【Updated 2024.8】The debit card linked to this account has been updated and many fees have been eliminated. ATM withdrawals are now reimbursed, and foreign transaction fees have also been removed. It’s now something you can carry worldwide, similar to the Schwab card.

About Fidelity

With the rise of ultra-discount brokerages such as Robinhood, traditional brokers have also been forced to cut prices to attract younger customers. Fidelity is one of those long-established brokerages that has adapted. In this article, we’ll go over the key features of this account.

Note: although this account can come with a debit card, the card linked to this account historically did not reimburse ATM operator fees, unless you are a Fidelity Premium, Private Client Group, or Wealth Management customer, or you complete more than 120 stock, options, and bond trades per year. Because of that, we generally did not recommend requesting the ATM card for this account. Fidelity also offers a Cash Management Account, which provides worldwide ATM fee reimbursements. We recommend opening both accounts and using them together: use the brokerage account for investing, and the cash management account for withdrawing cash or as a checking account.

Trading Fees

First, let’s talk about what most people care about most: fees. Fidelity eliminated commissions on regular stock trades back in 2019. Current pricing is as follows:

  • Stock trading commission: $0
  • Options trading commission: $0.65 per contract
  • Mutual funds: Fidelity funds and no-transaction-fee FundsNetwork funds are free; FundsNetwork funds that are not NTF cost $49.95 per transaction
  • Account fee: $0, with no funding or Direct Deposit requirement

Active Trader Perks, Including Free TurboTax

As long as you make more than 120 stock, bond, and options trades within 12 months, you qualify for Active Trader benefits. You can see the full list of benefits here.

One highlight is that Active Traders can get free TurboTax Premier. The online version is officially included. Although the website does not say so, testing shows that the desktop download version also works, with the same allowance of five federal e-files and one state e-file. If you need more than one state return, you will need to pay extra for additional states.

Non-Active Traders can also get a $20 TurboTax discount, though it usually isn’t much better than discounts available through other channels.

Pros of the Fidelity Brokerage Account

  • $0 stock trading commissions, making it beginner-friendly, while fees for other products are also very reasonable
  • Fidelity’s order execution quality is among the best in the industry, giving you a better chance of getting a more favorable price
  • Supports fractional share trading, which is especially useful for beginners buying higher-priced stocks without needing to purchase a full share
  • Offers many no-transaction-fee mutual funds, including some funds with a zero expense ratio
  • Cash in the account is automatically swept into a low-risk money market fund (Fidelity Government Money Market Fund). The yield is variable, roughly 1-2% annualized, much higher than typical bank deposit interest. You can also choose to sweep cash to a bank instead, though the interest rate is lower
  • Provides free research reports from more than 20 research firms, including Thomson Reuters and McLean, for investment reference
  • Accounts at the Active Trader level can receive free TurboTax Premier
  • You can also open a cash management account to get worldwide ATM fee reimbursements

Cons of the Fidelity Brokerage Account

  • The web trading interface is just average: quotes do not auto-refresh, so you need to manually click to refresh
  • Only US residents are allowed to open an account. If you are a nonresident alien, opening an account is very complicated; please refer to this article
  • Margin interest rates are relatively high; see the rate table

Platforms: Web, Mobile App, and Active Trader Pro

Fidelity also provides trading tools across all major platforms. The web interface looks a bit dated, but it is still quite full-featured. One long-standing issue is that stock quotes and account values are not updated in real time, so manual refresh is required. The mobile app has a similar issue.

Fidelity stock research page

Therefore, for people who trade stocks more frequently, we recommend Fidelity’s free Active Trader Pro, even though the interface is even more traditional-looking.

Asset Safety

This brokerage account is also covered by SIPC (Securities Investor Protection Corporation) insurance. If the brokerage fails, coverage is up to $500,000, including up to $250,000 for cash. Fidelity also carries its own additional brokerage insolvency insurance, with cash coverage up to $1.9 million per account, no limit for securities, and a total firmwide policy limit of $1 billion.

Our Take: Who Is It Best For?

Because Fidelity has eliminated trading commissions and supports fractional shares, we think Fidelity is now suitable both for beginners who want to start small and practice, and for more serious self-directed investors as well as long-term passive investors.

For people who use margin heavily, however, Fidelity may not be the best choice because its rates are relatively high (as high as 8%). Therefore, we do not recommend it for that use case.

Stock Market Basics

Here are some popular U.S. stock brokerages and their account-opening bonuses:

Overview Sign-Up Bonus Quick Take
Moomoo $200 in stock vouchers + $1,000 in Anthropic stock + 8.1% APY Feature-rich with a strong Chinese-language experience. Its market data, Level 2 quotes, options, and cash management features are useful for everyone from beginners to active traders.
TradeUp 50 shares of NVDA + a chance to win 5 shares + 4% for three months Well suited to active trading, with competitive trading fees and margin rates for U.S. tax residents. It supports Web Trading and Level 2 quotes and offers Chinese-language customer service.
Webull 12 fractional shares + one month of Premium membership Strong charting and active-trading features, including technical indicators, options, and premarket and after-hours trading. A good fit for frequent traders.
BBAE Up to $650 in rewards Convenient for Chinese users to open an account; applications are accepted without an SSN or ITIN. It offers good Chinese-language support, but currently charges a platform fee, making it less suitable for frequent trading with small amounts.
Robinhood A chance to win 1 share of stock Its simple interface is easy to use, making it suitable for first-time U.S. stock investors. Gold members also get a higher yield on uninvested cash and lower margin rates.
Interactive Brokers Up to $1,000 A highly capable broker with access to global markets and multiple currencies. Its margin costs are competitive, and Chinese residents can also open accounts. A good fit for experienced investors and those investing globally.
TradeStation $250 Geared toward professional and active traders, with powerful advanced charting, strategy backtesting, and automated trading tools. Most long-term investors may not need these features.
Schwab Up to $1,000 Well suited to long-term investing and larger portfolios, with convenient access to ETFs and CDs. Checking accounts and global ATM access are also advantages, but the default yield on uninvested cash is relatively low.
Fidelity Account opening link A long-established full-service brokerage suited to long-term investing, ETFs, and retirement accounts. It also offers good cash management, making it a solid choice as a primary long-term brokerage.
BIT (formerly Matrixport) Earn $210 by depositing and trading Suitable for Chinese users and digital asset investors. You can use funds such as USDT and USDC to invest in U.S. stocks. It is not a traditional U.S. brokerage, so review its fees and asset custody structure separately.
SoFi Invest $75 for opening an account Easy to use and supports Stock Bits, making it suitable for small investments and long-term investing. It has fewer advanced market data and trading tools, so it is not ideal for frequent trading.
M1 Finance Get $10 when you deposit Focused on Pies and automated investing. It is well suited to setting a stock and ETF allocation and investing regularly over the long term, but not to active trading.

If you don’t have an SSN or ITIN but still want to invest in U.S. stocks, consider the brokerages and platforms below. They accept a full set of Chinese documents, and you can register with a national ID card or passport. None participates in China’s CRS.

  • BBAE: Welcoming to Chinese users; no SSN or ITIN required to open an account
  • BIT (formerly Matrixport): Open an account with a national ID card; approval can take just a few hours.
  • Bitget: Complete identity verification with a national ID card or Chinese passport

If you’re in China and want to invest in U.S. stocks, see this overview: