outer Space
- Infrastructure
- Consumer Staples
Within a category, tap on an entry and you’ll get the security’s profile. Basic information is shown, such as market cap and industry. There are news articles and analyst ratings. Every stock has an ESG score. A chart at the top has no tools and cannot be rotated horizontally. A trade button sits at the button for order entry.
Voting:
This tab displays information on executive decision-making at various companies.
Profile:
This is where settings for the app can be specified.
Pricing Schedule
In return for its rather lukewarm investing service, Fennel charges $4.99 per month. If a monthly payment fails, Fennel charges a $4 fee. Accounts have no minimums, and trades are commission-free. An ACAT out is $75.
Margin Service
Fennel does not offer margin accounts. All trades are placed on a cash basis.
Security Research
Fennel has a great emphasis on security research, particularly in the realm of ESG (environmental, social, and governance) issues. The brokerage firm’s mobile app can be used to dig into all sorts of particulars on companies.
The Voting tab in the main menu, for example, shows how shareholders have voted in the past on all sorts of company measures, such as executive pay and worker-driven social responsibility (WSR) principles.
A stock’s profile has three important sub-tabs (below the chart) with some really useful information. They are News, Analytics, and Impact. News, of course, shows news articles from around cyberspace. They come from a variety of sources and have thumbnails.
The Analytics tab has all sorts of financial metrics from company statements. Examples include EPS, revenue growth, book value per share, and much more. Some of these important points are in graphical format. Near the bottom is a tile of analysts’ trade recommendations with an average price target. These numbers are, of course, really helpful.
The Impact tab is where a company’s ESG score will be found. For Apple, we found a score of 45, which is considered poor by ESG standards.
Miscellaneous Services
DRIP Service: Unknown at time of publication.
Individual Retirement Accounts: There are no IRAs at Fennel.
Initial Public Offerings: Unknown at time of publication.
Fractional Shares: Fennel offers whole-share trading only.
Fully-Paid Securities Lending Program: Not available at Fennel.
Extended Hours Trading: Unknown at time of publication.
Our Recommendations
Mutual Funds: Although Fennel doesn’t offer trading in mutual funds, Firstrade does.
Long-Term Investors and Retirement Savers: With no tax-advantaged accounts, Fennel just won’t work.
Charles Schwab has these plus investment advice, branch locations, annuities, and much more.
Beginning Investors: Fennel does not offer paper trading, robo accounts, or financial assistance of
any kind. We suggest Schwab, who offers automated accounts, simulated trading, full-service advisory programs, and much more.
Active Stock Trading: Fennel can be used for frequent equity trading, although desktop traders will
be left out in the cold. Many pro-level tools, such as Level II quotes and technical analysis, are
missing in action at Fennel.
Small Accounts: Because of Fennel’s flat monthly fee, it is not a good pick for small investors.
Robinhood is, though.
Fennel Investments Review Judgement
Legitimacy as a business does not necessarily translate into a good performance as a broker-dealer. Fennel has more work to do if it hopes to compete against America’s top brokerage firms.
Updated on 1/16/2025.
Chad Morris is a financial writer with more than 20 years experience
as both an English teacher and an avid trader. When he isn’t writing
expert content for Brokerage-Review.com, Chad can usually be found
managing his portfolio or building a new home computer.
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