Fidelity Investments

What is Fidelity Investments?

Fidelity Investments is one of the largest and most trusted financial services companies in the world, managing over $11 trillion in client assets and serving more than 43 million individual investors. Founded in 1946 by Edward C. Johnson II in Boston, Massachusetts, Fidelity has grown from a small mutual fund company to a comprehensive financial services powerhouse offering brokerage, retirement planning, wealth management, and financial planning services.

As a privately held company, Fidelity maintains its independence and long-term focus on customer value rather than quarterly shareholder pressures. The company pioneered many industry innovations including the first money market fund that allowed check writing and was among the first to offer online trading to individual investors. Today, Fidelity continues leading the industry with zero-expense-ratio index funds and commission-free trading.

Fidelity distinguishes itself through exceptional research capabilities, industry-leading retirement services (administering more workplace retirement plans than any other provider), and a commitment to value that consistently puts customers first. The platform serves everyone from first-time investors to high-net-worth individuals, providing the tools, research, and guidance needed to achieve financial goals.

Key Features

• Commission-Free Trading: Trade stocks, ETFs, and options with zero commissions on online trades, saving significant costs for active investors.
• Zero-Fee Index Funds: Exclusive Fidelity ZERO index funds with no expense ratios, no minimums, and no fees whatsoever.
• Fractional Shares: Invest in stocks and ETFs with as little as $1 through Fidelity’s Stocks by the Slice feature.
• Award-Winning Research: Access comprehensive research from 20+ independent providers including Morningstar, Argus, and Fidelity’s own analysts.
• Active Trader Pro: Powerful desktop trading platform with advanced charting, real-time analytics, and customizable workspaces.
• Retirement Leadership: Industry-leading retirement services including 401(k) plans, IRAs, and comprehensive retirement planning tools.
• Cash Management: High-yield savings, free ATM reimbursements, and integrated cash management with your brokerage account.
• Robo-Advisory: Fidelity Go automated investing service with no advisory fees for balances under $25,000.
• Youth Accounts: Fidelity Youth Account for teens 13-17 to learn investing with parental oversight and no fees.
• Learning Center: Comprehensive educational resources including articles, videos, webinars, and guided learning paths.

Latest Updates

Fidelity continuously enhances its platform to deliver more value and better experiences to investors.

• Enhanced Mobile App: Redesigned mobile experience with improved navigation, faster performance, and new analytical tools.
• Fidelity Bloom: New financial wellness app helping users save for goals and build better money habits.
• Expanded Crypto Services: Enhanced cryptocurrency offerings including Fidelity Crypto for retail customers.
• Improved Research Tools: Upgraded screeners with more filters, better visualization, and AI-powered insights.
• Cash Management Upgrades: Higher yields on uninvested cash and expanded banking features.
• Active Trader Pro Updates: Enhanced charting capabilities, new technical indicators, and improved option analytics.
• ESG Investing Tools: Expanded sustainable investing options and ESG ratings integration across research tools.
• Personalized Insights: AI-driven personalized recommendations and portfolio analysis delivered through the app.

System Requirements

Web Browser

• Google Chrome (latest two versions)
• Mozilla Firefox (latest two versions)
• Safari 12 or later
• Microsoft Edge (Chromium-based)
• JavaScript and cookies enabled
• TLS 1.2 or higher

Active Trader Pro (Desktop)

• Windows 10 or later (64-bit)
• macOS 10.14 or later
• 4 GB RAM minimum (8 GB recommended)
• 1 GB available disk space
• 1280 x 1024 display minimum
• Broadband internet connection

iOS

• Operating System: iOS 15.0 or later
• Compatible with iPhone and iPad
• Storage: 200 MB available space
• Face ID/Touch ID supported

Android

• Operating System: Android 9.0 or later
• Storage: 150 MB available space
• RAM: 2 GB minimum
• Fingerprint authentication supported

How to Install Fidelity

Web Access

1. Navigate to fidelity.com in your web browser
2. Click “Open an Account” to begin registration
3. Select account type (brokerage, IRA, etc.)
4. Provide personal information and verify identity
5. Set up login credentials and security
6. Fund your account via bank transfer
7. Begin investing once funds settle

Active Trader Pro Installation

1. Log in to your Fidelity account on the web
2. Navigate to “News & Research” then “Trading”
3. Select “Active Trader Pro” and click download
4. Run the installer for Windows or Mac
5. Launch and log in with Fidelity credentials
6. Customize workspace and preferences
7. Configure streaming data and alerts

iOS Installation

1. Open the App Store on your iOS device
2. Search for “Fidelity Investments”
3. Tap “Get” to download the free app
4. Open app and log in or create account
5. Enable biometric authentication
6. Configure notifications and preferences
7. Set up watchlists and dashboards

Android Installation

1. Open Google Play Store
2. Search for “Fidelity Investments”
3. Tap “Install” to download
4. Open app and sign in
5. Enable fingerprint login
6. Configure alerts and preferences
7. Customize your mobile experience

