Fidelity Investments rating

Fidelity Review

Fidelity Commissions, Fees, and Minimum Deposit

Stocks and ETFs $4.95
Stocks and ETFs broker assisted $29.95
Options $4.95 + $0.65 per contract
Mutual funds$49.95 ($75 for some funds; Fidelity funds are commission free) to buy; $0 to sell ($49.95 if sold within 60 days)
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)
FeesFidelity fees
Promotion linkFidelity promotions

Fidelity Investments (member of SIPC) is charging below average rate on stocks and ETF's - $4.95 per trade. Mutual funds are $49.95 ($75 for some) to buy and $0 to sell for transaction fee funds. Fidelity-family funds don't have commissions. Options contracts are $0.65 each.

Minimum deposit to open most Fidelity accounts is somewhat high $2,500. There is no initial deposit requirement for Rollover IRA. The broker does not have minimum account balance requirements as well as account inactivity or maintenance fees (except for $25 per year for SIMPLE IRA).

Fidelity New Account Setup

Fidelity's account opening process is very well designed and quick - it took only ten minutes to open a regular brokerage (non-IRA) account. The application includes designating a beneficiary, setting up document delivery options (we always choose email) and ACH information to transfer money from/to a bank.

After the account is opened, transferring money from your bank is a simple matter of going to Accounts & Trade >> Transfer Money/Shares in the main menu of the homepage. The main downside is that the ACH deposits you make with Fidelity will generally not be available for trading (or withdrawal) for up to 4-6 business days, which is much longer than with many other brokers.

Fidelity Mutual Funds Review

Fidelity Investments is one of the largest mutual fund companies in the world, with 430 mutual funds under management. The funds target dozens of asset classes: index funds, U.S. stocks and international stocks funds, asset allocation funds, sector funds and others.

Investors at Fidelity can buy and sell 11,672 mutual funds. This number includes all fund families. The broker has 3,572 funds that have no transaction fee. Approximately half of these also have no load. Searching through all of the funds is fairly straightforward with the broker's excellent screener. Users can search for only Fidelity funds, or specify a certain Morningstar rating, or require a minimum yield. Other criteria include bond duration, expense ratio, manager tenure, minimum investment, and asset class. Other mutual fund tools at Fidelity include mutual fund recommendations from Kiplinger and Money magazines, a comparison between Fidelity and Vanguard funds, and videos on mutual fund investing.

Fidelity's own mutual funds and funds in NTF program are commission free. All other mutual funds can be purchased for $49.95 or $75, depending on the fund. Selling mutual funds is free unless client sells within 60 days of purchasing - then Short Term Trading Fee of $49.95 applies (does not apply to Fidelity family funds). There is a Low Balance Fee of $12 per year for each noncore Fidelity fund with balance under $2,000.

Fidelity Review: Mutual Funds


There are no IRA fees at Fidelity. This includes no inactivity fees, no setup fees, and no annual fees. There is also no minimum deposit required to open an IRA with the broker. Investors can choose from SIMPLE, SEP, Rollover, Traditional, Roth, Minor Roth, and Inherited IRA's.

Fidelity has several good IRA calculators and educational resources. For example, a contribution calculator for IRA's determines how much an investor can contribute to an IRA based on criteria such as modified adjusted gross income, age, and tax filing status. The Fidelity website also has a useful conversion calculator to help investors decide if changing a Traditional IRA to a Roth makes good financial sense. Inputting data such as age, tax-filing status, and account balance produces a graph showing the hypothetical retirement value of making the conversion versus not doing so.

Fidelity Website/Trading Platform/Tools Review

Website website is now much better designed, less cluttered, and more intuitive than it used to be. But some parts of it are still using old design and parts of it are missing navigation menu.

All Fidelity accounts, including cash management and retirement accounts, are accessible with a single login. Orders can be placed on the website for a variety of securities. There is a trade ticket, although it's not quite as advanced as TD Ameritrade's and Merrill Edge's.

The site has good screeners for ETF's, mutual funds, and stocks. A fixed-income screener searches for over 50,000 bonds. After selecting an individual product, placing the trade is straightforward using the broker's web page. Important information is displayed, including third-party prices and the current bid-ask spread.

The Fidelity website has better features than the app, as might be expected. This is true particularly for research. Charting on the website is also more advanced than what the mobile app offers.

Fidelity Review: Website

Active Trader Pro

Fidelity's most advanced trading system is Active Trader Pro. It is available via the web at It is also available as a desktop program, which the broker recommends. The platform has many useful features that active traders will enjoy, such as streaming market data. Charts are interactive and have event and pattern recognition. The platform can trade stocks, ETF's, and options.

Active Trader Pro has the ability to save as many as 50 orders and place them all at the same time using a multi-trade ticket. Conditional orders and triggers can also be used on the platform. Day trading and using unsettled funds are both possible with this program.

