Fidelity Investments Review – Forbes Advisor
Fidelity has one of the broadest lines of account types in our survey of brokerage firms for individuals, families, businesses and managed accounts.
Beyond common and individual taxable brokerage accounts and tax-advantaged retirement accounts, the company offers all types of accounts that an individual or business might need. Some of the more unique types of accounts include Solo 401 (k) for freelancers and small businesses and 529 accounts for college savings.
The range of account types falls into these categories:
- Taxable investment
- Individual retirement accounts (IRA)
- Corporate accounts
- Save and invest for a child
- Save for medical expenses
- Estate planning
- Charitable donation
- Managed Accounts
- Annuities and life insurance
Fidelity’s standard desktop platform offers a full range of analytical capabilities and tools needed to filter and research investments. Portfolio analysis tools break down holdings by stocks and fixed income securities, investment ratings, style and sector.
There are several portfolio analysis screens, including performance, dividends, asset allocation, and fund ranking. Users can link external accounts for 360 degree portfolio view and analysis.
The platform’s research offerings are some of the best in the online brokerage space and include in-depth third-party research and access to fixed income specialists.
Pro Loyalty Account Trader
Fidelity trading platform and tools rank among the top three of our brokers surveyed. This downloadable trading platform is a complete solution for new and experienced traders and investors, getting near perfect scores for the most important features.
Active traders will benefit from Level II quotes, heat chart, trade journal and over 45 market filters. Users can customize their trading experience, and Active Trader Pro goes hand in hand with top platforms like thinkorswim from TD Ameritrade and StreetSmart Edge from Schwab.
Advanced and customizable features include:
- Portfolio builder
- Commercial review
- Thermal mapping
- AI assistant
- Watch lists
- Level II quotes
- Extended trading hours
- Multi-leg options trading
The platform is easy to use and has most of the features traders need including real-time analysis and trading ideas. The platform doesn’t have a short locator and paper trading, but that’s about the only weakness.
The platform’s charting capabilities rival the best and are suitable for daily, active and technical traders. Fidelity’s Active Trader Pro platform shines with its advanced technical analysis capabilities, drawing tools and tab charts, all available at no additional cost.
Customizable chart features include:
- 114 graphic indicators
- Ability to trade from the chart
- Drawing tools
- Historical trades
- Ability to save chart settings as a template
Fidelity got a perfect rating in our order types survey. New to experienced investors can access most types of orders, including conditional and fixed-term orders. Multi-leg option controls are also available. Note that some conditional commands are not available on the mobile app.
The types of commands available include:
- Market, limit, day
- Leak stop
- Voucher until canceled (GTC)
- One cancels the other (OTO)
- Open / close limit
- Open / close market
- Short sale
Fidelity is known for superior order execution and improved pricing saved clients over $ 1.6 billion on trades in 2020. The company claims to be the only company to voluntarily report savings on trades. ‘complete price improvement with Financial Information Forum (FIF) standards. If you are a frequent trader, this is an important feature for saving money.
Fidelity Managed Portfolios
The portfolio options managed by Fidelity are extensive. There are different levels of managed accounts, from basic and hybrid robo-advisors to fully managed portfolios at varying levels of service and price. Be careful with the costs, however, because some exceed those of the competitors.
The digital and hybrid managers of Fidelity’s robo-advisers are Fidelity Go and Fidelity Personalized Planning and Advice. The core Fidelity Go platform offers a diversified investment portfolio and automatic rebalancing. It does not require a minimum investment amount and offers free investment management for accounts under $ 10,000. The investment management fee is $ 3 per month for accounts with balances between $ 10,000 and $ 49,999. This changes to a fee model based on a percentage of 0.35% of assets under management (AUM) per year for accounts valued at $ 50,000 or more.
Fidelity Personalized Planning and Advice combines Fidelity Go with live financial advisors for a more personalized experience. The minimum investment amount is $ 25,000 and the fee is 0.50% of assets under management per year.
Fidelity’s additional wealth management solutions offer varying levels of service, strategies, pricing and personalization:
- Portfolio advisory services has a minimum of $ 50,000 and provides access to a dedicated team of financial advisors for an annual fee of 1.10% of assets under management
- Wealth management requires a minimum of $ 250,000 and offers a dedicated financial advisor. Fees range from 0.50% to 1.5% of assets under management annually, and services cover in-depth strategies, estate planning, insurance and more.