Fidelity Investments: Pros and Cons of a Comprehensive Financial Platform

By Eugene McCombs - 5/27/25

Fidelity Investments is one of the largest and most well-known brokerage firms in the United States, offering a wide range of services including investing, trading, retirement planning, and cash management. With decades of experience and trillions in assets under management, Fidelity has positioned itself as a go-to platform for both new and seasoned investors. But like any financial service provider, it has its strengths and weaknesses.

Below, we explore the key pros and cons of using Fidelity Investments for investing, trading, and cash management.

Pros of Using Fidelity Investments

1. Comprehensive Range of Services

Fidelity offers a full suite of services, from stock and ETF trading to retirement accounts (IRAs, 401(k)s), college savings plans, robo-advisory through Fidelity Go, and even cash management solutions. This makes it a one-stop shop for financial management.

2. Commission-Free Trading

Fidelity offers $0 commission on online U.S. stock, ETF, and options trades. This makes it an attractive platform for both long-term investors and active traders looking to reduce costs.

3. Strong Research Tools and Educational Resources

The platform provides access to extensive research tools, including third-party reports from providers like Zacks, Morningstar, and CFRA, plus robust screeners and real-time analytics. New investors benefit from an abundance of educational content, webinars, and tutorials.

4. Low-Cost Mutual Funds

Fidelity is known for its low-cost mutual fund options, including Fidelity ZERO index funds, which have no expense ratio. These are especially appealing to long-term, cost-conscious investors.

5. User-Friendly Platforms

Fidelity offers both web and mobile trading platforms with intuitive interfaces and customizable dashboards. For more advanced traders, Fidelity’s Active Trader Pro provides advanced charting, real-time analytics, and trade execution tools.

6. Excellent Customer Service

Fidelity consistently earns high marks for customer service. Representatives are available 24/7 by phone, online chat, and at numerous brick-and-mortar locations across the U.S.

7. Cash Management Account

Fidelity’s cash management account functions similarly to a high-yield checking account, offering FDIC insurance (via sweep programs), ATM fee reimbursements, mobile deposit, and bill pay services—ideal for clients who want to manage all finances under one roof.

Cons of Using Fidelity Investments

1. Limited Access to Cryptocurrencies

Fidelity has a limited offering when it comes to direct cryptocurrency trading for retail investors. While it provides access to crypto-themed ETFs and allows certain clients to invest in Bitcoin through retirement accounts, it lags behind competitors like Robinhood or Coinbase in terms of crypto accessibility.

2. Platform Complexity

While the depth of tools is a benefit, the abundance of features can feel overwhelming for beginners. Navigating between different Fidelity platforms (e.g., Fidelity.com, Active Trader Pro, mobile apps) may take some time to master.

3. No Fractional Options Trading

While Fidelity does offer fractional shares for stocks and ETFs via its "Stocks by the Slice" program, it does not yet support fractional options trading, which limits flexibility for small-dollar, options-focused traders.

4. Robo-Advisor Limited Customization

Fidelity Go, the robo-advisor product, is straightforward and affordable but lacks the level of customization and tax optimization features found in competitors like Betterment or Wealthfront.

5. International Trading Limitations

Fidelity offers limited access to international markets compared to some global brokers. Investors looking for direct access to a broad range of international exchanges may find Fidelity's offerings too narrow.

Final Verdict: Is Fidelity Right for You?

Fidelity Investments remains one of the most trusted and versatile platforms for investors of all experience levels. Whether you're looking to build a long-term retirement portfolio, trade actively, or manage your cash efficiently, Fidelity offers industry-leading tools and services. However, those looking for crypto exposure, deep international investing, or highly customizable robo-advisory may find certain limitations.

Ideal for:

• Long-term investors seeking low fees and strong research

• Active traders needing advanced tools and zero commissions

• Individuals looking for integrated financial services in one place

Not ideal for:

• Investors focused on cryptocurrencies or international stocks

• Beginners who may be overwhelmed by robust feature sets

• Users wanting highly personalized robo-investing

As with any financial platform, it's crucial to assess your individual goals and preferences to determine if Fidelity fits your needs. But for many investors, it continues to be a reliable and feature-rich choice.