BOSTON — Reaffirming its longstanding commitment to provide the best overall value in the industry, Fidelity Investments®, the largest online brokerage firm with 17.9 million accounts and $1.7 trillion in total client assets2, today significantly reduced online retail commissions for U.S. stock and ETF trades to $4.95, down from $7.95, making it the lowest-priced provider among major retail competitors, including TD Ameritrade, Schwab and E*Trade3. Fidelity also reduced option pricing to $0.65 per contract4, down from $0.75, and lowered margin rates across multiple tiers, making both the lowest price among its major retail competitors.
|Online U.S. equity and option trades||$4.95||$9.99||$6.95||$9.99|
|Online Options pricing per contract||$0.65||$0.75||$0.70||$0.75|
|Lowest Margin Rate5||4.00%||6.50%||6.00%||5.75%|
Table compares pricing for retail investors.
Fidelity's online U.S. stock trading commissions are 50 percent lower than both TD Ameritrade and E*Trade, 28 percent lower than Schwab, and 45 percent lower than the average of the three competitors.
"With these unprecedented price cuts Fidelity is continuing to transform the brokerage industry, bringing the best value to retail clients," said Ram Subramaniam, president of Fidelity's retail brokerage business. "Our active trader clients who make hundreds of trades each year will particularly benefit from our dramatic price reductions, and all clients who trade will be able to keep more money in their pockets."
Continued Subramaniam, "We encourage investors to evaluate their firm on the overall value they receive. Fidelity clients have the best of both worlds – low pricing as well as consistently top-ranked order execution, client service, trading and research tools, education and investment choices."
In addition to the new low $4.95 online U.S. equity commissions, Fidelity offers clients leading value in:
- Price Improvement: Fidelity's client-centric routing decisions resulted in an average $10.79 price improvement per 1,000 share order vs. the industry average of $1.716, and Fidelity is the only firm to display price improvement for each trade7. In Fidelity's Brokerage Value Study8, three in four investors (76 percent) say they would consider changing to a firm that delivers superior price improvement.
- Order Execution: Fidelity is the only one of the four biggest brokerage firms (Fidelity, TD Ameritrade, Schwab and E*Trade) to not take payment for order flow for equity orders, ensuring that the price and speed of clients' equity orders are given priority.
- Online Options: Fidelity now offers the lowest online options prices among TD Ameritrade, Schwab and E*Trade, at $4.95 per trade + $0.65 per contract, and couples this low price with sophisticated options trading and education tools.
- Margin Rates: Fidelity's reduced margin rates for retail clients make it the lowest cost provider among TD Ameritrade, Schwab and E*Trade across all debit balances:
|Margin Debit Balance||$500,000+||$499,999-$100,000||$99,999-$50,000||$49,999-$25,000||$24,999-$0|
- Bond Pricing: Fidelity offers transparent $1 pricing for online secondary bond market trades, and an Oct. 2015 study9 showed that online bond prices from brokers that bundle their markups and fees into their online bond prices were on average $13.65 per bond higher than Fidelity. For an investor who purchases $100,000 in face value of bonds annually online, that discrepancy could save $1,365 on average each year compared to mark-up based brokers.
- Award-Winning Free Research Tools and Education that can help investors increase their knowledge and find the best investments for their needs.
- Commission-Free ETFs and No Transaction Fee Mutual Funds: Fidelity offers 91 highly liquid and diverse Blackrock iShares® and Fidelity ETFs available for purchase commission-free online10. And, more than 3,500 NTF mutual funds are available on Fidelity.com, part of the 11,000+ mutual funds available at Fidelity overall.
In 2016, Fidelity became the first firm ever to sweep the brokerage industry award season, including wins in Barron's, Investor's Business Daily, Kiplinger's, StockBrokers.com and Corporate Insight for overall value, innovation, transparency and client experience. In 2017, Fidelity has again earned best overall brokerage scores from Corporate Insight11 and Investor's Business Daily12.
"We're focused on delivering the best client experience in the industry, and a big part of that is providing investors with choice and exceptional value across asset classes, investment styles and investment vehicles. This move will strengthen our leadership position and provide even greater value for our millions of clients," added Subramaniam.
To help investors evaluate how to get the best overall value and bang for their buck from a brokerage firm, Fidelity encourages investors to consider the following:
- Does the firm have simple, straightforward pricing, and what are the commissions and fees for stock, ETF, mutual fund, options and bond trades?
- What criteria are used to route my stock trades, and what level of price improvement does it provide?
- Is the firm in good financial standing and is it a trusted brand?
- Does the firm offer the selection of investments I need to achieve my investing and cash management goals?
- Does it have robust education and research offerings that fit my needs and experience level to help me be a better trader?
- What options do I have for client service (e.g. phone, chat, email, in person) and is it available when I need it?
Also, see a Fidelity Viewpoint about "How to Pick Your Brokerage Firm."
About Fidelity Investments
Fidelity's mission is to inspire better futures and deliver better outcomes for the clients and businesses we serve. With assets under administration of $5.8 trillion, including managed assets of $2.2 trillion as of January 31, 2017, we focus on meeting the unique needs of a diverse set of clients: helping more than 26 million people invest their own life savings, 23,000 businesses manage employee benefit programs, as well as providing more than 12,500 financial advisory firms with investment and technology solutions to invest their own clients' money. Privately held for 70 years, Fidelity employs 45,000 associates who are focused on the long-term success of our clients. For more information about Fidelity Investments, visit https://www.fidelity.com/about.