Fidelity offers the cheapest index funds in the industry at 0.00% expense ratio, zero commissions on every trade, 200+ physical locations, and 24/7 customer service. For most investors who want one institution to handle their entire financial life, there is no better answer than Fidelity.
Fidelity Investments manages over $12 trillion in assets and serves over 43 million individual investors. It is one of the largest and oldest brokerages in the US (founded in 1946) and consistently ranks at or near the top of brokerage reviews across the industry.
For most investors, Fidelity is the single best place to open an account. Here is the complete breakdown of why — and the few cases where another brokerage does something better.
- Fidelity ZERO funds (FZROX, FZILX, FNILX, FZIPX) are the cheapest index funds in existence at 0.00% expense ratio — no management fee of any kind. On a $500,000 portfolio, switching from a 0.03% fund (Vanguard VTI) to 0.00% saves $150/year. Over 30 years at 7% growth, that difference compounds to approximately $14,000. The catch: ZERO funds are only held at Fidelity and cannot be transferred in kind to another brokerage — you would need to sell and repurchase if you ever switch platforms, potentially creating a taxable event.
- Fidelity Go (robo-advisor) is completely free under $25,000 — no advisory fee. Above $25,000, it charges 0.35%/year. This makes Fidelity Go the best option for automated investing at small balances, but more expensive than Betterment or Wealthfront (both 0.25%) once you cross $25,000. If you plan to grow beyond $25,000 in a managed account, Betterment’s 0.25% becomes cheaper than Fidelity Go’s 0.35%.
- Fidelity’s customer service is the best among major brokerages. Phone support is available 24 hours a day, 7 days a week, with average hold times under 5 minutes. Over 200 physical Investor Centers nationwide offer in-person help. This matters when you are rolling over a 401(k), dealing with an estate account, or resolving an IRA contribution error — situations where chatbots and FAQs are insufficient. Robinhood, Betterment, and Wealthfront offer no comparable 24/7 human support.
- Fidelity offers every account type a retail investor could need under one roof: taxable brokerage, Traditional IRA, Roth IRA, SEP IRA, SIMPLE IRA, rollover IRA, HSA, 529 college savings, custodial accounts (UGMA/UTMA), trust accounts, estate accounts, and a Youth Account for ages 13 to 17. No other single brokerage covers this full range. The practical benefit: you can consolidate your entire financial life at one institution with one login, one statement, and one customer service number.
- The Fidelity Cash Management Account functions as a full checking account with no monthly fees, no minimums, free ATM withdrawals worldwide (Fidelity reimburses ATM fees charged by other banks), no foreign transaction fees, and free check writing. Combined with the brokerage and IRA, Fidelity can genuinely replace both your bank and your brokerage — simplifying your financial picture to one institution.
What Fidelity offers
Account types: Individual and joint taxable brokerage, Traditional IRA, Roth IRA, rollover IRA, SEP IRA, SIMPLE IRA, HSA, 529 plans, custodial accounts (UGMA/UTMA), trust accounts, estate accounts, 401(k) plans for businesses, and the Fidelity Youth Account (ages 13 to 17).
Tradable assets: Stocks, ETFs, mutual funds (including no-transaction-fee funds), options, bonds, CDs, and limited cryptocurrency (Bitcoin and Ethereum).
Managed options: Fidelity Go (robo-advisor, free under $25K then 0.35%), Fidelity Personalized Planning and Advice (hybrid human plus digital, 0.50%), and Fidelity Wealth Management (dedicated advisor, $500K minimum).
Fees
| Service | Cost |
|---|---|
| Stock and ETF trades | $0 |
| Fidelity mutual fund trades | $0 |
| Non-Fidelity NTF mutual funds (3,400+ funds) | $0 |
| Non-NTF mutual funds | $49.95 per trade |
| Options | $0 commission + $0.65 per contract |
| Account maintenance fee | $0 (no annual, inactivity, or closing fees) |
| Fractional shares minimum | $1 |
| Fidelity Go (robo-advisor) | $0 under $25,000 / 0.35%/yr above $25,000 |
| ZERO fund expense ratios | 0.00% (FZROX, FZILX, FNILX, FZIPX) |
| Standard index fund expense ratios (FSKAX, FXAIX) | 0.015 to 0.025% |
See how much the ZERO funds save you
Expense Ratio Savings Calculator
Compare Fidelity ZERO funds (0.00%) against standard index funds over your investment horizon.
