Fidelity: A Clear Option To Invest

August 12, 2020
Brokers
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Fidelity is a regulated broker with a great reputation and excellent track record offering a full range of stocks, bonds, and mutual funds to individual and other investors through retirement and non-retirement accounts. In addition, Fidelity offers Robo advisor and Dedicated Account Management services. The broker offers an excellent investment platform that will allow you to choose between 16 different base currencies, for these reasons Fidelity can be a good alternative to enter the stock market for international traders.

It is true that Fidelity is a broker that has good characteristics in several aspects, but, we strongly believe that Capital.com is the best online trading platform because is one of the easiest and cheapest ways to trade CFDs on equities, commodities, indices, Forex pairs and cryptocurrencies anywhere in the world. Capital.com offers you zero fees on intra-day trading, a lightning-fast web platform and their proprietary Negative Balance Protection. Also, Capital.com gives you the best chance at financial success with a clean, easy-to-use interface.

We analyzed hundreds of data points relevant to the costs, benefits and features of trading with Fidelity and scored our findings on a 10-point scale across 10 distinct categories.
Fees 10
Signup Process 7
Minimum Deposit 10
Ease of Use 10
Deposit & Withdrawal Options 9
Customer Support 10
Asset Classes 7
Referral Program 4
Demo Account & Educational Resources 10
Safety & Regulation 10
Total 87

What is Fidelity?

Fidelity is a broker registered and regulated by the United States Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority, Inc (FINRA). Also, Fidelity is a member of the NYSE. The broker provides financial advisory services so you can plan your retirement, wealth management, brokerage services, college savings, and more. It is important to note that this broker is only for Americans.

In addition, Fidelity is one of the most reputable brokers in the United States that handles a large number of clients:

  • 32 million individual investors.
  • 31.3 million brokerage accounts.
  • 2.3 million trades per day.
  • $8.3 trillion USD total customer assets.

Take into account that Fidelity will allow you to use 16 different base currencies so that you can operate your account:

USDAUDMXNZAR
EURDENNZDSGD
GBPHKDNOKSEK
CADJPYPLNCHF

Pros & Cons

Pros

  • 24/7 customer support.
  • It is a broker with high regulatory standards.
  • Excellent educational material.
  • Very good investment platform.
  • No inactivity fees.

Cons

  • It is a broker only for Americans.
  • You will not be able to trade cryptocurrencies or currency pairs.
  • You can’t use a credit/debit card.

Account Types

At Fidelity, you can choose between several investment alternatives, whether it be to trade, invest for your retirement and even save and invest funds to study. Here is a table where you can see all the accounts offered by the broker:

AccountDescription
Brokerage Account It is a low-cost standard investment account.
Cash Management AccountIt allows you to have all the features of a checking account without having to open an account at a bank and you can also invest your capital in the Fidelity investment platform.
Brokerage and Cash ManagementThis account combines the functionality of a broker and cash handling account.
The Fidelity Account for BusinessesThe account is owned and used by a legal entity.
Rollover IRAWith this account, you can maintain the important tax advantages of your retirement savings and access a wide range of investments.
Traditional IRAYour contributions may be tax-deductible and potential earnings increase tax-deferred until you withdraw them when you retire.
Roth IRAContributions are not tax-deductible, withdrawals, including earnings, can be made tax free.
529 AccountThe account is for educational-purpose savings.
Custodial AccountBased on the uniform donations/transfers to minors laws, this brokerage account offers comprehensive trading, mutual fund and cash management features, allowing you to invest on behalf of a minor.
Here’s a breakdown of our 10 scoring categories, each scored out of 10 for a total of 100 points.

#1 Fees

Fidelity offers an excellent fee structure. In addition, it does not charge fees for inactivity, withdrawal or funding. Therefore, as you will see below, the broker will allow you to save when trading:

  • Zero commissions on stocks, ETFs and options trades.
  • Zero expense ratio index mutual funds.
  • $0.65 USD commission per contract on options.
  • $1 USD per bond or certificates of deposit (CD) in secondary trading and free for US Treasuries traded online.
  • $0 USD for Fidelity funds and hundreds of other funds with no transaction fees.

