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Top 10 Jumbo Money Market Accounts

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It may not have been previewed, commissioned or otherwise endorsed by any of our network partners.

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What is a jumbo money market account?

When you’re saving money, you want to make sure you’re stashing it in the right place. Ideally, that will be in an account with a high rate of return. While savings accounts tend to offer a higher return than checking accounts, money market accounts — which are FDIC-insured up to $250,000, unlike money market funds — may yield an even higher rate of return.

That’s if you know where to find the best rates.

The money market accounts that offer the highest returns are known as jumbo money market accounts. In the past, these high-yielding accounts could have minimum initial deposits as much as $100,000, but today, you can get these higher rates with a much lower initial investment and sometimes there’s no minimum at all. For this round-up, we included accounts that required a minimum deposit of $25,000 and up.

In this roundup, we’ll explore the top rates.

UFB Direct, 0.20% APY, $25,000 Minimum Deposit to earn APY

UFB Premium Money Market - New Money from UFB DirectWhile you only need a minimum deposit of $5,000 to open an account with UFB Direct, you’ll need to have a minimum balance of $25,000 to earn the 0.20% APY. If you balance is less than $25,000, you’ll end up earning an APY of 0.10%.

This account does come with a $10 monthly fee, but if you have an average daily balance of $5,000 or more in the account, UFB Direct will waive the fee. Checks and a Visa® Debit Card are available upon request. There is also a mobile banking app that will allow you to conveniently manage your account on-the-go. All deposits held with UFB Direct are FDIC-insured.

UFB Direct is an online bank and a division of Axos Bank The overall company has acquired over $9 billion in assets.

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on UFB Direct’s secure website

Member FDIC

Customers Bank, 0.80% APY, $25,000 minimum deposit

Ascent Money Market - Online Only (New Money) from Customers Bank Customers Bank’s Ascent Money Market Savings Account is currently offering an impressive rate of 0.80% APY, launching it to the top of our list. In order to earn the high APY, though, there is a minimum deposit required of $25,000, and it’s worth noting that balances below $25,000 do not earn interest. This rate is only available for new money, and is only available for online accounts.

The Ascent Money Market account has no minimum balance fee, but withdrawals and transfers are limited to six per monthly statement cycle. Interest for this account is compounded and posted to your account monthly. Customers Bank is a Pennsylvania-based bank with locations also in New York and New Jersey.

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on Customers Bank’s secure website

Member FDIC

Gold Coast Bank, 0.75%c APY, $50,000 minimum to earn APY

Money Market Account from Gold Coast Bank Located in Chicago, Gold Coast Bank is currently offering a standout rate of 0.75% on money market account balances of at least $50,000. There is a minimum opening deposit of $5,000 required for this account, and balances below $50,000 will earn a lower APY.

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on Gold Coast Bank’s secure website

Member FDIC

CFG Bank 0.68% APY, $25,000 minimum to earn APY

CFG High Yield Money Market - New Money from CFG BankMaryland-based bank CFG Bank is currently offering the highest APY on a jumbo money market account. The Online CFG High Yield Money Market account comes with a 0.68% APY.

This account requires a $1,000 minimum deposit to open. However, you’ll need a minimum daily balance of at least $25,000 to earn the 0.68% APY, and only new funds are eligible

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on CFG Bank’s secure website

FDIC Insured

Veridian Credit Union, 0.65% APY, $100,000 minimum to earn APY

Premier Money Market from Veridian Credit Union Veridian Credit Union’s tiered money market account is currently featuring a robust rate of 0.65% on funds between $100,000 and $249,999. If you have at least $250,000 to deposit, you could score an even higher rate of 0.80% APY.

Membership to Veridian Credit Union is open to anyone who opens a Member Equity Savings Account for $5.

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on Veridian Credit Union’s secure website

NCUA Insured

Federal Savings Bank, 0.60%, $100,000 minimum to earn APY

Money Market from The Federal Savings Bank Federal Savings Bank boasts a noteworthy APY of 0.60% on balances of $100,000 or greater for its money market account. A minimum deposit of $1,000 is required to open this account, and balances below $100,000 will earn a lower APY. Interest for this account is compounded and credited on a monthly basis.

Headquartered in Chicago, Federal Savings Bank offers its products to consumers nationwide, online.

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on The Federal Savings Bank’s secure website

Member FDIC

Premier America Credit Union, 0.60% APY, $100,000 minimum to earn APY

Money Market Savings from Premier America Credit UnionPremier America Credit Union boasts a competitive, tiered-rate money market account, rewarding depositors with big balances. All of the rates for its tiered money market are as follows:

  • $2,500-$24,999: 0.40%
  • $25,000-$49,999: 0.50%
  • $50,000-$99,999: 0.50%
  • $100,000-$249,999: 0.60%
  • $250,000-$499,999: 0.65%
  • $500,000+: 0.70%

Membership to Premier America Credit Union is open to anyone who also joins the Thousand Oaks Alliance for the Arts.

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on Premier America Credit Union’s secure website

NCUA Insured

State Department FCU, 0.60% APY, $100,000 minimum to earn APY

Premiere Money Management Shares from State Department Federal Credit Union State Department FCU is currently offering a generous APY of 0.60% on its Premier Money Market account for balances of at least $100,000. A balance of $2,000 is required to earn any dividends for this account.

Membership to State Department FCU is open to anyone who also joins the American Consumer Council.

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on State Department Federal Credit Union’s secure website

NCUA Insured

Ideal Credit Union, 0.55% APY, $100,000 minimum to earn APY

High Yield Money Market from Ideal Credit Union Ideal Credit Union’s tiered High Yield Money Market account currently boasts an impressive0.55% APY on balances between $100,000 and $24,999.99. There is a minimum of $25,000 required to open this account, and while lower balances earn lower APYs, if you have a balance over $250,000 you’ll earn a higher APY of 0.70%.

Located in Minnesota, Ideal Credit Union opens its membership to anyone who makes a one-time donation of $5 to the John D. Miller Foundation.

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on Ideal Credit Union’s secure website

NCUA Insured

iGObanking, 0.55%, $25,000 minimum to earn APY

iGOmoneymarket - New Money Only from iGObanking Online bank iGObanking is currently offering a competitive rate of 0.55% on funds of at least $25,000 in its iGOmoneymarket account. This account allows you to make up to six transfers per month, and allows you to set up automatic monthly transfers from your checking account. There are no monthly maintenance fees associated with this account.

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on IGObanking’s secure website

Member FDIC

How these jumbo money market accounts’ rates compare with regular money market rates

Jumbo money market accounts are typically called jumbo because they require a significant deposit to earn the top rate. You may have noticed that many of these accounts do not necessarily have the label “jumbo” attached to them. This is because with the advent of online banking, more and more financial institutions are passing along the savings they incur from not having to maintain brick-and-mortar locations on to their customers via higher returns on products like money market accounts.

For that reason, you’ll notice that many of the highest-yielding accounts on this list can also be found on our Best Money Market Rates & Accounts lineup.

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Pharmaceutical Investments Expected to Ramp Up in 2021, and 57% of Investors Say Vaccine Promise Is a Key Factor

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone and is not intended to be a source of investment advice. It may not have not been reviewed, commissioned or otherwise endorsed by any of our network partners or the Investment company.

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When COVID-19 hit, the whole world anxiously watched the pharmaceutical sector for a cure. And it came through, creating a vaccine in record time.

This success led to a new surge of investor interest, as 36% of investors expect to put more money in pharmaceutical stocks in 2021, according to the latest MagnifyMoney survey of nearly 1,000 investors. In addition, 57% of investors said the promise of a vaccine made them more likely to invest.

MagnifyMoney looked at this new interest from multiple angles, including the expectations, regrets and ethical concerns people had about pharmaceutical investments.

