Fidelity Review

Long-term investors and beginners

SEC FINRA SIPC

Founded 1946 · United States

Why investors choose this broker

No commission on US stock and ETF trades
No account minimum, no account fee, no inactivity fee
No withdrawal fee
Fractional shares available from $1

Review summary

Fidelity is a US brokerage founded in 1946 offering stocks, ETFs, options, bonds, mutual funds, crypto, fractional shares and the Fidelity Go robo-advisor with no account minimums.

Pros

No commission on US stock and ETF trades
No account minimum, no account fee, no inactivity fee
No withdrawal fee
Fractional shares available from $1
Extensive research and educational resources
Fidelity Go robo-advisor free under $25,000
Fidelity does not accept payment for order flow
Excess-of-SIPC coverage totalling $1 billion in aggregate

Cons

No futures trading
No forex or CFD trading
Crypto limited to five coins with a 1% spread
No paper trading or demo account
Margin rates higher than some specialist discount brokers
A small subset of ETFs carry a $100 service fee per purchase

Company background

Fidelity Investments was founded in 1946 by Edward C. Johnson II and is headquartered in Boston, Massachusetts. It is independently owned with no publicly listed parent. Fidelity reported over $14 trillion in assets under administration and more than 50 million individual customers as of mid-2024. Its retail brokerage entity, Fidelity Brokerage Services LLC, covers self-directed investing, while National Financial Services LLC handles clearing and custody.

Fees and pricing

Fidelity charges $0 commission on online US stock and ETF trades with no account minimum, no annual maintenance fee, and no inactivity fee. Options trades are $0 per trade plus $0.65 per contract, with an Options Regulatory Fee on both sides. Secondary-market bond trades cost $1.00 per bond; new issues and online US Treasury trades are free. Non-Fidelity transaction-fee mutual funds cost $49.95 per purchase. A small subset of ETFs is subject to a $100 per-purchase service fee. Crypto trading carries a 1% spread per transaction. Margin rates range from approximately 7.50% for balances above $1 million to 11.825% for balances under $25,000. There are no withdrawal fees. Fidelity does not accept payment for order flow.

Regulation and safety

Fidelity Brokerage Services LLC and National Financial Services LLC are registered broker-dealers, members of FINRA and SIPC, and members of NYSE. SIPC protects eligible client securities up to $500,000, including a $250,000 cash limit. Fidelity carries an excess-of-SIPC policy with $1 billion in aggregate additional coverage and a per-customer cash cap of $1.9 million. Uninvested cash in eligible accounts can be swept to the FDIC-insured deposit sweep program, distributing funds across program banks up to $245,000 per bank.

Platform experience

Fidelity offers a full-featured web platform, Active Trader Pro (a downloadable desktop application with multi-monitor support, streaming quotes, full order-book depth, and a broad set of technical indicators and drawing tools), and Fidelity Trader+ (a mobile-first mode within the iOS and Android apps). The mobile app is rated 4.8 on the App Store and 4.6 on Google Play. Fidelity does not offer a paper trading or demo account. Fidelity Go provides managed portfolio investing with no advisory fee for balances below $25,000 and 0.35% annually above that level. Fractional shares are available for more than 7,000 stocks and ETFs from $1. Crypto trading covers five coins (Bitcoin, Ethereum, Litecoin, Solana, and FIDD) in approximately 38 US states.

Pros and cons

Fidelity's main strengths are $0 stock and ETF commissions, no account fees or inactivity fees, no withdrawal fees, fractional shares from $1, a free robo-advisor tier, extensive research, and a no-PFOF pricing policy. The main drawbacks are the absence of futures, forex, and CFD trading, a limited crypto selection with a 1% spread, no paper trading account, and margin rates that are higher than some specialist discount brokers.

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Trading fees & commissions

US stock and ETF trades are $0 commission with no account minimum or inactivity fee. Options trades are $0 plus $0.65 per contract, and crypto trading carries a 1% spread built into each transaction.

