Fidelity is the quality of faithfulness or loyalty. Its original meaning regarded duty in a broader sense than the related concept of fealty. Both derive from the Latin word fidēlis, meaning “faithful or loyal”. In the City of London financial markets it has traditionally been used in the sense encompassed in the motto “My word is my bond”.
Founded in 1946, Fidelity is one of the largest financial services companies in the world. As of the end of 2017, the company had $2.45 trillion in assets under management. Once best known for its mutual funds—the Fidelity Funds—the company is now a diversified investment brokerage, offering the full range of investment products, and some of the lowest trading fees available in the industry.
The company remains a major player in mutual funds. The Fidelity Contrafund is the largest non-indexed fund in the US, and has more than $107 billion in assets.
Fidelity also offers more than 140 local branches. This is becoming increasingly rare among investment brokerage firms, as the majority now operate as online platforms only. With Fidelity, you can work online, or in-person if you prefer.
Fidelity is a well-respected investment brokerage firm. They earn high ratings from various recognized third-party sources, including:
Investor’s Business Daily—Best Online Broker 2018(for the fourth year in a row).
StockBrokers.com—Best Online Broker 2018.
Barron’s—Best Online Broker 2017 (and 2016).
Kiplinger’s—Best Online Broker 2017 (and 2016).
Nerdwallet—Best Online Broker for Research 2017.
Minimum initial investment
Technically, zero. But you do need a minimum of $10 to begin investing.
Individual and joint taxable accounts, traditional, Roth and rollover IRAs.
Investment funds used
Domestic and foreign stocks, bonds, and short-term investments. The portfolio will be comprised of a combination of Fidelity Flex mutual funds. These are proprietary funds offered by Fidelity, that have zero expense ratios and do not charge management fees. The funds can be either active or passive.
Fidelity Go continuously monitors your portfolio, as well as the prevailing investment environment. If your portfolio moves significantly from the preferred allocation, it will be rebalanced accordingly. Unlike other robo-advisors, Fidelity Go doesn’t base rebalancing strictly on percentage moves in your allocations.
The platform enables you to choose a target amount for your portfolio to reach by a certain date. Fidelity Go will then estimate the likelihood of you reaching that goal. If it’s unlikely, they’ll offer recommendations to increase your chance of reaching the goal.
Fidelity Go charges an annual fee of 0.35% of your portfolio. This is deducted from your account quarterly.
Available by phone and live chat, Monday through Friday, from 8:00 AM to 8:00 PM, Eastern time.
To access through Fidelity.com:
1) Click Customer Login from the top menu bar.
2) Select Register Now under New User option.
3) Enter the last 4 digits of our Social Security Number, First and Last name, and Date of Birth.
4) Create a username and password.
Is Fidelity an MNC company?
Fidelity Investments Inc., commonly referred to as Fidelity, earlier as Fidelity Management & Research or FMR, is an American multinational financial services corporation based in Boston, Massachusetts.
Is Fidelity good for beginner investors?
Fidelity is a good investment broker for beginners. They are a very popular and reputable broker and are best known for their mutual funds, however, their trading platform is starting to build a name for itself. Fidelity also has great research tools and fantastic customer service.
Is Fidelity an investment bank?
Fidelity Investments is a privately-owned investment management company that was established in 1946 as a mutual fund company. Fidelity now offers a range of services including fund distribution and investment advice, wealth management.
Who is Fidelity owned by?
Fidelity Investments is owned by privately held FMR LLC, which is controlled by the Johnson family. The family, along with a small group of FMR employees and shareholders, are also investors in F-Prime Capital, the private venture capital arm.