Fidelity® Review 2019

James Royal is a reporter covering investing and wealth management. Before joining Bankrate, he worked as a writer for NerdWallet and a stock analyst for The Motley Fool. He holds a doctorate in literature from the University of Florida.

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Fidelity Logo

Best For

  • Overall experience
  • Research
  • Customer support
  • Mutual funds

Long known for its well-regarded mutual funds, which have around $2.5 trillion in client assets, Fidelity Investments has every right to be known for its superb brokerage, which delivers great service across the board. From high-powered trading tools to extensive free research to low or no account fees, Fidelity prides itself on being investor-friendly. Fidelity does all this with an easy-to-use site and at a very low overall price. You’ll also receive helpful customer support — in many cases almost immediately if you’re chatting online.

All these features make Fidelity Investments a top overall pick for best broker.

Fidelity at a glance

Star Rating

4.5
  • Affordability: 4 of 5
  • Usability: 4 of 5
  • Tools & Research: 4 of 5
  • Mobile: 4 of 5
  • Scalability: 4 of 5
  • Minimum Balance:
    $0
  • Cost per stock trade:
    $0
  • Cost per options trade:
    $0.65 per contract
  • Promotion:
    None
  • Commission-free mutual funds or ETFs:
    All
  • No-transaction-fee mutual funds:
    3,500+ NTF mutual funds
  • Securities tradable:
    Stocks, ETFs, bonds, mutual funds, options
  • Customer service:
    Phone 24/7, email, live chat M-F 8am-10pm and Sat/Sun 9am-4pm
  • Account fees:
    None
  • Mobile app:
    Fidelity offers mobile apps on the Apple App Store, Google Play Store and Amazon devices

Feature you'll love

Wealth-Lab Pro: Wealth-Lab Pro is Fidelity’s backtesting tool, which allows you to test trading strategies using historical data in order to see how they might perform. You can view up to 20 years of daily historical data. A drag-and-drop strategy builder tool helps you create trading strategies quickly, and you can track your active strategies. If you’re willing to code your own strategies, you’ll be able to unlock even more of the platform’s power. Finally, you can set up Wealth-Lab Pro to trade automatically based on the strategies you select.

And while the tool may be new to you, Fidelity will teach you how to use it in a series of video webinars and printed guides, taking advantage of another of Fidelity’s strengths, education. If there’s a downside, it’s that Fidelity limits the tool to customers with at least 36 trades over a rolling 12-month period and who have $25,000 or more in assets with the broker. However, you can give it a test drive for 30 days first to see if you like it, before making a full commitment.

Where Fidelity rocks

Accounts fees and no minimum

If you’re looking to minimize all those “nickel and dime” fees that brokers often bombard you with, you could hardly do better than Fidelity. The broker charges no fee for the standard categories – including account or activity fees and transfer-out fees – as well as some of the obscure ones such as the IRA closeout and reorganization fees.

And if you pay bills from your brokerage account, Fidelity doesn’t charge for typical bank fees either. These include stop-payment fees or ATM fees. Fidelity is incredibly investor-friendly.

On top of all of this, the broker has no account minimum, so it’s easy to get started, too. Clients can trade stocks, ETFs, mutual funds, bonds and options at Fidelity.

Mutual funds

Fidelity performs great in this area, and it offers customers two investor-friendly ways to play mutual funds.

No-transaction-fee funds: The broker offers more than 3,500 mutual funds without a transaction fee. That means you can get into and out of the fund without cost, though you’ll still be on the hook for any expense ratio charged by the fund. This is a huge selection of these advantaged funds, and compares favorably with the best brokers.

Fee-free funds: As if that weren’t enough, Fidelity does even better, offering mutual funds without an expense ratio at all. It’s the first company to offer a fee-free mutual fund, though you don’t have to be a customer of the brokerage to buy it. So without a transaction fee or an annual expense ratio, you could own the fund at no ongoing cost.

Commissions

Although Fidelity offers the rock-bottom of commission prices in the industry, it also doesn’t offer rock-bottom features, which is not the usual trade-off if you care only about costs. Instead, at Fidelity you’ll pay $0 for stock and ETF trades – for a high level of features, including all of their research and educational offerings as well as a wealth of trading tools. Fidelity’s commission is competitive with other top brokers such as Charles Schwab and TD Ameritrade.

Research and education

Fidelity offers an extensive lineup of research and education resources for investors of every level.

Research: There is a vast amount of valuable information available on the Fidelity site. Go to the page for an individual stock and you can receive financial data, competitor analysis, news and reports on individual stocks from a variety of third-party research companies including Thomson Reuters, Ned Davis, Zacks, and many others.

You’ll also have access to SEC filings and a variety of sources of market commentary. And you’ll find further reports on ETFs. Really the resources go on and on, and with the clean layout you’ll have no problems finding what you’re looking for.

Education: You can get assistance on the basics of personal finance – budgeting, managing debt and saving – but it goes way beyond planning and advice. In Fidelity’s learning center, you can attend webinars or view recorded ones that detail almost any aspect of trading, options, funds and how to use the many tools Fidelity offers, such as Active Trader Pro. You’ll find the short courses ranked according to skill level, too.

Tools

Besides Wealth-Lab Pro, Fidelity provides a number of tools if you’re looking to improve your trading or to get better trade ideas.

Active Trader Pro: The biggest tool at Fidelity is Active Trader Pro, the broker’s flagship trading platform. You’ll be able to set up the look of the platform with one of a few preset layouts or customize it completely to your preferences. You’ll be able to build stock charts, show dozens of technical indicators and place multiple trades at a time.

Fidelity’s other trade tools – Real-Time Analytics and Trade Armor – are integrated into the platform dashboard for easy access. You can also pull streaming Bloomberg TV onto your desktop as well.

Real-time Analytics: This tool provides trade signals in real-time based on historical price movements. You’ll be alerted when a stock hits a new high or low, crosses a key technical level or shows other unusual activity.

Trade Armor: Trade Armor allows you to visualize your trading opportunities on a chart. You can set alerts to track price movements and determine prices to get in and out of a position. You can also enter orders right from the tool.

Daily Dashboard: This tool pops up when you launch Active Trader Pro and provides real-time news, earnings and economic news, so that you’re abreast of what’s impacting your portfolio.

 

Quick comparison of Brokerage options:
Brokerage Overall Rating Avg. Cost Per Trade Usability Rating
Fidelity logo
$0 4 of 5
Robinhood® Review 2019 logo Read Our Review
$0 4 of 5
Interactive Brokers® Review 2019 logo Read Our Review
$1* 3 of 5
TD Ameritrade® Review 2019 logo Read Our Review
$0 5 of 5

Where Fidelity could improve

New account bonus: Fidelity does not offer any account bonuses, unlike a number of its rivals. For all that Fidelity offers in the way of other features and tools, that’s a modest trade-off and shouldn’t dissuade you if the broker is otherwise satisfactory. For those who need an account bonus, however, see Bankrate's list of the best brokerage account bonuses

Bottom line

Fidelity is a great pick for a broker that can do almost everything and do it well.

  • Fidelity’s mutual funds are a solid addition to any portfolio, and the company’s fee-free funds are an added bonus.
  • Fidelity’s research and educational support are tops in the industry.
  • Fidelity keeps its focus on being investor-friendly – low fees, no account minimum and $0 commissions

Investors who demand low commissions and a professional-level trading platform should check out Interactive Brokers, though it doesn’t provide the same level of educational support as Fidelity. If research and overall great experiences are a priority, you may find Charles Schwab or Merrill Edge to your liking. Those who need an attractive sign-up bonus should check out Ally Invest.

 

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