Trading - Why Fidelity (2024)

1.

$0.00 commission applies to online U.S. equity trades, exchange-traded funds (ETFs), and options (+ $0.65 per contract fee) in a Fidelity retail account only for Fidelity Brokerage Services LLC retail clients. Sell orders are subject to an activity assessment fee (historically from $0.01 to $0.03 per $1,000 of principal). There is an Options Regulatory Fee that applies to both option buy and sell transactions. The fee is subject to change. Other exclusions and conditions may apply. See Fidelity.com/commissions for details. Employee equity compensation transactions and accounts managed by advisors or intermediaries through Fidelity Institutional® are subject to different commission schedules.

Minimum markup or markdown of $19.95 applies if traded with a Fidelity representative. For U.S. Treasury purchases traded with a Fidelity representative, a flat charge of $19.95 per trade applies. A $250 maximum applies to all trades, reduced to a $50 maximum for bonds maturing in one year or less. Rates are for U.S. dollar-denominated bonds; additional fees and minimums apply for non-dollar bond trades. Other conditions may apply; see Fidelity.com/commissions for details. Please note that markups and markdowns may affect the total cost of the transaction and the total, or "effective," yield of your investment. The offering broker, which may be our affiliate, National Financial Services LLC, may separately mark up or mark down the price of the security and may realize a trading profit or loss on the transaction.

*These ETFs are different from traditional ETFs. This may create additional risks for your investment. Read about the risks at Fidelity.com/ActiveETFRisks

Options trading entails significant risk and is not appropriate for all investors. Certain complex options strategies carry additional risk. Before trading options, please read Characteristics and Risks of Standardized Options . Supporting documentation for any claims, if applicable, will be furnished upon request.

Fidelity Brokerage Services receives compensation from the fund's advisor or its affiliates in connection with a marketing program that includes the promotion of this security and other ETFs to customers ("Marketing Program"). The Marketing Program creates incentives for Fidelity Brokerage Services to encourage the purchase of certain ETFs. Additional information about the sources, amounts, and terms of compensation is in the ETFs prospectus and related documents. Please note that this security will note be marginable for 30 days from the settlement date, at which time it will automatically become eligible for margin collateral.

ETFs are subject to market fluctuation and the risks of their underlying investments. ETFs are subject to management fees and other expenses. Unlike mutual funds, ETF shares are bought and sold at market price, which may be higher or lower than their NAV, and are not individually redeemed from the fund.

2.

9.25% rate available for debit balances over $1,000,000. Fidelity's current base margin rate, effective since 7/28/2023, is 12.325%.

3. Fidelity now offers the Fidelity ZERO Total Market Index Fund (FZROX), Fidelity ZERO International Index Fund (FZILX), Fidelity ZERO Large Cap Index Fund (FNILX), and Fidelity ZERO Extended Market Index Fund (FZIPX) available to individual retail investors who purchase their shares through a Fidelity brokerage account.

4.

Based on data from IHS Markit for SEC Rule 605 eligible orders executed at Fidelity between January 1, 2023 and December 31, 2023. The comparison is based on an analysis of price statistics that include all SEC Rule 605 eligible market and marketable limit orders of 100–1,999 shares. For both the Fidelity and Industry savings per order figures used in the example, the figures are calculated by taking the average savings per share for the eligible trades within the respective order size range and multiplying each by 1000, for consistency purpose. Fidelity's average retail order size for SEC Rule 605 eligible orders (100–9,999 shares) during this time period was 757 shares. The average retail order size for the Industry for the same shares range and time period was 419 shares. Price improvement examples are based on averages and any price improvement amounts related to your trades will depend on the particulars of your specific trade.

5.

Margin Rates: Effective since 7/28/2023, Fidelity 9.25% for balances over $1,000,000. Effective since 7/28/2023, Schwab 11.825% for debit balances of $250,000 to $499,999.99. Call Schwab for rates on debit balances above $499,999.99, as its rates are not published for anything above this amount. Effective since 7/28/2023, E*Trade 12.20% for debit balances of $250,000 to $499,999.99. Call E*Trade for rates on debit balances above $499,999.99, as its rates are not published for anything above this amount; Effective since 7/28/2023, TD Ameritrade 12.75% for debit balances of $250,000 to $499,999.99. Call TD Ameritrade for rates on debit balances above $499,999.99, as its rates are not published for anything above this amount. Fidelity's current base margin rate is 12.325%.