Key findings

  • 36% of investors expect to invest more in pharmaceutical stocks in 2021, with 57% of investors saying the promise of a COVID-19 vaccine makes them more likely to do so.
  • The vast majority (82%) of current pharmaceutical investors have purchased a related stock or increased their spend on a pharma investment amid the coronavirus pandemic. Of that group, 28% did so within the past month.
  • 1 in 10 investors say they don’t think investing in pharmaceuticals is ethical but do so anyway. At the same time, nearly a third (31%) of investors who don’t currently invest in these stocks say it’s because they don’t trust big pharma.
  • 47% of investors say they regret not investing in pharmaceutical stocks in the past. In fact, 59% of those with regrets say vaccine news would have increased their portfolio value had they invested in pharmaceutical stocks.

More than 1 in 3 investors expect to increase pharmaceutical investments as COVID-19 vaccine spurs stock market gains

As noted, our survey showed that 36% of respondents said they expect to invest more in pharmaceutical stocks in 2021:

Male investors (43%) seemed more interested in investing more in pharmaceutical stocks in 2021 than female investors (25%). Gen Xers (47%) led the way among the age groups, compared with:

  • 40% of millennials
  • 15% of baby boomers

Tendayi Kapfidze, LendingTree’s chief economist, believes there are good reasons to consider pharmaceutical stocks for investors looking to make money.

“Health care is one of the fastest-growing sectors of the U.S. economy,” Kapfidze said. “An aging population means that demand for health products, including pharmaceuticals, will continue to increase.”

Still, he acknowledged that pharmaceutical investing does have its downsides.

“The products are complex, which can be difficult for the average investor to analyze,” he said. “Drug development is also a risky process, as potential drugs have low odds of reaching the market.”

Pharmaceutical investing gets boost from vaccine development

Given the potential risks and downsides of pharmaceutical stocks, it makes sense that 20% of investors don’t expect to invest in pharma at all in 2021. However, given that 31% of investors didn’t have any pharmaceutical stocks in 2020, this is another sign that the promise of a COVID-19 vaccine increased interest.

Our survey data backs this up, as 57% of respondents said the vaccine made them more likely to invest — once again with a greater impact on male investors than female investors (62% versus 47%, respectively).

Some stocks working on vaccines have performed very well the past year, said Kapfidze, explaining the appeal. However, he cautioned that those gains may be already realized, so future investment earnings could depend on new innovations.

Pharmaceutical investors, by the numbers

Overall, 61% of investors have at least one pharmaceutical stock in their portfolio. Of those investors, the most likely to invest in pharmaceuticals include those with a household income of $100,000-plus (71%), men (68%) and millennials (also 68%).

Noteworthy: 18% of baby boomer investors weren’t sure if there were any pharmaceutical stocks in their portfolio, while only 6% of both millennial and Gen X investors said the same.

Of those investors who have at least one pharmaceutical stock in their portfolio:

  • 36% have an individual pharma-related stock they purchased
  • 22% invest in a mutual fund that includes pharmaceuticals
  • 16% invest in an exchange-traded fund (ETF) that includes pharmaceuticals

As for how investors decide which pharmaceutical stocks to invest in, the reasons vary:

Nearly 2 in 10 (18%) noted a financial advisor or robo-advisor makes those decisions for them. That’s especially true for baby boomers, as nearly a third (32%) who invest in pharmaceuticals said an advisor helps them select which investments to make, versus 17% of Gen Xers and 13% of millennials.

More than 8 in 10 current pharmaceutical investors have made related investment amid coronavirus pandemic

More than 8 in 10 (82%) investors have made some sort of pharmaceutical investment over the past nine months — amid the coronavirus crisis. Here’s how those numbers break down:

The constant news about COVID-19 and the vaccine rollout made an impact on investors. They seem to be tracking the news, as 28% made their most recent purchase within the past month — during the vaccine rollout — and another 27% made their most recent purchase more than a month ago but within the past three months, when the vaccines were getting close to launch.

Of interest:

  • 85% of male investors made a pharma-related purchase or increased their spend over the past 9 months, versus 75% of female investors
  • 31% of male investors made an investment within the past month, versus 23% of female investors
  • 37% of investors earning $100,000-plus made an investment in the past month

Investors overall have been active, as 74% have reallocated their portfolio in some way over the past month. Of this group, 35% reallocated their portfolio to put more money in pharmaceutical investments — with men being more likely to invest more compared to women and Gen Xers and millennials being more likely to move into pharma than baby boomers.

