Fidelity Review 2024

Top Rated For

• Best Online Broker
• Best for Low Costs
• Best for ETFs
• Best for Cash Management

Our Take

Fidelity remains our top overall choice for best online broker as well as our choice as the best broker for low costs and for ETFs this year. In addition, Fidelity earned top ranks as the best broker for cash management, which are new additions to our best online broker and trading platforms awards this year. 

Fidelity has excellent investment platforms for active traders and investors of all types, including mobile, desktop, and the downloadable Active Trader Pro. In contrast with competitors, fees are negligible and many services and products are fee-free. The platform’s investment assets include ETFs, mutual funds, options, cryptocurrency, and fixed-income products including U.S. Treasury, corporate, agency, municipal bonds, and CDs. Penny stocks and options trading require additional trading permission, while investors looking to trade currencies and international stocks will need an international account. Those seeking management, pre-packaged investment products, and access to rich banking features won’t be disappointed. 

FIdelity's research and educational tools are superior and suitable for nearly all investor levels. Portfolio analysis, tools, and calculators are good, although scattered across the platform. The only assets lacking on the platform are futures, options on futures, and commodities. 

Introduction

Fidelity Investments was founded in 1946 by Edward C. Johnson in Boston. Johnson was president for over 25 years and the company continues as a family-run firm today. Since 2014, Abby Johnson has sat in the Chairman and CEO chair. Fidelity delivers access to 99% of the world’s capital assets. The company serves roughly 50 million individuals, 24,000 businesses, and 16,000 wealth management firms. Fidelity continues to innovate through technology, services, products, pricing, and automated investing.

Pros & Cons

Pros Explained

• Standout pricing for trading, products, and services: Many low-cost and fee-free mutual funds, fixed income, stocks, and ETFs are available for trading. Commission and margin rates are relatively low. Users can select from many free research reports. Numerous services are free, such as returned checks, account management, and more. 
• Superior trading platforms for all types of investors: For frequent, active, and advanced investors, Active Trader Pro aligns with the top trading platforms online. Access to mobile, desktop, and downloadable Active Trader Pro makes trading accessible for beginners through advanced investors. 
• Accessible and knowledgeable customer service: Round-the-clock live customer service, specialized trading and fixed income customer service, and branch financial advisor access give customers quality help, seven days per week. 
• Extensive research and screeners: The breadth of third-party reports, along with quality rankings of the data, provides self-directed investors with superb research. The screeners, with scores of filters, give stock, ETF, mutual fund, fixed income, and options investors excellent asset selection tools.
• No payment for order flow (PFOF) on stocks and ETFs: Some brokers earn money by accepting payments from market makers for directing equity and options orders to them, in a practice called payment for order flow (PFOF). Fidelity does not accept PFOF for equity and ETF trades. This is a critical reason why Fidelity is able to deliver top-tier order execution.

Cons Explained

• Portfolio analysis and planning tools lack a centralized location: Users can link external accounts to the Fidelity Full View, Free Financial Plan, and Digital Portfolio summary. While these tools are useful, they don’t have a centralized home on the platform.
• Virtual assistant needs improvement: Our trials with the virtual assistant were unsatisfactory. Fortunately, live help is easy to access. 
• Only two digital coins for trading: Bitcoin and Ethereum are the only two coins available. Serious cryptocurrency traders should seek a platform that caters to digital currency investors. 

Usability

Fidelity has improved its website and user experience over the past few years. Desktop navigation is intuitive, while mobile use requires some trial and error to locate the features. Online account setup is straightforward and requires the typical demographic information and Social Security number. Self-directed investors benefit from a wide library of research tools and screeners. The platform provides expedient user access to trading through mobile, desktop web-based, and the downloadable Active Trader Pro. 

The mobile app works on Android, iOS, Amazon, and Google Assistant-enabled devices. The mobile trade screen is decent, with a company profile, detailed quote, price and earnings history, and analyst ratings. For research, screening, and other features, the desktop platform and Active Trader Pro are superior to mobile. New users can access educational videos and articles to familiarize themselves with the nuances of the platform. The Fidelity app is limited to active mobile investors.

