Fidelity Broker Review 2024: Pros, Cons and Pricing (2024)

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Fidelity Broker Review Introduction

Fidelity is a good investment broker for beginners. They are a very popular and reputable broker and are best known for their mutual funds. However, their trading platform is starting to build a name for itself. Fidelity also has great research tools and fantastic customer service. Founded in 1946, Fidelity Investmentsis well-known throughout the industry and offers a wide range of financial services.

The broker is part of the “big five” brokerage firms, operating as a discount brokerage firm. With over $19 million in retail brokerage accounts and $2 trillion in client assets, clients should expect a lot from Fidelity, and they deliver.

It costs nothing to open a Fidelity account. However, if you want to trade on margin, a deposit of $5000 is required. Luckily, once this amount has been met, Fidelity doesn’t require you to maintain a minimum account balance or charge annual fees. You can check out other Fidelity review posts to learn more.

The online trading platform is laid out like a standard website. As a result, if you’re new to the platform or even trading, you will find it quite intuitive.

Any basic investing function, such as quotes/price charts, news, analyst reports, etc., iseasily accessible on Fidelity’s web platform.

However, it is a static website. As a result, you can’t customize the platform (i.e., adding and removing windows). However, you can create multiple watch lists that can be sorted by price or volume, as well as set alerts.

Fidelity’s Active Trader Pro for desktop is their premium trading platform. The easy-to-use platform is clean and offers many features and powerful research resources. It’s no Thinkorswim. However, it gives it a run for its money with its great features, including intuitive shortcuts and fantastic charting. It even has a multi-trade ticket that can store orders for later and place up to 50 at a time. Additionally, it has over 60 interactive and customizable charts, 22 different drawing tools, and 166 optional studies.

As a result, it’s a trader’s dream. However, unlike competitors TD Ameritrade and Charles Schwab, Fidelity does not make its active trader platforms automatically available to all customers.

To qualify for Active Trader Pro, 36 or more qualified trades must be made in a rolling 12-month. You can also call in to ask for access.

If you want to make trades on the go, Fidelity has a mobile app for the iPhone, iPad, Android, and Windows Phone. It’s simple, easy to navigate, and user-friendly.Researching, setting up notifications, browsing news feeds, and ordering trades from your smartphone is easy. However, a downside of the mobile app is the complex charting and research Fidelity is famous for is virtually nonexistent.

Thus, investors may be disappointed if they look for complexity within the mobile device. Furthermore, the inability to make rapid-fire trades is detrimental to momentum traders.

We can’t stress the importance of risk management here at Bullish Bears. What sets apart the new trader from the seasoned pros is their ability to manage risk.

Fidelity developed the patented Trade Armor tool for the sole purpose of managing risk. It works by helping investors visually see their strategies in the Active Trader Pro platform. As a result, they can quickly and easily identify stock entry and exit points.

Pros

• Over 357 commission-free ETFs and 3,700 no-transaction-fee mutual funds
• Free and extensive research, as well as data
• Access to streaming real-time quotes in Fidelity’s website watch list tool
• 166 indicators/studies available to include on a stock chart with 22 drawing tools
• Excellent customer service with 24/7 phone support, live chat, and email support

Cons

• High fees if a broker-assisted trade is needed
• To access the Active Trader Pro platform, you must make 36-plus trades in a rolling 12-month.
• Mobile app charting lacks depth and fast order execution
• Inability to custom code studies
• Only available to US residents

Active Trader Pro’s functionality list is robust to the point where it trails only behind the two undisputed leaders in this arena: TD Ameritrade’s Thinkorswim and E*TRADE. Their advanced platforms, deeper settings, and ability to custom code studies cause them to outshine Fidelity slightly.

However, Fidelity’s platform is still strong. Low commissions and an easy-to-use platform offer a solid experience for beginners and advanced investors.

The vast amount of research provided is a huge benefit. While day traders may get different benefits from this type of research, it can benefit investors! Make sure to check out other Fidelity reviews to get other traders experiences.

• Retirement & IRA’s – no account fees, no minimums to open an account. 1.21% government money market fund 7-day yield
• $0 commissions for online US stock, ETF, and options trades
• 5% published margin rates

Get updated pricing here.

Fidelity has lowered its fees, and they are some of the best brokers! By opening an account, you have access to over 265 commission-free ETFs. If you have been shopping around, you’ll see this aligns with the big players such as E*TRADE and TD Ameritrade.

Also, Fidelity is the only brokerage to provide its clients with a raw savings tally due to quality order execution.

While Fidelity thrives in offering security selection and fees, it needs help in the active trader department. For example, only seven indicators are available on mobile.

To put this in perspective, the industry average is over 30. Moreover, traders may struggle day with trading on Fidelity’s platform for a few reasons:

• Level 2 data for OTC stocks is nearly non-existent on ATP; this alone will make it virtually impossible to identify instant trading opportunities
• No hotkeys that will significantly impact how quickly you execute your trades
• Issues with streaming quotes: this is a severe problem for someone wanting to see where a stock stands
• Lack of float size data for the ticker in the Quote tool
• No VWAP indicator
• No alerts premarket and after-hours
• A paper trading simulator is not available
• Their mobile app is slow and clunky to navigate