Our Fidelity review provides every piece of information necessary for beginner and seasoned investors looking to make smart financial decisions. As you delve into the article, questions such as “Is Fidelity legit?” “Is Fidelity investment good?” and Is Fidelity free?” will be answered. This guide looks at the intricacies of Fidelity to help investors make informed decisions. 

Features of Fidelity

Before investing your funds with this broker, you want to know what makes them stand out. 

Fidelity Mutual Funds

Fidelity excels in this domain, presenting customers with two investor-friendly options to engage with mutual funds and providing exceptional service.

1. No-Transaction-Fee Funds

The broker provides access to approximately 3,400 mutual funds without any transaction fees. This implies that investors can buy and sell these funds without incurring additional costs, although they are still responsible for any expense ratios associated with the funds. Fidelity boasts a vast array of these fee-free funds, positioning it favorably among other top brokers despite not having the highest number of such offerings.

2. Fee-Free Funds

Furthermore, besides its impressive offerings, Fidelity goes above and beyond by providing four mutual funds with an absolutely zero expense ratio. This is a key component of its ZERO mutual fund lineup. Notably, Fidelity is the pioneer in offering these fee-free mutual funds. Notably, one doesn’t need to be a Fidelity brokerage customer to invest in them. With no transaction fees or annual expenses, owning these funds incurs no ongoing costs, making it an exceptionally advantageous opportunity.

Commissions

While Fidelity investments boasts the industry’s lowest commission prices, it doesn’t compromise on features—a rare find if cost is your primary concern. You won’t shell out a penny for stock and ETF trades at Fidelity. Instead, you’ll enjoy many features, including extensive research materials, educational resources, and trading tools. Fidelity’s commission is on par with leading brokers like Charles Schwab and Merrill Edge.

Regarding choices, Fidelity applies a fee that aligns with many others in the field: $0.65 per contract. While not precisely free like Robinhood or Webull, opting for Fidelity means getting more value for your investment.

Platforms and Tools

Fidelity has several tools that can provide trading ideas and improve your trading. Check out some of these tools:

Active Trader Pro

Curiosity among traders is natural when it comes to Active Trader Pro, Fidelity’s desktop trading platform, which boasts a variety of trading tools. However, the platform could benefit from a significant update. For many investors, opting for the browser experience might be preferable, offering a seamless and satisfying trading experience. For those seeking swift trade execution at Fidelity, Active Trader Pro provides a smoother workflow than the website. However, it needs to improve in several aspects.

Critical drawbacks of ATP include its clunky interface and outdated design. Some features load slowly, and certain widgets are essentially links to web pages. Frequently, the platform needs help to keep pace with user inputs, possibly due to its reliance on Java, while platforms utilizing HTML5 perform better. You can rest assured that the platform is free for Fidelity Active Trader Pro cost. 

On a positive note, Active Trader Pro boasts unique in-house tools like Real-Time Analytics, which provides live trade signals, and Trade Armor, which offers real-time position analysis. Additionally, options traders can access a range of analytical tools.

• Trade Armor: Trade Armor provides a comprehensive platform for traders to visually analyze trading prospects directly on a chart. Through this tool, users can establish alerts to monitor price fluctuations and pinpoint optimal position entry and exit points. Additionally, traders can execute orders directly within the platform alongside other functionalities tailored to enhance their trading experience.
• Daily Dashboards: Upon opening Active Trader Pro, a handy tool emerges, offering live updates on news, earnings, and economic events. This ensures you stay well-informed about factors affecting your investment portfolio.
• Real-time Analytics: This innovative tool instantly generates trade signals by analyzing past price changes. It notifies you when a stock achieves a fresh high or low, surpasses important technical thresholds, or exhibits peculiar market behavior. Stay ahead of the curve with timely alerts tailored to your trading strategy.

Web Charting

The Chart+ view in the browser stands out as a top-tier charting tool among various brokers I’ve examined recently. Its standout feature is the highly effective automated technical pattern recognition and chart analysis provided by Trading Central. The charts are clear and neatly organized, offering many features, including over 30 drawing tools, more than 100 studies, personalized user profiles, alerts, notes, and additional functionalities.

