Fidelity Hidden Fees
A short-term redemption fee is charged by Fidelity anytime an NTF fund with no load is sold in less than 2 months. The fee
is $49.95 when transacted on-line.
If a mutual fund is bought at Fidelity that does not appear on the broker's NTF list, there is a steep $49.95 transaction fee.
Ally Invest charges
only $9.95 for mutual fund transactions and
Firstrade is at $0
per trade.
Brokerage houses typically do not charge any additional amount for placing a trade through a computerized phone system. For example, Merrill Edge charges nothing extra for this convenient service. But Fidelity customers must pay $5 when using FAST, the firm's automated phone system.
Most investors are aware that Fidelity charges nothing to use its debit card at an ATM and even reimburses any fees charged by the cash machine. However, they may not realize that this generous policy only applies to the broker's Cash Management Account. A regular brokerage account with the company, called the Fidelity Account, has different policies. The firm charges nothing for the first five ATM withdrawals in a month, but charges $1 per transaction thereafter and does not reimburse ATM fees. This policy is obviously much less generous. Nevertheless, it can be avoided by placing at least 120 bond, option, or stock trades, or achieving Premium or Private Client Group status.
When completing a wire transfer where U.S. dollars are converted into a foreign currency, Fidelity charges up to 3% of principal. Also, whenever a foreign
asset in a Fidelity account pays a dividend, the broker charges 1% of principal.
Every managed account Fidelity offers,
including its robo-advisory service, carries an annual percent-based fee. Accounts start at 0.35%
and go as high as 1.50%. Because these accounts have minimum balances, some of them as high as
$2,000,000, the asset-based fee can translate into a nice source of revenue for Fidelity.
Below you could find the list of company's commissions. List of all account charges is in
Fidelity Investments Fees.
Fidelity Commissions
| Investments | Commissions |
|---|
| Stocks and ETFs | $0 |
| Stocks and ETFs broker assisted | $32.95 |
| Options | $0.65 per contract |
| Mutual funds | $49.95 to buy. $49.95 to sell if sold within 2 months, $0 otherwise |
| Bonds and CDs (new issues) | on a net yield basis |
| Bonds and CDs (secondary issues) | $1.00 per bond ($250 maximum) |
| Investments | stocks, bonds, mutual funds, options, commercial paper, UITs, ETFs |
| Fidelity minimum deposit to open account | $2,500 ($0 for Rollover IRA; $2,500 or $200 per month for ROTH and Traditional IRA) |
Fidelity Fees vs Competitors
Hidden Fees That Fidelity Doesn't Charge
Many brokerage firms charge an additional fee for option exercises and assignments. Fidelity, however, simply charges its regular trading fee.
Mandatory reorganizations are free of charge at Fidelity. A stock split is one type of mandatory reorganization. Some other brokers do charge for this
service.
Fidelity Monthly Fee and Inactivity Charge
Fidelity does not charge monthly or inactivity fees on all of its brokerage or IRA accounts.
The Fidelity Account
Fidelity Investments offers traders a wide range of financial products, including stocks, bonds, options, IPO’s, ETF’s, mutual funds, CD’s,
IRA’s, annuities, trusts, investment advice, banking services, and even life insurance.
Fidelity’s flagship account is aptly named the Fidelity Account. Here investors have access to a wide range of products and services and can link
to other Fidelity accounts, such as retirement and cash management accounts.
The Fidelity Rewards American Express card can be linked to the Fidelity Account so that the credit card deposits 2% of purchases into the investment
account.
Fidelity Fees and Account Minimums
The Fidelity Account has no minimum balance requirement and comes with zero monthly and annual account fees. Minimum to open most Fidelity accounts is
somewhat high $2,500.
The firm’s charge for trading stocks and regular ETF’s is $0. Placing the trade over the phone is $5, and placing the trade with a living, breathing broker is a somewhat pricey $32.95.
Fidelity offers over 10,000 mutual funds, many of which carry no load and no transaction fee.
Disclaimer
Fidelity Investments hidden fees are as of 2021 and are subject to change. For the most recent information on Fidelity
hidden charges visit their website.
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