Fidelity is considered one of the best online brokers and is seen as a force in the market. In this Fidelity review, we will show you all the details you need to make your own decision. From fees to background information about the parent company, everything will be displayed in the tables below alongside their references.
Fidelity is certainly an investor-friendly brokerage with its no account minimum, high-quality research tools, and easy to use trading platform that offers advanced order types. Their customer service is top-notch, and in most cases, customers chatting online receive immediate attention.
If you’re trying to figure out how well Fidelity suits your investment style, this review has got you covered.
Fidelity Popularity
Fidelity is a popular online trading platform, and you can see that in the significant number of Internet users and interest in its brand on Google. 2020 has been a year that saw Fidelity win two first-place awards from reputable media outlets in this niche.
With over $26 million customers and about $3.3 trillion in assets under management, Fidelity is definitely one of the world’s largest investment management companies.
Although the firm has been around since 1946, it began recording aggressive growth from 19602 till date. As the U.S experienced massive economic growth in the 1960s, the firm seized the opportunity to expand.
Between 1962 and 1969, Fidelity created different subsidiaries. Some of which include Magellan Fund, FMR Investment Management services Inc. and Fidelity International.
Fidelity was named the best online broker in 2020 by Investor’s Business Daily. It was also rated #1 for order execution and research by Stockbrokers.com.
User Rating
Fidelity has some positive feedbacks from users available on different social media platforms and review sites. The firm has an excellent customer support system, and in most cases, customers chatting online receive immediate attention.
The company also has top-notch investment plans, and most of the positive reviews reaffirm this fact. Some users also complemented their charts and research tools.
However, you’ll also find some negative reviews about the company. Most of the negative comments center on delays in customer service responding to clients’ complaints and an antiquated trading interface.
In all, users have an overall positive sentiment towards Fidelity, and even if some people complain about the old feeling interface, the positive always outweighs the negative.
| Query | Answer | Reference URL | Date |
| # users rated on user platforms | 2 on TrustPilot, 17 on SiteJabber | https://www.trustpilot.com/review/fidelity.com https://www.sitejabber.com/reviews/fidelity.com | 18 Aug 2020 |
| Percentage of positive reviews out of user reviews | 26% | https://www.trustpilot.com/review/fidelity.com https://www.sitejabber.com/reviews/fidelity.com | 18 Aug 2020 |
| Common compliments | Great customer support and research reports | https://www.trustpilot.com/review/fidelity.com https://www.sitejabber.com/reviews/fidelity.com | 18 Aug 2020 |
| Common complaints | The system and user interface antiquated | https://www.trustpilot.com/review/fidelity.com https://www.sitejabber.com/reviews/fidelity.com | 18 Aug 2020 |
| Positive feedback on Twitter? | People appreciate the charts, research ideas and feeds | https://twitter.com/fidelity | 18 Aug 2020 |
| Negative feedback on Twitter? | Lately the support seems overwhelmed and is hard to respond | https://twitter.com/fidelity | 18 Aug 2020 |
| App rating (summary) | Over 1.36m reviews with an average 4.65 / 5 rating | https://play.google.com/store/apps/details?id=com.fidelity.android https://apps.apple.com/us/app/fidelity-investments/id348177453 | 18 Aug 2020 |
Background Information
Fidelity investments is a Boston based multinational investment management company established in 1946. It originally started as a mutual fund company founded in 1930. In 1943, it was acquired by Edward C. Johnson II, a Boston based lawyer. The company’s asset under management at the time was valued at $3million.
Apart from mutual funds, the company now offers other services such as fund distraction, securities execution and clearance, life insurance, and retirement services. Fidelity’s brokerage firm currently serves clients in more than 140 locations in the United States.
With almost $21billion in revenue in 2019, Fidelity is still a private business and has grown to this size without any big outside investors. Abigail Johnson (CEO) & family has 49% of the company and the current and former employees 51%.
