Fidelity Brokerage Account Fees and Pricing

Fidelity's brokerage account fees are a crucial consideration for anyone looking to open an account with them.

The company offers a range of pricing plans, including the Fidelity Zero Exchange-Traded Fund (ETF) and the Fidelity Index Fund Series, which have no management fees.

In contrast, actively managed funds come with a fee of up to 0.95% of your investment balance, which can add up quickly if you're not careful.

Fidelity also charges a $49.95 fee for buying or selling mutual fund shares outside of a brokerage account, and a $75 fee for early redemption of a bond.

Fidelity Investments operates a major brokerage firm with investor centers in over 140 locations throughout the U.S.

The company has a large presence in the market, with over 45 million brokerage accounts and over $4.5 Trillion in Assets Under Management (AUM) as of 2023. This is a significant increase from 2010, when National Financial Services LLC, Fidelity's subsidiary, had over $443 billion in assets under custody.

Fidelity charges various fees for its services, including a FINRA trading activity fee (TAF) of $0.000166 per share, with a per-transaction cap of $8.30. This fee is passed through to customers and is subject to change.

Here are some examples of Fidelity's fees:

Additionally, Fidelity charges a Section 31 fee of $0.0000278 per transaction.

Fidelity Investments operates a major brokerage firm with investor centers in over 140 locations throughout the U.S.

The firm provides services to its correspondent broker-dealers, institutional investment firms, banks and trusts, family offices, and registered investment advisors through its subsidiary, National Financial Services LLC.

As of 2010, National Financial was the custodian for over $443 billion in assets, in 4.3 million accounts.

By 2023, the firm had grown significantly, with over 45 million brokerage accounts and over $4.5 Trillion in Assets Under Management (AUM).

Fidelity's National Financial had also reached a massive milestone, with nearly $12 Trillion in Assets Under Administration (AUA) by 2023.

Fidelity's service fee is charged for administering your accounts, with flexible options for amounts less than £25,000.

The service fee is 0.35% of the total value of your investments for amounts between £25,000 and £250,000, and 0.20% for amounts between £250,000 and £1 million.

For amounts less than £25,000, the service fee is either £3.50 per year for every £1,000 invested with a regular savings plan or a flat fee of £90 per year without a regular savings plan.

If you invest £250,000 or more, you'll qualify for Fidelity's Wealth Management Service benefits and pay a reduced service fee of 0.20%.

For exchange-traded investments, including shares in an ISA or SIPP, the service fee is 0.35% (reduced to 0.20% if you invest £250,000 or more) and capped at £7.50 per month.

Some accounts, like Junior accounts and exchange-traded investments in an Investment Account, are exempt from the service fee.

The service fee is collected from a separate account called a Cash Management Account (CMA) around the 1st of every month.

If there's not enough cash in the CMA, fees will be collected from cash within your account before selling some of your investments to cover charges.

Here's a breakdown of the service fees for different investment amounts:

Fidelity's fees are lower than some other providers, but some offer cheaper basic fees.

Trading fees can be a bit of a mystery, but they're essential to understand when managing your Fidelity brokerage account. Fidelity charges $0 for stock and options trades, but there's a $0.65 fee per options contract, which decreases to $0.50 for 30+ trades per quarter.

For broker-assisted trades, you'll be charged an additional $25, plus applicable commission and fees. Directed trades executed through E*TRADE Pro to an ECN during regular market hours and Extended Hours sessions are subject to a directed order fee of $0.005 per share.

If you're looking to trade OTC stocks, be prepared for a $6.95 commission, or $4.95 if you execute at least 30 trades per quarter. Index Option Fees (IOF) also apply, ranging from $0.06 to $0.55 per contract, depending on the underlying symbol.

Some additional fees to keep in mind include the FINRA trading activity fee (TAF) of $0.000166 per share, with a cap of $8.30, and the Section 31 fee of $0.0000278 per share. These fees are subject to change, so it's essential to stay up-to-date on the latest rates.

Stock and options trades are a great way to diversify your investment portfolio, but it's essential to understand the associated fees. For US Exchange-listed stocks, you won't be charged a commission for the first 30 trades per quarter, but there is a small fee for options contracts.