Trade Experience

Trading at Fidelity is available via its web-based platform, downloadable software, and mobile apps, and is suitable for all investors including, beginners, and advanced active traders. The third-party research reports, graded on prior accuracy, and vast screening tools set up all investors with a wealth of corporate knowledge. Basic stock, ETF, mutual fund, and options trades can be transacted on all platforms. The fixed income desk can aid bond investors. Active Trader Pro is a comprehensive tool for intermediate and advanced traders. 

Active Trader Pro features:

• Multi-leg options trading
• Conditional orders 
• Streaming data
• Customized layouts
• Best in the industry order execution
• More than 60 charting indicators

Mobile Trade Experience

For occasional traders and those keeping track of their assets, placing basic trades, reading news, depositing checks, and watching markets, the mobile app is fine. If you’re seeking a full-service and comprehensive trading experience, the Fidelity desktop or Active Trader Pro are suggested. 

On mobile, the Home screen displays portfolio value with a choice to view one month through three years of data. Accounts are listed, along with easy access to activity, individual positions, and forms. The menu is limited to Investing, Transact, Planning, and Discover options. 

The mobile trade experience is accessed through the Transact and Trade icons. Inputting the ticker for the security takes you to a comprehensive and detailed quote page. From there, choose the “Buy” or “Sell” button. Mobile order choices include limit, stop loss, stop limit, trailing stop loss, or stop limit (% or $). Approved options traders can transact basic options trades, but the desktop and Active Trader Pro are more comprehensive.

Range of Offerings

Fidelity has evolved into a full-service, low-fee, comprehensive platform with offerings for nearly all investors along with premier research.

The following investments are available for trading. Most investors will find what they need, although futures and commodity traders should look elsewhere. 

• Stocks
• ETFs
• Mutual funds
• Options
• Fixed income
• Crypto
• Baskets (choose a basket of assets that can be traded with one click, for an additional fee)

Fidelity’s products span the gamut and should satisfy a wide range of clientele.

• Retirement accounts and calculators
• Cash management account with debit card, checking, tools, and calculators Including Fidelity Bloom, a free financial app to build mindful spending and saving habits
• Investing and trading analysis, research, apps, downloadable Active Trader Pro platform
• Managed accounts with a low-fee robo-advisor, Fidelity Go, and separately managed accounts with a financial professional as your guide
• Free financial planning including DIY financial plan, debt repayment, goal setting, and more 
• In-depth research, analysis, news, and educational information
• Annuities and life insurance

Order Types

Most investors and traders will be satisfied with Fidelity's order types. You can trade by share or dollar amounts and select tax lots when selling. Stock and ETF trading choices on mobile mirror those on the desktop. 

Investors can choose from a range of order types:

• Day
• Good ‘til canceled (GTC)
• Stop loss
• Stop limit
• Trailing stop limit
• Fill or kill
• All or none
• Immediate or cancel
• On the open
• On the close
• Conditional: One trade is dependent upon another 
• Basket: Trade a pre-selected group of stocks and ETFs for an added monthly fee

Fidelity is committed to high execution quality and price improvement.

Trading Technology

Most traders will find the Fidelity trading technology excellent. The company's commitment to execution, quality, and price improvement is notable, with an average $12.97 price improvement for a 1,000-share equity order. Fidelity voluntarily shares execution quality on equities and ETFs using Financial Industry Forum (FIF) industry standards.

Designed for intermediate through advanced traders, the downloadable Active Trader Pro provides a customizable platform with more than 45 market filters, including technical, fundamental, and sentiment selections. The platform provides real-time data, comprehensive visual analytics, and a range of trading tools for stock, ETF, and options traders. Active Trader Pro compares favorably with competitor trading platforms and includes Level 2 quotes and superior order execution, among scores of other features.

