Investing

A Complete Review of Fidelity With All Pros and Cons

Javier Simon

Published: April 23, 2024 12:00 pm

Last Updated: April 26, 2024 4:38 pm

Since 1946, Fidelity Investments has been providing financial services to its clients which today are in the millions. The Boston-based company is known for offering access to nearly 4,000 no-load and no-transaction fee mutual funds.

You can also trade commission-free stocks, ETFs and options through Fidelity. The firm also lets customers invest in bonds, certificates of deposit (CDs), and precious metals like gold and silver. Those interested in cryptocurrency can invest directly in Bitcoin and Ethereum.

Fidelity allows you to trade on your own, or with the help of a robo-advisor, or with the guidance of professional financial advisors.

Available accounts include the following

• Taxable brokerage account
• Individual retirement account (IRA)
• Roth IRA
• Managed accounts
• 529 college savings plan
• Health Savings Account (HSA)

Here are some of Fidelity’s highlights.

Fidelity pros

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• Commission-free U.S. stock, ETF and options trading
• Fidelity Go: A robo-advisor service that charges no advisory fee on balances of less than $25,000, and 0.30% on accounts of $25,000+.
• $10 minimum investment for Fidelity Go
• 3,700+ no transaction fee/load mutual funds from Fidelity and other major firms
• Fidelity Managed FidFolios: Professionally managed
  and tax-friendly portfolios of hundreds of stocks
• Portfolio Advisory Services accounts: Professionally-managed diversified portfolios built based on your goals, risk tolerance, time horizon and other factors
• Access to precious metals: gold, silver, platinum, and palladium
• Direct access to Bitcoin and Ethereum
• Fidelity Cash Management Account: 2.72% APY, zero account fees, no account minimums, and globally reimbursed ATM fees
• Fidelity Rewards Visa Signature Credit Card: Unlimited 2% cash-back on purchases
• More than 150 physical branches

In addition, Fidelity also offers free access to independent research from more than 20 providers. The company also provides a range of digital research tools that let you identify securities like stocks and mutual funds based on your own criteria.

Fidelity Cons

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Fidelity is known for its wide range of services, customer satisfaction and long tenure in the business. But the firm does have its drawbacks.

For example, the minimum investment for its Wealth Management Services is $500,000 and carries a gross advisory fee that ranges from 0.50%–1.50%. This service offers access to a financial advisor that can guide you through every step of your financial life including retirement planning, investment management and estate planning.

Fidelity Private Wealth Management is a similar service that provides you with a team led by your financial advisor. But this option requires a minimum investment of $2 million and $10 million or more in total investable assets. Its gross advisory fee ranges from 0.20%–1.04%.

And its actively-managed FidFolios require an advisory fee of 0.70% or $35 for every $5,000 invested.

Overall, the barrier to entry of these services may be high for those who aren’t high-net-worth individuals.

Fidelity Investments Stories

Benefits

Explore the benefits of a Fidelity Roth IRA.
Learn about the safety measures and security at Fidelity.
Take a look at the current Fidelity rewards for customers.

How-To

Our guide on how a Fidelity solo 401(k) works

Trading

Our review of the Fidelity Active Trader Pro platform.

News and other info

Fidelity Investments has been family-owned since it was founded by Edward Johnson II in 1946. The family currently owns 49% of the company. In 2015, Abigail Johnson climbed to the ranks of CEO. Beforehand, Edward Johnson, III had been serving as CEO since 1977.

Today, Fidelity serves millions of customers across the globe.