Fidelity is one of the largest — and best — brokerage and robo-advisor platforms, offering a robust selection of trading tools, brokerage accounts, and advanced trading features.
Business Insider's personal finance team compared Fidelity to the best online brokerages and found it an industry leader for youth accounts and retirement planning.
Pros and Cons
Fidelity Pros
- Low account minimum and fees
- Commission-free stocks, ETFs, options, and fractional shares
- Large range of investing tools and trading platforms
- Fee-free mutual funds
- Fidelity basket and youth basket portfolios
Fidelity Cons
- Robo-advisor requires a higher minimum to access unlimited CFP access
- Newer investors may be overwhelmed by the number of options
- Fidelity Go doesn't offer tax-loss harvesting
Open an Account
$0 ($25,000 Fidelity Personalized Planning & Advice)
0% ($0 or 0.35% for robo-advisor)
- No account minimum or account fees
- No commissions for stock, ETF, and options trades; fractional shares available
- Thousands of no-transaction-fee mutual funds and fee-free mutual funds
- Several research tools and trading platforms available
- Fidelity Go accounts cost more for investors with higher account balances
- Representative-assisted trades are slightly more expensive than other brokerages
Fidelity is one of the best online brokerages for beginners and retirement savings. It has great features for all types of investors and traders.
- Promotion: None at this time
- App store rating: 4.8 iOS/4.4 Android
- Awards: Morningstar named the Fidelity HSA as the best HSA provider in 2019, 2020, and 2021.
- Consider it if: You're focused on long-term investing and retirement.
Compare Fidelity
Overview
Fidelity Investments is one of the best investing apps for beginners for comprehensive robo-advice, mobile investing, and personalized wealth management services. All types of investors, including teenagers and beginners, can benefit from commission-free trading with Fidelity Investments.
Fidelity has you covered with access to investing with stocks, ETFs, and fee-free mutual funds. Or, you can invest in the Fidelity Basket Portfolios and choose the stocks and ETFs you want in your basket.
Fidelity Go, the brokerage's robo-advisor, is one of the best robo-advisors for beginners to access low-cost diversification strategies, online planning tools, and access to an advisor if your account balance exceeds $25,000.
That said, passive investors with high account balances may want to consider a different robo-advisor to avoid Fidelity's 0.35% annual fee Also, unlike a standard brokerage account, Fidelity Go doesn't offer tax loss harvesting.
In addition to its online platform and mobile apps, Fidelity offers a trading platform specifically for active traders: Active Trader Pro. Fidelity Active Trader Pro features include real-time trading alerts, investing insights, portfolio monitoring, customizable dashboard layouts, and options trading assistance — though it doesn't have a mobile option.
Fidelity has a rating of 4.8/5 on the Apple Store and 4.6/5 on Google Play.
Ways to Invest
Between all of the different accounts, the commission-free trades available for Fidelity include:
- US stocks and ETFs
- Options trades ($0.65 per contract)
- Zero expense ratio index mutual funds
Investment options with fees are:
- $1 bonds and CDs (free for US treasuries traded online)
- Cryptocurrency funds
Fidelity offers fractional share investing for US stocks and ETFs. You can also choose to invest in sustainable investing through Fidelity's environmental, social, and governance (ESG) investing options. If you want to diversify your portfolio globally, Fidelity offers international stock trading in over 25 countries and 16 currencies.
Fidelity Cash Management Accounts
Fidelity states that the purpose of a Fidelity Cash Management Account is to complement (not replace) an already existing brokerage account. The Cash Manager tool automatically moves funds between your Fidelity accounts to match your investment goals better.
- Fidelity Government Money Market Fund: 4.25% 7-day yield
- FDIC-Insured Deposit Sweep Program: 2.35% annual percentage yield
Account minimum: $0
Fees: $0
Self-Directed Fidelity Brokerage Accounts
Fidelity's self-directed brokerage account serves active traders who want complete control of their investments. This account's flexibility allows investors to invest in various assets, including stocks, bonds, mutual funds, and ETFs. It offers commission-free trades, fractional shares, and smart trading technology.
This may appeal to advanced traders looking to hand-pick investments and accomplish goals on their own time.
Account minimum: $0
Fees: $0 commission for online US stock, ETF, and option trades
Margin rates: As low as 8.50%
Fidelity Go
Fidelity Go uses a combination of Fidelity Flex mutual funds in its Fidelity Go portfolios. According to Fidelity, these funds contain a mix of domestic stocks, foreign stocks, bonds, and other short-term investments.
It provides unlimited access to a certified financial planner (CFP) with an account balance of $25,000 or more. You can unlock one-on-one personalized advice and guidance for no additional charge.