Pros and Cons

Pros

• Zero-Fee Funds: Fidelity ZERO index funds have no expense ratios, making them the cheapest investment vehicles available.
• Fractional Shares: Invest any amount with Stocks by the Slice, making expensive stocks accessible to all investors.
• Exceptional Research: Access to over 20 research providers and Fidelity’s in-house analysis team is industry-leading.
• Retirement Excellence: Unmatched retirement services with the most workplace plans and comprehensive planning tools.
• No Account Minimums: Open any account type with no minimum balance requirement.
• Customer Service: Excellent support through phone, chat, and over 200 physical branch locations nationwide.
• Cash Management: High yields on uninvested cash with free ATM access and bill pay features.

Cons

• No Futures/Forex: Fidelity doesn’t offer futures or forex trading, limiting options for advanced traders.
• Complex Interface: The website and apps can feel cluttered with so many features and options available.
• Limited International: International stock trading has higher fees compared to domestic securities.
• Active Trader Pro Learning Curve: The advanced platform requires time to learn and configure effectively.
• Mutual Fund Fees: Some non-Fidelity mutual funds carry transaction fees when purchased.

Fidelity vs Alternatives

Who Should Use Fidelity?

Fidelity is ideal for:

• Long-Term Investors: Those building wealth over time benefit enormously from zero-fee index funds and excellent research tools.
• Retirement Savers: Individuals focused on retirement benefit from Fidelity’s industry-leading retirement planning tools and services.
• Beginning Investors: New investors appreciate fractional shares, no minimums, educational resources, and youth accounts.
• Research-Focused Traders: Investors who value comprehensive research and analysis from multiple respected sources.
• Value-Conscious Investors: Those who want to minimize costs with zero-fee funds and commission-free trading.
• Parents Teaching Kids: Families wanting to teach children about investing through Fidelity Youth Accounts.

Fidelity may not be ideal for:

• Futures/Forex Traders: Active traders wanting futures or forex need platforms like TD Ameritrade or Interactive Brokers.
• Cryptocurrency Traders: Those wanting direct crypto trading may prefer dedicated cryptocurrency exchanges.
• International Stock Focus: Investors primarily trading international stocks may find fees higher than competitors.
• Options-Heavy Traders: While Fidelity offers options, specialists may prefer thinkorswim or other platforms.

Frequently Asked Questions

Is Fidelity a safe broker?

Fidelity is one of the safest brokerages available. It’s been in business since 1946 and manages over $11 trillion in assets. Accounts are protected by SIPC up to $500,000, and Fidelity provides additional protection through excess SIPC coverage. The company uses advanced encryption, multi-factor authentication, and has a dedicated security team monitoring for threats.

What are Fidelity ZERO funds?

Fidelity ZERO funds are a family of index mutual funds with no expense ratio, no minimum investment, and no fees whatsoever. Available funds include Fidelity ZERO Total Market Index Fund (FZROX), ZERO International Index Fund (FZILX), ZERO Large Cap Index Fund (FNILX), and ZERO Extended Market Index Fund (FZIPX). These are the lowest-cost index funds available anywhere.

Does Fidelity have a minimum investment?

No, Fidelity has no minimum investment to open any account type including brokerage accounts, IRAs, and cash management accounts. You can start investing with any amount. For stocks and ETFs, the Stocks by the Slice feature allows investments starting at just $1 through fractional shares.

How does Fidelity’s cash management work?

Fidelity’s Cash Management Account functions like a checking and savings hybrid. You earn competitive interest on your cash, get free unlimited ATM fee reimbursements worldwide, free checks and bill pay, and FDIC insurance through partner banks. The account links seamlessly with your brokerage account for easy fund transfers.

Can teenagers invest with Fidelity?

Yes, the Fidelity Youth Account allows teens ages 13-17 to open their own brokerage account with parental oversight. The account has no fees, no minimums, and includes a debit card. Parents can monitor activity and set alerts while teens learn to invest with real money. The account automatically converts to a standard brokerage account at age 18.

Final Verdict

Fidelity Investments stands as one of the most complete and value-oriented brokerages available, consistently putting customer interests first through industry-leading innovations like zero-fee index funds and fractional share investing. The combination of exceptional research, comprehensive retirement services, and competitive pricing makes Fidelity suitable for virtually any investor.

The platform excels at serving long-term investors and retirement savers, with tools and resources specifically designed to help people build wealth over decades. The absence of account minimums, zero-fee funds, and educational resources make it equally welcoming to beginners, while Active Trader Pro satisfies more advanced trading needs.

While active traders focused on futures, forex, or cryptocurrency may need to look elsewhere, Fidelity remains the gold standard for traditional investing. The company’s financial strength, customer service reputation, and relentless focus on value make it an excellent choice for anyone serious about their financial future. Fidelity earns our highest recommendation as a primary brokerage for most investors.