Fidelity Investments is a well-known American financial services company founded in 1946. As one of the world largest investment firms, it’s famous for the top-tier research and customer service. And the best-known operation is its mutual funds. But now its trading platform is also a major force in the area of online brokerage. If you’re interested in this company which is always on the list of the best brokers in the world, keep reading and learn more.
Fidelity’s main operations are mutual funds and brokerage services. What’s more, the company provides services including wealth management, retirement plan services, life insurance, securities execution and clearance, and fund distribution and investment advice. Noticeably, Fidelity also runs Fidelity Charitable, which is the first commercial donor-advised fund. This service enables donors to earn interest from investing in the fund before their donation is given to the beneficiaries.
Where Fidelity shines
- Trade executions: During the last few years, Fidelity focused its efforts on price improvement and avoiding payment for order flow (a compensation a broker receives from a third party to route client orders for fulfillment). Today more than 90% of its clients enjoy a price better than the national best bid or offer.
- Fees: Fidelity joined in the rush to eliminate commissions for online stock, options, and exchange-traded funds (ETFs) in 2019. And the company has eliminated almost all account fees, which even include fees for transfer and account closure (these two are usually charged by most brokers). In terms of fees, Fidelity is one of the best among all brokers.
- Research and asset screeners: Fidelity boasts lots of pre-set screens for investment products. The stock screener has almost 140 criteria and 21 themes including Cloud Computing, Robotics, and Natural Foods. Stock research is from 20 third-party providers, such as Recognia, Ned Davis and Thomson Reuters. ETF research from six providers is outstanding, including themes, analyst ratings. And it can search through funds by a specific stock. Therefore, clients could easily narrow down their choices.
There isn’t much to talk about shortcomings of Fidelity. But these is still room for improvement in these aspects:
- Clients may not find all their preferred tools on one platform. For example, they can only find fundamental research for stocks on the website while Options-specific tools only on Active Trader Pro, a program with real-time data.
- The website sometimes is not easy to navigate. Clients may find it difficult to quickly spot the information they need.
- Clients have to manually refresh the date on the website to get up-to-date information.
- Account opening is only available for U.S. citizens or residents.
Form a bird’s eye view, it is a good investing partner. If you value high quality research and services as well as a wide selection of investment products, you could give Fidelity a shot.