Fidelity Assets Under Management (AUM)
Fidelity Investments has a long track record of keeping its customers happy, which is likely why it’s one of the biggest brokerage firms in the United States. The company is the largest keeper of 401(k) plans and is also a leading provider of 403(b) plans for non-profit organizations. More than 28,000 companies trust Fidelity to manage their employee retirement plans. The broker also offers stock plan services.
The company handles a lot of assets. Specifically, Fidelity has the following significant numbers:
| Fidelity assets under administration |
$14.1 trillion |
Fidelity total discretionary assets |
$5.5 trillion |
| Number of customers |
51.5 million |
Fidelity is a huge brokerage house by AUM. It is even comparable to Charles Schwab, who has
$9.57 trillion in AUM and over 36.2 million customers.
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Number of Customers at Fidelity
Fidelity has about 51.5 million individual clients. Many of these investors make their own trading decisions.
A large part of Fidelity’s business comes from retirement services. Over 60% of Fidelity mutual funds are in retirement accounts. Nearly $1.9 trillion is invested in the company’s mutual funds.
Despite its large size, Fidelity’s retirement services are growing. Its 401(k) business expanded well, and the broker remains the largest provider of IRAs in the U.S.
Fidelity also has a big workforce. The company employs more than 57,000 people around the world, including 5,000 in Boston alone.
Fidelity Disadvantages
Despite Fidelity's strengths, there are some issues that may lead some investors to choose another broker. For example, the firm charges $49.95 to buy non-NTF mutual funds, while Firstrade charges $0 and Merrill Edge charges $19.95.
Fidelity charges commissions on some products, while Webull charges $0 for stock, option, ETF, and crypto transactions.
Fidelity's advanced desktop platform, Active Trader Pro, requires a minimum of 36 trades within a 12-month
period. In contrast, Charles Schwab's platform, thinkorswim, is free for all clients with no frequent trader requirement. Schwab's most advanced trading system, thinkorswim, requires no account balance.
Fidelity requires a $0 deposit to open a trading account. Vanguard also has no such requirement, and
Firstrade and Merrill Edge customers can open an account with no money down. Some investors may prefer to
open an account first and test the broker's trading technology before making a deposit.
Fidelity's list of 11,679 mutual funds is smaller than Firstrade list. Firstrade offers more than 13,000 funds, all of which are no transaction fee. WellsTrade offers more than 2,600 funds.
While Fidelity has a network of branch locations for in-person service, some other firms have more offices. Fidelity has just over 180 locations, while Charles Schwab has more than 450. Merrill Edge has advisors in many Bank of America locations throughout the U.S., giving Fidelity a disadvantage in brick-and-mortar service.
None of Fidelity's platforms offer paper trading (Virtual trading), which is a letdown since paper trading helps beginners learn software without risking real money. Charles Schwab offers virtual trading.
Fidelity allows trading in a wide range of securities, including options and fixed-income products. However, futures and forex are not available. Ally Invest offers currency trading, and Charles Schwab provides both.
Although Fidelity's mobile app has several useful features, the graphing capability is limited. The platform only offers two technical studies. In comparison, Charles Schwab's mobile app provides 400 studies. Fidelity's mobile graphs cannot display dividends, earnings, or announcements, which many traders expect in today's mobile world.
There isn't a community forum on the Fidelity website for traders to discuss market news or post questions. Tastytrade and Charles Schwab investors do have this feature.
Fidelity's website charting has less than 30 technical studies and fewer graph styles compared to other programs like Power E*Trade, which offers Heikin Ashi.
A nice feature from Fidelity is its Full View, a software program that allows traders to see all their online financial accounts on one platform. However, this program is not available on the broker's mobile platform, and some users find the desktop interface difficult to use.
While the Fidelity website has a simple trade bar, it doesn’t appear regularly at the bottom of the browser. Instead, it shows up on the left side after clicking a trade button. It can't display a chart. Merrill Edge's trade bar, in contrast, stays at the bottom of the screen, can be hidden, and can display a chart with an adjustable time scale. Some traders prefer this type of trade bar.
Fidelity AUM Recap
While Fidelity has received some complaints, it continues to provide solid brokerage services. Mutual fund investors can do well with Fidelity. Beginner investors might want to check out Firstrade, while bargain seekers may be pleased with Webull.
Updated on 8/21/2024.
Arthur Chachuna is a professional personal finance blogger, and the owner of Brokerage-Review.com.
He has been an avid investor for 25 years, and has a background in both applied math and programming.
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