Partnership Disclosure We might be compensated by one of our IRA partners for an account you open through our platform. This helps us keep the service free, but it never impacts the fees you’ll pay on your new account. We only win if you do, and our job is to help you simplify your retirement accounts. We also help people who already have an IRA account even though we receive no compensation in these situations—because it’s just the right thing to do!

Fidelity IRA Review

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As the largest provider of retirement accounts in the US, Fidelity offers a diversified mix of investment options, low fees, and a first-class online trading experience.

Pros

Commission free trading on stocks, ETFs, and options trading
Easy-to-use trading platform
197 country-wide branches for investors who like access to brick and mortar locations

Cons

Fees on money market mutual funds (where you can put extra cash in your account) are a little higher than some peers

Snapshot

Best if you wantA self-directed IRA at the largest provider of retirement accounts in the US.
Fees$0 to trade stocks and ETFs online
What you can invest inStocks & ETFs, Mutual Funds, Options, Bonds
LimitationsFidelity’s fees on money market mutual funds (where you can put extra cash in your account) are a little higher than some peers.
Account minimum$0
Ease of Use4 stars

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Best if you want

Fidelity offers a wide selection of low-cost investment options on an ultra-user-friendly online  platform. They offer a variety of low-fee transactions including no fee stock and ETF trades online, making them a good choice for cost-conscious investors. Fidelity equips customers with access to research that, while not as detailed as some competitors, is enough to help investors make educated investment decisions.

With $7.8 trillion assets under management (AUM), Fidelity is the largest provider of retirement accounts in the US. Their size has allowed them to build a product which serves the needs of most Americans and has allowed them to build one of the best tested and most user-friendly trading platforms available.

Fees

Self-directed retirement accounts typically carry two types of fees: annual account fees and transaction fees. Account fees are usually expressed as a percentage of your assets that’s paid each year (e.g. .50% per annum). On the other hand, transaction fees are charged exclusively during trading. The cost of annual and transaction fees have decreased dramatically over the past decade, but are still an important consideration when deciding if a broker fits your needs.

At Fidelity, you’ll pay:

  • No annual account fee
  • No commissions on trades of stocks, ETFS, and options. $0 to trade stocks and ETFs online, $.65 per options contract, which is in line with the industry standard.

What you can invest in

Like with all self-directed accounts, choosing the investments in your retirement account is entirely up to you! You’ll select from a wide variety of investment options including stocks, ETFs, mutual funds, options, and bonds from Fidelity and others. The investment options available allow you to build a well-diversified portfolio at a low cost.

If you aren’t sure where to start, Fidelity’s retirement planning tools can help you develop an investment strategy that meets your needs. If you have questions, you’ll have 24/7 access to their customer support line.

Other features

As one of the largest brokers in the country, Fidelity offers a wide selection of investments including annuities and 529 plans. In addition, investing at Fidelity means you may be eligible for other benefits, such as a Fidelity Rewards Signature Visa card. The Signature Visa card comes with a $0 annual fee and can help you earn up to 2% cash back, which can be deposited   into an eligible Fidelity investment account (including IRAs!)

Limitations

Fidelity’s fees, while generally low, are a little higher on money market mutual funds than some peers. Since a money market mutual fund is where the extra cash in your account is held, this could negatively impact your return on investment.

Conclusion

Fidelity is a good option for many investors. Their platform is easy to use and offers a wide selection of low-cost investment options. As with most self-serve investment accounts, it’s important for investors to check their account regularly to ensure their retirement portfolio still  meets their needs.

Compare Fidelity IRA to another IRA product

Ready to take control of your assets?

Capitalize helps you consolidate your old 401ks by rolling them into an IRA of your choosing. Use an existing IRA if you have one, or we’ll help you open one if you don’t.