In this Fidelity review, we are going to look at all the different aspects of using this broker to trade as well as how to open an account with them. Fidelity was rated the Best Online Broker in 2018 by Investor’s Business Daily and StockBrokers.com. In fact, they were also named Best Online Broker in 2016 and 2017 by Barron’s, Kiplinger’s, and Investor’s Business Daily.
Chart by TradingView.
Table of Contents
Fidelity 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 Investments is 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 you annual fees. Check out other Fidelity review posts to learn more.
Research
Named one of the best brokers for fund research and tools, it’s no surprise this is where Fidelity shines. For example, let’s take a look at this AAPL quote. You’re given many helpful nuggets of information. From key financial metrics, recent news to ratings, Fidelity offers a comprehensive research experience.
Basic Web
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. are easily 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 do have the option of creating multiple watch lists that can be sorted by price or volume as well as set alerts.
What Is Fidelity Active Trader Pro Platform?
This is where things get exciting! Fidelity’s Active Trader Pro for desktop is their premium trading platform. The easy-to-use platform is clean and offers a plethora of features coupled with powerful research resources. It’s no Thinkorswim. Although it gives it a run for its money with its great features, including intuitive shortcuts and fantastic charting. In fact, 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 period. You can also phone in to request access.
Mobile Trading
If you want to make trades on the go, there are mobile apps for the iPhone, iPad, Android, and Windows Phone. It’s simple, easy to navigate, and user-friendly.
It’s easy to perform research, set up notifications, browse news feeds, and order trades from your smartphone. 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 are looking for complexity within the mobile device. Furthermore, the inability to make rapid-fire trades is detrimental to momentum traders.
Trade Armor Tool
We can’t stress the importance of risk management here at Bullish Bears. What sets apart the new trader from the seasoned pro is their ability to manage risk.
The patented Trade Armor tool was developed by Fidelity 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 are able to quickly and easily identify stock entry and exit points.
Pros & Cons
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 period
- Mobile app charting lacks depth and fast order execution
- Inability to custom code studies
- Only available to US residents
Who Is Fidelity Best For?
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 slightly outshine Fidelity.
However, Fidelity’s platform is still strong. With low commissions and an easy-to-use platform, they offer a solid experience for beginners as well as advanced investors.
The vast amount of research provided is a huge benefit. While day traders may not get the same benefit from this type of research, it can be very beneficial for investors!
Day Trading With Fidelity
Fidelity’s Active Trader Pro (ATP) is easy to use, and offers a plethora of features along with powerful research resources. Unquestionably, Fidelity’s no Thinkorswim, but it has fantastic charting. With over 60 interactive and customizable charts, 22 different drawing tools, 166 optional studies, it’s useful for longer-term traders.
Downsides of Day Trading With Fidelity Active Trader Pro
While Fidelity thrives in its offering of security selection and fees, it struggles 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 trading on Fidelity’s platform for a few reasons:
- Level 2 data for OTC stocks in nearly non-existent on ATP; this alone will make it virtually impossible to identify instant trading opportunities
- No hotkeys which will significantly impact how quick 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
Frequently Asked Questions
What Are Fidelity's Fees and Commissions? (Pricing Review)
- 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 among all brokers! By opening an account you have access to over 265 commission-free ETFs. If you have been shopping around you'll see this is in line with the big players such as E*TRADE and TD Ameritrade.
Also, Fidelity is the only brokerage to provide its clients with a raw tally of savings due to quality order execution.
Fidelity's Stock Price and Symbol: Are They Publicly Traded?
Fidelity is a publicly traded company on the New York Stock Exchange (NYSE: FNF).
How Many Trades Can I Make Per Day on Fidelity?
Day traders can only make 3 day trades within 5 calendar days on Fidelity due to the PDT rule restriction. Swing traders are not limited by the number of trades that they can make.
