Who are LPL Financial and Fidelity?
LPL Financial is one of the largest independent broker-dealers in the US, serving over 29,000 advisors and managing more than $1 trillion in assets. It arms advisors with independent research and technology, enabling them to design tailored portfolios without being tied to proprietary products.
Fidelity, founded in 1946 and headquartered in Boston, is a full-service brokerage and advisory firm with a global presence. With $14.1 trillion in assets and a broad lineup of services, from trading to retirement and wealth planning, Fidelity caters to both beginners and seasoned investors.
The key distinction? LPL offers highly customizable advice through independent advisors using flexible platforms, while Fidelity combines technology, research, and a wide range of services under one trusted brand.
LPL Financial vs. Fidelity: What are their specific investment strategies?
LPL Financial’s Investment Strategy
LPL empowers advisors to build individualized portfolios using non-proprietary mutual funds, ETFs, and other instruments. Programs range from self-configured allocations to high-touch personal wealth portfolios, reflecting each advisor’s style and client goals.
Fidelity’s Investment Strategy
Fidelity offers a comprehensive range of investment services, including ETF and mutual fund trading, direct indexing, retirement planning strategies, and more. Its advisors utilize both active and passive tools, focusing on goal-based planning backed by in-depth research and streamlined trading platforms.
Fees and minimums: LPL Financial vs. Fidelity
| Feature | LPL Financial | Fidelity Wealth Management |
|---|---|---|
| Minimum | $1,000 (OMP) / $250,000 (Wealth Portfolios) | $50,000 (team) / ~$500,000 (dedicated advisor) |
| Fee range | 1.35% → 0.53% (varies by advisor) | 0.50% → 0.25% (tiered, standardized) |
| Pricing model | Advisor + platform fees | Tiered AUM-based, all-in |
| Consistency | Varies by advisor | Same across all clients |
| Fee applies to | Per account or program | Total household AUM |
| Advisor type | Independent advisors | Salaried Fidelity CFP®s |
LPL Financial offers flexible account options and advisor fee structures, with minimums starting as low as $1,000. However, total fees can be higher for smaller portfolios and vary by advisor.
Fidelity Wealth Management provides a standardized, transparent pricing model with a tiered fee structure and minimums starting at $50,000—or around $500,000 for one-on-one advisory. Fees tend to be lower and more predictable as your account grows.
LPL Financial account minimums
LPL accommodates a wide range of investors through different advisory programs:
Optimum Market Portfolios (OMP):
- Minimum: $1,000
- Designed for hands-off, diversified portfolio access
Personal Wealth Portfolios:
- Minimum: $250,000
- Unified managed accounts tailored to client goals
General Planning Services:
- No formal minimum
- Product-specific advisory minimums may apply
LPL Financial fee structure
LPL charges a combined advisor fee + program/platform fee, with total fees decreasing as assets grow:
| Account value | Advisor fee | Program fee | Total fee |
|---|---|---|---|
| $10K–$99,999 | 1.00% | 0.35% | 1.35% |
| $100K–$249,999 | 0.95% | 0.25% | 1.20% |
| $250K–$499,999 | 0.90% | 0.25% | 1.15% |
| $500K–$749,999 | 0.85% | 0.23% | 1.08% |
| $750K–$1.249M | 0.80% | 0.18% | 0.98% |
| $1.25M–$4.99M | 0.65% | 0.16% | 0.81% |
| $5M–$24.99M | 0.50% | 0.13% | 0.63% |
| $25M+ | 0.45% | 0.08% | 0.53% |
Note: LPL advisors operate independently, so exact fees and service levels may vary by advisor.
Fidelity Wealth Management account minimums
Fidelity offers a consistent, centrally managed advisory experience with clearly defined tiers:
Fidelity Wealth Services
- Minimum: $50,000
- Team-based advisory service
Fidelity Wealth Management
- Minimum: Approximately $500,000
- Includes a dedicated, salaried financial advisor
Fidelity Private Wealth Management
- Minimum: $2 million in managed assets + $10 million investable
- High-touch advisory team and custom solutions
Fidelity Wealth Management fee structure (tiered)
Fidelity uses a transparent, household-level tiered pricing model:
- 0.50% on the first $500,000
- 0.35% on the next $1 million ($500k–$1.5M)
- 0.25% on assets above $1.5 million
- Private Wealth clients can negotiate rates as low as 0.20%
Is LPL Financial or Fidelity better?