As of June 2020, the firm has $3.3 trillion in assets under management and combined total customer assets valued at$8.3 trillion. This makes Fidelity one of the largest asset managers in the world.
| Company public/private | Private | https://en.wikipedia.org/wiki/Fidelity_Investments |
| Revenue Data | $20.9 billion in 2019 | https://www.ft.com/content/e863cc88-5d6a-11ea-b0ab-339c2307bcd4 |
| CEO and bio | Abigail Johnson – completed an MBA at Harvard Business School and since 2014, she has been the president and CEO. | https://en.wikipedia.org/wiki/Abigail_Johnson |
| Number of employees | 50,000+ | https://en.wikipedia.org/wiki/Fidelity_Investments |
| Notable investors (private companies) | None | https://en.wikipedia.org/wiki/Fidelity_Investments |
Security
Fidelity is highly committed to its client’s security; thus, clients’ accounts are safeguarded with encryption firewalls and 24/7 system surveillance. Clients are also protected by the Securities Investor Protection Corporation (SIPC) insurance, which includes a $1.9 million limit on uninvested cash.
In addition to this, the company provides the following security measures:
- 2-factor authentication
Security codes are sent to clients via text or automated calls to verify their identity during high-risk transactions.
- Money transfer lockdown
Clients can instantly block all electronic transactions to protect their accounts if they suspect any fraudulent activity.
- Mobile app users can log in with face or fingerprint.
| Query | Answer | Reference URL |
| HTTPS Certificate | Yes | https://www.fidelity.com |
| 2FA ? | Yes | https://www.fidelity.com/security/extra-security-login |
| Device monitoring? | Yes | https://www.fidelity.com/security/monitor-your-accounts |
| New device extra security? | Yes | https://www.fidelity.com/security/monitor-your-accounts |
Fees & Offering
Fidelity fees are low and rare; the company is moving in the way of zero fees and making it as easy as possible for any trader or investor to start trading online.
The firm has a wide range of offers to suit different investment needs. It allows its clients to trade stock, ETF, Fund, Bond, and options. The firm has the added advantage of offering fractional shares and international stock. However, the firm is yet to offer commodities or futures options.
In October 2019, Fidelity introduced a zero commissions fee on online equity, ETF, and OTCBB trades. Besides offering a $0 account minimum, it also has a $0 inactivity fee and doesn’t charge for account closure. The margin fees are high, ranging from 9.325% for a $10,000 balance and 7.825% for over $100,000. The fees on some mutual funds are also on the high side.
Trading App
The Fidelity trading app is one of the most popular on the Apple app store, with over 1.3 million reviews with an average of 4.8/5 rating. It is quite simple and easy to use, even for beginners.
The company has two trading platforms, Fidelity.com and a downloadable app called the Active Trader Pro. Both apps are available for free to all investors. Buy and hold investors can benefit from the company’s web-based platform that provides adequate quotes and charts.
It is also suitable for new investors as it has an in-ticket help menu for new users.
More active traders will find Active Trader Pro more helpful as it provides real-time data, options analytics, charting tools, and a possibility calculator. In terms of mobile trading, stocks, ETF, options, and mutual funds can be traded on the company’s mobile app. The app, however, doesn’t support trading fixed income. The mobile app is also comprehensive, but it has limited fundamental analysis.
Final conclusions:
Fidelity is a large and well-rounded broker that offers quality value to investors of all experience levels. It is an excellent choice for investors interested in conducting their own research as it provides high-quality research tools.
By separating Active Trader Pro from the main platform, the company can serve both buy and hold investors and more active traders. The only drawback is that Fidelity doesn’t offer trade futures and futures options, making it less attractive for derivative traders interested in this style of investment.
That said, Fidelity investments have a long history in providing investment services and have continued the growth even in the online medium. It’s one of the very few investments of this size that’s still private, and without any outside investors, this is a rare thing to see in these modern times.