Fidelity Investments Inc. (or simply Fidelity) is an American multinational financial services corporation based in Boston, Massachusetts. Founded in 1895, Fidelity was originally known as Fidelity Management & Research. Today, the company offers a variety of investment options that may be suited for a variety of needs. Its name indicates its commitment to quality customer service. The company is also committed to helping investors find the right investment options that match their unique risk profiles.
To help investors plan for investing, Fidelity provides a suite of tools and calculators to help them manage their portfolios and keep track of their performance. The company’s web-based portfolio management platform, for example, integrates news and research into your investment portfolio. Although it may not be ideal for beginners, the Fidelity Investor Center provides educational material that can help investors make the right investment decisions for their needs. A guide to investment success includes a guide to making better decisions and maximizing returns.
If you’re new to the stock market, Fidelity has some restrictions on trading. The firm’s policy doesn’t allow customers to purchase some types of preferred stocks. However, it doesn’t enforce this policy, so most clients won’t encounter this issue. Similarly, Fidelity doesn’t offer negative balance protection. Nonetheless, it’s worth noting that Fidelity was founded more than half a century ago, and has survived financial crises without losing its reputation.
A few of Fidelity’s advantages include low costs, research and education, and access to a range of investment products. Investors can choose between basic mutual funds, stock trading, ETFs, and options. They can even invest in fractional shares to avoid high trading fees. Unlike some competitors, Fidelity does not charge transaction fees or have a minimum account size. In addition, Fidelity has a customer support team that offers live chat and email services.
Fidelity has a robust set of educational offerings. It consistently ranks high in the Best For Beginners category. Besides providing comprehensive information on how to trade the stock market, the Fidelity learning center offers a variety of online educational resources. It also offers live interactive sessions with its “Trading Strategy Desk.” The company offers standard investment products, but does not offer futures, commodities, and cryptocurrencies. Moreover, customers must be U.S. residents to open an account with Fidelity.
The company has responded to criticism about its target date funds. In response to investor complaints, Fidelity has modified the composition of its target date funds. Moreover, investors have pulled nearly $100 billion from Fidelity’s actively managed mutual funds since the end of 2008, while the Vanguard Group index funds have attracted $700 billion in deposits. So, Fidelity’s IPO fund manager’s advice can be trusted, but it cannot guarantee success.
The firm is currently owned by Abby Johnson, a former Boston lawyer who has a net worth of $20 billion as of January 2018. She also oversees over 45,000 employees worldwide, including all of the company’s subsidiary companies. Abby Johnson has a history of creating a strong company. In addition to Fidelity’s history, the company has a long history of investing in stocks. Its name is synonymous with trust and security, and its employees are loyal to it.