Who Should Cull Fidelity?

Fidelity is a great choice for beginner investors who are just getting started to sophisticated day traders. Fundamental and technical traders who need comprehensive research capabilities for stocks, exchange-traded funds (ETFs) and fixed income volition find everything they need on this platform.

Unique features place Allegiance Investments in the company of the very best online brokers. Fidelity's screeners, third-party research resources and portfolio analysis tools are deep while the downloadable Active Trader Pro has the tools stock and options traders need. The quantifiable price savings on lodge execution make Fidelity a great choice for frequent traders.

An expansive array of managed portfolios, with accompanying coaching and financial advisor guidance, is ideal for investors seeking both practise-information technology-yourself tools and advisor-led guidance.

The few strikes confronting Fidelity include a portfolio analysis characteristic that misses the in-depth view needed for a truly accurate analysis. For instance, a sample portfolio, heavily weighted toward international stock funds and real estate, was deemed a diversified portfolio, despite the lack of diversified U.S. disinterestedness exposure. Additionally, the platform is due for an artful update as it appears a bit dated.


Fidelity Commission and Fees

Fidelity's zero-commission trading of stocks and ETFs is in line with the manufacture standard, but this brokerage platform stands out by offering zero-commission trading for over-the-counter (OTC) stocks too. Options trade for free, with a $0.65 per contract accuse.

When it comes to mutual funds, Allegiance competes caput-to-caput with depression-fee pioneer Vanguard. The visitor offers four nil expense ratio, zero minimum investment index funds. Information technology also offers a slate of mutual funds, including all Fidelity mutual funds, that merchandise fee-gratuitous with goose egg minimums and then long equally you lot own the funds for at least 60 days.

One thing to watch out for, withal: Many non-Allegiance common funds are field of study to commissions. The $49.95 commission at purchase is a big bite, although redemptions are gratis.

Bond investors will appreciate the zero fee for new bail outcome purchases while secondary issues cost i dollar. Broker-assisted and treasury trades price a reasonable $nineteen.95 per transaction.

Fidelity's average margin rate falls in the center of the pack at 6.94%. Interactive Brokers 2.6% boilerplate margin rate is the lowest. Fidelity margin borrowers will pay eight.33% to infringe less than $25,000. In contrast, borrowers pay only four.00% for loans of $1 1000000 or more.

Fee-witting investors will appreciate the lack of fees for many services, such as:

  • Outgoing wires
  • Full account transfers out
  • Newspaper statements
  • Paper confirmations

Other fees are amongst the lowest of those in our survey.

Allegiance does not receive payment from market makers for order catamenia of stock and ETF transactions. This is rare amid stock brokers. Fidelity claims that its pricing is the most transparent among competitors and that investors relieve $18.64 on boilerplate for a 1,000-share equity gild, in dissimilarity with the industry boilerplate of $4.lxx.


Fidelity Platform and Technology

Account Types

Fidelity has among the widest range of business relationship types in our survey of brokerages for individuals, families, businesses and managed accounts.

Across the typical joint and individual taxable brokerage accounts and tax-advantaged retirement accounts, the company offers every type of business relationship an individual or business could need. Some of the more unique account types include Solo 401(thou)s for the self-employed and small businesses and 529 accounts for college savings.

The array of account types fall into these categories:

  • Taxable investing
  • Private retirement accounts (IRAs)
  • Business organisation accounts
  • Saving and investing for a kid
  • Saving for medical expenses
  • Estate planning
  • Trusts
  • Charitable giving
  • Managed accounts
  • Annuities and life insurance

Desktop Platform

Fidelity'south standard desktop platform offers a full range of analysis capabilities and tools needed to screen and enquiry investments. The portfolio analysis tools break downwards holdings by stock and fixed income, investment ratings, style and sector.

In that location are multiple portfolio analysis screens, including operation, dividends, nugget allotment and fund rankings. Users tin link external accounts for a 360-caste portfolio view and analysis.

The platform'southward research offerings are among the best in the online brokerage infinite and include extensive third-party research and admission to fixed income specialists.

Fidelity Account Trader Pro

The Fidelity trading platform and tools rank among the acme three of our surveyed brokers. This downloadable trading platform is a complete solution for new-to-experienced traders and investors, scoring near-perfect marks for the nigh important features.

Active traders will do good from level II quotes, heat mapping, a trade journal and more than than 45 market place filters. Users can customize their trading experience, and the Active Trader Pro goes caput-to-head with top platforms similar TD Ameritrade's thinkorswim and Schwab's StreetSmart Edge.

Advanced and customizable features include:

  • Alerts
  • Portfolio architect
  • Trade journal
  • Heat mapping
  • AI assistant
  • Watch lists
  • Level II quotes
  • Screeners
  • Extended hours trading
  • Multi-leg options trading

The platform is easy to utilise and has well-nigh of the features traders need including real-time analytics and trading ideas. The platform lacks a short locator and paper trading, only that's about the only weakness.

Charting

The platform's charting capabilities rival the best and are suitable for 24-hour interval, active and technical traders. Allegiance's Active Trader Pro platform shines with its advanced technical analysis capabilities, drawing tools and tabbed charting, all available for no additional fee.

Customizable chart features include:

  • 114 chart indicators
  • Ability to trade from chart
  • Drawing tools
  • Historical trades
  • Ability to save nautical chart settings equally template

Club Types

Fidelity received a perfect score on our survey for social club types. Beginner-to-experienced investors can admission most order types including conditional and durational orders. Multi-leg options orders are too available. Notation that some conditional orders are non available on the mobile app.

