Fidelity Review: Worth Your Investments?
LAST UPDATED: July 11, 2023 | By Conrad Golly
As someone interested in investing, I have spent a lot of time researching different online broker-ages.
One that stands out is Fidelity Investments. Fidelity is known for being one of the largest and most well-rounded brokerages available in the U.S. today, with a wide range of investment options and tools.
Fidelity Review:
One of the things that set Fidelity apart is the fact that they offer $0 commission on stock or ETF trades, making it an affordable option for investors of all levels. Fidelity has a selection of no-expense-ratio index funds that are suited to both beginner and active investors. These index funds are a great option for those who want to invest in a diversified portfolio without having to worry about high fees.
Fidelity is a great choice for anyone who is looking to invest in the stock market.
Whether you are a beginner investor who is just getting started or a sophisticated day trader, Fidelity has something to offer.
In this review, I will go over the pros and cons of Fidelity, as well as how it compares to some of the other best stock brokerages out their.
What is Fidelity?
As an investor, I am always on the lookout for a reliable and trustworthy brokerage firm.
Fidelity Investments is one such company that has been around for over seven decades and has established itself as a leading provider of financial services.
Fidelity offers a wide range of investment options, including mutual funds, exchange-traded funds (ETFs), health savings accounts, and more.
They also have a mobile app that allows me to trade stocks and ETFs on the go, which is a huge plus for me as an active trader.
One of the things that I appreciate about Fidelity is its commitment to providing excellent customer service.
They have a team of knowledgeable representatives who are available to answer any questions I may have about my account or investment options.
For active traders, Fidelity offers their Active Trader Pro platform, which provides advanced charting and trading tools.
They also offer a wide selection of no transaction fee funds, making it easy to diversify my portfolio without incurring additional fees.
I have found Fidelity to be a reliable and trustworthy brokerage firm that offers a wide range of investment options and excellent customer service.
I would recommend them to anyone looking for a brokerage firm to help them achieve their financial goals.
Fidelity Review: Pros and Cons
Pros of Fidelity Brokerage Account
As I researched investing strategies through Fidelity Investments, I found several advantages to using this brokerage firm. One of the most significant benefits is that they offer a wide range of investment options, including mutual funds, exchange-traded funds (ETFs), and individual stocks.
Fidelity has a highly-rated mobile app that allows investors to manage their accounts on the go. The app is versatile and user-friendly, making it easy to access account information, trade stocks, and research investment opportunities.
Fidelity also offers a Health Savings Account (HSA), which is a tax-advantaged account that can be used to pay for eligible medical expenses. This can be a great way to save money on healthcare costs while investing in the future.
Another pro of Fidelity is its portfolio analysis tools. These tools can help investors understand their portfolio’s performance and make informed investment decisions.
Fidelity also offers active traders access to their downloadable trading platform, Active Trader Pro, which provides advanced charting and trading capabilities.
Cons of Fidelity Brokerage Account
While Fidelity has many advantages, there are also some drawbacks to be aware of. One potential downside is that Fidelity charges transaction fees for certain mutual funds. They do offer a large selection of no-transaction-fee mutual funds, which can help investors save money on fees.
Another potential con of Fidelity is that they have limited investment services for certain types of accounts. For example, their Youth Account is only available for children under the age of 18, and their retail account has restrictions on certain types of investments. Fidelity’s website can be overwhelming for some investors, with a lot of information and options to navigate.
Fidelity’s expense ratios can be higher than industry averages for certain funds. They do offer low-cost index funds that can be a good option for investors looking to minimize fees.
Fidelity’s Features and Services
As someone who has used Fidelity for a while now, I can confidently say that their offerings are top-notch.
They have a wide range of investment options, including mutual funds, exchange-traded funds (ETFs), and individual stocks.
They offer a health savings account (HSA) and a youth account for those looking to invest for their children. One of the standout features of Fidelity is its mobile app.
It’s user-friendly and allows you to trade stocks and ETFs, view your portfolio, and access research offerings all from your phone.
For more active traders, Fidelity also offers a downloadable trading platform called Active Trader Pro, which provides advanced charting and trading tools.
