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Fidelity is one of the excellent online brokerages which offer sophisticated tools, assets, research, and platforms. This is a great choice for new investors entering the business world. The company has 38 million customers worldwide. Fidelity is a US stockbroker that primarily targets US customers and provides services within the United States. The Fidelity investment serves the customers of South East Asia and Western Europe.
Fidelity Broker Review- An Intro
Fidelity provides international trading across 25 global markets. The only asset that Fidelity lacks is cryptocurrencies. It offers managed accounts, brokerage accounts, cash management accounts, saving plans for health and education, and retirement accounts.
Regulations and Trust ability Review of Fidelity Broker
Fidelity was established in 1946 in the U.S.A. and is owned by FMR LLC, the parent company of Fidelity Group. Its headquarters is situated in Boston, US. The founder of Fidelity was Edward C. Johnson II. It is regulated by the Financial Industry Regulatory Authority (FINRA) and the Securities and Exchange Commission (SEC).
Fidelity Brokerage Services LLC and National Finance services (NFS) are the members of Securities Investor Protection Corporation (SIPC) which has a brokerage account of up to $ 500,000 in securities per customer and includes a $ 250,000 limit on the amount of money waiting to be reinvested. It provides additional coverage from Lloyd’s of London together with Munich Reinsurance Co. and Axis Specialty Europe Limited. This additional coverage is used after the exhaustion of SIPC. It does not cover the loss during the market fluctuation. Its Securities Investor Protection Corporation coverage totals $1 billion. It does not provide negative balance protection.
Base Currency Review of Fidelity Broker for trading
Traders can choose from the great selection of 16 base currencies. It charges a currency conversion fee for coins in the trading account in addition to the 16 base currencies.
Table 1: Base currencies of Fidelity
| BASE CURRENCIES OF FIDELITY | |
|---|---|
| CHFSEKSGDZARPLNNOKNZDMXN | JPYHKDDENCADAUDGBPEURUSD |
Table 2: Amount of trade and currency conversion fees in Fidelity
| AMOUNT OF TRADE | CURRENCY CONVERSION FEES |
|---|---|
| Above 1 million $500k – <$1 million $250k – <$500 K $100k – <$250 K Less than $100 K | 0-0.20%0.35%0.50%0.75%1.00% |
Review on Accepted countries of Fidelity International Broker
Review on Awards of Fidelity Broker
Fidelity won numerous honours from all across the world. This proves that the Fidelity offers the best service.
Table 3 : Awards of Fidelity
| AWARDS | AWARDED BY |
|---|---|
| Best Online Broker 2021 | Kiplinger |
| Best Online Broker 2021 | Forbes |
| Top-Rated Online Broker 2021 | Stockbroker s.com |
| Most Trusted Wealth management company 2020 | Investor’s Business Daily |
| Top Rated Order Execution of fractional shares 2021 | Stockbroker s.com |
| Best HAS provider 2019, 2020 & 2021 | Morning star |
| Best Investment Quality, Investment options, and Low fees 2021 | Investor’s Business Daily |
| Low Priced Stock Fund Award 2021 | Morning star |
| Best Mutual fund Award 2021 | Lipper Fund Awards |
| Stock Picker of the year 2018 | Bloomberg |
Trading Platforms Review of Fidelity Broker
All the trading platforms of Fidelity are available only in English.
- Web Trading Platform
- Desktop Trading Platform
- Mobile Trading Platform
Web trading platform
The user interface of this web platform is simple and easy and is protected by two-step Authentication. It provides many order types and offers limited customizability for workspace and chart.
Desktop Trading platform
The user interface of this Desktop platform is highly customizable and flexible. This desktop trading platform is also known as Active trader pro. Because this platform is mainly suitable for experienced traders and Active traders. It provides clear free reports and good options for order types. The Demo account is only available on this desktop platform.
Mobile Trading platform
The user interface of this mobile platform is well-designed and user-friendly. It provides excellent search functions and a variety of order types. It offers the features like research, banking, an online platform, and portfolio monitoring. This app is available for both Android and iOS devices on Amazon devices, the Apple app store, and the Google play store. The iOS users only enable portfolio monitoring, research, and trading from the home dashboard.