The options contract fee is $0.65 for 0-29 trades per quarter, and $0.50 for 30+ trades per quarter. Exercise and assignment fees are waived for both tiers. If you're using the Dime Buyback Program, you won't be charged a contract fee for closing short options priced at 10¢ or less.

Here's a breakdown of the fees for stock and options trades:

Additionally, an options regulatory fee will apply to options orders, and you may be charged extra regulatory and exchange fees.

Broker Assisted Trades can be a bit more expensive, with an additional $25 charge, plus applicable commission and fees.

Customers will be charged this fee for broker-assisted trades, unless they're placing trades between 4 a.m. and 7 a.m. ET.

Directed trades executed through E*TRADE Pro to an ECN during regular market hours and Extended Hours sessions are subject to a directed order fee of $0.005 per share.

Orders that execute in multiple lots during a single trading day will only incur one commission.

The Index Option Fee, also known as IOF, is a fee charged by E*TRADE for trading index options. This fee varies depending on the underlying index.

For example, the IOF fee for trading the S&P 500 Index (SPX) is $0.55 per contract, while the fee for the Russell 2000 Index (RUT) is $0.07 per contract. The CBOE Market Volatility Index (VIX) has an IOF fee of $0.29 per contract.

Here's a breakdown of the IOF fees for various index options:

Please note that IOF fees are subject to change.

Exchange-Traded Funds (ETFs) are a type of investment that allows you to buy a small piece of a large pool of assets, such as stocks, bonds, or commodities.

You can take the guesswork out of choosing investments with prebuilt portfolios of leading mutual funds or ETFs selected by a team of experts.

ETFs are often traded on major stock exchanges, which means you can buy and sell them throughout the day, just like individual stocks.

This flexibility can be a big advantage for investors who want to be able to quickly respond to market changes.

One key benefit of ETFs is that they often have lower fees compared to actively managed mutual funds.

Margin rates can vary depending on your debit balance. The base rate effective as of 12/23/2024 is 10.70%.

If you have a debit balance of less than $10,000, you'll be charged a margin rate of 13.20%, which is 2.50% above the base rate.

For balances between $10,000 and $24,999.99, the margin rate drops to 12.95%, or 2.25% above the base rate.

If you have a larger balance, between $25,000 and $49,999.99, you'll pay a margin rate of 12.70%, which is 2.00% above the base rate.

Even bigger balances, between $50,000 and $99,999.99, get a margin rate of 12.20%, or 1.50% above the base rate.

The largest balances, between $100,000 and $249,999.99, get a margin rate of 11.70%, which is 1.00% above the base rate.

For the biggest balances, between $250,000 to $499,999.99, you'll pay a margin rate of 11.20%, or 0.50% above the base rate.

Here's a summary of the margin rates:

Fidelity's prebuilt portfolios of leading mutual funds or ETFs are a great option for those who want to take the guesswork out of choosing investments.

These portfolios are selected by Fidelity's investment team, making it easy to get started with investing.

With zero commissions, you can invest without worrying about extra fees eating into your returns.

Fidelity's no-commission policy means you can invest with confidence, knowing you're not being charged for buying or selling funds.

Whether you're a seasoned investor or just starting out, Fidelity's simplified investing options make it easy to get started.

Here are some of the benefits of Fidelity's no-commission policy:

By choosing Fidelity's simplified investing options, you can focus on growing your wealth without worrying about extra fees.

Investment fees can be a significant consideration when choosing a brokerage account. Fidelity's service fee is charged for administering your accounts, with flexible options for amounts less than £25,000.

The service fee is 0.35% of the total value of your investments for amounts between £25,000 and £250,000. This is a relatively low fee compared to some other providers. For example, Hargreaves Lansdown charges 0.45%.

You can save money on the service fee by investing £250,000 or more, which reduces the fee to 0.20%. This is a significant discount, and it's worth considering if you have a large investment portfolio.

Here's a breakdown of Fidelity's service fee:

Bonds can be a bit tricky when it comes to fees, but let's break it down.

