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Fidelity Investments Review 2018

Jan. 2, 2018
Brokers, Investing
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FidelityFidelity Investments has a strong reputation for its mutual funds, but its brokerage arm is no slouch either: It has low commissions, a swath of research and an easy-to-use platform that also can be customized for more advanced traders. In addition, Fidelity offers an impressive number of no-transaction-fee mutual funds and two zero-expense-ratio index funds, potentially saving investors a lot of money. If there’s a downside, it’s that Fidelity doesn’t offer an introductory promotion for accounts with less than $50,000, but the wealth of its other offerings more than make up for that.


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Quick Facts

  • Commissions: $4.95 per trade
  • Account minimum: $0
  • Promotion: 300 commission-free trades with deposit of $50,000 or more

Comparable online brokers

Trade Fee

$6.95

$6.95

Account Minimum

$0

$0

Promotion

500

500

commission-free trades + up to $600 with qualifying deposit

Trade Fee

$4.95

$4.95

Account Minimum

$0

$0

Promotion

Up to $3,500

Up to $3,500

in cash bonus with a qualifying deposit

Trade Fee

$6.95

$6.95

Account Minimum

$500

$500

Promotion

60

60

days of commission-free trades with a qualifying deposit

Fidelity Investments is best for:

  • Retirement investors
  • Active traders
  • Premium research
  • Low fees
  • No-transaction-fee mutual funds

Fidelity Investments at a glance

Overall
Stock trading costs
$4.95
Options trades
$4.95 + $0.65 per contract
Account minimum
$0
Account fees (annual, transfer, closing, inactivity)
None
Trading platform
Online trading platform; Active Trader Pro for desktop and browser.
Mobile app
Advanced features mimic a desktop trading platform
Mutual funds
More than 3,700 no-transaction-fee mutual funds
Commission-free ETFs
More than 90 commission-free ETFs
Research and data
Free and extensive
Tradable securities
• Stocks
• Bonds
• Mutual funds
• ETFs
• Options
Forex
Customer support options
Phone support 24/7; live chat and email support; more than 180 local branches; Broker-assisted trades $32.95
Promotion
Fund an account with $50,000 and get 300 commission-free trades, plus access to Active Trader Pro platform. Fund an account with $100,000 and get 500 commission-free trades.

Where Fidelity Investments shines

Commissions: Fidelity charges just $4.95 for a stock trade, and that’s cheap among online brokers, especially for the level of service the company provides. The company also recently did away with nearly all account fees, including the transfer and account closure fees that are commonly charged by brokers.

Mutual funds: The war among brokers to cut mutual fund fees has brought good changes to Fidelity: The company now offers two index funds with absolutely no expense ratio, the Fidelity ZERO Total Market Index Fund and the Fidelity ZERO International Index Fund. The company’s other index funds also boast expense ratios that undercut much of the competition, and Fidelity funds no longer require a minimum investment.

Research: Fidelity is unmatched here. Named best brokerage for fund research and tools, Fidelity has resources from more than 20 providers, including Recognia, Ned Davis, Thomson Reuters and McLean Capital Management.

Stock quote pages show an Equity Summary Score, which is a consolidation of the ratings from these research providers. It gives an “accuracy-weighted sentiment derived from the ratings of independent research providers on Fidelity.com,” according to the website.

 

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ETF snapshot pages also show an impressive number of analyst ratings and reports, and mutual fund fact sheets include Morningstar ratings.

Twenty or more research firm offerings might seem like too much to wade through, but investors can take a short quiz to identify providers that match their investment style. A research firm scorecard evaluates the accuracy of the provider’s recommendations.

 

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Customer service and educational support: Fidelity has long scored points for customer service, and the company offers in-person guidance and free investor seminars at branch locations throughout the country. Seminars cover such topics as how to navigate the company’s website, when to take Social Security and the basics of technical analysis. Online, Fidelity’s learning center offers guides and webinars on a similar range of issues.

Platforms and tools: Like other brokers, Fidelity offers trading via its website and mobile apps, plus a desktop platform for active traders.

The company’s online trading platform is easy to navigate and fairly comprehensive — highlights include advanced screeners using the aforementioned research and strategy-testing tools based on 10 years of historical data. Fidelity’s mobile app is equally impressive, with real-time quotes, multi-leg options trading, a consolidated version of the company’s research offerings, and a notebook where you can save ideas and articles from your mobile browser.

Active traders will prefer the company’s Active Trader Pro platform, which includes both a downloadable desktop version and a web alternative at ActiveTraderPro.com. Investors can toggle seamlessly between the two. The customizable platform includes intuitive shortcuts; pre-built market, technical and options filters; advanced options tools; and a multi-trade ticket that can store orders for later and place up to 50 at a time.

Finally, the company’s Wealth-Lab Pro, a premium tool, is desktop-strategy-testing software that allows investors to customize strategies and access up to 20 years of daily historical data.

» Need help learning to trade? Visit our guide to how to buy stocks

Where Fidelity Investments falls short

Truthfully, there isn’t much we don’t like about Fidelity. The broker has always tested well in our reviews: It’s hard to quibble with a company that has become an industry leader when it comes to reducing fees. That means any negatives are nitpicks, but we’ll list them here for transparency. Fidelity got its lowest marks from us for:

  • A tough-to-earn promotion, which requires a minimum deposit of $50,000 to earn free trades.
  • A broker-assisted trade fee that is higher than we like to see, at $32.95.

» Want more choices? See our best online brokers for stock trading

The bottom line

Fidelity’s got a great rep for mutual funds, but it should be just as well-known for its brokerage. With a strong trading platform, low commissions and an easy-to-navigate interface, Fidelity offers a solid experience for beginning investors without sacrificing anything that advanced investors might need. Those looking for research will also be pleasantly surprised, as will anyone who needs to trade via mobile app. Fidelity is strong all the way around.

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