Market Assets Review of Fidelity Broker
The range of available assets varies by country in Fidelity.
- Stocks
- ETFs
- Funds
- Options
- Bonds and CDs
- Precious metals
Stocks
Stocks provides more than 7000 international and domestic stock exchanges for 25 countries between 16 currencies. It adjusts the trade in local currency or US dollars.
ETFs
ETFs give access to a wide range of ETFs which offers 28 Fidelity ETFs, 329 iShares® ETFs, and 146 from additional leaders. Traders can buy and sell ETFs with no commission. It provides tools for monitoring, evaluating, and screening ETFs before and after investing.
Funds
Funds offer more than 3700 funds which are categorized into 1400 Fidelity funds and a large number of non- Fidelity international funds. It does not charge transaction fees. It also provides sophisticated tools for choosing the funds to achieve the goals in investing.
Options
Fidelity offers a variety of indexes, ETFs, and Equity which includes weekly expirations. It also provides low and transparent prices for additional features like expert commentary, custom screeners, and advanced analytics.
Bonds ad CDs
Fidelity provides more than 400000 fixed income securities, investment-grade bonds, and CDs for trading which includes nearly 60000 total offerings quotations.
Precious metals
Fidelity offers a great selection of precious metals for investors which are palladium, platinum, silver, and Gold.
Review on Account Types of Fidelity Broker
The account opening process of Fidelity is very simple and easy. The account opening process takes a very short time but the verification process of the account took 3 business days. There are no minimum deposit fees for the basic account of Fidelity. It offers numerous types of accounts for managed accounts, businesses, families, and individuals.
Table 4 : Categories and account types of Fidelity
| CATEGORIES | ACCOUNT TYPES |
|---|---|
| Managed account | Fidelity Go |
| Fidelity tax-managed international equity index strategy | |
| Fidelity personalized planning & advice | |
| Fidelity equity income strategy | |
| Portfolio advisory services accounts | |
| Fidelity tax-managed U.S. equity index strategy | |
| Fidelity U.S. large-cap equity strategy | |
| Fidelity core bond strategy | |
| Fidelity international equity strategy | |
| Fidelity intermediate municipal strategy | |
| Breckinridge Intermediate municipal strategy | |
| Investing and Trading | Brokerage account |
| Cash management account | |
| Savings and investing for a child | 529 account |
| Fidelity youth account | |
| Custodial account | |
| Roth IRA for kids | |
| The attainable savings plan | |
| Savings for retirement | Rollover IRA |
| Traditional IRA | |
| Roth IRA | |
| Inherited IRA | |
| Inherited Roth IRA | |
| SEP IRA | |
| Self-employed 401(k) | |
| SIMPLE IRA | |
| Investment- only plans for small business | |
| 401(k) plan for small business | |
| Saving for medical expenses | Health savings account |
| Life insurance | Universal life |
| Term life insurance | |
| Estate planning and Trusts | Trust account |
| Estate | |
| Annuities | Fidelity personal retirement annuity |
| Deferred fixed annuities | |
| Immediate fixed income annuities | |
| Deferred income annuities | |
| Charitable giving | Fidelity Charitable |
Managed account
- In this category, it gives 4 types of options which are Fidelity strategic Disciplines, Fidelity Wealth services, Fidelity personalized planning & Advice, and Fidelity Go.
- If the traders prefer Robo- advisor, then Fidelity Go, which manages accounts well, is the best choice for them. It is free to open an investing account but the traders have to pay a $3 monthly fee. If the traders had more than $50000 in the account then they should pay a 0.35% annual fee. If they had a balance of $10000, then there is no need to charge an advisory fee.
- Fidelity Personalized planning & consulting access Personal consulting and automated investment management Minimum investment of $ 25000.It matches the traders with CFP who guides the traders through the investment process. The annual fee for this account is 0.50%.
- Fitness Wealth Services provide automated access to financial advisors. But the traders have a minimum balance of $250,000 to open the account.
- Fidelity strategic Disciplines also access the human advisor but this account uses a single asset class portfolio of individual securities to achieve the investment objectives. It requires a minimum investment of $2 million in the account.