If you’d like to be more active with your investing, you could start trading with one of these online brokers.

1 in 10 investors think investing in pharmaceutical stocks is unethical, but they do it anyway

The majority of investors — nearly 60% — believe it’s ethical to invest in pharmaceutical stocks. Interestingly, another 10% said it’s unethical, but do it anyway:

Whether investing in pharmaceuticals is ethical is a topic of debate. After all, these companies can profit off life-saving discoveries. They can also end up putting shareholder returns above helping others, such as charging a high price for an essential medicine.

That’s why 12% of investors reported not putting their money in pharmaceutical stocks due to ethical concerns. Female investors (14%) were more likely than male investors (10%) to avoid pharma due to ethics.

Still, money talks, as another 10% of investors put money in pharmaceutical stocks even though they had issues. Millennial investors were the most likely of all generations to override their concerns, as 14% put money in pharmaceutical stocks despite seeing the industry as unethical.

Interesting finding: Though Democratic and Republican voters seem to have trouble agreeing on most anything these days, they generally felt the same way in terms of the ethics of pharmaceutical investing.

In the end, 58% believe it’s ethical to invest in pharmaceutical stocks. Kapfidze also believes that the good outweighs the bad.

“Pharma advancements over the past 100 years have increased life expectancy significantly, and the industry is currently at the forefront of the response to the coronavirus,” he said.

When you invest in pharmaceutical stocks, you’re putting your money toward funding these innovations.

47% of investors regret not investing in pharmaceuticals stocks in the past

For investors sitting on the sidelines, it was tough watching the recent gains in pharmaceutical stocks. In fact, 47% of investors regret not investing in these stocks in the past:

Male investors (53%) were more likely to regret not investing in pharmaceutical stock than female investors (38%). This makes sense given that men were more involved with managing their investments, so they may be more aware of what they’ve missed. It would likely be even more frustrating for the 42% of investors who sold stock at the start of the pandemic, as nearly all regret doing so.

When asked why they regretted not investing in pharmaceutical stocks, the top reasons these investors gave were:

  • The news of the vaccines would have increased the value of their portfolios should they have invested in those stocks (59%)
  • They would have been able to benefit from longer-term gains (42%)
  • Many people are buying these stocks now, so the price has gone up (13%)

Still, not all investors regret keeping their money out: Nearly a third who don’t invest in pharmaceutical stocks said it’s because they don’t trust big pharma.

Here are the rest of their reasons:

When it comes to not investing, female investors (52%) were more likely to not have a specific reason than male investors (39%).

Getting started with pharmaceutical stocks

Kapfidze’s main piece of advice for investors looking to get in on pharmaceutical stocks is to do so cautiously.

“Make sure your investments in pharma are part of a diversified portfolio in order to manage risk,” he said.

Even if you are optimistic about pharma’s potential, you should still make these investments only a part of your portfolio rather than the entire thing, so you don’t have all your eggs in one basket. After all, diversification is one of the most important strategies for trading stocks.

Tip: You should avoid putting all your money in just one or two pharmaceutical companies, even if you think they’ve got great developments in the pipeline. Since it’s difficult and unlikely for any one drug to reach the market, spreading your money across multiple stocks increases your chances of finding one that comes through.

Another option is to invest through an ETF or mutual fund (used by 37% of investors). These funds take your money to buy a large portfolio of pharmaceutical stocks, managed by a professional investor. That way, they handle the research and picks for you.

Finally, consider meeting with a financial advisor before making trades and putting more money into pharmaceutical stocks. Given the high interest in this sector these days, it should be a topic they’re used to discussing.

Methodology

MagnifyMoney commissioned Qualtrics to conduct an online survey of 954 consumers with at least one investment account. The sample base was proportioned to represent the overall population, and all responses were reviewed by researchers to ensure quality control. The survey was fielded Dec. 17, 2020 through Dec. 21, 2020.

We defined generations as the following ages in 2020:

  • Millennial: 24 to 39
  • Generation X: 40 to 54
  • Baby boomer: 55 to 74

The survey also included responses from Generation Z (ages 18 to 23) and the silent generation (75 and older). However, their responses weren’t included in the generational breakdowns due to low sample size among investors in those age groups.

