Is Fidelity Investments Safe?
Fidelity Investments is a well-known name in the brokerage world. We've done a detailed review to help you decide if Fidelity is a reliable company to trust with your investments and if it's the right broker for you.
Fidelity Company Overview
Fidelity has been in business for over 75 years, making it one of the longest-running brokers. It is also one of the largest privately-held companies in the U.S., employing more than 50,000 people globally, with operations in over 9 countries.
Fidelity handles an impressive number of clients, with over 51.5 million individual clients. They manage more than $6.8 trillion in assets under management and over $17.5 trillion in assets under administration.
Fidelity Better Business Bureau (BBB)
When evaluating whether a company is legitimate, many people turn to the Better Business Bureau (BBB). Fidelity has an A+ rating with the BBB. However, their BBB score is 1.12 out of 5 stars, based on 114 customer reviews. It's important to consider that BBB reviews are often from customers who are unhappy or had a particularly bad experience. In the last 3 years, Fidelity has closed 739 complaints with the BBB, which is a small percentage of their total client base.
Fidelity Regulators and Oversight
Fidelity is part of one of the most regulated industries worldwide: the financial sector. As a broker/dealer, Fidelity is subject to rigorous regulations.
Several regulatory bodies oversee Fidelity, including the Securities and Exchange Commission (SEC), Financial Industry Regulatory Authority (FINRA), the IRS, the Financial Crimes Enforcement Network (FinCEN), and the Office of Foreign Assets Control (OFAC). Fidelity must comply with strict reporting requirements from these authorities.
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Fidelity FINRA & SEC Registrations
Fidelity is registered and regulated by both the SEC and FINRA. Fidelity’s CRD number with FINRA is 7784, and its SEC registration number is 8-23292. Fidelity is licensed to operate in all 53 U.S. states and territories.
With a total of 136 disclosures, Fidelity's number is impressively low considering the size of the company and how long they’ve been in business. These disclosures are publicly available for review on FINRA’s website.
FDIC & SIPC Insurance
A good way to check if a broker is legitimate is to review the protection they offer for your funds. Fidelity provides both SIPC and FDIC insurance, depending on the type of cash account you hold. If you use Fidelity’s FDIC Insured Deposit Sweep Program for your cash, it is covered up to about $1.25 million through multiple banks.
For money market fund holdings, Fidelity offers SIPC coverage for up to $250,000 in cash. SIPC also covers up to $250,000 of securities. Additionally, Fidelity has supplemental insurance above SIPC limits to cover securities up to certain dollar amounts for each client.
Fidelity Alternative Account Protections
Fidelity’s Customer Protection Guarantee offers extra security. This guarantee covers any losses from unauthorized account activity that is not the client's fault. It applies to all eligible accounts, covering both cash and securities.
Fidelity Account Security
Fidelity employs robust security measures to protect accounts from unauthorized access. On the Fidelity mobile app, you can enable biometric login using your fingerprint or face recognition, depending on your phone.
Fidelity also offers the Myvoice system for phone support, which verifies your identity using your unique voiceprint. For extra security, you can set up 2-factor authentication for both the website and mobile app. Additionally, you can enable security text alerts for activities like linking a new bank account to your Fidelity account.
Another feature, Money Transfer Lockdown, lets you block all electronic transfers from your account when enabled.
Is Fidelity a Scam or Legitimate? The Verdict.
It would be nearly impossible for Fidelity to be a scam considering its size, the scope of its operations, and the level of regulation it faces. The sheer scale of Fidelity’s business, combined with the consistent oversight from multiple regulators, makes it clear that Fidelity is a legitimate and trustworthy firm.
Fidelity Review: Investing
Fidelity clients can open both brokerage and investment-advisory accounts. These accounts offer a standard range of asset classes:
- Stocks (including over-the-counter and foreign issues)
- Bonds, brokered CDs, and other fixed-income securities
- Funds (mutual, exchange-traded, and closed-end)
- Annuities
- Cryptocurrencies
- Options
Some accounts, such as the Fidelity Go, only have access to Fidelity Flex mutual funds, which are free of expense ratios. The program is fully automated, with no human advisor involved.
For clients seeking a more comprehensive investment experience, Fidelity’s wealth management service provides access to human advisors located at various branch offices. Through this program, clients can access a range of services, such as retirement planning, life insurance, and assistance with charitable contributions.
Cash Features
Fidelity offers a Cash Management Account, which functions as a hybrid bank-brokerage account. This account comes with a Visa debit card, a checkbook, and FDIC insurance up to $5 million. The account automatically sweeps uninvested cash to partner banks, and you can also invest in money market funds, which yield around 4%.
The debit card offers unlimited ATM fee reimbursements worldwide, and the account also includes free online bill payments.
Fees and Minimums
Fidelity offers accounts with minimal fees and no recurring charges for brokerage and robo accounts. Advisory and wealth-management accounts have varying minimums. The cash account has no minimum balance and no ongoing fees.
Most trades are commission-free, though crypto trades cost 1% of the trade value. Some secondary bonds cost $1 per trade, and foreign stock trades incur commission fees, usually around €19, depending on the exchange.
Margin
Fidelity offers margin trading. The interest rate for margin accounts is listed in their margin 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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7.5%
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$500,000 – $999,999
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7.8%
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$250,000 – $499,999
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10.075%
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$100,000 – $249,999
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10.325%
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$50,000 – $99,999
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10.375%
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$25,000 – $49,999
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11.325%
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$10,000 – $24,999
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11.825%
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$0 – $9,999
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11.825%
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Upgrading to margin trading is easy on Fidelity’s website, though downgrading requires a phone call.
Website
Fidelity’s website offers many features, including:
- Full-screen charting with technical studies and drawing tools
- Extensive stock research with free analyst reports
- Pop-up order tickets with short-selling options
- Conditional orders (OCO and OTO)
- Advanced options tools with a strategy builder
Mobile App
The Fidelity mobile app offers:
- Charting in both vertical and horizontal modes
- Multiple trade tickets for stocks, options, and mutual funds
- Option spreads
- CD yield matrix
- Price and technical alerts
- Market news with Bloomberg live streaming
Our Recommendations
Active Stock Trading: With fractional shares, foreign stocks, and Active Trader Pro, Fidelity is an excellent choice.
Retirement Planning & Long-Term Investing: Fidelity’s tools and advisory services make it a top pick.
Beginners: Fidelity’s managed accounts, including those with human advisors, are ideal.
Small Investors: With no minimum balance and fractional shares, Fidelity is hard to beat.
Mutual-Fund Trading: With a selection of over 9,000 funds, Fidelity offers plenty of options.
Fidelity Review Verdict
Fidelity is one of the top investment firms in the industry. However, futures and forex traders may want to look elsewhere.
Updated on 1/20/2026.
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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