Fidelity Investments Review 2024: Pros, Cons, Features, Fees, and Comparison With Other Brokerages

Fidelity Investments is a major brokerage firm founded in 1946. Since then, it has grown to become one of the largest global firms in asset management. Owing to its well-rounded offer, it has earned a spot at the very top of the financial sector.

In this article, we will discuss various aspects of Fidelity Investments and the reviews we’ve assessed as part of our comprehensive research.

Fidelity Investments Overview

Fidelity Investments is a brokerage established in 1946 with its headquarters in Boston, Massachusetts. It manages one of the world’s most prominent asset funds with over $4.5 trillion and around 40 million individual investors.

According to numerous clients, it offers great service when it comes to retirement savings and investing, EFTs, and bonds. You can open a trading account for free, and rest assured that they provide some of the best and most affordable options on the market. 

Having started out as a mutual fund investment company, Fidelity has stayed on top of the game throughout the decades. And it’s the IRA and mutual funds trading that consistently earn Fidelity the reviews that single it out from the competition.

Fidelity is a recommended brokerage for both beginners and experienced traders as its service fees are low, and there are fee-free options for online trading that cover a large segment of the premium service packages. 

Moreover, Fidelity Digital Asset Services was recently introduced and provides cryptocurrency custody and trade execution for institutional investors.

Another important feature is the Active Trader Pro, a robust trading platform that will allow you to oversee your stocks with many options for customization to suit your needs.

Fidelity Investments Features

What makes Fidelity Investments stand out is that it’s suitable for beginners and active traders alike. It offers a range of trading tools that can be customized, and you can start with free options and move up as your portfolio grows. 

IRA Funds 

When it comes to planning retirement investments, Fidelity does a solid job of offering its customers a full range of services at affordable prices. Whether you opt for rollover, traditional, or Roth IRA, Fidelity gives you one of the top broker services for IRA funds on the market. 

First, we’ll take a closer look at Fidelity traditional IRA and Fidelity Roth IRA and review their fees. You can manage your investments fee-free or use the digital platform Fidelity Go. There is an advisory fee of 3$/month for investments ranging from $10,000-$49,999 and 0.35% per year for funds above $50,000.

A Fidelity Personalized Planning & Advice option is available for investments of $25,000 and above. The advisory fee amounts to 0.5% and provides one-on-one financial coaching and access to robust investment tools. It’s good to know that if you invest your savings in Fidelity mutual funds, the company waivers the above fees.

All in all, the Fidelity Investments retirement program is affordable and easy to start. Moreover, the fees are low compared to the competition. Also, you can grow your assets by investing your savings in Fidelity mutual funds.

Fidelity Investments Mutual Funds

Fidelity Investments started its business as a mutual funds company and still provides stellar service in this area. What makes it so appealing to clients are the fee-free transfers that make it easy to invest and move your assets as the opportunity arises.

The firm offers over 10,000 funds and, as part of its mutual funds strategy, Fidelity has always had a salient presence in the index fund market. In recent years, it introduced an index fund advertised as the first zero expense ratio fund. Specifically, Fidelity ZERO is trying to appeal to millennials by cutting the overall trading costs.

Fidelity Investments Online Trading Tools

Being an old and established brokerage doesn’t stop Fidelity from competing in the fintech market as well. Fidelity has invested in online trading technology, and its proprietary trading tools make it one of the top online brokerage services. 

Active Trader Pro 

Fidelity’s online trading platform is free and has a range of tools that you can customize. Daily Dashboard, one of its main features, provides an instant overview of your stock and shows a live stream of the stock market.

You are eligible after 36 trades over 12 months, but if you don’t fulfill this criterion, you could still apply for it through Active Trader Pro Services.

Mobile App

Fidelity’s mobile app has similar features like the Active Trader Pro, except you can’t trade bonds via the app. It's pretty straightforward to use and is available on iOS and Android as well as Amazon and Google Assistant devices.