Which Fidelity product is right for you?
Fidelity Account Finder
Three questions to find the right Fidelity product for your situation.
Q1: What best describes your investing approach?
Key features
Fidelity ZERO funds: the cheapest way to own the market
Fidelity is the only major brokerage offering mutual funds at 0.00% expense ratio — no management fee of any kind. The four ZERO funds cover the entire investable market:
| Fund | What it tracks | Expense ratio |
|---|---|---|
| FZROX | Total US stock market (3,000+ stocks) | 0.00% |
| FZILX | Total international stock market | 0.00% |
| FNILX | US large-cap stocks (S&P 500 equivalent) | 0.00% |
| FZIPX | US extended market (mid and small cap) | 0.00% |
A complete 3-fund portfolio using FZROX + FZILX + FXNAX (Fidelity US Bond Index, 0.025%) costs essentially nothing in annual expenses. The ZERO funds track Fidelity’s own proprietary indexes rather than the S&P 500 or CRSP indexes, but their performance is historically nearly identical to Vanguard and Schwab equivalents. The key limitation: these funds exist only at Fidelity. Transferring to another brokerage requires selling, which can trigger capital gains in taxable accounts.
Fractional shares from $1
Buy any stock or ETF listed on US exchanges starting at $1. Combined with automatic recurring investments (daily, weekly, biweekly, or monthly), this enables dollar-cost averaging at any income level. A $50/week investment in FZROX is accessible to anyone with earned income.
Research tools
Fidelity’s research platform is among the deepest available for free. Third-party research from 20+ providers (including Morningstar, Argus, and Credit Suisse), proprietary stock screeners with 140+ criteria, ETF screeners, mutual fund evaluator, options analysis tools, fixed income screener, and a full Learning Center with video courses and webinars. No other zero-commission brokerage provides this research depth at no cost.
Fidelity Youth Account
A brokerage account for ages 13 to 17 with parental oversight. Teens can buy stocks, ETFs, and Fidelity mutual funds with the real money app interface. No account fees, no minimums. Parents can monitor all activity and set spending controls. One of the most effective tools available for introducing teenagers to investing — with real stakes rather than simulated portfolios.
Fidelity Cash Management Account
Functions as a full checking replacement: no monthly fees, no minimums, free check writing, free bill pay, free debit card, and worldwide ATM fee reimbursement (Fidelity pays ATM fees charged by other banks globally). No foreign transaction fees. Uninvested cash sweeps into an FDIC-insured program paying competitive yields. This account alone can replace a traditional bank for most everyday financial needs.
Customer service
Phone support 24 hours a day, 7 days a week, with average hold times under 5 minutes. Over 200 Fidelity Investor Centers nationwide for in-person help. Representatives are trained to handle complex account issues including estate account transfers, IRA recharacterizations, 401(k) rollovers, and tax document questions. Consistently rated number one for customer service among online brokerages by J.D. Power.