Website Watch List

The watch list feature on Fidelity’s website stands out as a top choice among brokerage platforms I’ve explored. It offers streaming quotes and provides access to 62 different data columns. Plus, the smooth workflow makes it effortless to delve deeper into stock research or execute trades using the order ticket.

Fractional Shares

Fidelity investment presents an innovative way to invest with its fractional share purchase program, Stocks by the Slice. This program enables you to acquire partial shares for as little as $1. With access to over 7,000 stocks and ETFs, you can diversify your portfolio without worrying about hefty commissions. Moreover, any dividends earned can be reinvested into fractional shares, amplifying the effectiveness of your investment strategy.

The program’s diverse range of securities sets it apart from Schwab’s comparable option, which restricts you to around 500 stocks from the Standard & Poor’s 500 index. However, Fidelity could learn from Schwab’s more straightforward order entry process. Unlike Fidelity, where each order must be entered individually, Schwab allows for batch orders, making the process less cumbersome.

Research 

Fidelity’s actively managed mutual funds are built upon extensive research, a tradition traced back to the insightful strategies outlined in “One Up on Wall Street” by Fidelity’s renowned manager, Peter Lynch. This commitment to research excellence persists throughout the range of available resources. Fidelity’s knowledge repository is a rich Garden of Reading, offering invaluable insights for discerning investors seeking to make informed decisions.

• Stock Research: Upon reviewing the research on Apple shares, Fidelity presented 12 reports. While this might seem excessive, it grants the opportunity to select a research source aligned with one’s investing approach. Noteworthy is Zacks, favored among many. Despite Fidelity’s ample third-party research offerings, the comprehensive analyses by Merrill, E*TRADE, and J.P. Morgan also stand out for their depth.
• Screening for Trade Ideas: Fidelity’s stock, ETF, and mutual fund screening tools boast user-friendly interfaces, abundant data, and established industry standards. The platform offers various features, including thematic investing options, ESG (environmental, social, and governance) metrics, and Morningstar ratings, making it a comprehensive resource for investors.
• Market News and Research: Fidelity distinguishes itself by offering extensive market analysis, akin to leading brokers. However, its standout feature lies in its adept curation of third-party news and analyses. While some brokers offer essential news updates, Fidelity diligently sifts through the vast expanse of the internet to present users with the most insightful content. This approach significantly reduces the time required to stay abreast of market developments.
• Fund Research: The breadth of fund research available is noteworthy for those inclined toward fund investment over individual stock selection. Comprehensive PDF reports from Morningstar and FactSet covering the SPDR S&P 500 (SPY) ETF are accessible. Additionally, data on open-end mutual funds is obtained from Morningstar.

Education

Fidelity’s educational resources cater to a diverse audience, ensuring there’s something valuable for every investor. These resources are thoughtfully curated, featuring progress tracking roadmaps categorization by experience level, topic, and content type. Customers gain access to various materials, including articles, videos, webinars, infographics, courses, and podcasts, providing comprehensive learning opportunities.

1. Learning Center

The Learning Center at Fidelity consolidates diverse educational materials, encompassing archived webinars, introductory courses, and an extensive range of specialized categories. It incorporates an AI-powered recommendation system to propose relevant academic resources. Fidelity’s YouTube channel hosts an array of categorized archived videos, with new educational content released regularly. Additionally, the Youth App features its learning hub, furnishing investment advice, articles, videos, and parental and teen-oriented calculators.

1. Retirement Education 

Fidelity’s retirement education program shines through its inclusive approach. It offers a robust financial planning tool that integrates data from external accounts, facilitating monitoring of your retirement savings journey and other financial objectives. While it doesn’t substitute the expertise of a certified financial planner, it serves as a valuable aid in tracking your financial advancement and pinpointing potential obstacles. Consider carefully whether you’re comfortable granting such extensive access to your financial information before utilizing it.

Account Types, Fees, and No Minimum

Does Fidelity charge fees for trading? Fidelity emerges as an exceptional choice for those seeking to reduce the plethora of additional fees typically imposed by brokers. Fidelity imposes no charges for standard categories like account or activity fees, transfer-out fees, and lesser-known ones such as IRA closeout and reorganization fees. While certain brokers may demand up to $125 for transferring out an account, and even prominent broker Charles Schwab levies $50 for a complete transfer out, Fidelity remains fee-free. This might suggest confidence in customer loyalty on their part.

