What is Fidelity?
Fidelity is a US stock broker which deals in stocks, bonds, funds and more. It was founded in 1946. Fidelity is regulated by top financial institutes SEC & FINRA.
It has its headquarter in Boston, Fidelity serves its customers through 12 regional offices and more than 190 Investor Centers in the United States.
It has a long operating history which makes it safer for the trader.
Account opening at Fidelity is digital and straight forward. It offers many types of accounts.
What is the minimum deposit at Fidelity?
There is no minimum deposit required at Fidelity. However, you are required to have a minimum deposit if you trade using a margin account.
Trading Types with minimum deposit requirements
|Trading Preferences||Minimum Deposit|
|Trading at basic accounts||$0|
|Fidelity Managed Accounts||$10 – $500,000|
|Investing and Trading||All investment retail accounts have joint and individual |
options, except for the Fidelity Account for Business
|Brokerage Account||Standard brokerage account|
|Cash Management Account||FDIC-insured account that 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 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 business|
|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 managed by Fidelity’s technology and professionals. Robo-advisor accounts managed by Fidelity|
|Saving for education / medical expenses / ABLE||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|
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Fidelity has low non trading fees and commission free stock trading. On the other hand, it has a high margin and mutual fund fee.
Fidelity fee snapshot
|US stock||Free stock and ETF trading|
|Mutual fund||$49.95 or $75.0 for buying while selling is free; some 3,600 free mutual funds|
|Inactivity fee||No Inactivity fee|
If you want to do trade on margin, then you must check the margin rates before trading.
For those, who don’t know what margin trade is? Margin trade means that you borrow money from your broker to trade in stocks. You have to pay interest on this borrowed amount, hence the margin rates are;
Fidelity margin rates
|Debit Balance||Rate%||Base Rate +/-|
|$1,000,000 or more||4.000%||Base rate – 3.075%|
|$500,000 – $999,999||4.250%||Base rate – 2.825%|
|$250,000 – $499,999||6.575%||Base rate – 0.500%|
|$100,000 – $249,999||6.825%||Base rate – 0.250%|
|$50,000 – $99,999||6.875%||Base rate – 0.200%|
|$25,000 -$49,999||7.825%||Base rate + 0.750%|
|Under $25,000||8.325%||Base rate + 1.250%|
Deposit and Withdrawal
Fidelity has a user friendly deposit and withdrawal process. It charges no deposit and withdrawal charges. But you can use only bank transfer, it does not support credit/debit transactions. And it charges a high fee for wire withdrawal.
It offers 16 base currencies. Fidelity offers a feature called ‘BillPay’ as an additional service. Fidelity charges no withdrawal fee if you use ACH or USD wire transfer. Non-USD withdrawal costs 3%.
Fidelity trade platform comes in three format :
- Web Trading Platform
- Mobile Trading application
- Desktop Trading Platform
All of the trading platforms are easy to use and are beginner friendly. They provide a safe login and clear fee report. Mobile apps are available in both Android and iOS.
However, desktop trading platforms are not very suitable for beginners. Desktop trading platforms are so advanced and have so many functions.
Fidelity offers a lot of trading products. But it does not offer trade in forex, futures and crypto.
Fidelity covers 25 international markets along with the US Market.
Fidelity asset selection
|Stock markets (#)||22|
|Fund providers (#)||550|
|Options markets (#)||9|
Fidelity also offers you with a service for managing your account. This service is for those who by themselves are unable to manage accounts. They charge some fee for managing your account, & the fees are;
|Service Type||Minimum to start||Annual fee|
|Fidelity Go||Robo-advisory service||$10||0.35%|
|Fidelity Personalized Planning and Advice||Robo-advisory service with a consultation with experts, either with a team or a dedicated advisor||$25,000||0.50%|
|Portfolio Advisory Services||Personalized solutions compiled by Fidelity experts||$50,000 to work with a team of advisors|
$250,000 for a dedicated advisor
|1.50% with a team of advisors0.50-1.50% with a dedicated advisor|
|Separately Managed Accounts||Preset portfolios you can invest in, e.g. Fidelity® U.S. Large Cap Equity Strategy||$100,000-$350,000||0.20-0.90%|
You can connect Fidelity via:
- Live Chat
No 24/7 support available.
|Commission-free US stocks and ETFs||Slower account verification|
|US and international stocks||High mutual fund fees and margin rates|
|Many account types||Credit/Debit card not available|
|User-friendly||Slow live chat|
|Trading platform tutorial||Demo account is only for desktop|
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Is Fidelity Legit or Scam?
Fidelity is a legit stock broker. We’re saying this because it is regulated by top financial institutions. The clients which operate under Fidelity are protected by the SIPC protection scheme. The limit of SIPC protection is $500,000, which includes $250,000 for cash. This amount is substantially higher than what most investor protection schemes provide.
Fidelity is a good CFD broker. It is beneficial for those who are ready to take risks. As mentioned earlier CFDs are highly complex instruments with 75% traders being at a loss while trading the same. Customers are protected under the protection scheme. Hence, before investing must check that you come under scheme or not.
It provides a free demo account for lifetime, no minimum investment, no withdrawal fee and inactivity fee kicks after 3 months. So you can definitely give it a try.
How do I add margin to my account?
To add margin to your account, you must first have an eligible Fidelity brokerage account. Then, you submit an application. Log In Required to trade on margin. Want to learn more?
Why is the trade settlement date important?
The trade settlement date is important because it is the date when you actually own the stock or exchange-traded fund you’ve bought, or if you’ve sold a security, it’s the date when you can expect to access the cash from the sale.
How do I track the status of my wire transfer?
You can check the status of your wire transfer from your Fidelity account. Log in and select the Activity & Orders tab. Log In Required from your Portfolio Summary page