Fidelity Investments: A Complete Review for Investors in 2023

Fidelity Investments Comprehensive Review


Investing is crucial to financial planning, as it helps you accumulate wealth over time. Choosing the right investment firm to help you achieve your financial goals is important. One such company that comes to mind is Fidelity Investments.


Fidelity Investments is a well-established investment management company with an excellent reputation in the industry. They have been around for over seven decades and are known for their diversified range of investment products and services catering to retail and institutional investors.


This article aims to provide readers with an in-depth review of Fidelity Investments’ offerings, including their investment products and services, fees structures, customer service and support, and investment tools and resources. By the end of this article, you’ll have a comprehensive understanding of what Fidelity offers.

Softwareista Key Takeaways: Fidelity Investments


  1. Established Financial Services Provider: Fidelity Investments is a trusted and well-established financial services company offering various investment options and wealth management solutions.


  1. Investment Options: Fidelity Investments provides investors with a diverse selection of investment options, including stocks, bonds, mutual funds, ETFs, and more, catering to different risk appetites and investment goals.


  1. Robust Research and Tools: Fidelity Investments offers powerful research tools and resources to help investors make informed decisions. These include market analysis, investment research reports, and interactive tools for portfolio analysis.


  1. Wealth Management Solutions: Fidelity Investments offers comprehensive wealth management solutions, including retirement planning, estate planning, and financial advisory services, tailored to individual needs and goals.


  1. Customer Service and Support: Fidelity Investments is known for its strong commitment to customer service, providing support through various channels, including phone, email, and online chat, to assist investors with their inquiries and concerns.


  1. User-Friendly Platforms: Fidelity Investments offers intuitive and user-friendly platforms for managing investments and accessing account information. These platforms provide easy navigation, real-time data, and advanced trading capabilities.


  1. Education and Investor Resources: Fidelity Investments offers many educational resources, including webinars, articles, and seminars, to help investors enhance their financial knowledge and improve their investment strategies.



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A brief overview of Fidelity Investments and its services


Founded in 1946 by Edward C. Johnson II, Fidelity Investments has grown over the years to become one of the largest asset managers in the world with more than $8 trillion in assets under administration. The company caters to individual investors, financial advisors, employers who sponsor retirement plans for employees (such as 401(k)s), and institutional clients. 


Fidelity offers various investment products such as mutual funds, exchange-traded funds (ETFs), stocks, bonds, annuities, and more.


They also offer various types of accounts such as individual retirement accounts (IRAs) and taxable brokerage accounts among others. Another service Fidelity provides is wealth management which includes financial planning services for high-net-worth individuals seeking personalized advice on investing their assets.

Importance of conducting a comprehensive review before investing


Investing involves risk-taking- one needs to be careful when selecting an investment firm. You need a company that you can trust and one that caters to your investment needs. Conducting a comprehensive review of an investment firm such as Fidelity Investments is crucial before investing your hard-earned money.


It’s essential to know what you are getting into, the fees associated with investing, customer service offered by the firm among others. A comprehensive review of Fidelity Investments will help you determine whether they fit your investment goals.


Conducting a thorough evaluation of an investment firm is beneficial, especially when dealing with large sums of money. It helps you make informed decisions and choose the right investment products and services that suit your financial needs.

Fidelity Investments: Company Profile


Founded in 1946, Fidelity Investments is one of the world’s largest and most respected investment management companies. The firm is headquartered in Boston, Massachusetts, and currently manages over $3.7 trillion in assets for more than 30 million individual investors, institutions, and financial advisors.

  1. History and Background of Fidelity Investments


Fidelity has a long and storied history dating back to its founding by Edward C. Johnson II. Initially established as a mutual fund company, Fidelity has since expanded its offerings to include a range of investment products such as stocks, bonds, exchange-traded funds (ETFs), annuities, and life insurance policies.


Over the years, Fidelity has gained a reputation for being an innovative leader in the investment management industry. Some notable milestones include launching the first retail sector mutual fund (Fidelity Select Leisure) in 1951 and introducing commission-free trading for online U.S. equity trades in 2019.

