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- FZROX / FZILX at literally 0.00% expense ratio
- Fractional shares starting at $1
- Best HSA in the industry (no fees, full investing)
- CMA: no ATM fees worldwide, $5M FDIC
- Fidelity Go free under $25K
- FZROX can’t transfer in-kind (Fidelity only)
- Fidelity Go fee rises to 0.35% at $25K+
- Website can feel overwhelming
- No crypto beyond Bitcoin and Ethereum
- Fewer branches than Schwab (200 vs 300+)
- Fidelity is the only brokerage offering 0.00% expense ratio index funds (FZROX, FZILX, FNILX). Over 30 years, even 0.03% compounds into thousands of dollars in additional growth.
- The Cash Management Account reimburses all ATM fees worldwide, carries $5 million in FDIC coverage (vs $250K at most banks), and has no monthly fees.
- Fidelity’s HSA has no account fees and gives you access to the same zero-fee fund lineup as a regular brokerage — most competing HSAs restrict you to overpriced fund menus.
- Fidelity Go is free for accounts under $25,000. At $25K+, the 0.35% fee is slightly above Betterment and Wealthfront (0.25%), but includes advisor access.
- FZROX cannot transfer in-kind to another brokerage. If you might switch platforms, FSKAX (0.015%) is more portable while still being among the cheapest funds anywhere.
Fidelity Investments has been around since 1946. Today it is the largest retirement plan administrator in the United States and manages over $12 trillion in assets. But the real question is simpler: is Fidelity actually good for everyday investors who want to build wealth without overcomplicating things?
The short answer is a strong yes for most people. Here is everything that matters: the fee structure, investment options, account types, tools, and a head-to-head with Schwab and Vanguard so you can decide where your money belongs.
Fidelity at a Glance
| Founded | 1946 |
| Assets under management | $12.6 trillion+ |
| Stock and ETF commissions | $0 |
| Options | $0 + $0.65 per contract |
| Account minimum | $0 |
| Fractional shares | Yes (as low as $1) |
| Robo-advisor | Fidelity Go (free under $25K, 0.35% above) |
| Cash management | CMA — no ATM fees worldwide, $5M FDIC |
| Customer service | 24/7 phone + chat + 200+ branch locations |
Zero-Commission Trading
Fidelity eliminated commissions on online stock and ETF trades in 2019. You can buy and sell US stocks, ETFs, and Fidelity mutual funds without paying a dime in trading fees. Options cost $0.65 per contract — standard across the major brokerages. For the vast majority of investors, the cost of getting into the market is essentially zero.
Zero Expense Ratio Index Funds: Fidelity’s Biggest Edge
In 2018, Fidelity launched a family of index mutual funds with a 0.00% expense ratio. Not low. Not almost zero. Literally zero. Here are the big three:
| Fund | Ticker | Tracks | Expense Ratio |
|---|---|---|---|
| Fidelity ZERO Total Market | FZROX | US total stock market | 0.00% |
| Fidelity ZERO International | FZILX | International (developed + emerging) | 0.00% |
| Fidelity ZERO Large Cap | FNILX | Large-cap US (similar to S&P 500) | 0.00% |
Fidelity uses proprietary indexes rather than licensing S&P 500 or MSCI indexes, which eliminates the licensing fee. In practice, FZROX and FNILX have tracked almost identically to VTI and VOO, with performance differences of less than 0.02% annually. See how much the 0.00% expense ratio compounds over time:
Fidelity ZERO Fund Advantage Calculator
See how FZROX (0.00%) stacks up against competitor funds and the industry average over time. Assumes 10% gross annual return.
Important caveat on FZROX portability: Fidelity ZERO funds use proprietary indexes and cannot transfer in-kind to another brokerage. If you sell FZROX to leave Fidelity, it triggers a taxable event in a taxable brokerage account. In a Roth IRA or 401(k), there is no tax consequence. If you might switch platforms someday, use FSKAX (0.015%) instead — it tracks a standard index and transfers in-kind to any brokerage.