Trade commissions for bonds are capped at 2% of the total principal value.

When you trade bonds through E*TRADE, the company may act as either the principal or an agent. If they're acting as the principal, you won't be charged a commission, but you'll see a markup on purchases and a markdown on sales. If they're acting as an agent, you'll pay a commission.

Agency bonds, corporate bonds, municipal bonds, brokered CDs, pass-throughs, CMOs, and asset-backed securities are all included in E*TRADE's bond trading services.

Some bond trades may be subject to a commission, especially if you're working with a Fixed Income Specialist.

Fidelity's account management fees are relatively low compared to some other providers. The fees vary depending on the amount invested and whether a regular savings plan is in place.

For amounts less than £25,000, the service fee is 0.35% of the total value, or £7.50 flat fee per month if no regular savings plan is in place. This works out to roughly £3.50 per year for every £1,000 invested.

Here's a breakdown of the service fees for different investment amounts:

For amounts over £1 million, the service fee is capped at £2,000 per year, making it a more cost-effective option for larger investments.

The service fee is a charge for administering your accounts, and Fidelity offers flexible options for amounts less than £25,000.

You'll pay 0.35% of your investments per year, which works out to £3.50 per year for every £1,000 invested, if you have a regular savings plan. Without a regular savings plan, the flat fee is £7.50 per month, or £90 a year.

If you invest £25,000 or more, but less than £250,000, the service fee is 0.35% of the total value of your investments. For amounts between £250,000 and £1 million, the reduced fee is 0.20%, and you'll also qualify for Fidelity's Wealth Management Service benefits.

You won't pay a service fee for Junior accounts, and exchange-traded investments held in an Investment Account.

Here's a breakdown of the service fees for different investment amounts:

The service fee is collected from your Cash Management Account (CMA) around the 1st of every month, and there's no fee on your CMA.

To calculate your account management fees, you'll need to start by gathering all the necessary documents.

The Fidelity 401(k) fee disclosure, also known as the "Statement of Services and Compensation", is the only document you'll need from Fidelity.

This document can be found on the Fidelity employer website.

It contains plan-level information about their administration fees, which is intended to help employers evaluate the reasonableness of these fees.

If you hired an outside financial advisor for your plan, you'll also need to factor their pricing into your Fidelity fee calculation.

This information can usually be found in a services agreement or invoice.

Fidelity's service fees for retirement accounts are calculated based on the amount invested, and there are different scenarios depending on whether you have a monthly RSP or not.

For example, if you invest £5,000, the annual service fee with a monthly RSP is £17.50, which is 0.35% of the amount invested.

The annual service fee without a monthly RSP is £90, which breaks down to £7.50 per month.

If you invest £24,999, the annual service fee with a monthly RSP is still £87.49, but the annual service fee without a monthly RSP is also £90.

Interestingly, if you invest £25,000, the annual service fee is £87.50, which is a small increase from the previous amount.

Here's a summary of the annual service fees for different investment amounts:

For larger investments, the annual service fee is capped at £2,000, which is 0.2% of the amount invested.

Fidelity's pricing structure is designed to be clear and transparent, so you always know what you're paying.

The total Fidelity account fees you'll pay depend on the value of your portfolio, and the larger your portfolio, the less you'll pay in fees.

For portfolios between £0 and £7,499.99, the basic annual Fidelity fees are 0.35% of the total value if you have the Fidelity monthly regular savings plan.

If you don't have the savings plan, the fee is a flat rate of £45.

Fidelity trading fees change as you invest more, with a fee cap of £45 in place.

For Junior ISA and Junior Pension products, the service charge is a flat rate of £25.

Investing between £7,500 and £249,999.99 incurs a 0.35% fee, regardless of whether you have the savings plan or not.

For investments between £250,000 and £1 million, the fee drops to 0.2%, and there are no fees charged on investment amounts above £1 million.

Basic ongoing fund fees can be as low as 0.06%, but charges can be higher.

You may also have to pay a fee each time you buy or sell, either as a direct charge or as part of a "bid-offer spread" fee system.

Fidelity's customer service team is available to help you understand these additional fees and their impact on your investment.