Fidelity Review 2024: Pros and Cons Revealed

Founded in 1946, Fidelity is one of the largest financial services companies globally, known for its wide array of investment products, robust trading platforms, and diverse financial services. With its headquarters in Boston, Massachusetts, Fidelity offers a client-centric approach, providing resources and tools to help investors achieve their financial goals. Fidelity customer service is highly rated.

Company Name	Fidelity Brokerage Services LLC
Founded Year	1946
Registered Country/Region	USA
Regulation	FINRA, SEC
Trading Products	ETFs, stocks, mutual funds, options, cryptocurrency, and fixed-income products
Account Minimum	$0
Account Fee	No annual fee
Fees	Variable, $0 commissions for online US stock, ETF, and option trades
Interests in Uninvested Cash	2.69%
Margin Interest Rates	Up from 9.25%
Mutual Funds Offered	✅
App/Platform	Mobile App, Website, and Active Trader Pro
Promotions	❌

Is Fidelity Good for Beginners？

There are many trading platforms in the financial market, such as eToro, Interactive Brokers, and Charles Schwab. For many novice traders, choosing a trading platform can be overwhelming.

So, is Fidelity a suitable choice for beginner traders？ Let's explore whether Fidelity is appropriate for novice traders.

Firstly, Fidelity offers a simple account opening process that can be completed online, making it very user-friendly for beginners.

Secondly, Fidelity has a zero minimum deposit requirement and its trading fees are among the lowest in the industry, so minimum deposits and trading fees won't be barriers for new traders.

Additionally, for novice traders, it's crucial to choose a legal and compliant trading platform. Fidelity is regulated by the FINRA and SEC.

Finally, Fidelity provides extensive educational resources and excellent customer service, which are essential for new traders. Users can learn a lot about trading through the platform's customer service.

Overall, I believe that Fidelity's overall experience can meet the various needs of beginner traders.

Fidelity Pros & Cons

✅Where Fidelity Shines:

• Operating under a strong regulatory framework: Fidelity is regulated by the Financial Industry Regulatory Authority (FINRA) and U.S. Securities and Exchange Commission(SEC) in the United States, ensuring that it is a legally compliant and regulated broker, which safeguards users' assets.
• Complete functions and fast order execution: Fidelity utilizes proprietary trading execution algorithms to achieve excellent trade execution, providing access to the best available buy and sell prices globally. Additionally, the platform's order execution speed is industry-leading.
• Low transaction fees: Fidelity offers free stock and ETF trading and eliminates most account fees, resulting in very low trading costs.
• Complete user education resources: Fidelity provides a wealth of educational resources, including trading articles, videos, and webinars. Users can select learning content that suits their individual needs.
• Provide demo trading accounts: Users can practice with demo accounts to refine their trading strategies without risking real assets.
• Supporting investing fractional shares of stocks: Fidelity allows users to trade fractional shares, making it easier to invest in high-priced stocks and lowering the trading investment threshold.
• Convenient and fast account opening process: Fidelity has a simple account opening process, and users can complete the entire process online, which is very friendly to novice traders.

❌Where Fidelity Falls Short:

• Leveraged loans have higher interest rates: When users use leverage to trade on this platform, they will be charged high borrowing fees.
• Higher fees associated with hosting services: While the account setup process is quick and user-friendly, Fidelity's custodial services come with relatively higher fees.
• No futures trading services: For users interested in futures trading, Fidelity does not offer this service.

Is Fidelity Legit？

Fidelity Licenses and Regulations

When choosing a trading platform for investment, traders must first ensure that the platform is legal and compliant, and that the security of users' funds is guaranteed.

A broker that is regulated by a regulatory authority ensures the safety of funds because if a regulated broker fails to comply with relevant laws and regulations, its operating license can be revoked, and the broker will be forced to cease operations. Additionally, brokers regulated by top institutions are subject to regular audits and penalties for violations to prevent fraud and manipulation.

Fidelity is regulated by the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA) in the United States, making it a legal and compliant broker.

	The Financial Industry Regulatory Authority (FINRA)
Current Status	Regulated
Regulated Country	USA
Regulated Entity	FIDELITY BROKERAGE SERVICES LLC
License Type	Securities Trading License
License No.	CRD#: 7784/SEC#: 8-69978.

Fund Safety

Fidelity ensures the safety of client funds through multiple measures. Client assets are held in separate accounts from Fidelity‘s own assets, ensuring that customer funds are protected even in the unlikely event of the company’s insolvency.

Additionally, Fidelity is a member of the Securities Investor Protection Corporation (SIPC), which protects up to $500,000 in securities and cash (including a $250,000 limit for cash only) for each customer in case of a brokerage firm's failure.

Account Safety

Fidelity employs advanced security measures to protect client accounts and personal information. This includes two-factor authentication, secure encryption technologies, and constant monitoring for suspicious activity.

The firm also offers security guarantees, promising to reimburse any losses due to unauthorized activity that occurs through no fault of the customer. Fidelity's commitment to security is further demonstrated by its continuous investment in cybersecurity infrastructure and practices.

Fidelity Fees Review

Fidelity is a relatively cost-effective platform for investors, offering $0 commissions for online US stock, ETF, and option trades, with no annual fee for maintaining a brokerage account. Additionally, Fidelity claims that their margin rates are among the lowest in the industry, starting at 9.25%, and there are no minimum balance requirements for opening an account. Options traders will incur a $0.65 per contract fee, with the potential for additional fees like the Options Regulatory Fee.