Costs

Fidelity owns our Best Broker for Low Costs designation, with transparent fees and no fees for a wide range of products and services. Online trading for stocks and ETFs is commission-free.

Options

• $0.65 per contract

Bonds and U.S. Treasuries

• New issues: $0.00 ($19.95 per trade with a representative)
• Secondary issues: $1.00 per bond (plus $19.95 per trade with a representative)

Mutual Funds

• No transaction fee for Fidelity funds
• $49.95 to $75.00 to buy, depending upon funds

Bitcoin and Ethereum

• Investors can trade these two coins through a crypto account with as little as $1. 
• The trades have a 1% spread built in, and no additional trading fees. 

Margin rates are competitive and shift with market interest rates and debit amount. Current rates range from 13.75% for borrowing up to $24,999 to 9.25% for a  $1 million or more debit balance. 

There is no charge for most account services, such as statements, confirmations, IRA withdrawals, and Roth conversions. Cash management services are also fee-free, including bill pay, returned check and stop payment, cashier's checks, domestic wire transfers, and more.  There are a handful of fees for infrequent activities, such as $100 for a stock certificate transfer and ship and a $50 foreign settlement fee per trade.

How This Broker Makes Money From You and For You

Unlike many competitors, Fidelity does not receive payment for order flow. Many products and services are fee-free. So, with the favorable low or no-fee structure, how does Fidelity make money?

Fidelity makes money from you via:

• Interest on cash: Fidelity makes money from the difference between what it pays you on your idle cash or through money market mutual funds and what it earns from the cash balances. 
• Stock loan programs: Fidelity earns revenue by loaning stocks in your account for short sales, with your permission, and it shares that income with you. 
• Margin interest: Fidelity benefits from the interest received on margin lending. 
• Fidelity Wealth Management: Those with more than $500,000 can hire credentialed Fidelity advisors for portfolio management. Fees range from 0.2% through 1.50% of AUM (assets under management) depending upon the account value. 

Fidelity makes money for you with:

• Savings on expedient trading: Previously discussed savings per trade
• Specialty products such as SMA tax-advantaged accounts: Low-fee Fidelity-managed portfolios with tax savings
• High yields: On money market mutual funds 
• Low or no transaction fees: Fee-free stock, ETF, and Fidelity mutual funds
• Comparatively low margin rates: In comparison with the market average
• No or low fees: On account management and services 
• Stock loan programs: Earn income on stocks and ETFs that you own by lending them out. Earnings vary based on assets loaned and their value.

Account and Research Amenities

Fidelity’s screening and research capabilities are superior to the crowd and contribute to its Best Overall Brokerage and Trading Account Investopedia win. Read on for a window into Fidelity’s breadth of asset screeners, tools, calculators, news, research reports, and educational offers.

Stock Screeners

Fidelity's stock screener is so comprehensive that on occasion, it might be overwhelming. Those seeking pre-made screens can choose from the following strategies: Popular, Growth, Growth/Value, Value, Technical, and Income. The “most popular” strategies include another nine categories, from bargains, bottom-fishing, dividend payers, and growers to momentum and value stocks. Those seeking self-directed screening can pick from 26 criteria and set parameters according to their preferences.

ETF Screener

Investors can search ETFs by Fund Family, Market Cap, Sector, Fixed Income, Socially Responsible, Actively Managed, or Digital Assets. For more in-depth screening, there are an additional 86 criteria to manipulate. The ETF screening options span nearly any category an investor might want, including type, expense ratio, investment philosophy, objectives, trading characteristics, performance, fundamentals, technicals, and more.

Mutual Fund Screener 

Finding a comprehensive mutual fund screener is difficult, but Fidelity fills this need. With a pool of 9,330 mutual funds, it provides among the best mutual fund screeners. The mutual fund screeners for quick results include:

• Asset Class and Category
• Key Criteria including 5 choices: Fidelity Funds, Fidelity Picks, ESG, Minimum Below $2,500, Actively Nanaged, or Index Funds 
• Morningstar: Overall Star Ratings, Returns, Expenses

For in-depth screening, there are 32 additional screening criteria including those mutual funds that can be purchased with no transaction fees. 