Fees

Item	Fee
Bonds	$0 for new issues; $1.00 per bond for secondary market trades; $0 for US Treasuries traded online
Funds	$0 for Fidelity funds; $49.95 per purchase for non-Fidelity transaction-fee funds
Crypto	1% spread built into each crypto trade; no separate commission
Margin	Effective rates range from approximately 7.50% (balances over $1M) to 11.825% (balances under $25K)
Account	No account opening fee; no account maintenance fee; no minimum balance
Deposit	No deposit fee
Options	$0 per trade + $0.65 per contract; Options Regulatory Fee applies
Inactivity	No inactivity fee
Withdrawal	No withdrawal fee
Fx Conversion	Currency conversion applies when trading international securities; rate varies

Trading platform & features

Platforms

Fidelity Web Platform
Active Trader Pro
Fidelity Trader+
iOS app
Android app

Regulation and investor protection

Fidelity Brokerage Services LLC and National Financial Services LLC are both members of FINRA and SIPC, registered with the SEC and NYSE. Client brokerage assets are protected by SIPC up to $500,000 and by an additional excess-of-SIPC policy with $1 billion in aggregate coverage.

Broker FAQs

Is Fidelity safe?

Fidelity Brokerage Services LLC and National Financial Services LLC are FINRA members and SIPC members, registered with the SEC. Client assets are protected by SIPC up to $500,000 and by an excess-of-SIPC policy with $1 billion in aggregate additional coverage.

Is Fidelity a scam?

No. Fidelity Investments has operated since 1946, is registered with the SEC, and its brokerage entities are members of FINRA and SIPC.

Is Fidelity regulated and by whom?

Yes. Fidelity Brokerage Services LLC and National Financial Services LLC are registered with the SEC and are members of FINRA, SIPC, and NYSE.

Does Fidelity keep client funds in segregated accounts?

Fidelity holds client brokerage assets separately from firm assets, as required under FINRA and SEC rules. Mutual fund assets are held by a separate custodian, segregated from Fidelity's own assets.

What happens to my money if Fidelity goes bankrupt?

SIPC covers eligible client securities up to $500,000 per account, including a $250,000 cash limit. Fidelity also carries an excess-of-SIPC policy providing up to $1 billion in aggregate additional coverage with an unlimited securities component per customer.

What products does Fidelity offer?

Fidelity offers US stocks, ETFs, options, bonds, mutual funds, money market funds, fractional shares, margin accounts, a limited crypto offering (five coins), and the Fidelity Go robo-advisor.

Does Fidelity offer ETFs?

Yes. ETF trades are commission-free for most funds. A limited set of ETFs is subject to a $100 per-purchase service fee.

Does Fidelity offer options?

Yes. Options trades are $0 per trade plus $0.65 per contract. An Options Regulatory Fee also applies to buy and sell transactions.

Does Fidelity offer crypto?

Yes, with limitations. Fidelity Crypto supports Bitcoin, Ethereum, Litecoin, Solana, and Fidelity Digital Dollar (FIDD), currently available in approximately 38 US states. Each trade carries a 1% spread.

Can I buy fractional shares on Fidelity?

Yes. Fidelity supports fractional share investing in more than 7,000 stocks and ETFs with a minimum investment of $1.

What does Fidelity charge for stock trades?

Online US stock trades are $0 commission. Sell orders are subject to a small activity assessment fee of $0.01-$0.03 per $1,000 of principal, which is a regulatory fee passed through to the customer.

What does Fidelity charge for options?

Options trades are $0 per trade plus $0.65 per contract. An Options Regulatory Fee applies to both buy and sell transactions.

Is there a withdrawal fee at Fidelity?

No. Fidelity does not charge a withdrawal fee.

Does Fidelity charge an inactivity fee?

No. Fidelity does not charge an inactivity fee.

Does Fidelity have a demo account?

No. Fidelity does not offer a paper trading or demo account environment.

Does Fidelity have a mobile app?

Yes. Fidelity provides iOS and Android apps, rated 4.8 on the App Store and 4.6 on Google Play. The apps include the Fidelity Trader+ mobile trading mode.

Is Fidelity good for beginners?

Fidelity offers $0 account minimums, $0 stock and ETF commissions, fractional shares from $1, extensive educational content, and the Fidelity Go robo-advisor. These features make it accessible for investors starting out.

Is Fidelity good for long-term investing?

Fidelity offers a broad range of long-term investment vehicles including stocks, ETFs, bonds, mutual funds, zero-expense-ratio index funds, and retirement account types. The Fidelity Go robo-advisor automates portfolio management for hands-off investors.

Bottom line

Fidelity suits users who want commission-free US stock and ETF trading, a wide product range spanning bonds, mutual funds, and fractional shares, and strong research and educational tools with no account minimums or fees. It may not suit users who require futures trading, forex, CFDs, spread betting, a broader crypto selection, or a paper trading environment.

Fidelity

Long-term investors and beginners

Open Account

Your capital is at risk. Other fees apply.