Fidelity also offers advisory services. Keep reading to see each one of them and their associated cost:

Robo Advisor

Digital investment management to help keep your investment strategy on track:

  • Under $10,000 USD: $0​​​ USD
  • $10,000 USD – $49,999 USD: $3 USD per month​​​
  • $50,000 USD and above: 0.35% per year​

Hybrid Robo Advisor

Digital investment management, plus digitally-led planning and access to financial advice during 1-on-1 calls with Fidelity advisors:

  • General eligibility: $25,000 USD managed through Fidelity Personalized Planning & Advice
  • Gross advisory fee: 0.50%

Planning & Advice From A Dedicated Advisor

Customized planning, advice, and investment management, led by a dedicated advisor:

  • General eligibility: $250,000 USD managed through Fidelity Wealth Services
  • Gross advisory fee: 0.50%–1.50%

Planning & Advice From An Advisor-Led Team

Comprehensive planning, advice, and investment management, delivered by your own wealth management team and led by your advisor:

  • General eligibility: $2 million USD managed through Fidelity Wealth Services or Fidelity Strategic Disciplines and $10 million USD or more in total investable assets.
  • Gross advisory fee: 0.20%–1.04%

As you can see, Fidelity is a broker that offers you very good opportunities to save money when you trade. Also, the broker offers a wide range of advisor possibilities with which you can complement your strategies to the maximum. For this reason, the broker gets the highest score in this category.

Fidelity Fees Score: 10/10

#2 Signup Process

Opening an account at Fidelity is a very simple process that you can do completely online. Take into account that you will need to add personal information so that you can operate on the broker’s investment platform.

What You’ll Need To Provide

To Open An Account:

  • Identifying information (Social Security number, date of birth, etc.).
  • Contact information (legal/mailing address, email address, phone number).
  • Employment information, if applicable (occupation, employer’s name and address).

To Fund An Account:

  • An account number and routing number (if moving money from a bank).
  • A brokerage account number and account type (if moving assets from another brokerage firm).

Unfortunately, it could take up to two days to open an account with Fidelity and for this reason, the broker loses points.

If you are looking for a broker that allows you to open and operate faster in your investment platform, we recommend you read our articles “Plus500“, “XM” and “Interactive Investor“. With these brokers you’ll be able to start trading almost instantly.

Fidelity Signup Process Score: 7/10

#3 Minimum Initial Deposit

Fidelity does not impose restrictions on the minimum initial deposit. In this way, you can choose the amount you want to invest in your account. But, take into account that there are limits in the event that you decide to invest with experts, be it a robo advisor or qualified personnel:

  • Hybrid robo advisor: $25,000 USD.
  • Planning & advice from a dedicated advisor: $250,000 USD.
  • General eligibility: $2 million USD.

In the following table you will see how much other brokers require as a minimum initial deposit:

BrokerMinimum initial deposit
Interactive Investor$0 USD
XM$5 USD
Capital.com$20 USD
Plus500$100 USD

In this category, Fidelity obtains a high score because you will have the freedom to choose the amount you want to invest in your broker account.

Fidelity Minimum Initial Deposit Score: 10/10

#4 Ease of Use

Fidelity offers an intuitive and easy to use web and desktop investment platforms so you can fully exploit all the features it offers:

  • Detect business opportunities in real-time with clear and actionable alerts.
  • Define entry and exit strategies, visualize the potential risk and reward of a trade on a chart, and set an alert to stay on top of price movements.
  • Find insights you can act on using the all-in-one daily dashboard with live news, earnings announcements, and economic events.
  • Discover trading opportunities with 45+ market filters, including technical, social sentiment and custom option filters.
Fidelity investment platform

Take into account that the web version of the investment platform is a little lighter and although you can track your investments and see the graphs of the quotes, it is less powerful than the desktop version.