Fidelity offers a large selection of no transaction fee funds, making it easy to diversify your portfolio without incurring additional fees.
They also have a portfolio analysis tool that can help you evaluate your investments and make informed decisions about your portfolio.
While Fidelity does charge fees for certain services, such as account fees and expense ratios, they remain competitive with industry averages.
They also offer educational resources to help you make informed investment decisions and develop investment strategies that align with your financial goals. I’ve been very satisfied with Fidelity’s offerings and services.
They have a solid reputation in the industry and provide a wide range of investment options to suit the needs of most investors.
Fidelity Review: Investment Options
Stocks and ETFs
When it comes to investing in stocks and ETFs, Fidelity offers a great range of options. One of the best things about Fidelity is that they don’t charge any commissions on stock or ETF trades.
This can be a big advantage for investors who frequently buy and sell these types of securities. Fidelity offers a variety of research tools and resources to help investors make informed decisions about their investments.
Mutual Funds
Fidelity is well known for its mutual funds. They offer a huge selection of funds, including both actively managed and index funds.
One thing to keep in mind is that Fidelity does charge transaction fees for some mutual funds.
They also offer a large selection of no-transaction-fee funds, which can be a good option for investors who want to minimize fees.
Bonds
Fidelity offers a variety of fixed-income securities, including bonds and CDs. They also offer a bond ladder tool, which can help investors build a diversified bond portfolio.
It’s important to note that Fidelity charges a markup on bond trades, which can increase the cost of investing in bonds.
Options
Fidelity offers options trading for investors who want to take a more active approach to their investments.
They offer a variety of options trading tools and resources, including the ability to trade complex options strategies.
It’s important to keep in mind that options trading can be risky and is not suitable for all investors.
Other Investment Options
In addition to stocks, ETFs, mutual funds, bonds, and options, Fidelity also offers a variety of other investment options.
These include alternative investments, such as private equity and real estate, as well as annuities and life insurance.
It’s important to carefully consider the risks and fees associated with these types of investments before investing. Fidelity offers a great range of investment options for investors.
Whether you’re looking to invest in stocks, bonds, mutual funds, or other types of securities, Fidelity has something to offer.
It’s important to carefully consider the fees and risks associated with each type of investment before making any decisions.
How Fidelity Compares to Other Brokers
M1 Finance
When it comes to comparing Fidelity to other online brokers, M1 Finance stands out. M1 Finance offers commission-free trading and fractional shares, which makes it a great option for beginner investors.
M1 Finance does not offer as many investment options as Fidelity, and its research offerings are not as robust.
Robinhood
Another popular broker to compare Fidelity to is Robinhood. Robinhood is known for its easy-to-use mobile app and commission-free online trading platforms.
Robinhood’s investment options are limited, and they do not offer any mutual funds.
Robinhood has faced controversy over its business practices, which may make some investors hesitant to use their platform.
Fidelity offers a wide range of investment options and research offerings, making it a great choice for both beginner and advanced investors.
While other brokers may offer commission-free trading or other unique features, Fidelity’s comprehensive offerings make it a strong contender in the brokerage industry.
Fidelity’s Investment Research Tools
When it comes to investing, having access to reliable research tools is essential. Fidelity offers a comprehensive suite of research and analysis tools to help investors make informed investment decisions.
As a Fidelity account holder, I have access to a wide range of investment research options.
One of the most useful tools is the Planning & Guidance Center, which allows me to compare my current portfolio with my target asset class and mix.
This way, I can evaluate areas that may need adjustment and ensure that my investments are meeting my financial goals. Fidelity also offers a variety of screeners and filters that allow me to quickly find securities that match my investment criteria.
For example, I can use the stock screener to search for stocks based on specific criteria such as P/E ratio, dividend yield, and market capitalization.
In addition to these tools, Fidelity provides detailed research reports and market analysis from a team of experienced analysts.
These reports cover a wide range of topics, including market trends, economic indicators, and individual stocks and sectors.
Fidelity’s investment research tools provide me with the information and insights I need to make informed investment decisions.