Investing and Trading
- In this category, Fidelity gives 2 types of options which are a Brokerage account and a cash management account.
- In the brokerage account, the active traders can do commission-free trade on the stock, options, and ETF which also offers more than 3400 mutual fees with no fees. There is no minimum deposit for this type of account. The other investment options are precious metals, bonds, CDs, funds, IPOs, Annuities, and fractional shares.
- A cash management account is used to secure and manage money from traditional checks. It is the alternative to FDIC insurance which gives the power to manage the cash along with investments. It gives a cashback of 2% to the traders of every purchase via the Fidelity rewards Visa signature card.
Savings and investing for a child
- Fidelity offers 2 types of accounts which are 529 accounts and Fidelity Youth Accounts.
- Fidelity offers 529 college saving plans which are used to save education expenses and tuition expenses with no minimum deposit, no account fee, and tax-free withdrawals.
- Fidelity Youth Account provides the opportunity for teens between the age of 13-17 to learn how to invest and save with no account fees and minimum deposit.
- Traders can get 3 options for investment which are Fidelity Index Funds, Fidelity Flex Funds, and Fidelity Funds.
Savings for retirement
- Fidelity offers numerous retirement accounts such as Rollover IRAs, Traditional IRAs, and Roth IRAsfor kids and small business retirement plans. Roth IRAS and traditional IRAs do not need account minimum for both the accounts of Fidelity Go and Fidelity Investments.
- The Rollover IRA allows the trader to consolidate old 401(k) s and other retirement accounts. Roth IRA and traditional IRAs do not need account minimum for both the accounts of Fidelity Go and Fidelity
Savings for Medical expenses
- Health Savings Account (HSA)is an eligible plan which helps to save money tax-free and qualified medical expenses.
- This account helps to switch health insurance.
Life Insurance
- Universal Life Insurance is a type of permanent life insurance that serves to protect wealth and the family in the case of death.
- Term life insurance is the most affordable option for securing a family’s financial resources in the event of an unexpected death.
Estate planning and Trust
- Investors can invest and manage a brokerage account on behalf of an established trust and estate.
- This account will help the trader to manage the assets and build a legacy.
Annuities
- Annuities are insurance contracts which the payments immediately in the future.
- Traders can purchase an annuity to help to protect their retirement savings and guaranteed income.
- It offers 4 types of accounts which are FPRA accounts, Deferred fixed annuities, immediate fixed income annuities, and deferred income annuities.
Charitable giving
- Fidelity Charitable is eligible for an immediate tax deduction which has the potential to grow tax-free.
- It is a donor-consulting fund that allows businesses to fund their favorite charities.
Steps to open an account in Fidelity
Table 5 : Steps to Open Fidelity Account
| Follow the below steps to open a Fidelity account: |
|---|
| – Select the type of account. – Add personal details like employment status, residency, and social security number. – Select your trading or investment preference. – Review all information. – Approve the terms and conditions. – Print the application and send the mail. |
Review on Fees and Commissions of Fidelity Broker
Fidelity does not charge the commission for US stock, options ETFs and some mutual funds. Options trading is free but charges $ 0.65 per contract. There are no fees for the transaction of more than 3400 mutual funds. The non- Fidelity mutual funds have a $49.95 commission but redemptions are also free. There is no minimum deposit for opening a Fidelity Go account. But the account balance should be at least $10 for trading and investing. The Robo advisor is free for the account whose balance is under $10000. A personal advisor is offered for the account which the minimum balance is $25000. The annual advisory is 0.50%. The total cost of Fidelity is estimated to be $ 10.42 / month for a $ 25000 balance in the account.
Deposit & Withdrawal methods Review of Fidelity Broker
Fidelity does not charge the fees for depositing of account. Traders can use wire transfer, check, Electronic wallets, and PayPal for deposit options. They cannot use debit cards and credit cards for deposits. The processing time for deposit options takes several business days for Bank transfers and 2 business days for electronic wallets.
Traders can use wire transfer, check, Electronic wallets, and PayPal for withdrawal options. It does not charge fees for ACH or USD withdrawals. But it charges a fee of 3% for non-USD withdrawal. The processing time for withdrawal takes 2 business days for Bank transfers and electronic wallets.