Fidelity requires certain minimums in order to use the platform. Customers must execute at least 36 trades per year. In comparison, TD Ameritrade has no frequent trader requirement for its advanced platform, and Merrill Edge requires 60 trades per year. Learn more about Active Trader Pro.

Mobile Trading

Fidelity clients can buy and sell securities on several devices. These include Android phones and tablets, iPhone, iPad, Apple Watch, and Windows Phone 8. The broker recently launched an application for Apple TV as well.

The mobile platform is intuitive. It takes just a few minutes to learn where everything is at and how to trade. The software has many valuable features. Of course, there is order placement: users can trade ETF's, stocks, options, and mutual funds. There is also position and balance information, market news, mobile check deposit, and funds transfer. Minimal research can also be conducted on a mobile device.

Charts can be displayed for ETF's and stocks. The chart is able to rotate if the phone or tablet is rotated. Candlesticks, bars, area, and line format can be used for the graph's display.

Fidelity Review: Mobile App

Fidelity Review: Pros

  • No surcharges on stocks under $1, large orders, or after-hours trading
  • Great investment research tools with large selection of independent research from 12 firms
  • Good selection of commission-free mutual funds
  • Free DRIPs (dividend reinvestment plans)
  • No account maintenance or inactivity fees
  • Great customer service
  • Good banking services (checking, savings accounts, and credit cards)
  • 91 commission-free ETFs

Fidelity Review: Cons

  • Very high commissions - $49.95 ($75 for some funds) - to purchase non-Fidelity mutual funds
  • $12 annual Low Balance Fee for each noncore Fidelity mutual fund if balance is under $2,000
  • High margin rates
  • Advanced trading platform, Active Trader Pro, is available only to clients making 36+ trades per year
  • High $2,500 minimum to open an account


Fidelity is a good broker for beginners. The firm is known for its excellent customer service, which is available by phone 24 hours a day, 7 days a week. There are many educational resources on the broker's website to help new investors learn the ropes of investing. Fidelity also has over 180 branch locations throughout the United States that are able to provide more personal service to clients who need it.

The broker is great for fund investors who can invest in 91 ETF's and all Fidelity-family mutual funds commission-free.


Account deposits of $50,000 to $99,999 will receive 300 free trades; account deposits over $100,000 of net new assets will receive 500 free trades. Trades must be used within 90 calendar days of being credited to the customer's account. Account holders must maintain a minimum account balance of $50,000 of net new assets for the 300 free trade offer or $100,000 of net new assets for the 500 free trade offer (minus any losses related to trading or market volatility) for at least nine months from the date on which the trades are credited to the account, otherwise commission charges may be incurred retroactively on free trade executions based on the customer's applicable commission rate

Fidelity Review Summary

Fidelity Investments is one of the largest brokerage companies in the U.S., and as such, provides a wide array of services to their investors. Fidelity offers advice in wealth management and charitable giving; investment guidance; and provides lots of educational content for novice and professional investors alike. The firm is offering over 11,000 mutual funds; life insurance; college savings plans and more.

Fidelity's commission for stocks and ETFs is $4.95 per trade. Options trading costs $4.95 plus $0.65 per contract. The company does not charge account maintenance or inactivity fees, and does not add surcharges on penny stocks, large orders or extended hours trading. But the minimum initial deposit for most accounts is somewhat high $2,500.

Fidelity's mutual fund commission varies from $0 for Fidelity and NTF mutual funds to $75 per transaction for some non-Fidelity funds. Investors should keep in mind a $50 short-term redemption fee for mutual funds sold less than 60 days after being purchased. There is also a $12 annual Low Balance Fee for any non-core Fidelity fund with balance under $2,000.

For added convenience, Fidelity offers clients a cash management account. The account provides all of the standard features expected of a checking account, such as online and mobile banking, a free debit card, and checkwriting privileges, as well as additional perks like ATM fee rebates, cash back opportunities, and interest on your balance.

Fidelity Investments' BBB (Better Business Bureau) rating is C-. The details could be seen at this link. Out of 256 closed complaints at BBB, 197 were problems with service, and 29 were billing issues. This is one of the lowest Better Business Bureau ratings for brokerage houses.

Fidelity's website needs more work, but their independent investment research from third parties is among the best in the industry. The firm created powerful, advanced trading platform but it is available only to clients making at least 36 trades per year. In contrast, the best trading platform on the market, TD Ameritrade's ThinkorSwim, is available to all TD Ameritrade clients.

We end Fidelity review with recommendation: the broker is great for someone who wants to invest in Fidelity ETF's and mutual funds for the long run and can avoid the Low Balance Fee.

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Fidelity reviewed by Rating: 4.5