Fractional Shares
Fidelity lets you buy fractional shares of stocks and ETFs for as little as $1. This means you can own a piece of high-priced stocks like Amazon or Berkshire Hathaway without needing hundreds on hand, and you can build a fully diversified portfolio from day one. Schwab offers fractional shares for S&P 500 stocks only (at $5 minimum). Vanguard’s fractional share support is limited to automatic investment plans. Fidelity’s fractional shares on any US stock or ETF at $1 is the broadest coverage of any major brokerage.
Cash Management Account
Fidelity’s Cash Management Account functions like a checking account with perks most banks cannot match:
- No monthly fees, no minimum balance
- No ATM fees worldwide — Fidelity reimburses all fees charged by other institutions automatically
- FDIC insured up to $5 million — achieved by sweeping cash across multiple program banks, each providing $250K coverage
- Free check writing and bill pay
- Instant transfers between CMA and brokerage accounts
If you are paying monthly fees at a traditional bank, switching to the CMA is one of the easiest financial upgrades available. Note: the CMA’s sweep interest rate is not competitive with high-yield savings accounts — keep your emergency fund in a dedicated HYSA and use the CMA for checking and ATM access.
Fidelity Go: The Robo-Advisor
- Free for balances under $25,000. Zero advisory fees, zero fund expense ratios (uses Fidelity Flex mutual funds). No other major robo-advisor matches this for smaller accounts.
- 0.35% annual fee for $25,000 and above. Slightly higher than Betterment (0.25%) and Wealthfront (0.25%), but includes one-on-one coaching with a Fidelity advisor.
- Automatic rebalancing and tax-sensitive strategies in taxable accounts.
For comparison: Betterment and Wealthfront charge 0.25% with no minimum free tier. Fidelity Go’s free tier for smaller accounts is a clear win. At $25K+, consider whether the advisor access justifies the 0.10% premium over competitors. Read our robo-advisor comparison for the full side-by-side.
Retirement Accounts and HSA
Traditional and Roth IRAs
Opening an IRA at Fidelity takes minutes with no minimum balance. You get the full fund lineup including ZERO-expense-ratio options, plus thousands of third-party mutual funds, stocks, ETFs, and bonds. For the traditional vs Roth decision, see our Roth vs Traditional IRA guide.
401(k) Plans
Fidelity administers 401(k) plans for tens of thousands of employers. If your company uses Fidelity, your workplace plan and personal accounts sit in a single dashboard — making it easy to track total retirement progress. See our 401(k) explainer for how to maximize your contributions.
HSA (Health Savings Account)
Fidelity’s HSA is the best available. No account fees, no minimum balance to invest, and access to the same zero-fee index fund lineup as a regular brokerage account. Most competing HSA providers charge $2 to $5 per month in maintenance fees and restrict you to a limited menu of overpriced funds. Fidelity does neither — making it worth rolling over an existing HSA from a worse provider.
Other Account Types
Fidelity also offers 529 plans, SEP IRAs, SIMPLE IRAs, and custodial accounts. One login covers virtually every account type a personal investor would need.
Research Tools and Education
- Equity research from 20+ independent providers including Argus, Ned Davis, and Zacks
- Stock and fund screeners with dozens of customizable filters
- Fidelity Learning Center — hundreds of articles, videos, webinars, and courses from beginner to advanced options strategies
- Planning tools — retirement calculator, tax optimizer, Social Security planner
- Active Trader Pro desktop platform for sophisticated traders with real-time streaming, advanced charting, and customizable layouts
Mobile App and Customer Service
Fidelity’s mobile app offers a clean dashboard showing all accounts, full trading, real-time quotes, watchlists, and mobile check deposit. Not as flashy as Robinhood’s, but far more functional for multi-account portfolio management. Fidelity consistently ranks near the top of J.D. Power’s investor satisfaction surveys. You get 24/7 phone support with US-based representatives, live chat, virtual advisor meetings, and 200+ physical investor centers.