Available club types include:

  • Market, limit, day
  • Abaft stop
  • Good til cancelled (GTC)
  • 1 cancels the other (OTO)
  • Limit on open up/close
  • Market on open/close
  • Brusque selling

Allegiance is known for superior order execution, and price comeback saved clients more than than $i.6 billion on trades in 2020. The company claims to be the just firm that voluntarily reports full price improvement savings with the Financial Data Forum (FIF) standards. If yous're a frequent trader, then this is an important money-saving feature.

Fidelity Managed Portfolios

Fidelity managed portfolio options are expansive. At that place are various tiers of managed accounts from basic and hybrid robo-advisors to fully managed portfolios at a variety of service and cost points. Scout out for fees, however, as some surpass those of competitors.

Allegiance's robo-counselor digital and hybrid managers are the Fidelity Become and Fidelity Personalized Planning and Communication. The basic Allegiance Become platform provides a diversified investment portfolio and automatic rebalancing. It requires no minimum investment corporeality and offers fee-costless investment management for accounts worth less than $ten,000. The investment management fee is $3 per month for accounts with balances betwixt $10,000 and $49,999. This switches to a percentage-based fee model of 0.35% of assets under direction (AUM) annually for accounts worth $l,000 or more.

Fidelity Personalized Planning and Communication combines Fidelity Go with alive financial advisors for a more customized experience. The minimum investment amount is $25,000, and the fee is 0.50% AUM per year.

Fidelity'due south additional wealth management solutions provide various levels of service, strategies, pricing and customization:

  • Portfolio Informational Services has a $50,000 minimum and provides access to a defended team of fiscal advisors for a 1.x% AUM annual fee
  • Wealth Direction requires a $250,000 minimum and offers a defended financial advisor. Fees range between 0.50% and 1.5% AUM annually, and services cover in-depth strategies, estate planning, insurance and more.

Fidelity Mobile App

The Fidelity mobile app is highly rated on Google Play and the iOS store and has all the features investors might need. Users get most of the basics from the online platform, including portfolio monitoring, banking, and inquiry.

A new beta trading experience in the app enables trading, research and portfolio monitoring from the dwelling house dashboard. For at present, however, it's only bachelor for iOS users.

Other app feature available to all users include:

  • Customized news feed and alerts
  • Planning for retirement and goals
  • Live TV, news, webinars, podcasts
  • Screeners
  • Social sentiment
  • Trade and transact
  • Money management and pecker pay

One drawback of the app is that for some research, it transfers you to the online platform.


Fidelity Range of Offerings

Fidelity offers a wide range of securities suitable for most investors, from stocks, options and fixed income to among the best selection of common funds. International trading is a differentiator for Allegiance; the firm provides access to 25 global markets.

Allegiance, forth with Charles Schwab, is too one of the first major brokers to offer fractional share trading. The only avails lacking at Fidelity are futures and cryptocurrency.


Fidelity Research and Education

The research offerings at Allegiance outshine those at the bulk of online brokerage platforms. What's more, the enquiry vertical has been recently updated to improve upon its already-stellar feel.

Research is categorized co-ordinate to asset form with a wealth of tools, screeners, lists and reports for stock, ETF, options, IPO and stock-still income investors. Investors will appreciate the quality 3rd-party research reports and scorecards from major financial firms similar Compustat, Zacks, Argus and Reuters.

Each asset form gets unique screeners and lists to help y'all choose the best financial assets for your portfolio. For example, ETF investors will find screening by fund family unit, performance, book and comparisons. Options investors, meanwhile, can quickly access statistics, IV index, quotes and charts, probability calculator, and profit and loss reckoner.

Stock investors have innumerable tools for fundamental and technical research. The lists include sector, market place cap, dividend yield, marketplace movers and more. Investors tin view premade screens or create their own based on 140 criteria. Summary cards highlight elevation information. Economic, social and governance (ESG) scores forth with intra-solar day social sentiment scores are available.

With Allegiance's wide variety of online manufactures, courses, podcasts, videos, coaching and webinars (as well every bit in-person events), investors of all levels volition find educational resources to lucifer their skill and involvement levels.


Fidelity Customer Service and Security

We ran extensive customer service tests because accurateness of responses and wait times for telephone, email and text customer service. Overall, Fidelity's service is expert, featuring curt wait times to access a human by phone. Our phone calls to the company were answered promptly, generally within two to three minutes.

All emails were answered within ane to two days, with several within a few hours. Text conversation is serviced past a chatbot 24/seven with limited hours for human being text responses. Each email question received a correct respond.

Allegiance's security and insurance backing received a near-perfect score on our tests. The company stands out with vocalization recognition for customer service. Other manufacture standard security features include:

  • Firewalls
  • 128-bit encryption
  • Two-factor authentication

Account insurance is more than adequate for most investors. Fidelity includes the standard $500,000 of Securities Investor Protection Corporation (SIPC) coverage. It automatically offers $ane billion in supplemental insurance for each client every bit an additional cushion against company failure or bankruptcy. Cash assets receive up to $ane.9 million in additional coverage.


About Allegiance

The Fidelity Research and Management Company was founded in 1946 by Edward C. Johnson 2, a Boston lawyer who originally purchased The Allegiance Fund in 1930. The privately owned company is now managed by granddaughter Abigail C. Johnson, CEO and chairman. The company has 38 million clients and employs more than than 52,000 associates beyond the world.