Fidelity Promotion
Fidelity Promotion Details
This Fidelity promotion offer is valid for existing or new Fidelity clients. A new or existing Fidelity brokerage account or Individual Retirement Account is
eligible to receive 300 commission-free trades for a deposit of $50,000 to $99,999. A deposit of $100,000 or more will receive 500 free trades. The free trades
expire in 90 days after being credited to the securities account, and they cannot be transferred to another account. Any unused trades have no cash value.
The free trades can be used to buy and sell on-line domestic options and stocks. Free option trades cannot have more than 20 contracts per trade. If a derivative
order contains more than 20 contracts, Fidelity’s regular commission schedule will apply to the whole order.
This Fidelity promotion offer is not transferable and is limited to one individual per rolling 12 months. It may not be combined with other promotions. It can be
used for joint or individual nonretirement accounts or with a Fidelity IRA (Traditional, Roth, SEP, Inherited, or Rollover), assuming that security trading is not
prohibited in the account. The Fidelity promo offer cannot be used for trusts, fiduciary accounts (including estate and custodial accounts), business accounts, annuities, accounts managed by Strategic Advisers, Inc. (e.g., Portfolio Advisory services), 529 savings plan accounts, investment trust accounts, college investment trust accounts, Institutional Wealth Services (IWS) customers, stock plan services accounts, or customers of an investment advisor who is working with Fidelity.
For 9 months after the account is funded, a minimum balance of at least $50,000 of net new assets must be maintained in the eligible account for the 300
commission-free trades, or a balance of $100,00 in net new assets for 500 free trades. Fidelity does not consider investment losses or market volatility when
calculating an account’s eligible balance for this promotion. Fidelity reserves the right to retroactively impose commissions using its Commission & Fee Schedule
on free trade executions in accounts that fail to meet this standard.
The minimum funding must come from a non-Fidelity account. Fidelity will accept any regular transfer system, including electronic funds transfer, ADM deposit,
checks, or a Transfer of Assets form. For this special, the broker will also accept rollovers from a former employer’s workplace savings plan if its records
were maintained by Fidelity. Eligible securities, cash, and transfers from various accounts will be combined to calculate an account’s total funding. Securities
will be valued on the day that Fidelity receives them. It may take a full week for assets to appear in the eligible account. Distributions and transfers will
be subtracted from deposits in order to calculate net new funds.
New and existing customers must register on the Fidelity web site to qualify for this Fidelity promotion offer. New and existing accounts must be funded within
60 days of registering. This offer expires 12/31/2019.
Non-US residents, Fidelity employees or employees of the broker’s affiliates or their households or immediate family members, the media, persons associated with FINRA, or a securities exchange or its members, are not eligible for this offer.
Read detailed Fidelity account review »
Fidelity's goal is to make financial expertise broadly accessible and effective in helping people live the lives they want. With assets under administration of
$5.2 trillion, including managed assets of $2.1 trillion, the firm's focus is on meeting the unique needs of a diverse set of customers: helping more than 24 million
people invest their own life savings, nearly 20,000 businesses manage employee benefit programs, as well as providing nearly 10,000 advisory firms with technology
solutions to invest their own clients' money.
The firm has many of the standard tools that other online brokers offer such as stock screeners and portfolio builders that can make
searches based on the parameters clients enter.
One of the best things about online trading with Fidelity is the ability to actually trade stocks in 25 countries via various stock exchanges
and 16 currencies around the globe with the flexibility to settle in either U.S. dollars or the local currency.
Fidelity research tools (such as stock screening, historical trading strategies,
daily market commentary, and individual stock research) are impressive. There are research reports from 12
different independent firms covering over 4,500 companies, as well as 36 tax, savings, and retirement calculators.
The company also offers two advanced trading platforms: first is Active Trader Pro that requires at least 36 trades in a rolling 12-month period,
and the second is Wealth-Lab Pro that requires at least 120 trades during the same period. Both platforms are excellent but many competitors
provide their advanced platforms with no conditions to all customers.