Fidelity vs Schwab vs Vanguard
| Feature | Fidelity | Schwab | Vanguard |
|---|---|---|---|
| Cheapest index fund | FZROX (0.00%) | SWPPX (0.02%) | VTI (0.03%) |
| Fractional shares | Any stock/ETF ($1 min) | S&P 500 only ($5 min) | Auto-invest only |
| Robo-advisor | Free under $25K | Free ($5K min, cash drag) | 0.20% ($3K min) |
| HSA | Best in class (no fees) | Limited investment options | Not offered |
| Cash management | CMA ($5M FDIC, no ATM fees) | Checking (best ATM network) | No checking |
| Physical branches | 200+ | 300+ | 0 |
| Active trading tools | Active Trader Pro | thinkorswim (best) | Basic only |
| Options per contract | $0.65 | $0.65 | $1.00 |
Fidelity vs Schwab: Neither is a wrong choice. Fidelity wins on fund costs (0.00% vs 0.02%), fractional shares on any stock, and the HSA. Schwab wins on active trading tools (thinkorswim), branch count (300+ vs 200+), and slightly more polished banking. If your employer’s 401(k) uses Fidelity, keeping everything at Fidelity is the most convenient choice.
Fidelity vs Vanguard: Vanguard pioneered low-cost index investing but lags as a brokerage platform — no fractional shares, a clunkier app, limited customer service, no branches. You can buy Vanguard ETFs (VTI, VXUS, BND) commission-free at Fidelity, getting Vanguard’s products with Fidelity’s superior platform and 0.00% funds for the Fidelity portion.
Is Fidelity Right for You?
Is Fidelity Right for Me?
Two quick questions for a personalized recommendation.
Step 1: What best describes your situation?
Pros and Cons
- FZROX / FZILX at 0.00% — unmatched anywhere
- $0 commissions on stocks, ETFs, Fidelity funds
- Fractional shares on any US stock/ETF at $1
- Best HSA in the industry (no fees)
- CMA: no ATM fees worldwide, $5M FDIC
- Fidelity Go free under $25K
- 24/7 customer service + 200+ branches
- One-stop for brokerage, IRA, HSA, 529, CMA
- FZROX cannot transfer in-kind to other brokerages
- Fidelity Go rises to 0.35% at $25K+ (vs 0.25% elsewhere)
- Website can feel overwhelming with features
- Crypto limited to Bitcoin and Ethereum
- Fewer branches than Schwab (200 vs 300+)
- Active trading tools behind thinkorswim
How to Open a Fidelity Account
- Go to fidelity.com and click “Open an Account”
- Choose account type: Roth IRA for retirement, brokerage for general investing, or both
- Provide personal information (name, SSN, address, employment)
- Link your bank account and fund your account
- Search for FZROX (US market) and FZILX (international) and invest
- Set up automatic monthly contributions
Frequently Asked Questions
Are the Fidelity ZERO funds (FZROX, FZILX) actually safe to use?
Yes. FZROX and FZILX are SEC-registered mutual funds managed by Fidelity Investments, one of the most established financial institutions in the world. They hold actual stocks — thousands of them — and are as safe as any Vanguard or Schwab index fund. The 0.00% expense ratio is real: Fidelity absorbs the cost by eliminating index licensing fees (they use their own proprietary indexes). The funds have operated since 2018 with no issues. The only meaningful caveat is portability — they cannot transfer in-kind to other brokerages.
What happens to FZROX if I leave Fidelity?
FZROX uses a Fidelity proprietary index and cannot transfer to another brokerage via ACATS. If you initiate a transfer to Schwab or Vanguard, Fidelity will sell your FZROX and send cash. In a Roth IRA or 401(k), this has zero tax consequences. In a taxable brokerage account, the sale triggers capital gains tax on any gains. If you invest in a taxable account and might switch brokerages someday, use FSKAX (0.015%) instead — it tracks a standard index and transfers in-kind. In tax-advantaged accounts, FZROX is the optimal choice with no portability concern.
Is Fidelity Go worth using?