A team of investment professionals handles Fidelity Go's day-to-day trading decisions. An existing Fidelity brokerage account can be converted to a Fidelity Go account. However, it doesn't offer ETFs or tax-loss harvesting and isn't a good choice for investors wanting to capitalize on short-term stock market trends.
Account minimum: $0 to open and $10 to start investing
Fees: 0.00% for accounts under $25,000, 0.35% for account with balances at or above $25,000
Managed Fidelity Accounts
Outside of Fidelity Go, there are two different managed accounts: Fidelity Wealth Services and Fidelity Strategic Disciplines. Both account options give investors access to human advisors.
- Fidelity Managed FidFolios: These portfolios of personalized stocks are professionally managed by a team of Fidelity experts using a tax-smart investment strategy. There's a $5,000 minimum and a 0.70% annual fee.
- Fidelity Private Wealth Management: If you're not interested in investing through a robo-advisor, Fidelity Wealth Services grants you immediate access to a financial advisor who solely provides personalized investment management. There's no automated management involved. There's a $2 million minimum and 0.20%-1.04% gross advisory fee.
- Fidelity Wealth Management: A Fidelity advisor offers financial planning and ongoing management. The minimum fee is $500,000, and the gross advisory fee is 0.50%- 1.50%.
Fidelity Retirement Accounts
Fidelity offers several retirement accounts, including:
- Traditional IRAs
- Roth IRAs
- Rollover IRAs
- Small business retirement plans
With a retirement account, you can access several retirement calculators and tools, including the guaranteed income estimator, IRA contribution calculator, retirement strategies tax estimator, savings planner, and the Fidelity retirement score.
Account minimum: $0 and $1 to invest
Fees: $0
Fidelity Youth Account
Fidelity was one of the first brokerages to offer a DIY investing account for minors (aka a teen brokerage account). It's free to set up and designed for children aged 13 to 17 with a parent or guardian with an existing Fidelity account.
You can invest in a limited selection of US stocks, ETFs, fractional shares, and Fidelity mutual funds.
Moreover, Fidelity now offers Basket Portfolios for Teens, a subset of the Fidelity Youth Baskets. Parents can monitor account activity with the Fidelity mobile app. Investments in cryptocurrencies, penny stocks, international stocks, foreign currencies, and IPOs are currently prohibited.
Once you turn 18, you must transition the account to Fidelity's standard brokerage account. According to Fidelity, the debit card issued will still be valid until it expires, at which point it will issue a new debit card.
Account minimum: $0
Fees: $0
Fidelity Custodial Accounts
If you're a parent or guardian with a child/dependent under 18, you might be interested in Fidelity's selection of savings and investment accounts for minors to learn how to manage money responsibly.
- Fidelity custodial account (UGMA/UTMA): With the best custodial accounts, parents and guardians can invest money in various assets on behalf of a child or dependent.
- Roth IRA for Kids: This account operates much like a regular Roth IRA account with the same tax advantages and annual max contributions (up to $7,000 per child in 2024). Funds are managed by a parent/guardian but must be transferred to the child at ages 18 to 25 (varies by state). This account offers stocks, bonds, options, mutual funds, fractional shares, and CDs.
- Fidelity's 529 plans: Save toward future education expenses with Fidelity's 529 accounts for tax-free withdrawals, no account minimums, and no account fees. Fidelity's Age-Based Strategies rely on portfolios with asset allocations tailored toward your beneficiary's current age. With Age-Based Strategies, you'll choose the following three investment strategies: Fidelity Funds, Fidelity Blend Funds, and Fidelity Index Funds.
Fidelity Disability Savings Accounts
Fidelity Attainable Savings Plan is an ABLE account for investors already receiving Social Security Disability Insurance (SSDI) and/or Supplemental Security Income (SSI), including children and dependents. It grows tax-deferred funds and can become federal income tax-free if used for eligible disability expenses.
The account aims to provide an accessible way for disabled individuals to save for qualified disability expenses. Qualified expenses include education, housing, employment, transportation, personal support services, training and support, assistive technologies (and related services), and basic health and living expenses.
Fidelity Crypto Accounts
A Fidelity Crypto account offers commission-free trades to buy and sell bitcoin, ether, and litecoin. Although the cryptocurrency selection is limited, it may suit beginners or causal crypto investors.
Outside of Fidelity Crypto, Fidelity also offers crypto ETPs following the SEC's approval in 2024. They are called the Fidelity Wise Origin Bitcoin Fund (FBTC) and the Fidelity Ethereum FUnd (FETH). These funds aim to track the performance of Bitcoin and Ethereum.