  1. Overview of the company’s mission vision and values


Fidelity’s mission is to provide financial expertise that helps people live better lives through their investments while staying true to their core values of integrity, commitment to client’s needs first, and excellence throughout everything they do from products offered up to customer service delivery. 


The company’s vision is aligned with its core values; they aim to create an environment where customers can achieve financial success through innovative ideas while maintaining long-term relationships based on trust.

  1. Details on the company’s financial performance and stability


In terms of revenue generation- In 2020 alone, Fidelity generated $29 billion dollars worth of revenue with net income standing at $4.8 billion, showcasing the profitability that comes with its years of experience and success in the financial industry. The company’s financial stability is also reflected in its credit ratings. Fidelity has consistently enjoyed high credit ratings by rating agencies Moody’s, Standard & Poor’s (S&P), and Fitch Ratings.


In 2021, Moody’s affirmed Fidelity’s Aa2 rating with a stable outlook, while S&P reaffirmed its AA+ rating with a stable outlook. Moreover, the firm has maintained its competitive edge by investing in digital transformation technology and wealth management services.


This move allows them to offer products that are more affordable and accessible to the average investor. As a result, they have continuously grown over the years gaining more trust from their customers in their ability to provide top-notch services while maintaining financial stability.

3. Investment Products and Services


Fidelity Investments offers a wide range of investment products and services to meet the needs of diverse investors. Their offerings include mutual funds, ETFs, stocks, bonds, annuities, and other investment options.

Mutual Funds


Fidelity’s mutual fund offerings are diverse and cater to different investor needs. They offer actively managed and index funds that invest across various asset classes including equities, bonds, money market instruments, and alternative investments.


The firm’s Equity Income Fund is a popular choice for investors seeking dividend-paying stocks while their Fidelity Strategic Income Fund invests in fixed-income securities like bonds. Fidelity’s mutual fund offerings are also known for their low expense ratios compared to other investment companies.


For instance, the average expense ratio for Fidelity mutual funds is 0.44%, while the industry average is 0.63%. This makes Fidelity an attractive option for cost-conscious investors who want access to quality investment options at a lower cost.



In addition to mutual funds, Fidelity offers a range of ETFs that track different indices across various asset classes such as equity ETFs tracking large-cap or small-cap stocks and bond ETFs such as US Treasury bonds or high-yield corporate bonds. Fidelity’s ETF offerings also come with low expense ratios compared to industry averages. For example, their Total Market Index ETF has an expense ratio of just 0.03%, significantly lower than the average expense ratio of similar products in the market.

Stocks & Bonds


Fidelity provides access to trading individual stocks and bonds across different markets for investors who prefer individual securities over pooled investments like mutual funds or exchange-traded funds (ETFs). Fidelity’s brokerage platform offers competitive pricing, with commission rates as low as $0 per trade. This makes it easier for investors to build and manage their own portfolios at a lower cost than traditional full-service brokers.

Annuities and Other Investment Options


Besides these traditional investment options, Fidelity offers other investment options like annuities, managed accounts, and college savings plans. Their annuity offerings allow investors to generate income for retirement while their managed accounts provide a more personalized approach to investing based on individual goals and risk tolerance.

Comparison with Other Investment Firms in Terms of Product Offerings


Fidelity Investments is known for its comprehensive investment product offerings which are comparable with other major investment firms such as Vanguard or Charles Schwab. Compared to its competitors, Fidelity stands out in terms of their diverse mutual fund offerings at a lower expense ratio. While other firms may specialize in certain types of investments or cater to specific investor demographics, Fidelity has something for everyone regardless of your experience level or goals.


Their low-cost structure makes it attractive for investors looking for affordable access to quality investment options across asset classes. Fidelity Investments is a one-stop shop for all your investment needs with a comprehensive range of products and services that cater to different investor preferences.


Whether you prefer actively-managed mutual funds or individual securities like stocks and bonds, you can find an option that fits your style. Furthermore, compared to other major firms in the industry such as Vanguard or Charles Schwab, Fidelity’s product offerings stand out due to their diversity coupled with relatively lower expense ratios across all their product lines making it an appealing choice for cost-conscious investors seeking quality investments at attractive prices.