Additionally, Fidelity mutual fund investors can benefit from no transaction fees for both Fidelity funds and thousands of other no-transaction-fee funds. For other funds, a transaction fee, typically around $49.95, may apply. Bond investors also enjoy competitive pricing, with no mark-up for online U.S. Treasury trades. However, fees for other bonds may vary and are often incorporated into the bond's yield.

Investors considering Fidelity Go or Personalized Planning and Advice accounts should be aware of management fees. Fidelity Go charges an annual advisory fee of 0.35% on assets under management, which translates to a monthly fee of $4.38 for a $15,000 investment.

Fidelity Trading Platform

Web Trading

Most trading platforms offer web-based trading interfaces where users can conduct trades through the platform's website. This interface is very user-friendly for novice traders but may lack appeal for active traders. Fidelity's web trading interface is simple and quick, allowing users to view various trading quotes on the website. However, users must manually refresh the page to view news. While users can set some default trading values on the website, each trade requires re-entering the settings.

Mobile App

Fidelity provides a mobile app compatible with Android, iOS, Amazon, and Google Assistant devices. However, this mobile app does not support fixed-income trading or conditional orders. The app is intuitive and convenient for checking news reports and executing trades during daily commutes. It does not support conditional orders, so users need to use Active Trader Pro for those features. Overall, Fidelity's mobile app is a middle ground between the web platform and Active Trader Pro, meeting the needs of less active investors but lacking the functionality required by active traders.

Active Trader Pro

Active investors and traders are more inclined to use Fidelitys downloadable trading platform, Active Trader Pro. This platform offers a richer set of features. If traders need conditional orders, all those features can be found on Active Trader Pro. The platform is more powerful than the web and mobile products, with customizable options including personalized layouts.

Fidelity Account Type

One of the reasons why Fidelity has so many investors is that it provides a wide variety of account types, whether you are an individual investor, an institutional investor, a retiree, rich or poor, etc. You can find the account type suitable for your investment at Fidelity. The account types provided by Fidelity are as follows:

Fidelity Review On Products

Stocks: Investors can trade U.S. and international stocks with zero commission for online U.S. equity trades. Fidelity also provides access to IPOs and secondary offerings.

Bonds & fixed income: A variety of bonds are available, including U.S. Treasury, municipal, corporate, agency, and foreign bonds. Fidelity offers competitive pricing and extensive tools for bond analysis and trading.

ETFs: Fidelity offers a broad selection of ETFs, many of which are commission-free. These ETFs cover various asset classes, sectors, and investment strategies.

Mutual Funds: Investors have access to thousands of mutual funds, including Fidelity's own funds with no transaction fees. These funds span a wide range of investment styles and objectives.

Options: Fidelity provides options trading with advanced tools for strategy development and execution. The commission for options trading is $0.65 per contract.

Annuities: Fidelity also offers annuities that can provide a stable, guaranteed lifetime income stream, making them suitable for investors seeking financial security in retirement.

Compare to Similar Brokerages

Broker
	Fidelity	Webull	Interactive Brokers	E*TRADE
Regulation	FINRA, SEC	FINRA, AISC, FSA	FINRA, ASIC, FCA, FSA	FINRA
Account Minimum	$0	$0	$0	$0
Product Offering	ETFs, Stocks, Mutual Funds, Options, Cryptocurrency, and Fixed-Income Products	Stocks, Options, Index Options, Futures, ETFs, OTC, Margin, Fractional Shares	Stocks/ETFs, Options, Futures/FOPs, Event Contracts, Spot Currencies, US Spot Gold, Bonds, Mutual Funds	Annuities, Bonds & Fixed Income, Futures, Options, Stocks, Mutual Funds
Stock Trades	$0	$0	$0	$0
Options Fees	$0.65	$0	$0.65	$0.65
Promotion	❌	✅	✅	✅
Best for	Prefers low fees and long-term investors	Traders who prefer simplicity and lower costs	Suitable for most traders	Novice Traders and Professional Traders

FAQs

What service tools does Fidelity provide？

Fidelity offers a greater number of product tools than most brokers. First of all, Fidelity provides rich research reports on stocks, ETFs, options, and IPOs. Secondly, each financial product comes with filters to help you sort your portfolio. Finally, Fidelity also provides investors with a wealth of tools for conducting fundamental and technical research.

How does Fidelity support novice traders？

First of all, Fidelity provides a simple registration methodfor novice traders, and investors can complete registration in 1-3 days. Secondly, Fidelity provides demo accounts for novice traders to improve their trading system. Finally, Fidelity provides a wealth of trading education resources so novice traders can learn the strategies of other proven traders.

How do investors choose brokers？

First of all, investors need to choose a dealer with reliable supervision to prevent traders from making money and running away.

Secondly, investors can use the dealer's leverage ratio to determine whether it is compliant. Usually, traders who provide very high leverage ratios are non-compliant.

Then, investors need to choose a dealer with a complete range of products. A wide range of investment products can reduce investors' risks.

Finally, investors need to choose a dealer with reasonable fees to minimize their transaction costs.

What type of investor is Fidelity suitable for？

As a mature broker, Fidelity does not cater to a certain type of investors but is suitable for most investors. Novice investorscan use its rich learning resources and demo accounts to learn trading knowledge and form a complete trading system. Professional traders can make use of the Active Trader Pro professional trading platform provided by Fidelity, which can help professional investors monitor market conditions.

The only investors Fidelity might not be a good fit for are those who focus on futures trading since Fidelity doesn't offer futures trading.