Fidelity Trading Review: Low Trading Costs and No Minimum to Open

Read about Fidelity's trading fees and other features.

Fidelity Investments is a well-known name in the investing world, operating as a fund manager with a variety of ETFs and mutual funds carrying its name. There are also the Fidelity brokerage services that offer online trading to investors at any level of expertise for some of the lowest costs in the industry.

Here’s a closer look at Fidelity online trading and whether it’s worth it for you to open a Fidelity account today.

Fidelity Review
Fidelity’s Highlights:
  • Low trading costs
  • Free trading on select ETFs and mutual funds
  • No minimum to open an account
Fidelity’s Lowlights:
  • No live in-person chat
  • Basic research and educational tools
  • No futures contracts

What You Need to Know About Fidelity

Best for: Beginning traders, passive investors, retirement investors

Fidelity’s low trading costs make it appealing to almost any investor, but the lack of any minimum deposit to open an account means it could be a solid place to start if you haven’t invested before. What’s more, the numerous options for trading ETFs and mutual funds without paying any commission mean that it should be a solid option for the passive investors who are just focused on building a simple, diversified portfolio to fund their retirement.

Check Out: Pros and Cons of Online Trading

Fidelity at a Glance
Trade TypeCommission
Stocks and ETFs:$4.95
Free trading on select ETFs
Options Trade:$4.95
Plus $0.65 per contract
Bonds:$1.00
No fee for trading U.S. Treasuries on secondary market
Mutual Funds:$0
Free trading on over 3,300 mutual funds
Minimum to Open Account:None

Should You Use Fidelity?

It’s hard to see where you can go wrong with Fidelity. More active traders might want to search out platforms that offer more robust research tools, but the low Fidelity trading fees and free trading on a wide selection of ETFs and mutual funds mean that there’s a wide base of investors who will likely find Fidelity to be their best option.

Check Out: The Best Online Stock Brokers for Beginners

You can also get access to a Fidelity advisor if you feel like you need or want more information or advice on how to approach investing with your specific circumstances. That said, although there is 24/7 access to customer service over the phone, the site does not offer in-person live chat, so if you have a strong preference for in-person over a call, you should factor this into your final decision.

All told, Fidelity trading fees are among the industry’s lowest, and you might not even need to pay those if you’re comfortable sticking to the list of funds it offers for no-commission trading. And, for initial deposits of $50,000 or more, you can secure 300-500 free trades to use over the first two years — a value of almost $2,500. If you are a passive investor who likes to buy and hold, that could mean making all of your necessary trades for free up front and avoiding trading costs almost entirely.

Either way, even if you do have to pay the $4.95 a trade, you’re still getting a very competitive rate as compared to other online brokers, so Fidelity should be a contender in selecting a broker for almost anyone.

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