Fees and Charges

  1. The Cost of Investing with Fidelity


Before making any investment decisions, it’s important to understand the fees associated with investing with Fidelity Investments. While Fidelity offers a range of investment options, each product or service comes with a set of fees and charges that can eat into your returns if you’re not careful.

Firstly, transaction fees are charged for every buy or sell order placed on stocks, ETFs, and options. The transaction fee for online trades is $4.95 per trade for stocks and ETFs while options cost $0.65 per contract plus a $4.95 base charge per trade.


For broker-assisted trades, the transaction fee is higher at $32.95 per trade for stocks and ETFs while options cost $0.65 per contract plus a $32.95 base charge per trade. Secondly, account maintenance fees are charged by Fidelity to keep your investment account active and running smoothly.


However, these fees vary depending on your account type with Fidelity Investments – Individual Retirement Accounts (IRAs), brokerage accounts, or mutual fund accounts – and the account’s balance. For instance, mutual funds have no account maintenance charges, but investors will incur an annual expense ratio fee of around 0.73% on average across all funds (Fidelity’s mutual fund expense ratios tend to be lower than industry averages).


On the other hand, IRA accounts have a yearly maintenance fee that ranges from $4 to $25 annually depending on IRA type i.e. Traditional IRA vs Roth IRA. but most importantly are management fees which are levied by Fidelity for managing investor portfolios on their behalf through managed accounts or robo-advisor services such as Portfolio Advisory Services at a rate of 0.50% annually up to 1% depending on the portfolio size.

  1. A Comparison With Other Investment Firms


Comparing Fidelity’s fee structure to other investment firms in the industry is essential when deciding where to invest your money. While different investment options come with varying fee structures, it is worth noting that Fidelity charges lower fees than its competitors charge. For instance, Schwab charges $4.95 per trade for stocks and ETFs similar to Fidelity while TD Ameritrade charges $6.95 per trade making it more expensive than Schwab and Fidelity.


However, Vanguard which is well known for its low-fee index funds does charge a commission of up to $7 per trade on stocks and ETFs if you don’t have at least $50,000 in assets with them. It’s important to note though that while comparing fees may be an essential step in selecting an investment firm, choosing solely based on cost may not always be the best decision since the quality of service and investment products or services offered should also factor into the final decision.

  1. How To Avoid Paying Unnecessary Fees


While investing, investors should minimize any unnecessary fees charged by their chosen broker or investment firm as much as possible. One way of achieving this is by taking advantage of Fidelity’s commission-free offers such as buying their proprietary ETFs which cost nothing since they don’t incur any transaction fees.


Similarly, investors can avoid account maintenance fees by maintaining a certain minimum balance in their accounts – typically between $1,000 and $50,000 depending on account type – or through automatic savings plans which waive account maintenance costs for regular savers. 


Additionally, investors looking for cost-effective ways of managing their portfolios can opt for automated portfolio management services such as robo-advisors like Portfolio Advisory Services offered by Fidelity which offer lower management fees compared to human financial advisors who typically charge more than 1% annually.

Customer Service and Support

  1. Overview of Fidelity’s customer service offerings


Fidelity Investments is known for providing excellent customer service to its clients. The company has a wide range of customer service channels that cater to different needs and preferences. They offer phone, online chat, and email support and even have a physical office where clients can schedule appointments with financial advisors.


Their phone support is available 24/7, meaning clients can call anytime they need assistance with their investments or have questions about their accounts. The company also has an extensive FAQ section on its website where clients can find answers to common questions without contacting customer support.


Their online chat support allows clients to chat with representatives in real time, making it easy to get quick answers to specific questions. Their email support is also a great option for those who prefer written communication or have more complex issues that require detailed explanations.

  1. Analysis of how responsive their customer service team is


Regarding responsiveness, Fidelity’s customer service team is highly efficient and effective. They have been recognized by J.D. Power for providing excellent client satisfaction in the investment industry. Fidelity has also been awarded the Stevie Award for Customer Service Excellence in the Financial Services category.


According to reviews from current and past clients, Fidelity’s representatives are knowledgeable and courteous when answering customer queries or concerns. There are rarely long waiting times when calling their phone lines, and they’re known for solving issues quickly.


Furthermore, Fidelity provides personalized services as per the client’s account type; these services include dedicated account managers who help manage portfolios and offer personalized advice based on individual needs. 