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Fidelity Review 2021

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone and is not intended to be a source of investment advice. It may not have not been reviewed, commissioned or otherwise endorsed by any of our network partners or the Investment company.

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The Fidelity Account is a low-cost brokerage account offered by Fidelity Investments that allows investors to trade U.S. stocks, exchange-traded funds (ETFs) and options online with $0 commission fees. Fractional share trading is also available through the Fidelity mobile app.

The account is a standout for its fee structure and range of investment choices. Broker-assisted trades are pricey, but otherwise, there are few downsides. This Fidelity review is designed to help you decide if it’s the right brokerage for you.

Fidelity Brokerage Services LLC
Visit Fidelity Secured
on Fidelity’s secure website
The bottom line: Fidelity may appeal to beginning and more experienced investors alike with its diverse investment options and competitive pricing.

  • Full-service broker with a strong brand reputation
  • Extensive options for all investor types
  • Low or no fees/commissions on most products

Minimum deposit$0
Account types
  • Individual brokerage accounts
  • Joint brokerage accounts
  • Cash management accounts
  • Fidelity accounts for business
  • Rollover IRA
  • Traditional IRA
  • Roth IRA for kids
  • Inherited IRA
  • Inherited Roth IRA
  • SEP IRA
  • Self-employed 401(k)
  • SIMPLE IRA
  • Investment-only plans for business
  • 401(k) plans for small business
  • Managed accounts with Fidelity Go
  • 529 college savings accounts
  • Coverdell ESAs
  • Health Savings Accounts
  • ABLE accounts
  • Trust accounts
Tradable securities
  • U.S. and international stocks
  • ETFs from Fidelity, iShares and other industry leaders
  • Options
  • Fidelity Mutual funds and funds from other companies
  • Bonds
  • Certificates of deposit
  • Precious metals
Fees
  • $0 commission fees for online U.S. stock, ETF and Options trades
  • Additional fees apply for broker-assisted trades and purchases of transaction fee non-Fidelity funds
  • No annual account fee
Sign-up bonusNone currently available

What Fidelity offers and who it’s for

Fidelity is a full-service online brokerage that offers an extensive range of investment Options, including stocks, Mutual funds, ETFs, Options and precious metals. Both beginning and more experienced investors may find Fidelity‘s low trading costs an attractive incentive for opening an individual or joint brokerage account. You also may choose to invest in an IRA or Solo (401)k through Fidelity to save for your retirement.

Fractional share trading is something else that sets Fidelity apart, as not all online brokerages offer this option. In terms of where Fidelity tends to fall short, cryptocurrency and futures trading aren’t included in the list of investment Options. And if you need a broker’s help to execute a trade, that means paying an added fee.

Pros

  • Wide range of investment choices: Fidelity makes it relatively simple to build a diversified portfolio with its range of investment Options, which includes both Fidelity and non-Fidelity funds.
  • Low-cost trading: Like a number of online brokerages, Fidelity has adopted a $0 commission fee model for online trades of U.S. stocks, ETFs and Options.
  • No account minimum: While some brokerages require a larger minimum deposit to open an account, Fidelity allows you to get started with a $0 minimum.
  • Extensive research tools: Fidelity is generous when it comes to providing investors with the research and analytical tools they need to make investment decisions.

Cons

  • Broker-assisted trades will cost you: Getting broker assistance in executing a trade will require paying an additional fee.
  • No crypto or futures: Investors who are interested in trading cryptocurrency  or futures will need to look elsewhere.
  • High mutual fund fees: Investing in non-Fidelity funds could trigger a steep trading fee.
  • Holding period for initial withdrawals: While you can open and fund an account with Fidelity online in minutes, it can take up to 10 business days to verify banking information for withdrawals from your account.