Fidelity Go

Fidelity’s robo-advisor, Fidelity Go, is free for accounts below $10,000, while there is a $3 monthly fee for $10,000-$49,000 accounts. It’s great for low-cost investment management. Also, if you already have an account with Fidelity, you can manage it through Fidelity Go. The downside is that it doesn’t offer tax-loss harvesting, unlike some robo-advisors on the market. 

Fidelity Investments Security

Fidelity’s security measures that ensure data safety are comprehensive and include voice authentication, encrypted email service, two-factor authentication for log-ins, and money transfer lockdown. More importantly, the company guarantees safety as it will reimburse any damages that may occur due to unauthorized access to your account.

But before we answer the question “Is Fidelity safe to use?” we’ll take a look at the technology it relies on.

 First of all, Fidelity SimpliSpeak is the company’s voice authentication software that makes it safe and easy to access your account, as no password or call is needed. 

Additionally, 2FA is a two-factor authentication protocol. It prevents data from your account from being made available unless you enter a one-time code that you will receive by text or call. Fidelity’s security service will also inform you via text if there is any activity on your accounts.

So, when it comes to Fidelity’s security protocols, even with today's stringent standards in cybersafety, Fidelity delivers.

Fidelity Investments Customer Service 

Fidelity’s customer support is available 24/7 through a customer service number you can call or a virtual assistant if you prefer to chat. Its live support team can be reached from 8 a.m. to 10 p.m. ET, Monday to Friday, as well as 9 a.m. to 4 p.m. ET on weekends.

The Fidelity website provides additional resources on its customer service page for in-depth information about Fidelity Investments and its services.

Fidelity Investments vs. Charles Schwab

Charles Schwab is another well-established stock brokerage and member of the “big four”. As it has a similar business portfolio to Fidelity, let’s review some of their main features and compare the two firms.

You can open an account without any fees and a minimum deposit at both brokerages. There are also no fees for trading stock and EFTs, as both firms offer solid trading platforms. 

But we have to underscore that Fidelity’s trading software really outshines its competitor. It uses a smart order routing system that seeks the best price available and will improve the net price. It is also known for its wide range of customization options. That’s why we have to conclude that Fidelity platforms outperform Charles Schwab’s trading tools. 

When it comes to broker-assisted trading, Charles Swab’s fees are slightly lower at $25, while Fidelity charges a $32.50 fee for the same service. 

Another area where Fidelity proves stronger is its IRA funds. This is among Fidelity’s best business features, as it offers a lot of options for further investment. And the fact that there are no transaction fees makes this deal even better. 

When it comes to the crypto market, neither brokerage giant deals directly with cryptocurrency, although they do offer indirect exposure to the market. Fidelity launched the Fidelity Crypto Industry and Digital Payments ETF to help its clients deal with the market fluctuations in the crypto industry.

Visit Charles Schwab

Fidelity vs. Robinhood

Robinhood developed as an online platform for trading and has been popular with millennials who mostly trade stock using their mobile devices. While Fidelity’s mobile app is good and offers plenty of features, its interface is just not as attractive or easy to use as the Robinhood app.

But once you start trading more you will appreciate the options Fidelity has to offer. The overall package when doing business with a big brokerage firm and its lower fees become more tempting.

The app doesn’t offer quite the ease of use that you get with Robinhood, but there are benefits to Fidelity’s customization features. That is why Fidelity Investments in reviews and polls rank as one of the leading online brokers for beginner investors.

Visit Robinhood

Final Thoughts

A top-tier company that has been around for over half a century, Fidelity Investments is still among the leaders in the industry. Its online trading platforms and apps are ranked among the best and have succeeded in attracting a new generation of discerning traders. 

Fidelity’s retirement and mutual funds are industry-leading in terms of the perks they provide. All things considered, this is a reliable brokerage with a wide offer that caters to diverse customer groups. It has been growing steadily and has maintained its stellar reputation in the market.