Since 1946, Fidelity has managed to carve out their position as one of the most well-known and well-supported brokerage firms in the States. One of the most astounding feats of the firm is its impressive asset management, currently at a staggering $2 trillion. Fidelity offers a wide range of products and services that allow investors to carefully carve out their financial portfolio without doing too much institution-hopping. The ability to delight their customers at a reasonable fee is what helps keep Fidelity high in the rankings. Fidelity also happens to stir up confidence with their investors thanks to the option of dealing with a financial advisor.
- Cutting edge retirement planning tools
- Live chat option for speedy resolution of queries
- Straightforward fees – $4.95 per trade on stocks
Advantages and Disadvantages of Dealing With Fidelity
Fidelity has staked its claim as one of the toughest competitors in the investment arena, however, there is some room for improvement.
- One of the standout advantages of dealing with Fidelity is the low cost of trading, at just $4.95 per trade.
- There are over 500 ETFs to choose from (commission-free)
- Fidelity also doesn’t charge for many of the transactions that their competitors charge for.
- The service delivery at Fidelity is known to be of optimal standard.
- Customers are not required to fund their accounts immediately in order to start their trading journey.
- Products that you would imagine Fidelity to offer, such as forex and futures, are not available as part of the product spread.
- There are no incentives or bonuses to join Fidelity, which might make their competitors seem more attractive. However, Fidelity makes up for this with their commission-free ETFs.
- The ladder trading tool is a vital component for day traders, and Fidelity doesn’t offer it.
Facts at a Glance
|US regulation||Securities and Exchange Commission (SEC) and Financial Industry Regulatory Authority (FINRA)|
|Webinars, introduction||Site-specific, a great training platform|
|Demo account||Yes, Active Trader Pro|
|Key features products||Stocks, Mutual Funds, ETFs, Fixed Income, Options, Retirement, and more|
|Deposit bonus||None, only commission-free trades with qualifying deposits|
|Commission||$4.95 per trade plus an additional $0.65 per contract for options|
|Platform/Mobile Trading||Fully supports mobile|
|Miscellaneous||No exit fee|
Trading Offer at Fidelity
A unique trading offer such as a special bonus, cashback offer, or even a rewards system might be something to expect from an institution that’s been in the game as long as Fidelity, but you’ll be hardpressed to find it. Instead, Fidelity focuses on the precision of their trades and executing service demands without a hitch to attract and retain their customers. Also, their low-cost pricing structure makes it hard to resist starting that trading journey with the group.
Fidelity also offers a high-tech trading platform, Active Trader Pro. This platform is known to provide traders with cutting-edge trading technology that features a number of extras, such as technical analyses, charts, drawing tools, and a customizable dashboard.
When it comes to service delivery, the live chat option allows customers to get simple and fast assistance when they need it most.
Fidelity’s product range makes it easy for consumers to build up their wealth portfolios. Products such as IRAs, CDs, ETFs, Stocks, Mutual Funds, and even Insurances provide sufficient resources for investors to choose from. While Forex and Futures might not form part of this list, there are plenty of products to satisfy even the most discerning investor.
Comparing Fidelity’s Costs
Perhaps one of the most refreshing aspects of dealing with Fidelity is that there are no secrets when it comes to pricing. It also doesn’t take you long to tally up the costs when you have a few products in mind, as all their pricing is in a single and easy-to-navigate location (which is not necessarily the case with Fidelity’s competitors). The other refreshing part about dealing with these guys, is that their pricing is very reasonable. What makes this firm hard to beat is that there also no account minimums or account fees to open one of the broker accounts.
Customers Who Wish To Deal With A Financial Advisor
These packages are designed for those who want to invest and require the help of a financial advisor.
- Fidelity Go: This package is the entry-level package and allows any investor with any size portfolio to sign up for advisory services. The fee levied on this package is 0.35%.
- Fidelity Personalized Planning and Advice: This option offers a few more services and requires investors to have a deposit of at least $25,000. The fee levied here is 0.50%.
- Wealth Management: This investment package is for those who have managed to build up a sizeable wealth portfolio and need specialized service to help manage it. The fee ranges from 0.50% to 1.50% and requires investors to have a minimum of $250,000.