Whether I’m a novice investor or an experienced trader, Fidelity offers the resources I need to build a diversified portfolio and achieve my financial goals.
Fidelity Review: Fees
Account Fees
When it comes to account fees, Fidelity offers a range of options to fit different investment styles and goals.
For example, the Fidelity retail account has no annual account fees or minimum balance requirements.
Fidelity does charge an activity assessment fee of $0.01 per share on the sale of covered securities.
For those interested in employee equity compensation transactions, Fidelity offers a range of services, including a Youth Account for minors and a Health Savings Account for those looking to save for medical expenses.
It’s important to note that eligibility for certain accounts is limited.
Trading Fees
Fidelity offers a range of trading options, including stock and ETF trades with no commissions.
Active traders can take advantage of the Active Trader Pro platform, which offers advanced charting and trading tools.
Fidelity also offers a range of mutual funds with no transaction fees, as well as ETF trades with no commissions.
It’s important to note that Fidelity charges a currency conversion fee for trades on instruments denominated in a currency different from the currency of your account.
The fee is 1% of the value for orders under $100,000.
Other fees
Fidelity offers a range of portfolio analysis tools, including investment account and portfolio analysis, as well as an investment strategy and asset allocation guidance.
Fidelity also offers educational resources, including investment research and trade ideas.
It’s important to note that Fidelity charges certain fees and expenses, including expense ratios for mutual funds and ETFs, as well as an activity assessment fee for the sale of covered securities.
Fidelity charges fees for certain services, such as ATM fees and options trading. Fidelity offers a range of investment options with competitive fees.
It’s important for investors to carefully review all fees before making investment decisions.
Fidelity Review: Customer Service
When it comes to customer service, Fidelity Investments has a mixed reputation. While some customers have had positive experiences, others have reported frustrating interactions with representatives.
One area where Fidelity shines is in its online resources.
The company offers a wide range of educational materials and resources to help customers navigate their accounts and make informed investment decisions.
This includes research tools, investment calculators, and webinars on various topics. Some customers have reported issues with Fidelity’s phone support.
Long wait times and difficulty reaching a representative have been cited as common problems. Some customers have reported issues with account transfers and other administrative tasks.
It’s worth noting that Fidelity does offer a live chat feature on its website, which can be a helpful alternative to phone support.
The company also has a mobile app that allows customers to manage their investment accounts while on the go.
While Fidelity’s customer service is not perfect, the company does offer a wealth of resources and tools to help customers manage their investments.
If you’re willing to do some research and use the available resources, you can likely have a positive experience with Fidelity’s customer service.
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FAQs: Fidelity Review
How Trustworthy Is Fidelity?
In terms of trustworthiness, Fidelity is a well-established and reputable company that has been around since 1946. They are one of the largest investment firms in the world, managing over $8 trillion in assets.
Fidelity is also a member of the Securities Investor Protection Corporation (SIPC), which means that its customers’ brokerage accounts also are insured if Fidelity were to go bankrupt. Fidelity has a strong reputation for being a trustworthy company.
Is Fidelity Good For Beginners?
Fidelity is a great option for beginners who are just starting to invest. They offer a wide range of investment options, including mutual funds, exchange-traded funds (ETFs), and individual stocks.
Fidelity also has a user-friendly website and mobile app that make it easy for beginners to navigate and manage their investments. Fidelity offers a variety of educational resources, including webinars and articles, to help beginners learn more about investing.
Is Fidelity A Good Company To Deal With?
Fidelity is known for having excellent customer service, and they have won numerous awards for its customer support.
They offer 24/7 phone support, live chat, and email support to their customers. Fidelity also has a network of over 190 branch locations across the United States where customers can go to get in-person assistance.
Fidelity is a good company to deal with, and they have a strong reputation for providing excellent customer service. Fidelity is a reputable and trustworthy company that is a great option for beginners who are just starting to invest.
They offer a wide range of investment options, excellent customer service, and a variety of educational resources. Whether you’re a beginner or an experienced investor, Fidelity is worth considering for your investment needs.
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