Paying bills from a brokerage account with Fidelity incurs no standard bank fees, such as stop-payment or ATM fees. Fidelity stands out for its investor-friendly policies. Additionally, the absence of an account minimum makes it accessible to all.

Banking Service

Although not classified as a chartered bank, Fidelity provides an array of banking services, ensuring a dependable experience with access to over 200 retail service centers. Among its offerings is a cash management account with bill pay functionalities and a debit card. The Fidelity Rewards Visa Signature credit card also grants users 2% cashback on every purchase. Fidelity Bloom, a program specifically designed for individuals new to personal finance, also offers rewards. Notably, Fidelity needs a loyalty rewards system to utilize multiple products, an aspect in which Bank of America – Merrill Edge excels.

Who is Fidelity Best For?

Fidelity Investment is a large broker in the United States that caters to various types of investors. It offers something to everyone, and its flexibility is remarkable. Those just starting in the stock market and learning about investing will appreciate the availability of resources and find great value in the readily accessible guidance provided. They can make the most of the comprehensive educational resources and direct access to seasoned professionals, enhancing their learning journey and investment endeavors.

Fidelity may not be best for investors interested in advanced financial products such as futures, commodities, cryptocurrency, or NFTs. This means those seeking to invest in these specialized assets might need to explore alternative investment platforms.

Experienced investors and traders may find the primary education redundant and opt for Active Trader Pro, Fidelity’s exclusive trading platform. Active Trader Pro, available as a downloadable desktop application, offers live data streaming and enables users to tailor their workspace to their preferences. Additionally, it facilitates news tracking and the creation of personalized alerts, enhancing the trading experience for seasoned individuals.

Pros and Cons of Fidelity 

Here are some reasons why we find Fidelity tremendous and some of its drawbacks:

Pros of Fidelity

To know why Fidelity is considered one of the largest stockbrokers in the United States, here are some of its upsides. 

1. Investment Options

Fidelity prides itself on providing various investment options, ensuring investors of all backgrounds and preferences can find suitable avenues for their financial goals. Fidelity offers a comprehensive selection of assets, from stocks and bonds to mutual funds and ETFs, to cater to diverse investment strategies and risk tolerances.

2. Educational Resources

The broker has a robust suite of educational resources. These resources include articles, tutorials, webinars, and interactive tools to empower investors with the knowledge and skills necessary to confidently make informed investment decisions and navigate the complexities of the financial markets.

3. Account Types

Fidelity supports various account types, catering to multiple investment needs and objectives. Whether investors are looking to open individual brokerage accounts, retirement accounts such as IRAs or 401(k)s, education savings accounts like 529 plans, or specialized accounts like health savings accounts (HSAs), Fidelity provides the necessary infrastructure and support to facilitate seamless account management and investment execution.

4. Variety of Platforms

The broker offers a dual-platform approach, with a basic platform tailored to cater to casual investors seeking simplicity and ease of use alongside a higher-end platform designed for more severe and experienced traders who require advanced tools and analytics to execute complex trading strategies effectively.

Cons of Fidelity

Fidelity has consistently garnered high praise as one of the leading online brokers, yet it has a few shortcomings worth noting. Let’s delve into some of the Fidelity cons:

1. Investment Selection

Fidelity boasts an impressive array of tradable securities, catering to various investment preferences. However, its offerings need to be improved in terms of alternative investments like futures and commodities. While plans are underway to enable the purchase of Bitcoin within 401(k)s, the absence of avenues for acquiring the plethora of other cryptocurrencies available in the market remains to be noticed.

2. Poor Mobile User Experience

Fidelity offers a mobile app, yet it features a simplified design that sacrifices certain functionalities beloved by traders on the Active Trader Pro desktop platform. While convenient for some users, this streamlined approach may leave others yearning for the robust features found on the desktop version.

Final Thoughts

Fidelity stands out in the industry, regularly securing top honors as the Best Online Broker and earning praise for its user-friendly approach and affordability. It caters to individuals at any life stage with a wide range of products. Whether you’re a novice investor or seeking to cut down on fees while managing your portfolio, Fidelity Investments offers something for everyone. Fidelity is an excellent choice if you need help figuring out where to start with your investments or aiming to reduce costs and manage your investments independently. We hope that our Fidelity review will help you make better financial decisions. 

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