Fidelity Hidden Fees
Fidelity has an annoying mutual fund low balance fee, charged once per year. It is $12 for each fund that has less than
$2,000 in it. Other brokers, including TD Ameritrade,
don't have any such policy. Fidelity is willing to waive the charge for households that have $25,000 or more in assets.
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.
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 an extra $5 on top of the broker's standard $4.95 commission 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.
IRA customers should be aware that Fidelity charges a $25 annual fee for SIMPLE accounts. There is also a $50 closeout fee for Keogh accounts and non-SIMPLE IRA's.
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.
Fidelity clients must pay $0 for voluntary corporate reorganizations. These are events such as tender offers or the exercise of warrants or rights. .
Below you could find the list of company's commissions. List of all account charges is in
Fidelity Investments Fees.
Hidden Fees That Fidelity Doesn't Charge
Many brokerage firms charge an additional fee for option exercises and assignments. Scottrade, for example, charges an extra $10 above its standard $7 commission for both assignments and exercises. 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 Detailed Review
Read full
Review of Fidelity Investments.
Fidelity Monthly Fee and Inactivity Charge
Fidelity does not charge monthly or inactivity fees on all of its brokerage or IRA accounts. There is a $25 SIMPLE IRA annual fee. IRA account closeout fee
is $50.
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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 $4.95. Placing the trade over the phone is $12.95, 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. Furthermore, traders have access to 84 commission-free ETF’s, which cover a broad range of asset classes and investment strategies, including short-term and long-term strategies, and both debt and equity.
Promotions
Investors who deposit $50,000 into an existing or new brokerage or IRA account are eligible to receive 100 commission-free trades for 90 days.
$100,000+ deposit gets investor 200 free trades. This promo also includes free access to the Active Trader Pro platform.
Disclaimer
Fidelity Investments hidden fees are as of 2019 and are subject to change. For the most recent information on Fidelity
hidden charges visit their website.
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