Skip to content Skip to sidebar Skip to footer

Fidelity Investments was earlier known as Fidelity management or research. This is an institution that provides financial services. Moreover, the headquarters of the company is in Boston. They are a more sophisticated version of brokers who purchase stocks on behalf of you.

Fidelity Investments started as a company that managed the assets of their clients. However, they have now branched into brokerage, mutual funds, cryptocurrency, giving advice on investment, and even selling life insurance.

Clients go to Fidelity when they are looking for experts to tell them how to handle all the different assets they already have. Fidelity advises its clients on how and where to invest. It is a one-stop-shop for all those who are clueless about what to do with their finances.

If you decide to give them control of your finances, they will do the task of investing and reinvesting your money for you.  Their goal is to get you maximum gains. They will also provide you with life insurance and a safe retirement plan.

By becoming a customer of Fidelity, you do not have to worry about your money. Your assets will be kept within the Fidelity Investment system. And the company will use them in ways that increase your income from assets like direct stocks.

How Fidelity Investment Works?

As stated earlier, Fidelity Investment has a lot of operations. So, let’s take a quick overview of how Fidelity Investment works.

Mutual Funds

They have three sections in this category

  • Equity
  • High Income
  • Fixed Income

Fidelity owns the largest non-indexed fund in the United States. Fidelity Contrafund has approximately 107.4 billion dollars in assets. Moreover, they are known for investing in stocks no one saw the potential of. They also have the Fidelity Magellan, an equity fund holding up to 15.5 billion dollars.

Brokerage

This is the branch of the company that acts as a broker. Currently, they have offices all over the United States. They provide services to individuals, families, and even banks or trusts who become their clients.

It also advises them on stocks that would yield maximum dividends. Moreover, they hold over a billion dollars in assets.

Benefits Outsourcing

This branch of Fidelity Investments is responsible for providing retirement plans. It also keeps records of payroll, and even looks after health insurance, pensions and all other assets that are required by an individual.

Once someone avails the services of Fidelity Personal, Workplace, and Institutional Services, they are reassured about all the finances mentioned above.

Devonshire Investors

Through Devonshire, the company invests in things that are not under them. For example, they invest in real estate or other companies that show promise. They also help start-ups launch by investing in them like Boston Coach.

Donor-Advised Fund

This is a charity fund that they run. The Donor-Advised Fund provides charity to many public and private organizations on behalf of their clients.

Fidelity Investments is undoubtedly one of the best brokerage services available for anyone who wants to invest their assets in safe ways. They charge a very low commission of 4.95 dollars.

They also have many stocks under their umbrella for you to choose from. Through their platform, you can do better research on the stocks. Also, their customer service is efficient in helping you make the right decisions when it comes to your finances.

Advantages

Charge

They charge very low rates at 4.95 dollars per trade, which is hard to beat, given the premium services and expertise they offer. And they are now not even charging any money for opening or closing an account with them. They also have some exchange-traded funds for the trading of which they charge no commissions.

Mutual Funds

The company is the first to introduce a zero expense index fund that has no expense ratio. This cuts down the mutual fund fee that is charged by brokers. It also helps investors to build a retirement plan with almost no expense.

No Minimum

Traders opening an account have no minimum investment that they need to make. Apart from some index funds, most of the ones trading at Fidelity Investments have no initial investment needs. This means people can start investing right away.

Thorough Research


Fidelity Investment recognizes the importance of research before investing in any stocks. Therefore, their online portal combines research from around 19 sources. Investors can avail reliable research and analysis on the stocks they are looking to invest through Fidelity.

Moreover, portals, as well as other market research, give ratings to the stocks. It becomes easier to understand the risks that stocks have before investing in one. They have special tests that you can take. By taking the test, the web portal can match you with investment choices that are suited to you.

Customer Service

Fidelity Investments organizes financial seminars on investment or webinars for their clients. Representatives of the company give you information about the company. They also tell you how to start investing with them or how to navigate the online portal. Even their online portal is helpful. For example, one can quickly locate resources that help you learn more about the various investments you can make with the company.

Disadvantages

The broker fees of Fidelity Investment is pretty low compared to most online or offline brokers. However, most brokers offer free services after a certain amount of investment. This amount is quite high for Fidelity Investments at 50,000 dollars.

Yes, $50,000 is the least amount of deposit that you need to have to get yourself free trade privileges with the company. Therefore for smaller investments, one needs to keep paying the 4.95 dollar fee for every trade, which can get a little pricey in the long run.

Now the 4.95 dollar fee is applicable only when you make a trade using their online web portal. This is equal to every investment decision you.

However, if you avail of the service, where they provide you with a real-time broker, the fee is $32.95. And this fee is quite high compared to others. This becomes a real disadvantage for people who prefer the old fashioned way of consulting with a broker before investing.

Summaryfidelity investments logo

To summarise, Fidelity Funds are amongst the top brokerage service providers in 2019. Moreover, they are at the top of their game with very few rivals. They provide a range of services at a minimum cost, which is appealing to those who prefer buying stocks online.

The company is reliable and offers all kinds of tools to help you in making a decision when investing. Their new no expense index fund has made them even more desirable among people who wish to invest in a good retirement scheme.

This brings us to the fact that the company provides several services under one wing. Investing with them will ensure that you get many services like life insurance, mutual funds, and keeping track of your payroll.

Let’s not forget about the excellent retirement plan option. In general, Fidelity prevents you from paying a lot of money to different places. The company makes a strong case for itself and is an excellent place to start investing.

Leave a comment