Fidelity recognizes the importance of good communication between its customers and its staff; this supports customers’ trust in them as an investment firm while ensuring that any concerns are handled promptly which minimizes stress and anxiety caused by issues with investments.

  1. The impact of good customer service on investing


The importance of excellent customer service in the investment industry cannot be overstated. It can distinguish between a satisfied client who remains loyal to the company and recommends them to others or an unhappy client who leaves for another investment firm.


A good customer service experience can also help clients feel more confident about their investments, leading to better financial decisions and even higher returns. Additionally, excellent customer service helps build trust between clients and their investment firms.


When clients know they can rely on their investment firm to handle their concerns or questions quickly and effectively, it creates a sense of security, knowing that professionals are in charge of their wealth. Fidelity Investments places great emphasis on providing exceptional customer support; it is as important as any other aspect of its services.


This support has been well received by customers who find the representatives courteous and knowledgeable with quick response times. Excellent communication ensures customer satisfaction while promoting trust in Fidelity Investment’s services.

Investment Tools and Resources

  1. The Importance of Investment Tools and Resources


Investing can be a complicated process, and it is crucial to have access to reliable tools and resources that can help you make informed decisions. Fidelity Investments provides its customers a wide range of tools and resources, from research tools like stock screeners to market analysis tools like charts. These resources help investors evaluate investment options, track performance, and make informed investment decisions.

  1. Research Tools


Fidelity offers several research tools, including equity summary score, which is a unique rating system that evaluates stocks based on various factors such as earnings quality, valuation metrics, and momentum indicators. The tool also provides detailed research reports with fundamental data about companies.


Another tool Fidelity offers is the stock screener which allows investors to filter stocks based on various criteria such as industry sector or market capitalization. This tool can help investors identify potential investment opportunities quickly.

  1. Market Analysis Tools


Fidelity’s Market Analysis Tools include powerful charting applications enabling investors to analyze market trends closely. These charts allow investors to view price movements across different markets over specific periods.


The charts include technical indicators that are used for analyzing price trends or identifying patterns. Fidelity also offers the Global Markets Overview tool that provides an overview of the global economic landscape including news headlines affecting the financial markets in real-time.

Softwareista Final Word


Fidelity Investments is more than just a brokerage firm; they are committed to helping its clients achieve their financial goals through a range of valuable services, products, resources, and tools. One key strength that sets Fidelity apart from other brokerage firms is its extensive selection of investment tools and resources designed specifically for different types of investors with varying levels of experience in investing.


The company always keeps working on updating its platform with new products & features to meet the growing needs of its customers. With its track record of reliable customer support, helpful investment tools, and a broad range of investment products, Fidelity is an excellent choice for new and experienced investors looking to build a diversified portfolio.

Softwareista FAQ Section: Fidelity Investments

  1. What is Fidelity Investments?

Fidelity Investments is a renowned financial services company that provides various investment options, wealth management solutions, and advisory services.


  1. What investment options are available with Fidelity Investments?

Fidelity Investments offers a diverse selection of investment options, including stocks, bonds, mutual funds, ETFs, and more, catering to various investment preferences and goals.


  1. What research and tools does Fidelity Investments provide?

Fidelity Investments offers robust research tools and resources to help investors make informed decisions. These include market analysis, research reports, and interactive tools for portfolio management.


  1. Does Fidelity Investments offer wealth management solutions?

Yes, Fidelity Investments provides comprehensive wealth management solutions, including retirement planning, estate planning, and financial advisory services tailored to individual needs and goals.


  1. How is the customer service at Fidelity Investments?

Fidelity Investments prioritizes customer service, offering support through various channels, including phone, email, and online chat, to assist investors with their inquiries and concerns.


  1. Are Fidelity Investments’ platforms user-friendly?

Yes, Fidelity Investments provides user-friendly platforms for managing investments and accessing account information. These platforms offer easy navigation, real-time data, and advanced trading capabilities.


  1. Does Fidelity Investments offer educational resources?

Absolutely, Fidelity Investments offers a wide range of educational resources, including webinars, articles, and seminars, to help investors enhance their financial knowledge and improve their investment strategies.



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