Account minimum: $1 to start investing
Fees: Spread of 1% on Fidelity Crypto purchases and trades
Fees
Fidelity has a huge selection of account types. Therefore, fees, minimums, and rates can greatly vary. Most Fidelity accounts — like Fidelity Go, custodial and Youth accounts, and IRA accounts — cost $0 to open and don't require account minimums.
Fidelity Go accounts have no account minimums, require at least $10 to start investing, and generally have low fees. But you'll pay slightly more for higher account balances. Fidelity Go accounts with balances under $25,000 don't charge an annual advisory fee. Accounts with $25,000 or more balances charge an annual 0.35% advisory fee.
One of the biggest assets of investing through a Fidelity account is the 0% expense ratio when you invest in Fidelity ZERO index funds. However, depending on your investment portfolio, you may still pay a low expense ratio.
Trustworthiness
Fidelity is a secure brokerage firm with a long trustworthiness history, including a Fidelity Customer Protection Guarantee that reimburses customers for unauthorized activity in their accounts.
Additional protection features include encryption software, intrusion protection systems, proxy servers, firewalls, 24/7 system surveillance, advanced anti-malware, and security alerts via text or email.
Fidelity encourages users to increase security by equipping multi-factor authentication, money transfer lockdown, and biometrics.
The brokerage ensures security protocols are up to date by regularly training associates on the latest security policies and data protection to ensure awareness and compliance. However, two pending lawsuits have been filed against Fidelity.
Despite its history and reputation as a secure and reliable brokerage, Fidelity is being investigated by Stueve Sigel Hanson after allegations of inadequate security measures and negligence with customer data in November 2023. Over 77,000 clients' financial data was breached in a cyber security attack. This case is still pending.
Additionally, in October 2024, Fidelity received a proposed class action lawsuit that claimed customers were charged unnecessary high expenses for holding the fund's retail share class (SPAXX) when they were eligible for lower expenses. The lawsuit claimed this was a breach of fiduciary duty. Fidelity denies these claims.
The Better Business Bureau has given Fidelity Investments an A+ rating. The BBB assigns its ratings using a grade scale of A+ to F.
Alternatives
Let's see how Fidelity compares to other online brokerages.
Charles Schwab
$5,000 for Schwab Intelligent Portfolios; $25,000 Schwab Intelligent Portfolios Premium
$0 Schwab Intelligent Portfolios; $30/month and $300 one-time fee for Schwab Intelligent Portfolios Premium
- No advisory fees for Schwab Intelligent Portfolios
- Both of Schwab's automated accounts include automatic rebalancing, professional oversight, and tax-loss harvesting
- Schwab Intelligent Portfolios Premium includes unlimited CFP guidance
- Advisory fee for Schwab Intelligent Portfolios Premium is a flat fee, meaning you won't pay more or less (like you would with an asset-based fee) depending on your account balance
- Minimum account size requirement for Schwab Intelligent Portfolios may be high for some
- Both accounts utilize ETFs that have expense ratios/operating expenses
- N/A
Charles Schwab automated investing is an investing and wealth management powerhouse catering to individuals and institutional investors. Charles Schwab acquired TD Ameritrade in 2019. Like Fidelity, Charles Schwab offers many brokerage account options, including automated accounts and professionally managed portfolios.
Self-directed accounts require no minimum investment and no fees with either platform. Moreover, both Fidelity and Charles Schwab offer thousands of no-transaction-fee mutual funds. However, Charles Schwab doesn't offer crypto-trading options, whereas, with Fidelity, you can trade cryptocurrencies and stocks in a Fidelity Crypto account starting at $1.
Fidelity also has a one-of-a-kind Fidelity Youth account: a teen-owned brokerage account offering beginner-friendly trades and learning tools. Schwab does offer custodial account options, such as a custodial IRA and 529 plans, but not a teen brokerage account.
Schwab is best for folks interested in a Personal Choice Retirement Account for investing in a wider range of securities or a Trust and Estate Accounts. Socially responsible investors may also prefer Schwab over Fidelity since Schwab offers a donor-advised fund account that allows you to structure charitable contributions with tax advantages.
Vanguard
$0 ($3,000 for Vanguard Digital Advisor; $50,000 for Vanguard Personal Advisor)
0% (0.20% to 0.30% for professionally managed portfolios)
- Commission-free stocks, ETFs, and options
- Brokerage, automated, and advisor-managed accounts available
- Thousands of low-cost mutual funds
- Multiple resources with expert analysis and market insights
- Several retirement accounts and services for retirement plan participants
- Higher options contract fee than other discount brokerages (Vanguard charges $1 per options contract)
- No separate trading platforms for advanced traders; no fractional shares
- No cryptocurrencies
Vanguard is a reasonable low-cost option for all types of investors. Whether you're an active trader, passive investor, or retirement-focused individual, you should be able to find what you're looking for.