Pros of LPL Financial
- Independent advisors with full product choice
- Tiered fee transparency based on account size
- Client-driven investment strategy, even for smaller balances
Cons of LPL Financial
- Higher fees for smaller portfolios
- Inconsistent advisor quality
- Fewer standardized tools/platforms for self-directed clients
Pros of Fidelity
- Broad service suite from simple trades to complex planning
- No account setup or maintenance fees
- Outstanding digital trading platforms and research
- Fractional shares and global market access
Cons of Fidelity
- Higher trade and broker-assisted fees
- Premium advisory fees for larger portfolios
- No crypto trading and futures options
LPL Financial vs. Fidelity: Which should I choose?
- Choose LPL Financial if you want a high level of customization and trust in your advisor, even if it comes at the cost of higher fees or variability.
- Choose Fidelity if you prefer a one-stop shop with advanced research, seamless online tools, and transparent, competitive pricing at scale.
How do LPL Financial vs. Fidelity adapt to changing markets?
- LPL Financial adapts through advisor discretion; each advisor can adjust their strategy and asset mix as client needs or economic circumstances change.
- Fidelity utilizes data-driven platforms, new product rollouts (including direct indexing and ESG), and digital enhancements to stay current with market trends and investor demands.
LPL Financial vs. Fidelity: Which offers better customer support?
- LPL Financial: Service depends heavily on your individual advisor and their team, and can be highly personalized.
- Fidelity: Offers 24/7 support, in-person and phone access, and in-depth research assistance across all account tiers.
Can you access accounts online? LPL Financial vs. Fidelity compared
- LPL Financial: Advisors offer custom portals and apps that enable clients to view their performance and access reports. Quality depends on the advisor’s tech setup.
- Fidelity: Industry-leading web and mobile platforms provide real-time trading, planning tools, secure login, and AI-assisted insights.
Final take
Highly customized advice → LPL Financial
LPL Financial is best suited for investors who seek highly customized advice, as it provides access to independent advisors who can tailor portfolio strategies, communication styles, and financial plans to meet individual needs and preferences.
Technology and research tools → Fidelity
Fidelity is best for investors who prioritize advanced technology and research, thanks to its industry-leading digital platforms, robust planning tools, and access to deep in-house investment research and low-cost execution options.
Cost-sensitive financial planning → Fidelity
Fidelity is also best for cost-sensitive investors seeking transparent financial planning, as it provides a clear, tiered fee structure and scalable advisory options that are accessible even at lower asset levels.
FAQs about
Is my money safe with LPL Financial?
Yes. LPL Financial is a member of FINRA and SIPC, which protects client securities up to $500,000 (including $250,000 for cash claims).
Is my money safe with Fidelity?
Yes. Fidelity is also a FINRA and SIPC member, offering the same protection limits. Additionally, Fidelity has strong cybersecurity protocols and is known for its financial stability and internal risk controls.
What are the top alternatives to LPL Financial?
Top alternatives to LPL include:
- Edward Jones – for local, in-person advisor relationships
- Raymond James – for full-service, advisor-led wealth management
- Ameriprise Financial – Combines personalized financial planning with a wide range of investment options and insurance solutions.
- Vanguard – for low-cost, index-based investing with optional advisor support. Read more about LPL Financial vs Vanguard Personal Advisor.
What are the top alternatives to Fidelity?
Top alternatives to Fidelity include:
- Charles Schwab – for a similar low-cost, tech-forward experience
- Vanguard – for passive investing and retirement planning
- Betterment or Facet Wealth – for digital-first or flat-fee advisory models
How does LPL Financial compare to other financial advisory companies?
We’ve compared LPL Financial with other financial advisor companies. Find out more here: