Fidelity Review 2024

Why choose Fidelity

Fidelity, one of the largest stockbrokers in the US, offers commission-free stock and ETF trading.

The broker has an excellent product selection and provides a large variety of tools to support your investment research. It has a great web trading platform, which makes it a good choice for beginners as well.

However, opening an account can take a bit longer compared to some of its close competitors. Among other drawbacks, some mutual funds have high fees and margin trading is somewhat on the expensive side.

✅ Pro	❌ Cons
❖ Commission-free US stocks and ETFs ❖ Great trading platforms and research ❖ US and international stocks	❖ High mutual fund fees and margin rates ❖ Slower account verification ❖ Some products not available (e.g. futures)

Fidelity at a glance

🗺 Country of regulation	USA
💰 US stock fee	Free stock and ETF trading
💰 Inactivity fee charged	No
💰 Withdrawal fee	$0
💰 Minimum deposit	$0
💵 Available base currencies	USD, EUR, GBP, AUD, CAD, DKK, HKD, JPY, MXN, NZD, NOK, PLN, ZAR, SGD, SEK, CHF
💵 Conversion fee of deposits in non-base currency	1% of value for orders <$100k
💳 Deposit with bank card	Not available
🕖 Time to open an account	1-3 days
🎮 Demo account provided	Yes
🛍️ Products offered	Stock, ETF, Fund, Bond, Options, Crypto, Robo-advisory

Fees

Score: 3.5/5

Fidelity has average trading and low non-trading fees, including commission-free US stock trading. On the negative side, margin rates and fees for some mutual funds can be high.

✅ Pro	❌ Cons
❖ Commission-free US stocks and ETFs ❖ Great trading platforms and research ❖ US and international stocks	❖ High mutual fund fees and margin rates ❖ Slower account verification ❖ Some products not available (e.g. futures)

Pros

Free stock and ETF trading
Low bond fees
No inactivity fee

Cons

High fees for non-free mutual funds
High margin rates

We compared Fidelity‘s fees with two similar brokers we selected, E*TRADE and TD Ameritrade. These competitors were selected based on objective factors like products offered, client profile, fee structure, etc. See a more detailed comparison of Fidelity alternatives.

Commission-free stock and ETFs

It’s extremely great as Fidelity has commission-free US stock trading.

Broker	US stock
Fidelity	$0.0
E*TRADE	$0.0
TD Ameritrade	$0.0

This is the case when you trade US stocks. On the other hand, international stock trade fees are relatively high. Still, it is not common for US brokers to offer non-US stocks at all.
There is also a small charge on sell orders, as they are subject to an activity assessment fee of $0.01-$0.03 per $1,000 of principal.

High margin rates

Fidelity USD margin rate fees are higher than the industry average. USD margin rate fees are calculated as follows: Base rate + tiered markup. Markup is +1.25% for balance of 0-25k.

Broker	USD margin rate
Fidelity	13.6%
E*TRADE	14.2%
TD Ameritrade	14.8%

Low options commission

Fidelity US stock index options fees are about half of the industry average. US stock index options fees are calculated as follows: $0.65 fee per contract

Broker	US stock index options
Fidelity	$6.5
E*TRADE	$6.5
TD Ameritrade	$6.5

They cost $0.65 per contract.

No inactivity fee, low withdrawal fee

There are no inactivity or account fees. There are also no withdrawal fees for ACH and USD wire withdrawals. Non-USD wire withdrawals however cost 3% of the amount you withdraw. In our review, we tested an electronic (ACH) withdrawal, which worked without any problem.

Broker	Inactivity fee	Withdrawal fee
Fidelity		$0
E*TRADE		$0
TD Ameritrade		$0

In addition, there is a currency conversion fee if you trade an international stock that is denominated in a currency other than your account's currency. The currency conversion fee depends on the amount you trade.

Amount you trade	Cost (% of the traded amount)
Less than $100k	1.00%
$100k – <$250k	0.75%
$250k – <$500k	0.50%
$500k – <$1 million	0.35%
Above $1 million	0-0.20%

Other commissions and fees

High mutual fund commission: trading mutual funds involves the following charges – $49.95 or $75 for buying while selling is free; some 3,600 free mutual funds.

Low bond commission: US treasury bonds come with the following charges – $0 for Treasury bonds, and $1 per bond with a $250 max for other bonds.

Broker	Mutual fund	US micro e-mini stock index futures
Fidelity	$37.5	–
E*TRADE	$20.0	$15.0
TD Ameritrade	$50.0	$22.5

Safety

Fidelity is regulated by top-tier financial authorities and has a high level of investor protection. However, there is no negative balance protection and its financial information is not public.

✅ Pro	❌ Cons
❖ Majority of clients belong to a top-tier financial authority ❖ High level of investor protection ❖ Additional coverage by Fidelity	❖ No negative balance protection ❖ Does not hold a banking license ❖ Not listed on stock exchange

Deposit and withdrawal

Score: 3.8/5

Fidelity offers an exceptionally wide range of base currencies. On the negative side, credit/debit cards are not accepted.

✅ Pro	❌ Cons
❖ Free withdrawal ❖ No deposit fee ❖ Several account base currencies	❖ Credit/Debit card not available

Account base currencies

At Fidelity, you can choose from the following 16 base currencies:

USD	EUR	GBP	AUD
CAD	DKK	HKD	JPY
MXN	NZD	NOK	PLN
ZAR	SGD	SEK	CHF

Fidelity offers a great base currency selection when compared to its closest competitors.

Broker	Number of base currencies
Fidelity	16
E*TRADE	1
TD Ameritrade	1

Why does this matter? For two reasons. If you fund your trading account in the same currency as your bank account or you trade assets in the same currency as your trading account base currency, you won't have to pay a conversion fee.

A convenient way to save on currency conversion fees is by opening a multi-currency bank account at a digital bank. These usually offer bank accounts in several currencies with great currency exchange rates, as well as free or cheap international bank transfers. Opening an account only takes a few minutes on your phone.

Deposit fees and options

Fidelity charges no deposit fees.

Clients can use a check, electronic (ACH), wire transfer and PayPal or Venmo for depositing funds. Credit/debit cards are not available for deposits.
Fidelity offers a feature called ‘BillPay' as an additional service. With a subscription, you can make payments and manage your bills using your brokerage account.
We tested the ACH transfer and it took 2 business days for the funds to arrive.

Due to US regulations, US citizens cannot use credit cards to fund their brokerage accounts. They can only use debit cards, where available.

Broker	Bank transfer
Fidelity
E*TRADE
TD Ameritrade

A bank transfer can take several business days. You can only deposit money from accounts that are in your name.

There are a lot of deposit options at Fidelity, including electronic wallets such as PayPal, Venmo, Apple Pay.

Fidelity review – Deposit and withdrawal – Deposit

Fidelity withdrawal fees and options

Fidelity charges no withdrawal fees if you use ACH or USD wire withdrawal. Non-USD withdrawals cost 3%.

Broker	Bank transfer
Fidelity
E*TRADE
TD Ameritrade

You can only withdraw money to accounts in your name.

How long does it take to withdraw money from Fidelity? We tested the ACH bank transfer withdrawal and it was completed within 2 business days.

How do you withdraw money from Fidelity? Follow these steps:

Log in to the account.
Go to ‘Accounts & Trade', ‘Portfolio', then select ‘Transfer'.
Select the withdrawal method you want to use.
Select your Fidelity account as ‘Transfer from'.
Select the account you want to withdraw the money to as ‘Transfer to'.
Enter the amount you wish to withdraw and set the date.
Initiate the withdrawal.

You can also set automatic withdrawals.

Account opening

Score: 4.4/5

Opening an account at Fidelity is easy and there is no minimum deposit. You can also choose from many account types. However, account verification is a bit slow.

✅ Pro	❌ Cons
❖ No minimum deposit ❖ User-friendly ❖ Many account types	❖ Slower account verification ❖ Not fully digital in some cases

Can you open an account?

Fidelity is a US stockbroker that targets US clients. In this review, we tested Fidelity's services provided within the US.
However, there are several countries where Fidelity is available through the Fidelity group's other subsidiaries. Fidelity Investments Canada serves only Canadian customers, while Fidelity International has a strong presence in Western Europe and South-East Asia. The range of available products and services varies by country.

What is the minimum deposit at Fidelity?

The required Fidelity minimum deposit is $0.

This is the case for basic accounts. However, there is a minimum deposit for trade using a margin account or if you prefer investing in portfolios.

Trading preferences	Minimum deposit
Trading at basic accounts	$0
Margin account*	$2,000
Day trading**	$25,000
Fidelity Managed Accounts	$10 – $500,000

* You trade with money borrowed from the broker, also called trading on leverage.
** You buy and sell assets on the same day.

Account types

Fidelity offers many different account types:

Account type	Description
Investing and Trading	All investment retail accounts have joint and individual options, except for the Fidelity Account for Business.
– Brokerage Account – Tested account	Standard brokerage account.
– Cash Management Account	FDIC-insured account is an alternative to checking.
– Brokerage and Cash Management	An overall account combining the features of a Brokerage and a Cash management account.
– Fidelity Account for Businesses	Comprehensive trading and cash management account for business needs.
Saving for retirement	Growth plans for retirement with tax contributions.
– Rollover IRA	An account to consolidate an old 401(k) IRA into a Fidelity account and to maintain tax advantages.
– Traditional IRA	An account to help you with tax-deductible contributions and earnings to withdraw in retirement.
– Roth IRA, Roth IRA for Kids	Tax-free withdrawals if conditions are met. Accounts are available for minors with an adult managing it.
– Inherited IRA, Inherited Roth IRA	These accounts are for you if you have inherited a Traditional IRA, SIMPLE IRA, SEP IRA or Roth IRA account and would like to continue them.
– Self-Employed IRA, Self-Employed 401(k)	Helps you to set up workplace savings either for self-employed individuals or business owners.
– Simple IRA	Offers tax contributions for small businesses (fewer than 100 employees).
– Investment-Only plans for Small Businesses	A brokerage account for small businesses with qualified plans which they would like to expand with Fidelity investment offerings.
– 401(k) Plan for Small Businesses	Retirement plans to offer for your employees.
*Managed accounts*	Accounts are managed by Fidelity's technology and professionals. Robo-advisor accounts are managed by Fidelity.
*Saving for education / medical expenses / ABLE (Achieve a Better Life Experience)*	Savings accounts for various goals.
– 529 account	An account eligible for state tax reductions.
– Custodial account	This is a brokerage account that lets you invest on behalf of a minor.
– Health Savings account	A plan that helps you save money on medical expenses that weren't spent.
– The Attainable Savings Plan	An account that helps disabled individuals and their families to invest and save for disability-related expenses.
Charitable giving
– Fidelity Charitable	An account that lets you get a tax deduction while supporting any charity.
*Estate planning*
– Trust, Estate accounts	Accounts that let you invest and manage a brokerage account on behalf of an established trust or estate.
*Annuities*
– Fidelity Personal Retirement Annuity	An account to save for retirement on a tax-deferred basis.
– Deferred Fixed Annuities	An account that offers a rate of return for a set period of time.
– Immediate Fixed Income Annuities	Provides a stream of income for the rest of a client's life or a set period of time.
– Deferred Income Annuities	Provides you and your spouse with guaranteed income beginning on a future date.
*Life insurance*
– Universal Life, Term Life Insurance	Permanent life insurance coverage.

In this review, we tested the Brokerage Individual Account.
If you want to trade with international stocks, you need to register for a supplemental service for your brokerage account called International Stock Trading. The registration is quick and straightforward and can be initiated within your brokerage account.

How to open your account

The account opening is user-friendly and fully digital in most cases. There can be cases when you have to mail or fax the account opening form and the photocopy of the relevant ID card to Fidelity. It took 3 business days for us to open the account, which is a bit slow compared to other brokers.
Steps at Fidelity to open an account:

Select the account type.
Add personal information, like Social Security Number, residency, employment status, etc.
Select your investment/trading preferences.
Review your information.
Acknowledge the terms and conditions.
Print and mail/fax the application.

The online part of the application takes roughly 20 minutes, but with the mail-in process, it took about 3 business days to open and verify the account.
Signing up for International Stock Trading was relatively quick and easy; it took 5 minutes after the brokerage account was verified.

Fidelity review – Account opening

Mobile app

Score: 5/5

Fidelity has a great mobile trading platform. It is user-friendly and well-designed.

✅ Pro	❌ Cons
❖ User-friendly ❖ Good search function ❖ Good variety of order types	❖ No two-step (safer) login

Fidelity‘s mobile trading platform is available both for iOS and Android. In this review, we tested the iOS version. The platform is available in English.

Look and feel

The Fidelity mobile trading platform isuser-friendly. It is more up-to-date than the web trading platform.

Fidelity review – Mobile trading platform

Login and security

Fidelity provides a safer, two-step login for its mobile platform.

Fidelity offers you free use of Symantec’s Validation and ID Protection (VIP) Access app, which generates a randomized 6-digit code or alternatively you can use text messages to log in.

You can log in using biometric authentication, which is a convenient feature.

Search functions

The search functions are good.

It's easy to use and you can find the relevant options for the stocks easily. You can search for international stocks using the country code. Without that, the search only covers the US market.
We liked the rich research functions; for example, you can see third-party evaluations in many equity categories.

Fidelity review – Mobile trading platform – Search

Placing orders

Fidelity provides many order types on the mobile trading platform.

Market	Limit	Stop
Stop limit	Stop trailing ($	%)
Stop limit trailing ($	%)

There are also order time limits you can use:

Good 'til canceled (GTC)
Day
Fill or Kill
Immediate or Cancel
On the open

Fidelity review – Mobile trading platform – Order panel

Alerts and notifications

You can set alerts and notifications on the Fidelity mobile platform.

You can allow push notifications as well.

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Desktop platform

Score: 4.5/5

Fidelity‘s web platform is easy to use, has many order types and provides two-step authentication. On the negative side, it is not customizable.

✅ Pro	❌ Cons
❖ User-friendly ❖ Clear fee report ❖ Two-step (safer) login	❖ Limited customizability (for charts, workspace)

Fidelity offers an in-house developed desktop trading platform called Active Trader Pro. This platform is mainly for active traders and experienced investors. It acts as an extension of the web platform and integrates a lot of research functions with great flexibility.
Similarly to the web and mobile trading platforms, the desktop trading platform is available only in English.