Fidelity App

Fidelity will also allow you to be aware of your investments at any time thanks to its mobile application. In this way, you can use all the benefits of the PC version on your cell phone. Take into account that this application is very stable and is highly rated by its users on the download page. The mobile app has a rating of 4.6/5 on Google Play and 4.8/5 on Apple App Stores.

FIdelity app

In this way, the broker is fully positioned with a 10/10 in this category because it offers excellents investment platforms and an app that is highly rated by its users on the download pages.

Fidelity Ease of Use Score: 10/10

#5 Fidelity Deposit & Withdrawal Options

As we saw at the beginning of this post, Fidelity will allow you to use 16 different base currencies so that you can operate your account. Also, the broker does not charge commissions for making deposits or withdrawals.

Below we show you the alternatives offered by the broker so that you can manage to add or withdraw your money from the investment platform:

  • Bank transfer
  • Check deposit
  • Account at another financial institution
  • e-wallets: PayPal, Apple Pay Cash, Square Cash and Venmo.

The processing time for your withdrawal depends on the method you use to withdraw your money. If you choose to transfer your money electronically to another account, such as a checking or savings account, your withdrawal should process within 1 to 3 business days if you submit your request by 4 p.m. (ET).

If you choose to wire your money to another account, the transfer should process immediately as long as you submit your request by 4 p.m. (ET). If you request to have a check sent to you, the check takes about 5 to 6 business days to process before it’s mailed to you. In this sense, as it will take you several days to make the transactions, and because the broker doesn’t offer credit/debit cards or cryptos as deposit or withdrawal methods, the broker loses one point in this category.

Fidelity Deposit & Withdrawal Options Score: 9/10

#6 Customer Support

Fidelity offers customer service every day of the week 24 hours a day (24/7 support). Also, the responses are usually quick, but keep in mind that when it comes to email communication the technical support will reply within 24-48 hours. Below you will see the alternatives offered by this broker so that you can communicate with customer support.

Take into account that if you need to call from outside the United States, the broker offers 190 possibilities for different countries, which you can check here. Because Fidelity offers a wide variety of channels for you to contact technical support, it replies rather quickly and offers valuable help, it gets an excellent rating in this category.

Fidelity Customer Support Score: 10/10

#7 Asset Classes

Stocks

You will be able to trade stocks from around 30 markets including North American, Asian and European markets.

Gold

On the Fidelity platform, you can trade not only gold but also silver, platinum and palladium.

Bonds

Fidelity allows you to invest in government bonds and corporate bonds.

ETFs

Fidelity will also allow you to trade ETFs. For example:

  • iShares iBoxx $ Investment Grade Corporate ETF
  • Fidelity MSCI Energy ETF
  • ISHARES S&P 500

Unfortunately, you will not be able to invest in cryptocurrencies or the Forex market with Fidelity. This makes the broker lose points because the ideal is that you can create diversified portfolios thanks to the incorporation of different financial instruments.

Fidelity Asset Classes Score: 7/10

#8 Referral Program

With the Fidelity referral program, you can earn $100 USD for each friend or family member you invite to enjoy the services of this wonderful broker. But, the extra money for each referral could be higher and you can only earn up to $1,000 USD in total referral bonuses. For this reason, the broker does not stand out much in this category of our scoring system.

Fidelity Referral Program Score: 4/10

#9 Demo Account & Educational Resources

Demo Account

Fidelity offers you the possibility of opening an unlimited free demo account so that you can test the investment platform without assuming risks. Keep in mind that with a demo account you can make fictitious operations so that you can test the negotiation charges and even test strategies.

Educational Resources

Regarding educational resources, Fidelity offers high-level content that is constantly renewed. In this way, you can access:

  • Articles
  • News
  • Webinars
  • Performance Sector
Educational Resources

This is another category where Fidelity opts for a high score. We think that together with Capital.com this is a broker that will help you complement your strategies so that you can exploit your opportunities and generate high returns in a stable way and with low risk.