Special features Review of Fidelity Broker
- Planning & Advice of Fidelity
- Commission-free Trading of Fidelity
- Margin Trading of Fidelity
- Fractional Shares
Planning & Advice of Fidelity
Planning & Advice service helps the trader to plan investment strategies, and complex wealth management needs, and manage the trader’s portfolio. Experienced advisors and digital solutions can help the trader to meet all the financial goals.
Commission Free Trading of Fidelity
Commission Free Trading can help the trader to trade with zero commission smarter with smarter technology, a broad range of investments, and independent research.
Margin Trading of Fidelity
Margin trading enables a trader to borrow against the value of assets in order to have access to capital for investment and non-investment funds. It can be used to acquire more shares and satisfy short-term liquidity. There is no need to sell the investment to make a big purchase.
Table 6 : Debit balance, margin interest, and base rate of Fidelity
| DEBIT BALANCE | MARGIN INTEREST RATE | BASE RATE |
|---|---|---|
| $1 MILLION + | 4.000% | -3.075% |
| $500,000 – $999,999 | 4.250% | -2.825% |
| $250,000 – $499,999 | 6.575% | -0.500% |
| $100,000 – $249,999 | 6.825% | -0.250% |
| $50,000 – $99,999 | 6.875% | -0.200% |
| $25,000 – $49,999 | 7.825% | +0.750% |
| $0 – $24,999 | 8.325% | +1.250% |
Fractional Shares
The slice of stock makes easy the dollar-based investment. It helps to develop a diversified investment portfolio. This includes stocks listed on the NASDAQ and the NYSE that can change orders at any time. These fractional shares trading is available on the Mobile app of Fidelity. This trade will only take place when the market is open and is available for real-time execution during market hours on regular trading days from 9.30 am to 4 pm ET.
Review on Education and Research of Fidelity Broker
Fidelity offers excellent instructional webinars, articles, videos, and other resources. The webinar section provides information for all types of traders which ranges from beginner to advance. The educational videos are updated in the learning section which ranges from 5-10. The FAQ section of the Learning Center has a lot of information that can be easily searched. Third parties like Bloomberg and the Wall Street Journal have the news feed in Fidelity but lack visual pictures and charts.
Customer Support Review of Fidelity Broker
Fidelity provides customer support via email, phone, and live chat which provides fast relevant answers for the clients. It does not provide support 24 /7. On business days, live chat is only accessible from 8 am to 9 pm, as well as on weekends from 9 am to 4 pm. Customer service is exclusively offered in English.
Table 8 : Customer support of Fidelity
| Social Media Pages of Fidelity | |
|---|---|
| https://twitter.com/fidelity | |
| https://www.instagram.com/fidelity/ | |
| Linked in | https://www.linkedin.com/company/fidelity-investments |
| Website | https://www.fidelity.com/ |
| https://www.facebook.com/fidelityinvestments | |
| Phone | 8003433548 |
| YouTube | https://www.youtube.com/user/fidelityinvestments |
| https://www.reddit.com/r/fidelityinvestments/ | |
Reviews on Rewards and Risks of Fidelity Broker
Fidelity has both advantages and disadvantages which are listed in table 8.
Table 8 : Rewards and Risks of the Fidelity
 Pros |  Cons |
|---|---|
| The US stocks and ETFs are commission-free.It offers 140 branches throughout the U.S.There is no minimum deposit for Fidelity accounts.It provides fractional shares.A large number of fee-free mutual funds are available. | Fidelity does not offer cryptocurrencies.It charges high fees for margin rates and mutual funds.Expert advisor charges high fees.It does not offer negative balance protection.Fidelity goes charges $3 / month for balances between $10000-$49.999 and 0.35% for more than $50000. |
In a Nutshell
- Fidelity is an excellent choice for all types of investors to trade and exchange stocks.
- It offers commission-free trading for all US stocks.
- Fidelity provides robot-consultant professionally managed consultant access.
- It provides abundant educational resources and trading tools for investors.
- It has nearly 200 branches in the US for getting personalized attention.
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