6.

Fidelity was named NerdWallet's 2024 winner for Best Broker for Beginning Investors, Best Online Broker for IRA Investors, Best App for Investing, Best Online Broker for Bond Investors, and 5 stars for Best Accounts for Stock Trading Results based on evaluating 16 brokers per category. ©2017-2024 and TM, NerdWallet, Inc. All Rights Reserved.

7.

StockBrokers.com 2024 Annual Awards, January 2024: Fidelity was ranked No. 1 overall out of 17 online brokers evaluated in the StockBrokers.com 2024 Annual Awards. Brokers were each assessed within nine primary categories: Commissions & Fees, Research, Platforms & Tools, Mobile Trading Apps, Investment Options, Customer Service, Education, Ease of Use, and Overall.

8.

Barron's, June 9, 2023 Online Broker Survey. Fidelity was ranked against nine other competitors in five major categories and 80 subcategories. Fidelity tied Interactive Brokers for #1 overall.

9.

Investopedia, February 2023: Fidelity was named Best Overall online broker, Best Broker for ETFs, and Best Broker for Low Costs, among 25 companies.

10.

Investor's Business Daily®, January 2022: Best Online Brokers Special Report. Fidelity was named Best Overall Online Broker, and also first in Trade Execution Speed, Website Security, Site Performance, Research Tools, and Investment Research. Results based on having the highest Customer Experience Index within the categories composing the survey, as scored by 5,000 respondents. The survey was conducted by Investor's Business Daily's polling partner, TechnoMetrica Market Intelligence. © Investor's Business Daily, Inc. All rights reserved.

11.

Kiplinger's magazine, August 2023 Online Broker Survey. Fidelity was ranked No. 1 overall out of ten online brokers. Results based on ratings in the following categories: Commissions and fees, Investment choices, Smartphone app, Tools, Research, Advisory services, User experience and fees. Also named Best for mobile app, advisory services, and fees in the 2023 survey. From Kiplinger Personal Finance. ©2023 The Kiplinger Washington Editors. All rights reserved. Used under license.

The Fidelity ETF Screener is a research tool provided to help self-directed investors evaluate these types of securities. The criteria and inputs entered are at the sole discretion of the user, and all screens or strategies with preselected criteria (including expert ones) are solely for the convenience of the user. Expert Screeners are provided by independent companies not affiliated with Fidelity. Information supplied or obtained from these Screeners is for informational purposes only and should not be considered investment advice or guidance, an offer of or a solicitation of an offer to buy or sell securities, or a recommendation or endorsem*nt by Fidelity of any security or investment strategy. Fidelity does not endorse or adopt any particular investment strategy or approach to screening or evaluating stocks, preferred securities, exchange-traded products, or closed-end funds. Fidelity makes no guarantees that information supplied is accurate, complete, or timely, and does not provide any warranties regarding results obtained from its use. Determine which securities are right for you based on your investment objectives, risk tolerance, financial situation, and other individual factors, and reevaluate them on a periodic basis.

News, commentary, and research reports are from third-party sources unaffiliated with Fidelity. Fidelity does not endorse or adopt their content. Fidelity makes no guarantees that the information supplied is accurate, complete, or timely, and does not provide any warranties regarding results obtained from its use.

In general, the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk, liquidity risk, call risk, and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so holding them until maturity to avoid losses caused by price volatility is not possible. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Stock markets are volatile and can fluctuate significantly in response to company, industry, political, regulatory, market, or economic developments. Investing in stock involves risks, including the loss of principal.

Because of their narrow focus, sector investments tend to be more volatile than investments that diversify across many sectors and companies.

System availability and response times may be subject to market conditions.

Before investing in any mutual fund, consider the investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

Fidelity Brokerage Services LLC, Member NYSE, SIPC, 900 Salem Street, Smithfield, RI 02917

Trading - Why Fidelity (2024)

FAQs

Why won't Fidelity let me trade options? ›

Many brokerages don't enable options trading by default. At Fidelity, you must complete an options application that explains your financial situation and investing experience, and then read and sign an options agreement.

What is the downside to Fidelity? ›

Fees. Fidelity has average trading and low non-trading fees, including commission-free US stock trading. On the negative side, margin rates and fees for some mutual funds can be high. We compared Fidelity's fees with two similar brokers we selected, E*TRADE and TD Ameritrade.

