Fidelity Investments is one of the largest and most well-established financial services companies in the world. With over 75 years of experience and more than $7 trillion in assets under administration, Fidelity has built a reputation as a trusted and reliable investment firm. But is Fidelity Investments trustworthy? In this article, we will delve into the company’s history, services, fees, and customer reviews to provide a comprehensive review of Fidelity’s trustworthiness.
A Brief History of Fidelity Investments
Fidelity Investments was founded in 1946 by Edward C. Johnson II, who had a vision to provide individual investors with access to the stock market. Over the years, the company has grown and evolved, expanding its services to include brokerage accounts, retirement accounts, mutual funds, and more. Today, Fidelity is one of the largest financial services companies in the world, with over 30 million customers and more than 40,000 employees.
Regulatory Compliance and Industry Recognition
Fidelity Investments is a registered investment advisor with the Securities and Exchange Commission (SEC) and is a member of the Financial Industry Regulatory Authority (FINRA) and the Securities Investor Protection Corporation (SIPC). These memberships demonstrate Fidelity’s commitment to regulatory compliance and industry standards.
In addition, Fidelity has received numerous awards and recognition from industry publications and organizations, including:
- Best Online Broker by Kiplinger’s Personal Finance (2022)
- Best Broker for Beginners by Investopedia (2022)
- Top Workplace by The Boston Globe (2022)
Services and Products
Fidelity Investments offers a wide range of services and products to meet the needs of individual investors, employers, and financial advisors. Some of the key services and products include:
- Brokerage Accounts: Fidelity offers a variety of brokerage accounts, including individual, joint, and retirement accounts.
- Mutual Funds: Fidelity offers a wide range of mutual funds, including index funds, actively managed funds, and sector funds.
- Exchange-Traded Funds (ETFs): Fidelity offers a variety of ETFs, including index ETFs and actively managed ETFs.
- Options Trading: Fidelity offers options trading for experienced investors.
- Retirement Accounts: Fidelity offers a variety of retirement accounts, including 401(k), IRA, and Roth IRA accounts.
Fees and Commissions
Fidelity Investments is known for its competitive fees and commissions. Some of the key fees and commissions include:
- Trading Commissions: Fidelity offers commission-free trading for stocks, ETFs, and options.
- Mutual Fund Fees: Fidelity offers a wide range of mutual funds with low fees, including index funds with fees as low as 0.015%.
- Management Fees: Fidelity offers a variety of investment management services with fees ranging from 0.20% to 1.50% per year.
Customer Reviews and Ratings
Fidelity Investments has a strong reputation among customers, with high ratings and positive reviews across various platforms. Some of the key customer review and rating highlights include:
- 4.5/5 stars on Trustpilot (based on 2,500+ reviews)
- 4.5/5 stars on Google Reviews (based on 1,500+ reviews)
- 4.5/5 stars on Consumer Reports (based on 1,000+ reviews)
Customer Support and Education
Fidelity Investments offers a variety of customer support and education resources, including:
- 24/7 Customer Support: Fidelity offers phone, email, and online chat support 24 hours a day, 7 days a week.
- Investor Education: Fidelity offers a variety of investor education resources, including articles, videos, and webinars.
- Financial Planning Tools: Fidelity offers a variety of financial planning tools, including retirement planning and investment planning tools.
Conclusion
Based on our comprehensive review, Fidelity Investments appears to be a trustworthy and reliable investment firm. With a strong history, regulatory compliance, and industry recognition, Fidelity has built a reputation as a trusted partner for individual investors, employers, and financial advisors. While no investment firm is perfect, Fidelity’s competitive fees, wide range of services and products, and strong customer reviews and ratings make it a top choice for investors.
As with any investment decision, it’s essential to do your own research and consider your individual needs and goals before investing with Fidelity or any other investment firm.
Is Fidelity Investments a reputable company?
Fidelity Investments is indeed a reputable company with a long history of providing financial services to its clients. Founded in 1946, Fidelity has grown to become one of the largest financial services companies in the world, with over $3.5 trillion in assets under administration. The company has a strong track record of stability and reliability, and is widely recognized as a leader in the financial services industry.
Fidelity’s reputation is built on its commitment to providing high-quality investment products and services to its clients. The company offers a wide range of investment options, including stocks, bonds, mutual funds, and exchange-traded funds (ETFs), as well as retirement accounts and other financial planning tools. Fidelity’s reputation is also reflected in its high ratings from independent research firms, such as Morningstar and Lipper.
Is my money safe with Fidelity Investments?
