Once you are set up and trading, Fidelity’s execution quality is terrific at most trade sizes and their focus on generating interest on your idle cash is admirable. Fidelity offers lots of tools and calculators, from creating a budget to reviewing your investment strategy. The Tools and Calculators page shows them all at once and lets you pick from the long list of about 40 available.
Unlike individual bonds, most bond funds do not have a maturity date, so holding them until maturity to avoid losses caused by price volatility is not possible. Stock markets are volatile and can fluctuate significantly in response to company, industry, political, regulatory, market, or economic developments. Investing in stock involves risks, including the loss of principal. Fisher Investments was founded in 1979 by Ken Fisher, a renowned figure in the investment world. Fisher penned his “Portfolio Strategy” column for Forbes magazine for over 30 years and has written 11 books. Investment Advisor Magazine has named Fisher one of the 30 most influential figures in the investment advisory business for the last three decades. Fisher currently serves as the firm’s executive chairman and co-chief investment officer.
The tools include a very useful hypothetical trade tool, which shows the impact on your portfolio from a future buy or sell. Fidelity’s research offerings on the website include flexible screeners for stocks, ETFs, mutual funds and fixed income, plus a variety of tools and calculators. Uninvested cash is swept into your choice of money market funds. Customers can execute their strategy trading in Wealth-Lab Pro by qualifying for automated trading, which requires $100, 000 in equity and 500 trades per year. In terms of mobile trading, you can trade stocks, ETFs, options, and mutual funds on the mobile app but not fixed income. Fidelity has enabled fractional share trading on its mobile apps; customers specify dollars rather than shares when entering an order.
Buy-and-hold investors and frequent equity traders are especially well served, which speaks to how large and well-rounded Fidelity is as an online broker. One consequence of this is that you can spend some time digging for the tool or feature you need to make a particular investment decision – it exists, but you may have to search for it. That is the trade-off for having such a deep feature set, however, and the separation of Active Trader Pro and the main platform helps to remove some potential clutter.
Active Trader Pro is Fidelity’s downloadable trading interface, giving traders and more active investors a deeper feature set than is available through the website. Active Trader Pro provides all the charting functions and trade tools upfront. It is customizable, so you can set up your workspace to suit your needs. The software can monitor relevant news streams; alert you to highs, lows, and other technical signals in stocks you are following; and provide alerts on open positions. The Positions page integrates research data into your portfolio, allowing you to drill down through your holdings to view analysis and news without leaving the platform.
Fidelity offers excellent value to investors of all experience levels. Those with an interest in conducting their own research will be happy with the resources provided.