Fidelity vs. Schwab vs. Vanguard
| Feature | Fidelity | Schwab | Vanguard |
|---|---|---|---|
| Best expense ratios | 0.00% (ZERO funds) | 0.03% (Schwab funds) | 0.03% (Admiral Shares) |
| Mutual fund minimum | $0 | $0 (Schwab funds) | $3,000 (Admiral shares) |
| ETF fractional shares | Yes ($1 min) | Yes ($5 min) | Yes (ETFs only) |
| Physical locations | 200+ | 300+ | 0 |
| Customer service rating | Excellent (24/7) | Excellent (24/7) | Good (business hours) |
| Robo-advisor | Fidelity Go (free under $25K / 0.35% above) | Intelligent Portfolios ($0, $5K min) | Digital Advisor (0.20%, $3K min) |
| Youth account | Yes (ages 13 to 17) | No | No |
| Cash management account | Excellent (worldwide ATM, no fees) | Excellent | Basic |
| Options per contract fee | $0.65 | $0.65 | $1.00 |
| Portfolio line of credit | Margin at standard rates | Pledged Asset Line | No |
All three are excellent choices. The differences are marginal for most investors. Fidelity edges ahead on ZERO fund expense ratios, Youth Account, and robo-advisor value at small balances. Schwab has more physical branches and no margin call risk on its Pledged Asset Line. Vanguard has the legacy of index fund pioneering and is the most investor-friendly ownership structure (owned by its funds, which are owned by investors).
Frequently Asked Questions
Are Fidelity ZERO funds actually free — what is the catch?
The ZERO funds are genuinely 0.00% expense ratio with no hidden fees. Fidelity generates revenue from other services (margin lending, order flow, cash management) and uses the ZERO funds as a loss-leader to attract and retain customers. The two real limitations: (1) the ZERO funds track Fidelity’s proprietary indexes, not the S&P 500 or CRSP — performance is virtually identical to comparable Vanguard funds but not technically tracking the same benchmark, and (2) the funds are only available at Fidelity — they cannot be transferred in-kind to another brokerage. If you ever switch to Schwab or Vanguard, you would need to sell first. In an IRA, this triggers no taxable event. In a taxable account with appreciated positions, this could trigger capital gains taxes. For taxable accounts where you might switch brokerages someday, the standard Fidelity index funds (FSKAX at 0.015%, FXAIX at 0.015%) are nearly as cheap and fully portable.
Is Fidelity safe? Is my money protected?
Fidelity is one of the largest and most financially stable financial institutions in the world, managing over $12 trillion in assets. It is a privately held company (not publicly traded) with no stockholder pressure to take on excessive risk. Brokerage accounts are SIPC-insured up to $500,000 ($250,000 for cash) and Fidelity purchases additional private insurance from Lloyd’s of London that extends coverage far beyond the standard SIPC limits. The Cash Management Account cash is FDIC-insured through program banks. Fidelity has operated for over 75 years without a major security failure or loss of customer assets. It is among the most trusted financial institutions in the US.
What is the best way to build a 3-fund portfolio at Fidelity?
The cheapest 3-fund portfolio at any brokerage: FZROX (total US stock market, 0.00%) + FZILX (total international, 0.00%) + FXNAX (US bond index, 0.025%). Total expense ratio for the portfolio is approximately 0.00 to 0.01% depending on your bond allocation weight. A typical allocation for a 30-year-old: 70% FZROX, 20% FZILX, 10% FXNAX. Adjust the stock/bond split based on risk tolerance and timeline. For taxable accounts where portability matters: replace FZROX with FSKAX (0.015%) and FZILX with FZILX or VXUS (0.07%, available as ETF). The bond fund is the same (FXNAX). Rebalance once per year by comparing actual allocation to target and buying the underweight fund with new contributions.
Does Fidelity offer a robo-advisor?
Yes — Fidelity Go. It is completely free for balances under $25,000 (no advisory fee) and charges 0.35%/year above $25,000. Fidelity Go builds a diversified portfolio of Fidelity Flex mutual funds based on your risk tolerance and investment horizon. Above $25,000, the 0.35% fee is higher than Betterment (0.25%) and Wealthfront (0.25%), but Fidelity Go adds human advisor access via Fidelity Personalized Planning and Advice (0.50%, $25K minimum) for a step up. For accounts over $25,000 wanting managed investing, Betterment or Wealthfront at 0.25% are more cost-effective unless Fidelity’s ecosystem integration is valuable to you. For accounts under $25,000: Fidelity Go at $0 beats every paid robo-advisor on the market.
Can I do a 401(k) rollover to Fidelity?
