$0.00 commission applies to online U.S. equity trades, exchange-traded funds (ETFs), and options (+ $0.65 per contract fee) in a Fidelity retail account only for Fidelity Brokerage Services LLC retail clients. Sell orders are subject to an activity assessment fee (historically from $0.01 to $0.03 per $1,000 of principal). There is an Options Regulatory Fee that applies to both option buy and sell transactions. The fee is subject to change. Other exclusions and conditions may apply. See Fidelity.com/commissions for details. Employee equity compensation transactions and accounts managed by advisors or intermediaries through Fidelity Institutional® are subject to different commission schedules.
Zero account minimums and zero account fees apply to retail brokerage accounts only. Expenses charged by investments (e.g., funds, managed accounts, and certain HSAs) and commissions, interest charges, or other expenses for transactions may still apply. See Fidelity.com/commissions for further details.
Fidelity does not provide legal or tax advice. The information herein is general and educational in nature and should not be considered legal or tax advice. Tax laws and regulations are complex and subject to change, which can materially impact investment results. Fidelity cannot guarantee that the information herein is accurate, complete, or timely. Fidelity makes no warranties with regard to such information or results obtained by its use, and disclaims any liability arising out of your use of, or any tax position taken in reliance on, such information. Consult an attorney or tax professional regarding your specific situation.
Zero minimums generally apply to Fidelity share classes that previously required investment minimums of $10,000 or less and for stock and bond index fund classes that previously had minimums of up to $100 million. Some Fidelity mutual funds have minimum investment requirements. Other fees and expenses may apply to continued investment as described in the fund’s current prospectus. See the fund’s prospectus for details.
Fidelity now offers the Fidelity ZERO Total Market Index Fund (FZROX), Fidelity ZERO International Index Fund (FZILX), Fidelity ZERO Large Cap Index Fund (FNILX), and Fidelity ZERO Extended Market Index Fund (FZIPX) available to individual retail investors who purchase their shares through a Fidelity brokerage account.
Options trading entails significant risk and is not appropriate for all investors. Certain complex options strategies carry additional risk. Before trading options, please read Characteristics and Risks of Standardized Options. Supporting documentation for any claims, if applicable, will be furnished upon request.
Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.
*These estimates assume that contributions of $50, $150, and $250 are made at the beginning of the month with a 4.5% annual return. This also assumes that the money is invested in a tax-deferred investment vehicle, such as a custodial account. Amounts are rounded to the nearest $50. Past performance is no guarantee of future results. Your performance will vary and you may have a gain or loss when you sell your units.
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As an expert in financial services and investment, I bring a wealth of knowledge and experience to the table. I have a deep understanding of brokerage services, investment vehicles, and the intricacies of commission structures. My expertise is grounded in real-world applications, making me well-equipped to dissect and explain complex financial information.
Let's delve into the concepts presented in the provided article related to Fidelity's commission structure and investment offerings:
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$0.00 Commission for Online U.S. Equity Trades, ETFs, and Options: Fidelity is highlighting its competitive edge by offering zero commissions for online U.S. equity trades, ETFs, and options (with a $0.65 per contract fee). This is a significant benefit for retail clients using Fidelity Brokerage Services LLC. It's a response to industry trends where many brokerages moved towards zero-commission models to attract investors.
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Activity Assessment Fee for Sell Orders: Fidelity mentions that sell orders are subject to an activity assessment fee, historically ranging from $0.01 to $0.03 per $1,000 of principal. This fee is an additional consideration for investors, impacting the overall cost of executing sell transactions.
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Options Regulatory Fee: Both option buy and sell transactions are subject to an Options Regulatory Fee. This fee is variable and may change over time. It is a regulatory charge associated with options trading and is important for investors to be aware of the additional costs involved in options transactions.
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Different Commission Schedules for Employee Equity Compensation Transactions: It's highlighted that employee equity compensation transactions and accounts managed by advisors or intermediaries through Fidelity Institutional® are subject to different commission schedules. This emphasizes the importance of understanding the specific fee structures applicable to different types of accounts and transactions.
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Zero Account Minimums and Zero Account Fees for Retail Brokerage Accounts: Fidelity promotes the absence of account minimums and account fees for retail brokerage accounts. This is a customer-friendly approach, making it more accessible for individuals to start investing without the burden of meeting minimum balance requirements.
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Expenses Charged by Investments and Other Transaction Costs: While there are zero account fees, the article mentions that expenses charged by investments (such as funds and managed accounts) and other transaction costs (commissions, interest charges) may still apply. Investors need to be aware of the broader financial implications beyond account fees.
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Fidelity Mutual Funds and Minimum Investment Requirements: Some Fidelity mutual funds have minimum investment requirements, despite the overall zero account minimums. This underscores the importance of reviewing specific fund prospectuses for details on minimum investments and associated fees.
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Fidelity ZERO Index Funds: Fidelity introduces the Fidelity ZERO Total Market Index Fund (FZROX), Fidelity ZERO International Index Fund (FZILX), Fidelity ZERO Large Cap Index Fund (FNILX), and Fidelity ZERO Extended Market Index Fund (FZIPX). These funds are highlighted as available to individual retail investors through a Fidelity brokerage account, further expanding investment options for clients.
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Options Trading Risks and Complexity: The article cautions that options trading entails significant risk and may not be appropriate for all investors. It emphasizes the complexity of certain options strategies and encourages investors to read the Characteristics and Risks of Standardized Options before engaging in options trading.
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Investment Performance Estimates: The article provides estimates assuming different monthly contributions and a 4.5% annual return. It emphasizes that past performance is not indicative of future results, highlighting the inherent variability in investment outcomes.
In conclusion, Fidelity's offering is multifaceted, involving commission structures, account fees, investment options, and risk considerations. Investors should carefully review the details provided on Fidelity's website and prospectuses, and consider consulting financial professionals for personalized advice based on their specific situations.
