#FidelityInvestments #FidelityIndexFunds #FidelityAppReview
Fidelity Investments is a privately-owned investment management company that was established in 1946 as a mutual fund company.
Since then, Fidelity offers a large range of services including fund distribution and investment advice, wealth management, life insurance, retirement services, and securities execution and clearance. It manages equity, fixed income, and balanced mutual funds for individual investors, businesses, financial advisors, and institutional investors.
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Based in Boston, Massachusetts, it is one of the largest investment management firms in the United States, with over 26 million customers, $6.5 trillion in total customer assets, and more than $2.4 trillion in global assets under management.
Fidelity joined in the rush to cut equity and base options commissions to zero in October 2019 but remains devoted to offering top-quality research and education offerings to its clients. The firm also makes it easy for clients to earn interest by sweeping uninvested cash into a money market fund.
Who Fidelity Better suited for?
As one of the larger brokers in the U.S., Fidelity is designed to serve the vast majority of individual investors. For the typical, buy-and-hold investor, Fidelity’s platform offers a wide selection of tools, research, and resources coupled with easy order entry.
For more active investors and full-on traders, Fidelity offers Active Trader Pro, a downloadable program with real-time data streaming and a customizable trading interface.
Pros
Low Commissions: Fidelity was already a leader for low-cost commissions, but the company eliminated commissions in 2019 for stock, ETFs and options. Before that, the company did away with nearly all account fees, including the transfer and account closure fees that are commonly charged by brokers.
Zero Expense Ratio Mutual funds: The war among brokers to cut mutual fund fees has brought good changes to Fidelity: The company was the first broker to bring to market index funds with absolutely no expense ratio: the Fidelity Zero Total Market Index Fund, the Fidelity Zero International Index Fund, the Fidelity Zero Large Cap Index Fund and the Fidelity Zero Extended Market Index Fund.
Investors could build a balanced retirement portfolio with these zero-expense-ratio funds alone, but even the Fidelity index funds that do charge an expense ratio undercut much of the competition on price. In total, investors at Fidelity have access to over 3,400 no-transaction-fee mutual funds and over 700 mutual funds and index funds with expense ratios of 0.50% or less. Those funds come from Fidelity and other mutual fund companies.
Fidelity also offers a large selection of funds with low or no minimum. All Fidelity funds for individual investors require no minimum investment.
With stock research from 20 third-party providers, including Recognia, Ned Davis Research, Thomson Reuters and McLean Capital Management. The company offers ETF research from five providers and options strategy ideas from options analysis software LiveVol.
Stock quote pages show an Equity Summary Score, which is a consolidation of the ratings from these research providers. It gives an “accuracy-weighted sentiment derived from the ratings of independent research providers on Fidelity.com,” according to the website.
This number of research firm offerings might seem like too much to wade through, but investors can take a short quiz to identify providers that match their investment style. A research firm scorecard evaluates the accuracy of the provider’s recommendations.
Fidelity is the rare broker that’s able to serve both active traders and retirement investors alike. The company brings it on every level, starting with a mutual fund selection that stacks up to any other broker and even includes free offerings. But Fidelity also offers features that matter to stock traders, including strong trading platforms, zero trade commissions and a wide range of research offerings. We can’t think of an investor who won’t be well-served by Fidelity….(read more)
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Fidelity is the best for the middle class, and Schwab is a close 2nd. No minimum for Index mutual funds, the lowest costing Index mutual funds in the industry, and fractional shares purchasing ability for all ETFs and stocks.