Yes — and Fidelity is one of the best places to receive a rollover. The process: open a Fidelity rollover IRA (Traditional for pre-tax 401(k), Roth for Roth 401(k)), then request a direct rollover from your old plan. Fidelity provides a dedicated rollover team reachable by phone who walk you through the process, coordinate with your old plan, and help you invest the funds once received. The rollover IRA at Fidelity has no account fees, no minimum, and full access to all of Fidelity’s fund lineup including ZERO funds. Rollovers are typically completed in 3 to 10 business days for direct transfers. Fidelity also processes incoming checks payable to “Fidelity FBO [your name]” if your plan can only send a check. See our full 401(k) rollover guide for the step-by-step process.
Does Fidelity charge foreign transaction fees?
The Fidelity Cash Management Account debit card charges no foreign transaction fees and reimburses ATM fees charged by other banks worldwide. This makes it an excellent travel card for international trips. The brokerage account charges no fees on trades of US-listed securities (including ADRs of foreign companies). For trading securities listed on foreign exchanges directly, Fidelity does charge commissions that vary by market — but this is rarely relevant for retail investors who can access international exposure through US-listed ETFs like VXUS or FZILX at $0 commission. For everyday international travel and ATM use, Fidelity Cash Management is one of the best cards available.
How does Fidelity compare to Robinhood?
Both offer $0 commissions on stocks and ETFs. The key differences: Fidelity charges $0.65 per options contract (Robinhood charges $0), Fidelity offers mutual funds and bonds (Robinhood does not), Fidelity has significantly better research tools, 24/7 customer service, 200+ physical locations, and no gamification design. Robinhood offers a 3% IRA match (Gold members), 24-hour market trading, crypto and futures, and a more beginner-friendly mobile interface. For long-term buy-and-hold investors who will set up recurring investments and check their account annually: Fidelity is better. For active traders who want options with no per-contract fee, crypto, or the IRA match: Robinhood’s specific advantages apply. See our Robinhood review for the full comparison.
Does Fidelity offer HSA accounts?
Yes. Fidelity offers a Health Savings Account (HSA) with no account fees, no investment minimum, and access to Fidelity’s full investment lineup including ZERO funds. The Fidelity HSA is widely considered the best HSA for investors — most employer-provided HSAs limit you to a small menu of funds with high expense ratios and maintenance fees. Once you leave an employer, you can roll over your HSA balance to a Fidelity HSA at any time with no tax event. Fidelity’s HSA has no minimum cash balance before investing (many HSA providers require $1,000 to $2,000 in cash before allowing investment) and no account fees. See our HSA guide for the full strategy on using an HSA as a stealth retirement account.
The bottom line
Fidelity is the Swiss Army knife of brokerages — zero-expense-ratio index funds, zero commissions, zero account minimums, world-class customer service, 24/7 phone support, and every account type under one roof. For DIY investors building a 3-fund portfolio or anyone who values having a reliable, full-service institution, Fidelity is the benchmark.
The only investors who consistently find better options elsewhere are robo-advisor users at balances over $25,000 (Betterment or Wealthfront at 0.25% beat Fidelity Go at 0.35%), crypto-heavy investors (Robinhood or dedicated exchanges offer more coins), and options traders prioritizing $0 per-contract fees (Robinhood charges $0 vs Fidelity’s $0.65).
For everyone else — from the 18-year-old opening their first Roth IRA to the 55-year-old consolidating decades of retirement accounts — Fidelity is the safest and most capable single-institution choice.
Compare your options:
- Want fully automated investing with tax-loss harvesting? Read our Betterment vs Wealthfront comparison — both charge 0.25% with better robo-advisor features than Fidelity Go above $25,000.
- Considering Robinhood for the IRA match or options trading? Read our Robinhood review — the 3% IRA match and $0 options contracts are real advantages for specific investors.
- Ready to build a 3-fund portfolio at Fidelity? Read our 3-fund portfolio guide — FZROX + FZILX + FXNAX step by step.
