Review: Fidelity Investment

By | March 2, 2007

Last fall, I was trying to find a business bank account with checking and interest-earnings. I looked through many banks. At that time I had a free Business Checking account with HSBC. Unfortunately, HSBC did not offer interest on money in the checking account.

After much searching, I finally found Fidelity. Fidelity offers interest for business accounts with check writing. I saw a promotion for $100 with a $10K deposit. I moved all my money from HSBC to Fidelity. In Fidelity, they offered different money market options. I chose the FIDELITY NY MUNI MONEY MARKET (FNYXX). The fund is tax-exempt from federal, state, and city taxes.

Fidelity provides more than just a brokerage account. I realized I could link all my accounts together with Fidelity. It gave me the idea of account management in one place. I started a personal account with them as well. I told them I was an active trader and they gave me the lowest commissions’ schedule, which is $8 per transaction. The $8 commission is usually reserved for those with 120+ trades/year and $25,000 in household assets, or $1 million in household assets. I did not meet their requirements at the time, but told them that I would be doing a lot of trading and they granted me the lowest commissions’ level.

For market research, Fidelity is rated amongst the top for having the best research tools in the industry. Fidelity’s Research section offers a comprehensive list of reports that is not available in TD Ameritrade or Scottrade. Fidelity also offers IPO trading, a very hot selling point for me.

Fidelity’s customer service is excellent. Compared with TD Ameritrade, Fidelity’s customer service representatives are professional, knowledgeable, and patient. They take the time to listen and  answer my questions. It makes me feel like a first-class customer and makes me want to try Fidelity’s Privilege services.

I would definitely recommend Fidelity Investments.

Rating: 5/5
SmartChoice?
Yes

Note: I am not affiliated with Fidelity and I do not work for them.

5 thoughts on “Review: Fidelity Investment

  1. Pingback: Mapgirl’s Fiscal Challenge / Carnival of Personal Finance #90!

  2. yap

    I just opened a taxable account with Fidelity (and thus caused the market crash…grin). I had a few questions my account and the live person (easy to reach on the phone system) was quite helpful.

    As compared to the other 2 companies I invest with (TIAA-CREF and ING), so far Fidelity is the best service-wise.

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  3. Pius

    You forgot to mention that the $8 commission is only for those with 120+ trades/year and $25,000 in household assets, or $1 million in household assets.
    This is not for a trader who only trades a few times a month and has less than $25000. While Fidelity has those great features, I found it very expensive compared to Scottrade. I use both Fidelity and Scottrade and I enjoy all their features.

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  4. Merve

    I was in your position with a colpue of k in my college student pocket and not a lot of experience.I followed some theories’ but every stock trade just resulted in me paying out a minimum of 1% in fees just to buy it. My returns were crippled. THEN Etrade Ameritrade started their account maintenance fees of 15 20 dollars every 3 months. That was 1-2% percent of all the money I had! It was awful.If I had to do it over again, I’d go with no fee DRIPS (dividend reinstment plans). I’d pick a strong company with good dividend returns (I’ve done well with Southern Company (SO)) and let the money sit there. Why? It’s not a glamorous investment.. it’s not going to get me 10% in a month but with investing.. you need to have something that will give you solid, predictable gains. That way you have backup when you do riskier ones it’s called diversification.If I didn’t want something that safe.. I’d go with an EFT. EFT stands for exchange traded funds. They’re a select group of stocks that are bought.. and then rarely sold unless necessary. In other words, they’re passively managed. This saves you money in two ways for one, you don’t have to pay a big shot group of people for their continual oversight and trading of your basket of stocks.. and two.. it minimizes your tax burden. During the stock market crash in 99-00, mutual fund holders were not only paying high fee loads while the value of their mutual fund plummeted.. they also had capital gain tax to pay. That sucks. You can pay tax on a mutual fund that decreases in value if your manager sells funds that have increased in value (thus earning money and making you pay tax on it) while not selling stocks that are losing money (and therefore not offsetting the gain)So in summary.. consider two things. DRIP plans and EFT funds. Ishares is a company that trades in a lot of EFT funds.. there’s also one I’ve been eyeing for awhile.. symbol EEM. Developing countries EFT.. unbelievable performance w/in the last year.Anyway food for thought. Just pay attention to your costs of trading whether it be mutual fund expenses or stock trading expenses.

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