What are the cons of trading with Fidelity? ›

Fidelity Cons
  • No cryptocurrency trading.
  • No futures trading or paper trading.
  • Transaction fees for non-Fidelity mutual funds.
  • Small per-contract fee for options.
Mar 22, 2024

Can you day trade without 25k Fidelity? ›

A Pattern Day Trader designation requires a minimum Margin equity plus cash in the amount $25,000 at all times or the account will be issued a Day Trade Minimum Equity Call. Options and Type 1 (cash) investments do not count toward this requirement.

Why is Fidelity better than Robinhood? ›

Fidelity's fee structure is somewhat different, as this platform offers significantly more products and services than Robinhood. Fidelity doesn't charge trading fees or commissions on stocks and ETFs. However, unlike Robinhood, it does charge $0.65 per contract to trade most options.

How many day trades can you make in Fidelity? ›

Day Trade Call

Three Day Trade Liquidations within a 12-month period will cause the account to be restricted. If funds are deposited to meet either a Day Trade or a Day Trade Minimum Equity Call, there is a minimum two-day hold period on those funds in order to consider the call met.

What is the Fidelity controversy? ›

A former Fidelity Investments financial advisor is suing the company for allegedly firing him for raising concerns that Fidelity was improperly pressuring advisors and branch managers to put clients into high-fee investments.

Is Fidelity being sued? ›

A former advisor with Fidelity Investments is suing the firm, alleging it pressured advisors and branch managers to steer clients into investments that carried steep fees, and that he was ultimately terminated in retaliation for voicing his concerns.

Why do people prefer Vanguard over Fidelity? ›

While both institutions offer robo-advisors, Vanguard's Personal Advisor Services, which is available to clients who can meet a $50,000 account minimum, offers a little more hands-on investment guidance and assistance with portfolio construction. Vanguard also has slightly lower expense ratios on its index funds.

What happens if Fidelity goes under? ›

If a brokerage fails, another financial firm may agree to buy the firm's assets and accounts will be transferred to the new custodian with little interruption. The government also provides insurance, known as SIPC coverage, on up to $500,000 of securities or $250,000 of cash held at a brokerage firm.

Is Fidelity good for day trading for beginners? ›

Fidelity offers day traders a range of tools and resources, including day trading software for analysis, efficient order execution platforms, insights during trading hours, and alerts to notify traders of key market developments. Day traders can benefit from Fidelity's advanced day trading software.

Is Charles Schwab or Fidelity better? ›

Schwab and Fidelity offer similar customer experiences. As a result, most types of investors can find benefits to working with either. The choice between the two may prove a matter of preferred trading instruments: Schwab is better equipped for futures, and only Fidelity offers direct crypto trading.

Can you day trade with $1000? ›

Believe it or not, you can start forex day trading with $1,000 or even less. It requires mastering position sizing and managing risks, but if you navigate your way to success, the rewards can be significant.

What happens if I day trade with less than $25,000? ›

If the account falls below the $25,000 requirement, the pattern day trader won't be permitted to day trade until the account is restored to the $25,000 minimum equity level.

How do I unlock options trading on Fidelity? ›

How To Enable Options on Fidelity?
  1. Step 1: Log into Your Fidelity Account. ...
  2. Step 2: Navigate to the 'Accounts & Trade' Tab. ...
  3. Step 3: Select 'Options' Under the 'Trading' Section. ...
  4. Step 4: Review and Agree to the Options Trading Agreement. ...
  5. Step 5: Verify Your Identity. ...
  6. Step 6: Complete the Options Trading Application.

What time can I trade options on Fidelity? ›

The Directed Trading of Options is available for executions Monday – Friday from 9:30 a.m. to 4:00 p.m. Eastern time for Equities and most narrow-based indices and some of the ETFs tracking those indices, except for market holidays.

Why can't you trade options on some stocks? ›

The Bottom Line. Stocks must meet a stringent list of requirements to be optionable, and not every stock will qualify. Stocks must meet exchange regulations in order to be listed with options; the exchange has the final word, not the stock-issuing company.

Why can't i short on Fidelity? ›

To sell short, you must have a Margin Agreement on file with Fidelity. To establish a Margin Agreement on an account, select Update Accounts/Features under the Accounts & Trade tab, and click Margin and Options under Account Features.

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