Options Screener

LiveVol powers Fidelity’s option screener. Like Fidelity’s other screeners, users can choose from built-in scans or use their own criteria, such as volume, implied volatility, time spreads, and order flow. There are more than 25 predefined filters in Active Trader Pro, and there are nearly 200 individual criteria that can be incorporated into a search.

Crypto Screener

While Fidelity offers two coins, Bitcoin and Ethereum, through a separate Fidelity crypto account, it does not offer cryptocurrency screening capabilities. Available comparison research for each digital coin includes detailed quotes and charts including price performance, market cap supply, and news. 

Fixed Income Screener

Fixed income assets including bonds, CDs, mutual funds, and ETFs are all accessed from the News & Research > Fixed Income menu. Investors hunting for CDs, corporate bonds, and Treasury bonds can scan a grid. With assets from CDs through all credit quality bonds listed down the Y axis and maturities on the X, users can view average interest rates and click on the match that fits their portfolio. For example, investors exploring five-year, A-rated corporate bonds will click on the intersection which shows the average interest payment is 5.44% today. By clicking on the interest rate, users are taken to a screen with a list of bonds that fit the criteria. All fixed-income assets have dropdown menus with additional screening capabilities. 

Tools and Calculators

The Fidelity Free Financial Plan enables self-directed investors to link external accounts, including spending, saving, debt, and investment accounts, to create a comprehensive, goal-based, financial plan. Embedded within the plan are calculators to guide your saving, debt payoff, goal, and retirement planning. Additionally, users can create a budget, view all of their holdings, and organize their finances with the “Fidelity Full View” tool. 

Charting

Basic charts are available on mobile, desktop, and Active Trader Pro and can be customized for beginners through advanced investors and traders. Basic charting for beginner through intermediate investors includes primary indicators and timeline customizations. 

Technical and fundamental investors seeking advanced charting capabilities will gravitate towards Active Trader Pro, with its extensive customization and charting capabilities including display options, drawing tools, and scores of indicators. Users can select over 60 indicators, draw trendlines, and customize dates. Active day traders will also appreciate key tools for capturing price inefficiencies, such as the ability to place statistical bands on the volume-weighted average price (VWAP) study. All but the most basic charting is best done on the desktop or Active Trader Pro platforms. 

Trading Idea Generators

Active Trader Pro is replete with tools to capture profitable trading ideas for options, day, and other types of traders. There are many educational videos on the website that delve into trading ideas. Several of the customizable tools on Active Trader Pro include the Strategy Ideas Tool, the Filters Tool, Technical Analysis, Charting, Social market, and Sentiment analyses. The Technical analysis tools are useful for trend analysis, with filters, and many other indicators such as volume, volatility, or momentum. All tools are customizable and have scores of filters to guide you in uncovering profitable trade ideas. 

Three of the main trading idea generator tools on Fidelity Active Trader Pro include: 

• Filters
• Real-time analytics
• Trade armor

With data updating in real time, the Fidelity platform is among the strongest platforms for active traders. 

News

Although News is a common feature on most investment platforms, Fidelity News & Guidance integrates a searchable and customizable newsfeed with curated news from across the internet. News is categorized according to U.S. Markets and Economy, Company News, Technology, International, and Investing Ideas. Fidelity syndicates the most relevant news from major news sites from across the U.S. and internationally. The customized Newsfeed enables readers to filter each category by source, including Reuters, Benzinga, Kiplinger, and MT newswires, and various topics.

