Fidelity has been around since 1946 and now manages trillions in customer assets. It is often a default choice for retirement accounts, long-term investing, and 401(k) rollovers.
But Fidelity is not the only option, and newer brokerages have closed the gap on features that used to set the big firms apart. This review covers what Fidelity does well, where it falls short, and how it compares to alternatives like Public. For a head-to-head breakdown, see our Robinhood vs Fidelity comparison.
Fidelity at a Glance
Fidelity offers brokerage accounts, retirement accounts, a cash management account, mutual funds, ETFs, options, fixed income, and a robo-advisor called Fidelity Go. The platform supports both web and mobile, and the company runs physical branches in many US cities.
The firm is privately held and known for a research-heavy culture. Many investors first encounter Fidelity through an employer-sponsored 401(k), then open an IRA or taxable account on the same platform later.
Fidelity tends to compete on breadth of services rather than flashy product launches. It can cover almost every part of a long-term financial plan in one login.
Fees and Commissions
Like most major brokerages, Fidelity charges no commission on online US stock and ETF trades. Options trades carry a per-contract fee that is roughly in line with industry standards.
Mutual funds get more nuanced. Fidelity offers thousands of mutual funds with no transaction fee, including its own families like the Fidelity ZERO lineup. Funds outside that no-transaction-fee list may carry a per-trade fee that can run into the tens of dollars.
The ZERO funds, including FZROX for the total US stock market and FZILX for international, have an expense ratio of 0 percent. That is unusual in the industry and a real selling point for buy-and-hold investors.
Mutual Funds and ETFs
Fidelity is one of the largest mutual fund providers in the world. Beyond the ZERO lineup, its lower-cost index funds compete head-to-head with Vanguard on price and breadth. Our roundup of the best Fidelity ETFs covers the strongest non-mutual-fund options.
The ETF lineup is solid but less expansive than its mutual fund lineup. Fidelity does support fractional share investing on stocks and ETFs, which it calls Stocks by the Slice, with a $1 minimum.
For a retirement account where most contributions go into broad index funds, Fidelity's combination of zero-fee funds and commission-free trading is hard to beat on cost alone. If you are weighing fund types in general, our ETF vs mutual fund explainer breaks down the trade-offs.
Account Types
Fidelity supports the full range of standard accounts. Individual and joint taxable brokerage accounts, traditional and Roth IRAs, rollover IRAs, SEP and SIMPLE IRAs for self-employed savers, custodial accounts for minors, 529 college savings plans, and a cash management account that functions like a bank.
The cash management account includes ATM fee reimbursements at any ATM worldwide, a debit card, and check writing. It can serve as a workable substitute for a traditional checking account.
Fidelity also runs Fidelity Go, a robo-advisor with no advisory fee on balances under $25,000 in most cases. Above that, it charges a modest annual fee for ongoing management.
Where Fidelity Stands Out
Research and education are major strengths. The platform offers detailed third-party research, screeners, news feeds, and free educational content. Active Trader Pro, Fidelity's desktop trading platform, is well-regarded for serious traders.
Customer service is another standout. Fidelity provides 24/7 phone support, in-person help at branches in many cities, and online chat. For retirement rollovers and complex moves, having a real person on the line can save hours of headaches.
The ZERO expense ratio funds are unique to Fidelity. Even Vanguard does not match a 0 percent expense ratio on a total market fund.
Where Fidelity Falls Short
Fidelity does not currently support direct cryptocurrency trading inside a standard brokerage account, though it offers some related products through other channels. Active traders who want crypto, options, and stocks all in one place may want a different setup. Our Public.com review covers one modern alternative in detail.
The user interface, while functional, can feel dense compared to newer apps. Mobile design has improved a lot, but power-user features still tend to live on the desktop platform.
For very active traders, Fidelity is competitive on commissions but may not match the all-in-one feel of newer platforms. That is where an alternative like Public often comes in. Public offers commission-free stocks and ETFs, extended-hours trading, options, bonds, and a high-yield cash account in a clean mobile-first interface.
Public
Public
Investing for those who take it seriously. Invest in stocks, bonds, options, crypto & more.
Standout feature
A 5%+ yield Bond Account paired with 3.3% APY on cash — Public is one of the only consumer apps where idle and conservative money is treated as seriously as the equity portfolio.
Fees
Free
Pros
• Invest in stocks, bonds, crypto & more• Earn 3.3% APY* on your cash with no fees• 1% match when you transfer your portfolio• Lock in a 5%+ yield with a Bond Account
Cons
Customer support is in-app and email only, no phone
Fidelity vs Public: Quick Comparison
Fidelity is the right pick for many long-term investors and anyone who wants every account type, deep research, and live customer service under one roof. The ZERO funds give it a unique edge on cost in retirement accounts.
Public targets a slightly different user. The platform leans into a modern mobile experience, social features for following other investors, transparent payment-for-order-flow practices, and a unified interface across stocks, ETFs, options, bonds, and cash. For someone who wants extended-hours trading, options, and a clean UI built for active engagement, Public can be a strong alternative. Our Public vs Robinhood comparison goes deeper on the differences.
The two are not mutually exclusive. Many investors keep a long-term retirement account at Fidelity and a separate taxable account at Public for active investing or specific strategies.
Security and Account Protection
Fidelity accounts carry standard SIPC coverage up to $500,000 in securities, including a $250,000 limit for cash. The firm also maintains additional insurance above SIPC limits for further protection.
Fidelity supports two-factor authentication, voice recognition for phone support, and account alerts. As with any major brokerage, the strongest security still depends on the user, so enable two-factor authentication and use a unique password for your account.
SIPC protection covers brokerage failure, not market losses. If your stocks fall in value, that is part of investing.
Who Fidelity Is Best For
Long-term retirement investors are perhaps the best fit. The combination of ZERO expense ratio funds, free retirement accounts, and strong customer service is well-suited to people building a portfolio over decades.
Investors who want every account type in one place, including 529s, custodial accounts, and cash management, also benefit from sticking with a single platform like Fidelity. So do people who appreciate the option of walking into a branch for help.
Active traders who care most about a polished mobile interface, integrated options, and extended-hours trading may find a better fit with a more modern platform. For a competing review, see our Robinhood review.
Frequently Asked Questions
Is Fidelity good for beginners?
Fidelity is generally considered beginner-friendly thanks to its zero-commission trades, fractional shares, no-minimum accounts, and strong educational content. The platform can feel dense at first, but support is available by phone, chat, or in person.
Are Fidelity ZERO funds really free?
The Fidelity ZERO index mutual funds carry a 0 percent expense ratio, meaning the fund itself does not charge an annual management fee. There can still be other costs, like taxes on distributions in a taxable account, but the expense ratio is genuinely zero.
How does Fidelity make money if commissions are free?
Fidelity earns revenue from interest on uninvested cash, asset management fees on its proprietary funds and advisory services, securities lending, and various account-level services. Commission-free trading is a loss leader that brings investors into the broader platform.
Can I have accounts at both Fidelity and Public?
Yes. There is no restriction on holding accounts at multiple brokerages. Many investors split assets across firms to use the strengths of each, such as a Fidelity IRA for retirement and a Public taxable account for active trading.
Investing involves risk and past performance does not guarantee future results.
