Fidelity Investments Review

Fidelity Investments at a glance

Fidelity Investments is a financial services company founded in 1946 with more than $15 trillion under administration. 

They offer a complete array of financial products and services with some of the lowest fees and expense ratios in the business. 

Fidelity is frequently recognized for their beginner-friendly online brokerage services, health savings accounts, and mutual fund investments. 

Customers also appreciate the ATM fee reimbursements, fractional investing, research tools, cash management account, and many other features.

What does Fidelity Investments do?

Fidelity’s offerings aim to meet customers’ needs in almost every financial area of their lives. From investing to paying bills, Fidelity has a tool for managing your money. 

Some of its core services include:

What are the pros and cons of Fidelity Investments? 

Fidelity has a lot to offer, as well as some drawbacks to consider. 

Pros

• Comprehensive financial services: There are 48 account types you can start with, thousands of investment options, and easy integration between the different financial services you need. 
• Low-expense-ratio mutual funds: Fidelity offers access to more than 10,000 funds, including 175 of their own mutual funds. Some of these funds have a zero expense ratio, which translates into less money in management fees and more money for your investment to grow.   
• No account minimums: Beginners can get started on their investment journey with $0.
• Fractional investing: Fidelity offers the ability to invest in partial shares of more than 7,000 stocks and ETFs. If you’re interested in a higher-priced stock, like a $1,000 tech stock, you can still invest $5 in that stock. 
• No-fee trading: Fidelity doesn’t charge commissions for trades on stocks, ETFs, or options (option contracts carry a $0.65 fee).
• Trading tools are top-notch: Fidelity has tools for investors at every level, including  Fidelity Mobile®, Fidelity.com, Trading Dashboard, and Active Trader Pro®.

Cons

• High requirements for professional management: Moving to a professionally-managed portfolio requires a $5,000 minimum. 
• Charges for trading with a broker: If you need to make a trade with a representative, the fees can be high.  
• Less competitive APY with cash sweep: When you elect to have your cash swept into an FDIC-insured account, you’ll see much lower returns than when it’s held in a money market account. It’s not as competitive as other offers in the space.  
• Separate account for crypto trading: Trading crypto requires you to open a separate account from your main brokerage account with Fidelity. 

Fidelity Investments fees: How much does Fidelity Investments cost?

One of the best parts about Fidelity is what you won’t see – fees. There aren’t hidden fees or costs you’ll be charged down the line, either. Fidelity is transparent about what fees they charge, which are few and far between. 

The list of $0 fees is a long one. Fidelity doesn’t charge for many of the services that a bank typically would. From investing to cash management, some of these include:

• Monthly statements: $0
• Early IRA withdrawals: $0
• Roth IRA conversion: $0
• SIMPLE IRA annual fee: $0
• IRA closeout fee: $0
• EFT: $0 per transaction
• Fidelity BillPay: $0 per transaction
• Cashier’s check: $0
• Returned check: $0
• Stop payment: $0
• Check ordering: $0
• Fidelity® Cash Management Account ATM fee: $0
• Bank wire: $0 for domestic, up to 3% for international
• Real-time quotes: $0
• Streaming quotes: $0
• Transfer of assets: $0
• Stock certificate transfer and ship: $100 per certificate
• Margin liquidation: $32.95 per liquidation

Notably, there are $0 commissions for stock, ETF, and option trades. If you want your investments automatically managed for you (via Fidelity Go), there’s a $0 charge until you hit $25,000 in assets. 

What you will pay for with Fidelity is the cost of buying into a non-Fidelity fund. The fee is $49.95. You’ll also pay $1 for most crypto trades, $0.65 for options contracts, international wire fees, and margin liquidation fees. 

What is Fidelity Investments’ minimum account size?

Fidelity offers a $0 minimum to open an account. 

Whether it’s a cash management account, brokerage account, or retirement account, it’s very easy to get started as an investor with Fidelity. 

Once you link a funding source (direct deposit, bank, etc.), you can fund your account and select investments.

Who should choose Fidelity Investments?

Fidelity Investments is designed to grow with you, so it’s a great option for most investors. 

$0 minimums and automatic transfers help beginners get started, while comprehensive services help you grow. 

It’s also an easy place to start if your employer already offers a retirement plan with Fidelity. 

Fidelity Investments: Is it secure?

Fidelity is an established institution where you can feel secure storing your money. 

Money held with Fidelity Investments is covered by the Securities Investor Protection Corporation (SIPC), which protects up to $500,000 in securities should the brokerage holding your money fail. 

On top of this, Fidelity offers an excess of SIPC amount when SIPC coverage is exhausted. (Note that these amounts do not cover market losses.)

Fidelity also has extensive internal controls to protect their company and client money. These include risk oversight, corporate audit, corporate security, and corporate compliance. 

When it comes to your account, Fidelity offers encryption, firewalls, and continuous monitoring to ensure your account information stays safe. Other security features include multi-factor authentication, money transfer lock, security text alerts, and biometric security. 

Fidelity is confident in their security and offers the Fidelity Customer Protection Guarantee, which states the company will reimburse you for losses should unauthorized activity occur in your accounts. 

Fidelity Investments: Customer service

Fidelity Investments doesn’t have physical branches for customer service or deposits, but they do have Investor Centers, which are physical locations where you typically meet with a financial advisor. 

To contact Fidelity customer service, you have three options:

• Virtual Assistant: You can try asking questions to Fidelity’s Virtual Assistant online. 
• By chat: Fidelity has a chat available for issues with your account or technical questions. For the chat, operating hours are from Monday through Friday from 8 a.m. to 10 p.m. ET and Saturday and Sunday from 9 am to 4 pm.
• By phone: You can call 800-343-3548 for any questions, or you can find the specific phone number for the department you’re looking for on Fidelity’s website here.  

Fidelity Investments reviews: What real customers are saying?

Fidelity has rave reviews from customers. 

Many say they have moved over as much money as they could to Fidelity from other brokerages. Some say that Fidelity has been a dream to work with, has great customer service, and great technology.

One concern users voice is the limitations on depositing and withdrawing cash. Others complain about frozen funds and the amount of time it takes to withdraw funds.  

Fidelity Investments: Mobile app

Fidelity Investments app is rated 4.8 out of 5 stars on the App Store and 4.6 in Google Play. It’s easy to use and has many tools available at your fingertips. 

Actions you can take from the app include:

• Trade investments
• Transfer money
• Automate investing
• Deposit money
• Pay bills
• Open an account
• Create goals
• Get help
• Access customer service

From the app, you can take advantage of expert insights, investing tools, fractional share investing, automated funding and investing, and goal setting. 

Fidelity aims to be an all-in-one tool. There are accounts you can open to invest, spend, and save – all of which you can do from the app. 

The bottom line

Fidelity Investments doesn’t have a lot of drawbacks, whether you’re a beginning or experienced investor. Minimal fees are the biggest perk, and you’ll have more investment options at your fingertips. 

When the time comes when you need expert advice from a financial advisor, Unbiased can connect you to the right one. 

Connect with a financial advisor today.