Vanguard- Promotion: None at this time.
- App store rating: 4.7 iOS/ 1.8 Android
- Consider it if: You're a long-term focused investor looking for access to a variety of account types and investment choices.
- Awards: Morningstar gave Vanguard a 'High' assessment in its 2022 Robo-advisor Landscape report, listing it as the #1 platform out of 16 robo-advisors
Vanguard is another large online brokerage offering competitive financial planning and investment services with low fees and a robust robo-advisor. Like Fidelity, Vanguard brokerage services include self-directed, automated, retirement, and education savings account options. However, Fidelity has a much larger selection of account options.
If you want to invest in Vanguard's renowned ETFs and funds, you can open a Vanguard brokerage account for no minimum and no annual account fee. Vanguard is the stronger platform for financial professionals, retirement-focused individuals, and goal-based investing. Pre-retirees can invest in Vanguard's All-In-One retirement funds in their IRA or 401(k). But there's a $1,000 minimum.
Vanguard does not offer cryptocurrencies, so crypto investors are better off with Fidelity. In addition, Fidelity's robo-advisor (Fidelity Go) is better for people with balances below $25,000 and is the overall cheaper option.
Why You Should Trust Us
Fidelity was examined using Business Insider's rating methodology for investing platforms to compare account flexibility, security, and overall customer experience when reviewing investing platforms. Investment platforms are given a rating between 1 and 5.
Fidelity was evaluated based on fees, investment selection, access, ethics, and customer support compared to other top brokerage accounts and investment platforms.
Business Insider's Overall Fidelity Rating
| Feature | Insider rating (out of 5) |
| Fees | 4.50 |
| Investment selection | 5.00 |
| Access | 4.50 |
| Ethics | 4.50 |
| Customer service | 4.50 |
| Overall score | 4.60 |
FAQs
What is Fidelity Investments, and what services does it offer?
Fidelity Investments is one of the largest financial service corporations, offering competitive pricing for its various banking and brokerage services, including wealth management, life insurance, retirement planning, education savings, and disability. You can trade a wide range of investible securities through the platform's robo-advisor or advanced trading platforms like Active Trader Pro.
How does Fidelity Investments support beginner investors?
Fidelity Investments supports beginner investors with its user-friendly trading platform, beginner-friendly investment strategies, and commission-free trades.
What makes Fidelity Investments a good choice for advanced traders?
Fidelity's Active Trader Pro platform makes Fidelity Investments a good choice for advanced traders who want to access customizable charting features, real-time analytics, complex options strategies, and premium market data.
What are the fees associated with Fidelity Investments?
Fidelity Investments offers a transparent fee structure that rivals its competitors. The online brokerage has no account minimum and no fees for its regular brokerage services and its robo-advisor. In addition, there are commission-free trades for U.S. stocks, ETFs, and options.
How does Fidelity Investments stand out in terms of customer service?
Fidelity Investments rates highly for customer service, with various support features to help clients navigate their financial journey. Fidelity offers support through live chats, phone calls, in-person consultations, and CFP guidance.
Sofi Active Invest: Investments are not FDIC-insured - Are not bank-guaranteed - May lose value - Brokerage and Active investing products offered through SoFi Securities LLC, member FINRA(www.finra.org)/SIPC(www.sipc.org).
Must be a SoFi Plus member at the time a recurring deposit is received into your SoFi Active or Automated investing account to qualify. Bonus calculated on net monthly recurring deposits made via ACH and paid out as Rewards Points. See Rewards Terms of Service. SoFi reserves the right to change or terminate this promotion at any time without notice. See terms and limitations. https://www.sofi.com/sofiplus/invest/#disclaimers.
SoFi Plus members can schedule an unlimited number of appointments with a financial planner during periods in which the SoFi Plus member meets the eligibility criteria set forth in section 10(a) of the SoFi Plus Terms and Conditions. SoFi members who are not members of SoFi Plus can schedule one (1) appointment with a financial planner. The ability to schedule appointments is subject to financial planner availability. SoFi reserves the right to change or terminate this benefit at any time with or without notice. Advisory services are offered by SoFi Wealth LLC, an SEC-registered investment adviser. Information about SoFi Wealth's advisory operations, services, and fees is set forth in SoFi Wealth's current Form ADV Part 2 (Brochure), a copy of which is available upon request and at www.adviserinfo.sec.gov.
Customer must fund their Active Invest account with at least $50 within 30 days of opening the account. Probability of customer receiving $1,000 is 0.028%. See full terms and conditions. https://www.sofi.com/invest/clawpromotion/rules.