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Fidelity Options Commissions
Options at Fidelity cost $4.95 plus $0.65 for each contract in addition to the $4.95 commission. Multi-leg orders at Fidelity are charged just one base charge. The $0.65 option
contract charge is waived for buy to close orders between $0.65 and $0.11. Buy to close orders below $0.11 are completely free. The broker does maintain a maximum commission
charge of 5% of principal for option orders.
The broker's customers can also trade derivatives over an automated phone system, or with a live representative. Using the automated phone system carries a $9.95 commission, while the live broker charges $32.95. Exercises and assignments are charged the standard base of $4.95.
Fidelity Options Trading Introduction
Beyond a great selection of funds and good commissions on stocks, Fidelity also provides excellent value for option traders. With a host of research tools for options,
the firm is very competitive in the derivatives trading industry. Let's take a closer look at buying and selling options at Fidelity, commissions and pricing structure,
and see how the firm compares to other option brokers.
Option Research
Fidelity has over 50 option education lessons for investors to take. These are at beginner, intermediate, and advanced levels. They are in video, article, course, and webinar formats. Topics include trading options on the broker's advanced platform, common option mistakes, analyzing volatility, and writing covered calls, among many others.
In addition to option education, the broker offers many good option research tools. These include a profit & loss calculator, option chains, an implied volatility index, a probability calculator, and a key statistics page on a stock's current options. As if all of these tools were not enough, the broker also provides a market scanner, strategy ideas, a strategy evaluator, a report finder, intra-day trade ideas, and professional analysis. Thankfully, Fidelity-created videos explain how to use all of these option tools.
Order Placement from a Stock's Option Chain
The broker's option chain allows open interest, volume, strike price, and strategy all to be specified. Weekly or monthly expirations can be chosen. A histogram can also be displayed, which graphically shows how much volume and open interest a particular option has.
Clicking on a bid or ask price on a stock's option chain produces a trade ticket. Here, users can select routing, order type, and several other order specifications. Available order types include market, limit, stop loss, and trailing stop limit.
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Trading Off the Website
Options can also be traded at Fidelity on the broker's mobile app and advanced desktop platform, Active Trader Pro. In order to use the desktop system, accounts must execute at least 36 trades in a 12-month period. The mobile app has no requirement.
On the mobile app, tapping on 'Option Chain' on a stock's profile page produces puts and calls with five strike prices for each expiration date. The number of strike prices can be changed by simply tapping on the word 'Strikes' at the top of the chain. Expiration dates can also by changed. Instead of bids and asks, the last trade price and dollar change can be displayed. Volume and open interest can also be shown. Tapping on these figures produces a trading ticket with buttons to buy to open, buy to close, sell to open, or sell to close.
Besides standard calls and puts, the mobile app offers other trading strategies, such as condors, butterflies, strangles, and iron condors. Switching between strategies is quick and easy.
Fidelity Options Trading Comparison
E*Trade customers pay $6.95 in addition to a $0.75 charge for each contract. Exercises and assignments at E*Trade cost a very steep $19.99, twice the broker's standard
commission. A cheaper broker is TradeStation. This option specialist imposes a $4.95 commission plus $0.50
per option contract. Despite the this broker's specialty and low costs, Fidelity has more option education and research tools, making Fidelity a better value for
traders who need some guidance in the option world.
Traders at OptionsXpress, owned by Charles Schwab, pay $1.50 for every option contract. Each order carries a $14.95 minimum. Active traders get a reduced commission
schedule of $1.25 and $12.95. The firm does have good option research tools, but they're no better than what Fidelity offers. Despite the broker's specialty, Fidelity
remains the better choice for derivative traders.
Fidelity Investments Incentives
New or existing Fidelity customers who deposit $25,000 or more into a non-retirement securities account will receive 15,000 frequent flyer miles.
The miles can be applied to United, Delta, or American Airlines. The Fidelity Investments promo code expires October 31, 2019.
Fidelity Options Commissions and Trading Summary
Traders who want to buy and sell options will find an excellent value at Fidelity. With great research and educational tools combined with low fees, the firm is a
good value for traders who need some guidance in the option world.
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