Fidelity fees and costs

Option trading fees$0 + $0.65 per contract for online trades; $12.95 + $0.65 per contract for FAST trades (by phone); $32.95 + $0.65 per contract for broker-assisted trades
Stock trading fees$0 for online trades of U.S. stocks; $12.95 for FAST trades (by phone); $32.95 for broker-assisted trades
ETF trading fees$0 for online trades of U.S. stocks; $12.95 for FAST trades (by phone); $32.95 for broker-assisted trades
Mutual fund trading fees$0 for Fidelity funds; $0 on purchase and $49.95 on redemption for no transaction fee non-Fidelity funds held less than 60 days; $49.95 per purchase and $0 at redemption for transaction fee non-Fidelity funds
Bond and CD trading fees$0 for new issues, $1 per bond for secondary issues; $0 for online U.S. Treasury auctions and secondary issues; $19.95 for representative-assisted U.S. Treasury auctions and secondary issues
Account fees (annual, transfer, inactivity)No annual fee, no transfer fees and no inactivity fees; only additional fees may be:

  • Up to 3% of principal for foreign exchange wire transfers
  • $50 Depository Foreign Trust Company foreign settlement fee
  • $100 stock certificate transfer fee
  • 1% of principal foreign dividends and reorganization transaction fee
  • $32.95 per margin liquidation

Fidelity has followed the example of other online brokerages and moved toward commission-free trading for U.S. stocks, ETFs and  Options when trading online. You can also trade Fidelity‘s impressive collection of Mutual funds with $0 commission fees.

You will, however, run into fees if you want to trade non-Fidelity funds. Again, you’ll pay $0 on purchase for no transaction fee funds from issuers other than Fidelity and $49.95 at redemption for funds held less than 60 days. Transaction fee non-Fidelity funds require a $49.95 fee per purchase but charge $0 on redemption.

Fidelity investing tools and research

Online trading tools

Fidelity‘s online trading platform includes monitoring tools to help investors:

  • Track stock price movements and profit/loss positions in real time
  • Research specific market sectors
  • Execute trades
  • Research individual securities
  • Read the latest market news
  • Chart their comprehensive financial picture

Investors have access to an ETF screener that allows them to compare more than 2,000 commission-free ETFs, along with mutual fund, stock and bond screeners. Fidelity aggregates investment news and reports from a variety of well-known sources, including Reuters, Zacks Investment Research and Argus Analyst.

Mobile trading tools

The Fidelity mobile app allows investors to track their portfolio on the go. The app, which is free to download for iPhone and Android, makes it easy to:

  • Manage your portfolio and watch lists
  • Execute trades
  • Invest with fractional shares
  • View balances and get real-time quotes
  • Set up account alerts and notifications
  • Save articles and take notes

The most notable feature of the Fidelity mobile app is the ability to trade fractional shares. Through fractional share investing, you can purchase more expensive stocks in smaller increments. With dollar-based investing from Fidelity, you can trade shares of more than 7,000 U.S. stocks and ETFs for as little as $1. That could be appealing to newer investors who are just getting started and don’t have a lot of money to put into the market.

Active Trader Pro

Active Trader Pro is Fidelity‘s dynamic online trading platform. To use Active Trader Pro, you have to request access through Fidelity. You may access this feature automatically if you trade 36 times or more in a rolling 12-month period. If you’re approved for Active Trader Pro, it’s free to use.

Once you download Active Trader Pro for PC or Mac, you’ll have access to tools and research that allow you to take an even deeper dive into trading. For example, the Trade Armor feature allows you to visualize risk and reward for a particular investment while tracking price movements. Real-time analytics make it easy to track technical indicators for stocks to identify trading opportunities.

As the name suggests, Active Trader Pro is designed for investors who take a more active approach to portfolio management. While it’s accessible for active Fidelity investors of any skill level, it may be a little overwhelming for a beginner.

Fidelity user experience

Between online and mobile investing, Fidelity makes investor accounts easily accessible. If you’re unfamiliar with the Fidelity website and its layout, however, you could get lost when moving between different pages. The mobile app, on the other hand, is easier to navigate as you move through different screens and tabs.

In terms of customer service, Fidelity offers support by phone, live chat and secure messaging. Phone support is available 24/7 by calling 800-343-3548. You can also use live chat to connect with Fidelity Support, but it may take time to be connected to a representative. During one attempt, we were put in the queue at number 24 in line.

