Is Fidelity Investments Safe?
Fidelity Investments is a well-known name in the brokerage world. We looked into Fidelity so you can decide if you think Fidelity is a reliable company and if you should use them as your broker.
Fidelity Company Overview
Fidelity has been around for more than 75 years, making it one of the oldest brokers still in business. It is also one of the biggest private companies in the U.S. Fidelity does business all over the world, with more than 50,000 employees and offices in over 9 countries.
Fidelity’s business numbers are huge. Fidelity serves over 51.5 million individual clients. They manage more than $5.9 trillion in assets and have more than $15 trillion in total assets under administration.
Fidelity Better Business Bureau (BBB)
Most people check the BBB when trying to see if a business is real. Fidelity has an A+ rating with the BBB. Their customer review score is 1.12 out of 5, based on 114 reviews. But most people who leave reviews on the BBB are usually upset or had a bad experience. Fidelity had 739 closed complaints with the BBB in the last 3 years. This sounds like a lot, but compared to their total number of clients, it is a very small percentage.
Fidelity Regulators and Oversight
Fidelity works in one of the most highly regulated industries—finance. Because it’s a broker and dealer, it has to follow very strict rules.
Many groups watch over Fidelity, including state securities regulators, FINRA (Financial Industry Regulatory Authority), the IRS, FinCEN (Financial Crimes Enforcement Network), the SEC (Securities and Exchange Commission), and OFAC (Office of Foreign Assets Control). Fidelity must report regularly to these authorities.
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Fidelity FINRA & SEC Registrations
Fidelity is registered and regulated by both the SEC and FINRA. Their FINRA CRD# is 7784 and their SEC# is 8-23292. You can look them up if you want. Fidelity is licensed in all 53 U.S. states and territories. They have 136 disclosures with FINRA, which is a small number for a company of their size and history. You can read about these disclosures on FINRA’s website.
FDIC & SIPC Insurance
One way to check if a broker is safe is to see what kind of protection they give you and your money. Fidelity offers both SIPC and FDIC insurance, depending on where you keep your cash. If you use Fidelity’s FDIC Insured Deposit Sweep Program, your cash is covered by FDIC insurance for up to about $1.25 million, spread across several banks.
If your cash is in money market funds, it is protected by SIPC insurance for up to $250,000. Also, up to $250,000 of your investments are covered by SIPC. Fidelity also has extra insurance beyond SIPC, covering more for each client.
Fidelity Alternative Account Protections
If you want more protection, Fidelity has a Customer Protection Guarantee. They promise to cover any losses from unauthorized activity in your accounts, as long as you did nothing wrong. This guarantee applies to all eligible accounts for all clients.
Fidelity Account Security
Fidelity has strong security to keep accounts safe from scams and hackers. With the Fidelity mobile app, you can log in using your fingerprint or face, depending on your device. If you call customer service, you can use their Myvoice system, which checks your identity using your voice.
You can set up two-factor authentication for extra protection when logging in on the website or app. You can also get security text alerts for things like new bank accounts being linked to your Fidelity account. Another option, Money Transfer Lockdown, lets you block any money from leaving your account electronically when you turn it on.
Is Fidelity a Scam or Legitimate? The Verdict.
It would be nearly impossible for Fidelity to be a scam, given how big and well-known they are. The size of their business and the huge number of clients and assets prove they are a real company. Also, the strict rules and oversight they face make it clear that Fidelity is not a scam—they are a completely legitimate company.
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Fidelity Review: Investing
Fidelity customers can open both regular brokerage and investment-advisory accounts. With either type, you can choose from these types of investments:
- Stocks, including over-the-counter and foreign stocks
- Bonds, brokered CDs, and other fixed-income products
- Funds (mutual funds, ETFs, and closed-end funds)
- Annuities
- Cryptocurrencies
- Options
Not every account gives access to every product. For example, Fidelity Go (the low-cost advisory account) only has access to Fidelity Flex mutual funds. These funds have no expense ratios, but the program is fully automated and doesn’t have a human advisor.
For a more complete investing experience, Fidelity has a wealth management program. This program includes a real human advisor at one of Fidelity’s branch offices. With this service, you can get help with retirement planning, life insurance, and charitable giving.
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Cash Features
Fidelity has a combined bank and brokerage account called the Cash Management Account. This account comes with a Visa debit card, a checkbook, and FDIC insurance up to $5 million. Uninvested cash in the account is moved to partner banks. You can also choose money market funds that pay about 4%.
The debit card refunds all ATM fees worldwide, and you get free online bill pay with the account.
Fees and Minimums
Fidelity has low fees and very few requirements. Brokerage and robo accounts have no minimums, while advisory and wealth-management accounts have different requirements. The cash account has no minimum and no regular fees.
Most trades are commission-free, but crypto trades at Fidelity cost 1% of the trade amount. Some secondary bonds cost $1 each, and trading foreign stocks has different commissions depending on the country’s exchange, usually about €19.
Margin
Fidelity lets you trade on margin. Here is the current margin interest rate schedule:
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Debit Balance
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Fidelity Margin Rates
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above $1,000,000
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7.75%
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$500,000 – $999,999
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8.05%
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$250,000 – $499,999
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10.325%
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$100,000 – $249,999
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10.575%
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$50,000 – $99,999
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10.625%
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$25,000 – $49,999
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11.575%
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$10,000 – $24,999
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12.075%
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$0 – $9,999
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12.075%
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You can upgrade a cash account to margin trading easily on Fidelity’s website. If you want to switch back from margin to cash, you have to call them.
Website
Fidelity’s website has many helpful tools, including:
- Full-screen charts with technical studies and drawing tools
- Lots of stock research, including free analyst reports
- Pop-up order ticket with short selling
- Conditional orders, like OCO and OTO
- Advanced options tools with a strategy builder
Mobile App
The Fidelity mobile app includes:
- Charting in both vertical and horizontal layouts
- Different order tickets for stocks, options, and mutual funds
- Option spreads
- CD yield matrix
- Price and technical alerts
- Market news with live Bloomberg streaming
Our Recommendations
Active Stock Trading: Fractional shares, foreign stock access, and Active Trader Pro make Fidelity a top pick.
Retirement Planning & Long-Term Investing: Fidelity’s tools and advice make it a great choice.
Beginners: Managed accounts, including ones with human advisors, are a good fit.
Small Investors: No minimums and fractional shares make Fidelity excellent.
Mutual-Fund Trading: With more than 9,000 funds, Fidelity has a lot to offer.
Fidelity Review Verdict
Fidelity is one of the top investment companies in the industry. But people who want to trade futures or forex will need to go elsewhere.
Updated on 6/20/2025.
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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