- Private Wealth Management: For investors who have serious money to invest and have a large asset backing, this is the portfolio they should consider. It requires investors to have at least $2 million with Fidelity and $10 million investable assets in total. The fee ranges from 0.50% to 1.05%.
Trading Stocks, Options and ETFs
This is perhaps one of the most appealing sets of fees to customers. Each trade costs $4.95 per transaction on stocks and options, and options have an additional fee of $0.65 per contract.
Some ETFs run at $4.95 per trade, however, there is a vast list of no-fee ETFs for those who are in the market for low-cost trading.
Bonds And CDs
US treasuries that are traded online are free, and customers pay $1 per bond or CD in secondary trading.
Investors who want to invest at the lowest cost possible should look into these funds, as there are hundreds that don’t carry any fees.
Fidelity’s Product And Trading Offering
One of the most exciting parts of trading ETFs with Fidelity, is that a large portion of their ETFs are commission-free as long as the investor meets the minimum criteria. To gain access to 300 commission-free ETFs, traders merely have to deposit between $50,000 and $99,999. To gain access to over 500 commission-free ETFs, traders are required to invest over $100,000. Both these offers are valid for up to 2 years.
There is no shortage in terms of investment products, such as:
- Mutual funds
- Retirement and IRAs
- Fixed income, bonds, and CDs
- Sector investing
- Managed accounts
- 529 College savings
- Credit cards
- Life insurance and long-term care
Active Trader Pro Demo Account
The Active Trader Pro is possibly one of the reasons why Fidelity manages to stand out head above shoulders when compared to its competitors. This platform is designed to offer traders the opportunity to hone their trading skills without spending a dollar of their own money. It also allows traders to test out new strategies before applying them to their own portfolios.
The demo account allows traders access to a fully customizable dashboard where they can choose their layout, colors, fonts, and data display.
On the technical trading side, the demo offers traders access to delayed streaming data which is essential to making trading decisions. There is also access to model trades which allow traders to practice their own techniques and strategies, in comparison with other traders in the market. The demo tool is also equipped with market and technical filters, as well as the option to move into a trading position at the drop of a hat.
Bonuses And Other Special Offers At Fidelity
It says something about a brokerage when there is no need to offer gimmicks. In the case of Fidelity, there are a number of special services and products that are already built into their ordinary trading and investment package, which means all customers have access to a superior experience.
That being said, there is a reward for customers who are willing to trust Fidelity with a large chunk of their cash. Customers who invest between $50,000 and $99,999 have access to over 300 commission-free trades, and those who invest over $100,000 have access to over 500 commission-free trades.
Traders also have access to the free demo account which can be a costly option for those who have to “practice” their trading on other platforms that may not offer a demo account.
While the advisors aren’t free of charge, the first consultation is on the house which means investors can get a feel for investing.Visit Broker at: www.fidelity.comInvestitionen bergen das Risiko von Verlusten
Fidelity’s Active Trader Pro Platform
This is perhaps one of Fidelity’s strongest components when it comes to providing customers with a service offering that’s packed to the brim with value. It measures well to other trading platforms in the market and provides a host of features that make the trading process simple and sublime.
One of the best features of the platform is the fact that traders have almost 100 columns for watchlists and while that’s a fraction of those offered by some competitors, it makes a sizeable difference to the trading journey. The platform is easily customizable and traders will be able to find their way around in no time, especially if they’ve familiarised themselves with the demo first.
Up to date data and streaming quotes allow traders to make their trading decisions fast and without much effort. What’s more, the platform also offers access to drawing tools, 22 in total, which some trading platforms don’t offer at all. Alerts, notes, and studies all form part of the platform.
Additional built-ins such as the Real-Time Analytics and Trade Armor allow traders to have access to streaming trade signals and real-time position analysis at a moment’s notice. Another feature that allows traders to make the most out of their trading experience, is that they’re able to download the trading platform to their desktop and mobile fo continuous access to their trades.