We also called customer support, which responded promptly with a hold time of less than a minute. Likely, this will all depend on the volume of calls at the time of your attempt. The customer service representative we spoke with on the phone was knowledgeable and able to answer all of our questions, which included requesting information on minimum deposits and how to withdraw money from a brokerage account.

Fidelity investor education

The Fidelity Learning Center offers numerous educational resources to help investors shape their portfolio strategy. The educational tools on hand include:

  • Live webinars
  • On-demand webinars
  • Weekly Fidelity classes for beginning investors
  • Interactive coaching sessions
  • Investment guides
  • Articles

While some online brokerages take a bare-bones approach to investor education, Fidelity equips you with plenty of tools to make informed decisions. These tools are free to access as a Fidelity customer, which is great if you don’t have a dedicated financial advisor yet because you’re unable or unwilling to pay a fee for professional investment advice.

Fidelity security

SIPC coverage

The Securities Investor Protection Corporation (SIPC) insures against financial losses if a brokerage goes bankrupt. All Fidelity brokerage accounts have SIPC coverage, which extends to money market funds as well as other securities. The coverage limit is up to $500,000, including a $250,000 limit for cash held inside your brokerage account.

Online security

Fidelity uses a number of strategies to protect client accounts online. That includes the use of two-factor authentication to verify accounts, the ability to lock accounts to prevent money transfers, security text alerts and voice recognition through Fidelity MyVoice when accessing your account by phone.

Customer protection guarantee

Fidelity offers a Customer Protection Guarantee to reimburse investors for losses associated with unauthorized account activity. That includes both cash and securities held in Fidelity brokerage accounts. This coverage is automatic, but to use this benefit, you must contact Fidelity at 800-544-6666 as soon as you become aware of any suspicious or unauthorized activity.

Alternatives to Fidelity to consider

Fidelity could be a good fit for investors who want to make commission-free trades, invest with fractional shares or take advantage of Fidelity‘s extensive research and investment tools. It’s important, however, to consider where other brokerages might outshine Fidelity in terms of cost, investment Options and overall user experience. Here are two other Options to compare to Fidelity when opening a brokerage account.

Fees

$0.00 per trade

Account Minimum

$0

Promotion
N/A
Fees

$7.00 per trade for the first 25 trades per year, $20 per trade thereafter for accounts with less than $50,000

  • $7 per trade for accounts with $50,000 to $500,000
  • Account Minimum

    $1,000 for Vanguard Target Retirement Funds and Vanguard STAR® Funds; $3,000 for most other Vanguard funds

    Promotion
    N/A
    Fees

    $0.00 per trade

    Account Minimum

    $0

    Promotion
    N/A

    Fidelity vs. Vanguard

    Vanguard is a well-known name in the online brokerage space, thanks largely to its suite of low-cost index funds and ETFs. In terms of fees and account minimums, Fidelity and Vanguard are almost identical, though it will cost you slightly more per Options contract with the latter.

    In terms of investment offerings, they’re similar, but the main point to consider is whether you lean more toward Fidelity funds or Vanguard funds. When it comes to user experience and investment tools, Fidelity has a slight edge with Active Trader Pro. Fidelity‘s website is also easier to navigate.

    Open a Vanguard account Secured
    on Vanguard’s secure website

    Fidelity vs. TD Ameritrade

    Fidelity and TD Ameritrade are neck and neck in terms of investment costs and minimums, though you will need at least $2,000 to trade on margin with TD Ameritrade. But this brokerage does offer a few things Fidelity doesn’t, including cryptocurrency and futures trading, as well as multiple online trading platforms designed to meet different investors’ needs.

    One other thing worth pointing out is that TD Ameritrade‘s broker-assisted trade fee is lower than Fidelity‘s, at $25 versus $32.95. Whether it makes sense to choose Fidelity over TD Ameritrade or vice versa may ultimately come down to which brokerage’s funds you prefer.

    Open a TD Ameritrade account Secured
    on TD Ameritrade’s secure website

    All information included in this profile is accurate as of 1/14/2021. For more information, please consult Fidelitys’s website.

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