Yes, your money is safe with Fidelity Investments. Fidelity is a member of the Securities Investor Protection Corporation (SIPC), which provides limited coverage to customers in the event of a brokerage firm’s insolvency. This means that if Fidelity were to fail, SIPC would provide up to $500,000 in coverage per customer, including a $250,000 limit for cash claims. Additionally, Fidelity has a strong balance sheet and a long history of financial stability, which reduces the risk of insolvency.
Fidelity also has a number of other safeguards in place to protect its customers’ assets. For example, the company uses advanced security measures to protect its online trading platforms and mobile apps, and it has a team of experienced professionals who monitor its systems and accounts for suspicious activity. Fidelity also offers a range of account protection features, such as two-factor authentication and account alerts, to help customers protect their accounts from unauthorized access.
What are the fees associated with Fidelity Investments?
Fidelity Investments offers a range of investment products and services with competitive fees. The company’s fees vary depending on the type of account and investment product, but in general, Fidelity’s fees are lower than those of many other brokerage firms. For example, Fidelity’s index funds and ETFs have expense ratios that are among the lowest in the industry, and the company’s trading commissions are also highly competitive.
In addition to its low fees, Fidelity also offers a range of fee-free investment products and services. For example, the company’s Fidelity Zero Large Cap Index Fund and Fidelity Zero Extended Market Index Fund have no expense ratios, and its Fidelity Youth Account has no monthly maintenance fees. Fidelity also offers a range of other fee-free services, including online trading and mobile banking.
Can I trust Fidelity Investments with my retirement savings?
Yes, you can trust Fidelity Investments with your retirement savings. Fidelity is one of the largest providers of retirement accounts in the United States, and it has a long history of helping individuals plan and save for retirement. The company offers a range of retirement accounts, including 401(k), IRA, and Roth IRA accounts, and it provides a range of investment options and tools to help individuals manage their retirement savings.
Fidelity’s retirement accounts are designed to be flexible and customizable, allowing individuals to choose from a range of investment options and create a portfolio that meets their individual needs and goals. The company also offers a range of retirement planning tools and resources, including retirement savings calculators and investment advice from experienced professionals. Fidelity’s retirement accounts are also highly secure, with advanced security measures in place to protect customers’ assets.
How does Fidelity Investments protect my personal and financial information?
Fidelity Investments takes the protection of its customers’ personal and financial information very seriously. The company uses advanced security measures to protect its online trading platforms and mobile apps, including encryption, firewalls, and secure socket layer (SSL) technology. Fidelity also has a team of experienced professionals who monitor its systems and accounts for suspicious activity, and it offers a range of account protection features, such as two-factor authentication and account alerts.
In addition to its technical security measures, Fidelity also has a number of policies and procedures in place to protect its customers’ personal and financial information. For example, the company has a strict privacy policy that governs how it collects, uses, and shares customer information, and it provides customers with regular account statements and transaction confirmations to help them monitor their accounts. Fidelity is also a member of the Financial Industry Regulatory Authority (FINRA) and the Securities and Exchange Commission (SEC), which provides an additional layer of oversight and protection.
Can I get help and support from Fidelity Investments?
Yes, you can get help and support from Fidelity Investments. The company offers a range of customer support options, including online chat, phone support, and in-person support at its investor centers. Fidelity’s customer support team is available 24/7 to answer questions and provide assistance with account-related issues. The company also offers a range of educational resources and tools, including webinars, videos, and online tutorials, to help customers learn more about investing and managing their accounts.
In addition to its customer support options, Fidelity also offers a range of investment advice and guidance from experienced professionals. The company’s investment advisors can provide personalized investment advice and help customers create a customized investment plan. Fidelity also offers a range of investment research and analysis tools, including stock screeners and portfolio analysis tools, to help customers make informed investment decisions.
Is Fidelity Investments regulated by government agencies?
Yes, Fidelity Investments is regulated by a number of government agencies. The company is a registered brokerage firm with the Securities and Exchange Commission (SEC) and a member of the Financial Industry Regulatory Authority (FINRA). Fidelity is also a member of the Securities Investor Protection Corporation (SIPC), which provides limited coverage to customers in the event of a brokerage firm’s insolvency.
As a regulated brokerage firm, Fidelity is subject to regular audits and examinations by government agencies to ensure that it is complying with all relevant laws and regulations. The company is also required to file regular reports with the SEC and FINRA, which provides an additional layer of transparency and oversight. Fidelity’s regulatory status provides an additional layer of protection and assurance for its customers, and helps to ensure that the company is operating in a fair and transparent manner.