How To Open An Account With Fidelity
Signing up with Fidelity is a simple process and only takes a few minutes. Before the process starts, however, users select whether they’re opening the account as an individual or as a joint account once they’ve selected the account type. This then leads them to the actual account-opening tabs.
As with most other online account opening systems, the first tab is reserved for the personal information of the client which usually includes essentials such as social security number, full names, address, contact details, and more.
The next tab allows users to select their basic account preferences.
This tab is used to verify the information provided before finalising the account. Investors will also need to read through and accept the terms and conditions.
In this step, account holders choose how they fund their accounts.Visit Broker at: www.fidelity.comInvestitionen bergen das Risiko von Verlusten
The Fidelity Service Offering
The first aspect of Fidelity’s service offering to their customers simply has to be the live chat option. For customers who need a speedy resolution to a service or trading query, this option will get them back on their feet in no time. Customers can also contact Fidelity via email or telephone.
There is also a remote access option for customers who need more in-depth assistance, however, this is done on request only and requires customers to grant permission to the remote team.
In terms of customer satisfaction and peer reviews, Fidelity easily manages to stay abreast of requests and as a result enjoys great reviews and industry awards. While this seems like a hard standard to maintain, they manage to delight their customers and set the bar high for their competitors.
Deposits And Withdrawals At Fidelity
As with all things at Fidelity, funding and withdrawals are fast and effortless.
There are a number of ways clients can fund their accounts, and the various methods also have different turnaround times.
- Electronic Fund Transfers (EFTs) take around 1 to 3 days to reflect
- Mobile check deposits are done through the mobile app and can take up to 4 days
- Funds can be moved over from existing investments with Fidelity
- Automatic deposits on a recurring schedule are also available
Funding Between Existing Accounts
529 College accounts and IRAs can easily be funded from some of the other accounts customers already have with Fidelity. Customers can also elect to have their retirement distribution transferred to non-retirement investments. These accounts also allow customers to set up automatic fund transfers.Visit Broker at: www.fidelity.comInvestitionen bergen das Risiko von Verlusten
- Electronic fund transfers (EFTs) take around 1 to 3 days to reflect
- Bank wires clear immediately
- Checks can take up to 6 days
- These accounts allow customers to set up automatic withdrawals
- For those who need to do additional transactions, the bill pay option is available
Security And Insurance At Fidelity
Fidelity runs a tight ship when it comes to account security and for those looking to trade on their platforms, there are a few security layers they would need to work through. Fidelity requires their customers to pass the two-factor security authentication before accessing their account. There is also a money transfer lockdown should investors need to use it. Fidelity also sports voice recognition technology, MyVoice, that adds another security layer to an already tight ship.
As far as fund protection is concerned, investors will be happy to know that Fidelity meets the Federal Deposit Insurance Corporation (FDIC0) criteria and enjoys cover with them. This means that customers who have qualifying investments with them stand to have their deposits protected for up to $250,000.
Fidelity also happens to be a member of the Securities Investor Protection Corporation (SIPC) which provides cover for investment products such as stocks, bonds, and other securities. Funds held within broker accounts are covered up to $250,000 and securities enjoy cover of up to $500,000. Once again there are terms and conditions that apply to the cover, which investors would need to familiarise themselves with.
Our Experience With Fidelity
It’s hard to imagine a perfect trading and investing experience, and although Fidelity isn’t quite there yet, they are close. This institution knows what their customers want and need, and so manage to tick off the boxes one by one all the way from servicing and pricing right through to platform tools and tricks, security, and safety.
The products on offer are just what investors need to expand their wealth portfolio and with $2 trillion under management, it’s easy to understand why they’re a favorite in the market. The brand envokes trust and respect. Customers decide how simple or intricate they need the relationship to be.
There is also a wealth of information and insights available on the site, as well as neat tools that help investors plot their financial journeys. The Active Trader Pro demo account also makes a significant difference to the trading experience.
While it would be nice for Fidelity to enlarge their product offerings to include a few short-term products, or products with gaurantees, and also an option to trade forex, this is certainly a good place to start a solid financial journey. The pricing is low, the service standards are high, and the products meet customers where they are in their financial journeys.
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