What is Fidelity?
Fidelity is one of the few brokerages that offer commission-free trading. You can trade stocks, ETFs, and options commission-free on their platform. Their platform meets the needs of traders and investors through several impressive offerings. They offer zero expense ratio index mutual funds for investors. You can automate or semi-automate your investment management through their robo advisors.
If you are looking to save some money for your retirement, then you can do so by opening an individual retirement account with them without any account fees or minimums.
Some people consider Fidelity to be a top contender for the best broker, and we will see if that is the case in this Fidelity Investments review.
- Great Research: You won’t find a reason to complain regarding the research provided on their platform. Their research reports, research tools, and market analysis are second to none. Combined with their clean layout, the research will satisfy traders of all experience levels.
- Impressive Tools: Their tools are not only impressive but provide exceptional functionality.
- Commission-Free Trading: A lot of online brokers has adopted Commission-free trading, and this one is not so different. However, I have to give credit when it is due.
- No Account Minimum: A lot of brokers are only used by professionals because of high account minimum, but you won’t face this issue here because there is no account minimum.
- High-Quality Customer Service: You can call, chat, or visit an Investor Center to get help from an investment professional. The best part is that they are available 24/7, while certain brokers only provide support on working days.
- No criticism is strong enough to mention in this review. One small criticism is that they are only available to people in the US.
How does Fidelity work?
Let us take a look at some of the interesting features of this online broker.
Investment Products: When it comes to the range of offerings, this broker doesn’t disappoint at all. You can choose from various investment products such as mutual funds, retirement accounts, stocks, ETFs, options, managed accounts, and life insurance.
Tools: They offer plenty of tools on their platforms such as Active Trader Pro and stock screener. Let us take a look at some of the tools that they offer.
Active Trader Pro will provide you the ability to use over 45 market filters to find the right trading opportunities. It allows you to use complex trading strategies while trading options.
I especially like the ability to create and save up to 50 orders and place them at the time of your choosing. Active Trader Pro will provide you the right combination of tools and features to help you trade the way that you want.
Market Scanner is a tool for idea generation. It allows you to find securities whose options show trading opportunities based on variables that you choose. You can choose from various variables such as implied volatility, order flow, time spreads, and earnings. You can use their pre-built scans or create a custom scan.
Wealth-Lab Pro is a tool for testing strategies by using historical data. It allows you to view up to 20 years of historical data, run prebuilt strategy tests, customize strategies, combine strategies, and track your active strategies.
Don’t worry; they will show you how to use this tool through video webinars and guides. However, this one is only available for customers who trade over 36 times in a rolling 12-month period and have at least $25,000 in assets.
These are only some of the tools to give you an idea, and you can find more tools on their platforms such as profit and loss calculator and strategy evaluator.
Education: They are one of the few brokers that provide education for everyone. I like the way that they structure their courses so that you can follow along easily and track your progress. You can start with the basics such as budgeting, saving, etc. and progress to advanced topics related to trading stocks, options, and more. Obviously, they will show you how to use their various tools so that you don’t end up wasting your time.
How much does Fidelity cost?
The following are the trading fees charged by this broker.
Stocks, Options and ETFs: $0 per stock, option, or ETF trade plus $0.65 per contract on options
Bonds and CDs: $1 per bond or CD for secondary issues and no fees for US Treasuries that you trade online
Mutual Funds: $0 for Fidelity funds, $0 on purchase and $49.95 on redemption if you hold them for less than 60 days for no transaction fee non-Fidelity funds, and $49.95 on purchase and zero on redemption for transaction fee non-Fidelity funds
You can know more about any additional fees by visiting their pricing fees section.
Who should try Fidelity?
With the recent changes in their commissions, traders of all experience levels are going to be attracted to this broker. This is a solid broker that has the tools and research to help a trader succeed. Their education is there to help you enhance your understanding, and their support is not bad either.
Robo advisors are available for those who don’t want to manage their portfolio. In short, there is something for everyone. So, almost any trader can try this broker and have a great experience.
Fidelity Investments is surely one of the best brokers in general. The best part is that they are useful for investors or traders of all experience levels. Their constant improvements, solid research, feature-rich tools, amazing customer service, and education are the strengths of this platform.
Their recent introduction of no-expense-ratio index funds has made them an even better place to invest in mutual funds. In short, this is a broker that is strong in every single aspect of trading and investing. There are only a few brokers that can go toe-to-toe with this one.