News topics include:

• Economy
• Investing
• Investing: Bonds and CDs
• Investing: Commodities
• Investing: Stocks

Third-Party Research

Fidelity is among the few investment brokerage companies to provide a large, free third-party research library of stock reports for clients. After visiting the stock research tab and inputting a stock ticker, users are provided with a detailed quote page with six menu items including chart, dividends and earnings, sentiment, analyst rating, comparisons, and statistics. The analyst research selection delivers an average rating and roughly eight research reports from well-known providers such as Argus, Zacks, Ford, Refinitiv/Verus, and more. Accompanying the reports are Refinitiv StarMine Relative Accuracy scores that measure the relative historical accuracy of the firm's opinions versus a peer group over a 24-month period. Fidelity provides an additional 20 analyst opinions without a full report. 

Fractional Dividend Reinvestment Plan (DRIP)

At any point, investors can request that all share dividends be automatically reinvested into the asset. This practice compounds investment returns. Even fractional shares are purchased with a dividend repurchase request. 

Cash Management

Clients at Fidelity are automatically enrolled in a cash sweep program, where the customer chooses among a selection of money market mutual funds. While the interest paid on this cash is not at the high-end of what is being offered by other brokers, at 2.69% as of March 2024, this still compares favorably with many of Fidelity’s peers, since they often offer negligible interest on cash balances.

It's also important to note that a strong cash management product is not just about earning the highest interest rate possible. It’s also about seamless integration with critical, no-fee banking features, and industry-leading insurance. In these areas, Fidelity’s cash management offering is unmatched, and it all comes with reimbursable access to a global network of ATMs.

Investors seeking high cash management interest rates can elect to transfer their cash allocation to higher-yielding Fidelity Money Market Mutual Funds:

• Fidelity Government Money Market Fund (SPAXX)
• Fidelity Money Market Fund (SPRXX)
• Fidelity Municipal Money Market Fund (FTEXX)

Portfolio Analysis

Fidelity has upped its game with a fully customized, self-directed Financial Planning Tool. This tool is similar to a basic financial plan one might receive from an investment advisor. After linking external accounts, you can view all of your investments in one place and gain guidance on managing spending, debt paydown, and investment analysis. For investing, you can input your goals and receive personalized investment strategy advice. 

Portfolio analysis tools deliver an analysis of your investment portfolio from asset allocation, top positions and ratings, stock, and fixed income screens. The Fidelity Full View tool also delves into your investment allocation across popular asset classes. These various tools, while all on the site, are not integrated into one portfolio analysis vertical, making access a bit of a challenge.

Education

From the News & Research menu tab, scroll down to the Learn tab for access to the wide range of educational offers. The main education menu spans:

• Financial essentials
• Life events
• Investing and trading
• Investment products
• Advanced trading 

Additional categories cover expert insights, money tips, women, and Wealth Management Insights. Within each category, users will find articles, videos, Webinars, and Q&A sessions. Educational features include both guides to use the Fidelity website as well as broad financial topics. Branches also offer advisor access and special events. 

Customer Service

Comparable to many large financial firms, Fidelity provides a 24/7 Virtual Assistant and phone customer service. Live chat is available seven days per week during normal business hours. The Help Center and YouTube channel answer most user questions. The crypto help desk is designed to answer your digital currency questions. The fixed-income desk helps bond investors.

For additional support, check out Fidelity’s Reddit, Facebook, X (formerly Twitter), Instagram, and Discord profiles. You’ll receive answers there from social media customer service managers.

Security and Reliability

Fidelity is committed to high-level security. The company regularly monitors accounts for unusual activity. Its updated security protocols require that third-party websites and apps that you’ve authorized connect through Fidelity’s updated secure connection. 

Through the Security Center, you can:

• Manage multi-factor authentication
• Mange Symantec VIP Access
• Report a security issue
• Receive security text alerts
• Manage access you’ve granted to third parties
• Set up trusted devices
• Block the ability to electronically move money out of your accounts 
• Sign up for alerts on account activity

Fidelity is insured through SIPC up to $500,000 in securities, including a $250,000 limit for cash held in a brokerage account. The company holds additional insurance for assets up to $1 billion. This insurance protects your money should Fidelity fail or go bankrupt, and not against losses in the investment markets. Cash accounts are also insured through the FDIC up to $250,000 per account. 

Transparency

Fidelity receives high marks for transparency. Fees and pricing are readily available on the platform. The trading technology and share price improvement are shown on individual orders and over time. Fidelity is the only firm to report full price improvement using the Financial Information Forum (FIF) standards. Phone, chat, help, and FAQ assistance ensure that investors receive all the information they need in a timely manner.

Available Account Types

Fidelity’s available accounts will satisfy individuals, couples, families with kids, retirement savers, wealthy individuals, those just starting out, business owners, and beginner through advanced investors. If you live outside the U.S., you’ll need to find another financial firm. 

• Taxable brokerage account
• Rollover individual retirement account (IRA) 
• Traditional IRA
• Roth IRA
• Inherited IRA
• Simplified employee pension (SEP) IRA 
• Self-employed 401(k)
• SIMPLE IRA
• Cash management account 
• Custodial account
• 529 account
• Health savings account (HSA) 
• Youth account (these are not custodial accounts, as investment decisions are made by young investors)
• Trust and estate account
• Fully managed account
• Cryptocurrency account

The Bottom Line

Fidelity distinguishes itself as Investopedia’s winner of Best Overall, Best Broker for ETFs, and Best Broker for Low Costs, in addition to being the best broker for cash management. All levels of investors and traders will find products and services for successful investing and money management. Individual investors will be hard-pressed to find a better broker for research and screening tools. Cost-conscious investors value the negligible or no-fee structure on many products and services. For education and live customer service, either by phone or in person at a branch, users can receive guidance on investing strategies, money management, and Fidelity platform help. The bottom line is that Fidelity is a superior investment broker for all but the professional trader. The only complaint is that with the wide wealth of products and services, it might take users a bit of time to grasp all of the platform’s offers. 

Compare Fidelity to Similar Online Brokers

Is Fidelity Right for You?

If you are looking for a financial and investment broker with low fees, superb research and screening tools, and a trading platform to suit beginners through advanced investors, then Fidelity might be a sound pick for you. Beginners can get started with the Fidelity Go robo-advisor, with zero management fees up to $20,000. With high-yield cash investments and a huge selection of stocks, mutual funds, ETFs, bonds, options, and crypto, there are investment products for most individuals at Fidelity.  

Is Fidelity Good for Beginners? 

Fidelity is absolutely good for beginners. The selling point for opening a Fidelity brokerage account is the extensive educational library of articles, videos, and webinars, low pricing, and stellar customer service. No minimums required to open an account make Fidelity a smart choice for beginning investors. 

Options trading entails significant risk and is not appropriate for all investors. Certain complex options strategies carry additional risk. Before trading options, please read Characteristics and Risks of Standardized Options. Supporting documentation for any claims, if applicable, will be furnished upon request.

There is an Options Regulatory Fee that applies to both option buy and sell transactions. The fee is subject to change.

How We Picked the Best Online Brokers and Trading Platforms

Providing readers with unbiased, comprehensive reviews of online brokers and trading platforms is a top priority for Investopedia. We combined our industry research, subject matter expertise, and investor survey data to guide the research and weightings for our 2024 online broker awards. To collect the data, we sent a digital survey with 110 questions to each of the 26 companies we included in our rubric. Additionally, our team of researchers verified the survey responses and collected any missing data points through online research and conversations with each company directly. The data collection process spanned from Feb. 19 to March 19, 2024.

We then developed a proprietary model that scored each company to rate its performance across 11 major categories and 89 criteria to find the best online brokers and trading platforms. The score for each company’s overall star rating is a weighted average of the criteria in the following categories:

Additionally, during our 2024 research, many of the companies we reviewed gave us live demonstrations of their platforms and services via video conferencing methods and also granted our team of expert writers and editors access to live accounts so they could perform hands-on testing.

Through this all-encompassing data collection and review process, Investopedia has provided you with an unbiased and thorough review of the top online brokers and trading platforms.

Learn more about how we review online brokers.