Fidelity lower options fees

Negotiate Lower Commissions at Fidelity: Reduced Fees on Options and Futures Trades


Negotiate Lower Commissions At Fidelity


In a world full of zero-commission brokers, it can be easy to forget that commissions are still a concern for many investors.

The zero-commission model that has become so popular usually involves stock and ETF transactions, but there are many other investment vehicles that brokers still charge a commission for. In Fidelity's case, you won’t see many commissions, but they do exist.

Is there a way to negotiate lower commissions at Fidelity? Let’s find out.


Types of Commissions at Fidelity


Before picking up the phone to get a deal on your commissions at Fidelity, it is good to know how commissions are charged.


Online Transactions


Stocks, ETFs, IPOs: $0 Commissions
Options: $0.65
Foreign Stocks: Variable Commissions (fees are based on the country and are charged in foreign currency)
Mutual funds: $49.95 if held for less than two months.
Broker-assisted trades: You can expect to pay around $32.95 per trade for options, stocks, and ETFs.
For Bonds, CDs, & U.S. Treasuries, you can expect to pay around $19.95 per trade.


Are Lower Commissions at Fidelity Possible?


So, which Fidelity fees and commissions can we negotiate down?

When I tried, I focused on bringing down the options contract commission rate. At $0.65 per contract, fees can add up fairly quickly, especially if you are active in your trading.

Fidelity’s commissions are already lower than most popular brokers, but the options commissions use a standard pricing model.

When I called Fidelity, the broker did not agree to lower my rates, but the sales rep did share some details about how I could reduce my commissions in the future.

Here is what I learned from making the call.


Commission Negotiation Process


Age of Account

One important detail to consider is how long you have had your account. Fidelity is much more receptive to customers who have given them business over time, and that is true for negotiations as well.

In general, it is best to ask for a commission reduction after at least a year of active trading.


Account Size

Another thing that could easily sway the negotiation process in your favor is your account size. Investors with large accounts are more likely to trade with more size, which benefits the broker. For that reason, it could be helpful to build up your account before making your request.


Trading Activity

Finally, you will want to consider your trading activity. Traders with a higher average trade frequency are more likely to receive discounts. Trading quality also matters, as more successful investors provide long-term business that benefits the broker.


Fidelity Competitor Commissions


Broker Review Promotion
Offer
Stock/ETF
Commission
Mutual Fund
Commission
Maintenance
Fee
Annual IRA
Fee
Firstrade Get 2 FREE stocks and $0 commission in ALL trades! $0 $0 $0 $0
Ally Invest Up to $3,000 cash bonus + $0 commission trades. $0 $9.95 $0 $0
WeBull 12 FREE stocks valued $34-$30,600 give-away at Webull. $0 na $0 $0


Reasons Fidelity May Not Agree to a Reduction in Commissions


There are many reasons that Fidelity may not agree to reduced commissions.

Not only does the broker already have one of the best pricing models in the industry, but Fidelity is by no means a ‘new kid on the block.’ Retail traders comprise a relatively small portion of the broker’s customer base. As a result, many of its best deals go to more prominent players.

Account size, trade frequency, and the amount of time that you have been with the broker also play a significant role in your ability to negotiate lower rates.

When ready to make the call, the brokerage can be reached at 800-544-5115.


Updated on 6/24/2022.


Ben Wright
About the Author
Ben Wright is an investor, a trader, an educator, and something of an explorer. He spends his days in the markets when he is not teaching or spending time with his family. Ben writes about stockbrokers, markets, investment vehicles, promotional offers, and tools that help investors make the most of their time in the markets.