Fidelity Demo Account & Educational Resources Score: 10/10

#10 Safety & Regulation

Fidelity is a broker registered and regulated by the United States Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority, Inc (FINRA). Also, Fidelity offers a customer protection guarantee. In this way, the broker will reimburse you for losses arising from unauthorized activity on covered accounts that occur without your consent.

These characteristics make Fidelity a very reliable broker that proves to comply with the highest standards in the sector, so Fidelity obtains the highest score in this category.

Fidelity Safety & Regulation Score: 10/10

While researching 100+ of the world’s top brokers, we’ve noticed what works and what doesn’t from the customer’s point of view. That’s why our final test for any broker is to compare it to Capital.com, which scores 91/100 points across the 10 categories mentioned in this review.

Fidelity vs. Capital.com

Being a winning trader requires a solid investment plan. Take into account that the stock market is a world that is constantly changing and for this reason your strategies must adapt to the movements and innovations of the market. We recommend that you choose a broker that is your ally and that allows you to fully exploit your profits.

In this sense, this broker must allow you to diversify your portfolio internationally with the range of financial instruments that it offers while also saving you hundreds of dollars in commissions. In this section, you will find a comparison between Fidelity and Capital.com. After an in-depth market study, we consider that your best ally is Capital.com for the following reasons:

Quick and easy account opening and better funding and withdrawal options

If you want to trade now without having to wait for days struggling to verify your trading account, we recommend you visit Capital.com. You can open your account and trade in less than 20 minutes.

Fidelity does not offer many deposit and withdrawal options so you should take this aspect into account when making your decision. In contrast, we can affirm that Capital.com is a better choice because you will have a greater number of withdrawal options. In Capital.com you can use a credit card, bank transfer, debit card, SOFORT, iDeal, Giropay, Multibanko, Przelewy24, QIWI, Webmoney, Trustly, Neteller and Skrill. You’re never charged a fee to deposit or withdraw money with Capital.com.

The Best Investment options

Fidelity has a good number of financial instruments that you can invest in. However, Capital.com offers you several more possibilities because on its investment platform you will be able to access a greater number of financial instruments. This feature is really important because with Capital.com you will be able to have a greater capacity for diversification when building your investment portfolios.

A Better customer support

Even though Fidelity’s customer support is great, Capital.com’s better. You can call Capital.com at +44 20 3870 3087 or email their support team at support@capital.com. You can also visit the Capital.com website and click on Contact Us for country-specific options and to enter a live chat with a Capital.com support agent. Their support team currently supports 13 different languages, which is much better than what Fidelity offers.

Fidelity In Summary

  • Fidelity is a registered and regulated broker.
  • At Fidelity, you can choose between many investment accounts.
  • Fidelity does not charge fees for inactivity, withdrawal or funding and zero commissions on stocks, ETFs and options trades.
  • The broker does not impose restrictions on the minimum initial deposit.
  • The Fidelity investment platform is intuitive and easy to use.
  • The broker will allow you to use 16 different base currencies so that you can operate your account and offers customer service every day of the week 24 hours a day.
  • With the Fidelity referral program, you can earn $100 USD for each friend or family member you invite.

Thus, if you are looking for an American broker with high regulatory standards, with enough alternatives to make both passive and active investments and that also offers you an excellent fee structure to save money, Fidelity could be a good option.

However, we cannot close this article without mentioning the broker that has remained number one after analyzing and qualifying a large number of brokers. We are talking about Capital.com. For us, this broker is superior to Fidelity because it offers you important improvements in several categories. For example, it offers better customer support and more deposit and withdrawal options.

In addition, Capital.com will allow you to open your account in no more than 20 minutes. Take into account that if you see an opportunity in the stock market at this moment, the ideal is that you can invest in it as soon as possible because every minute you wait will take you away from great profits. For these reasons, we think that Capital.com is the perfect ally to make money.

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