For accounts under $25,000, yes — it is genuinely free. No advisory fee, no fund expenses (Fidelity Flex funds have 0.00% expense ratios). You get automatic rebalancing and tax-sensitive strategies for literally $0. Above $25,000, the 0.35% fee compares less favorably to Betterment (0.25%) and Wealthfront (0.25%), but includes access to one-on-one coaching sessions with a Fidelity advisor. If you want the absolute lowest robo-advisor cost above $25K, Betterment or Wealthfront win. If you value the advisor access and want everything at Fidelity, the 0.10% premium may be worth it.
How does the Fidelity Cash Management Account compare to a real checking account?
For most purposes, it is equivalent or better. No monthly fees, no minimum balance, no ATM fees worldwide (Fidelity reimburses any fee any ATM charges, anywhere on earth), free check writing, free bill pay, and FDIC coverage up to $5 million. The main gap: the CMA is not a full bank. It does not have branches with teller services, cash deposits work differently (mobile deposit or via ATM), and the sweep interest rate on uninvested cash is below what a high-yield savings account pays. Use the CMA for checking/spending and a separate HYSA for savings.
Can I buy Vanguard funds at Fidelity?
Yes. Vanguard ETFs like VTI, VXUS, VOO, and BND trade commission-free at Fidelity just like any other ETF. You can hold VTI in a Fidelity Roth IRA without any problem. Many investors do exactly this — they prefer Fidelity’s platform but want Vanguard’s ETFs for portability. The choice between FZROX (0.00%, Fidelity only) and VTI (0.03%, works anywhere) is the key decision. Vanguard mutual funds like VTSAX are also available at Fidelity but may require a transaction fee.
Is Fidelity’s HSA worth switching to from my employer’s HSA?
Often yes, especially if your employer’s HSA charges monthly fees or restricts you to expensive fund options. Fidelity’s HSA has zero account fees and gives full access to FZROX and FZILX at 0.00%. Many employer-provided HSAs charge $2 to $5 per month and offer only limited mutual fund menus with expense ratios of 0.20 to 0.80%. You can roll over your existing HSA balance to Fidelity once per year without taxes or penalties. The long-term compounding difference between a free 0.00% fund and a $3/month fee in a 0.40% fund is substantial over a 20 to 30-year horizon.
Can I have both a 401(k) and an IRA at Fidelity?
Yes. If your employer’s 401(k) is administered by Fidelity, your workplace plan and personal IRA both appear on your Fidelity dashboard under the same login. This makes tracking total retirement savings much simpler. If your employer’s 401(k) is at a different provider (Vanguard, Empower, etc.), you can still open a Fidelity IRA separately — the accounts just live at different institutions. You can contribute to both a 401(k) and an IRA in the same year (subject to income limits for Roth IRA contributions).
Does Fidelity have a minimum investment?
No. There is no minimum to open a Fidelity brokerage account, Roth IRA, HSA, or CMA. FZROX and FZILX have a $0 minimum investment — you can buy $5 worth if that is all you have. Fractional shares of any US stock or ETF start at $1. The only minimums you will encounter are on some third-party mutual funds available through Fidelity’s platform (not Fidelity’s own funds). For all practical purposes, you can start at Fidelity with any amount.
Final Verdict
Fidelity is, for most people, the best brokerage in 2026. The combination of zero-fee index funds, zero commissions, $1 fractional shares, a world-class Cash Management Account, an industry-leading HSA, and strong customer service is hard to beat. Schwab comes close and Vanguard remains the spiritual home of index investing, but Fidelity edges ahead as the most complete package for individual investors today.
The ZERO fund advantage calculator above shows exactly why 0.00% compounds into a meaningful advantage over decades. The quiz helps you confirm whether Fidelity specifically fits your situation — including the HSA angle that most brokerage comparisons overlook.
Compare your options:
- Considering Schwab? Read our Schwab review — very close competitor, especially for active traders and travelers.
- Want to build a 3-fund portfolio at Fidelity? Read our 3-fund portfolio guide — FZROX + FZILX + FXNAX is the Fidelity-native setup at 0.00% blended cost.
- Comparing all brokerages? Read our index funds guide for the full cross-brokerage fund comparison.
