Fidelity does not charge commission on stock and ETF trades

Fidelity removed trading commissions on U.S. stocks, ETFs, and options in 2019. When you buy or sell these securities through a Fidelity brokerage account, you pay no per-trade fee to Fidelity itself. This applies whether you trade once a month or dozens of times per day.

That said, "no commission" does not mean "no cost." Other charges can appear on your account depending on what you trade, how you trade it, and which account type you use. Understanding what those costs are helps you avoid surprises.

Key Takeaways

  • Fidelity charges no commission on U.S. stock and ETF trades, but you may still pay spreads, regulatory fees, or account maintenance charges depending on your account type.
  • Mutual funds sold by Fidelity itself carry no transaction fee, but mutual funds from other companies may charge a transaction fee or load.
  • Options trades cost $0.65 per contract, not per trade, so a single order with multiple contracts costs more than one with a single contract.
  • Margin accounts and some specialty accounts charge monthly or annual maintenance fees, while standard cash accounts do not.
  • International stock trades and bonds may carry additional costs that do not apply to U.S. stocks.

Costs that do apply to stock and ETF trades

Even though Fidelity charges no commission, your actual cost per trade includes the bid-ask spread—the difference between what buyers will pay and what sellers will accept. This spread belongs to the market, not to Fidelity, but you pay it every time you trade. On liquid stocks, the spread is usually a few cents. On thinly traded securities, it can be much wider.

U.S. stock trades also carry a small regulatory fee paid to the SEC (Securities and Exchange Commission). This fee is typically less than $1 per trade and appears on your confirmation. Fidelity does not keep this money; it goes to the government.

If you hold a margin account—one where you borrow money from Fidelity to buy securities—you pay interest on the borrowed amount. Margin interest rates vary based on the size of your loan and market conditions. Fidelity also charges a monthly maintenance fee on some margin accounts, though this fee is often waived if your account balance meets a minimum.

Mutual fund transaction fees and loads

Fidelity's own mutual funds (those with ticker symbols starting with FXXX or SPAXX) carry no transaction fee when you buy or sell them. This is one reason many Fidelity customers hold Fidelity funds in their portfolios.

Mutual funds from other companies are different. Some carry a transaction fee—a one-time charge Fidelity collects when you buy or sell. Others carry a load, which is a sales charge built into the fund itself. Load amounts vary widely, from 1% to 5% or more of your purchase. Fidelity's website shows the transaction fee and load status for each fund before you buy, so you can see the cost upfront.

Options trading costs

Options trades cost $0.65 per contract, not per order. If you buy a single call option, you pay $0.65. If you buy 10 call options in the same order, you pay $6.50. This applies to opening trades, closing trades, and exercises.

Options also carry the bid-ask spread, just like stocks do. On options with low trading volume, this spread can be significant—sometimes wider than the per-contract fee itself.

Account types and annual fees

A standard Fidelity brokerage account (cash or margin) has no annual account fee. However, some specialty accounts do charge fees. A Fidelity Go robo-advisor account charges 0.35% annually on assets under management. A Fidelity Advisor account with a human advisor charges a fee based on assets under management, typically 0.50% to 1.00% per year, depending on your account size and the services you use.

IRAs and other retirement accounts also have no annual fee at Fidelity, though some IRAs charge a small custodial fee if your balance falls below a certain threshold (usually $10,000 or less). Check your account agreement to see whether this applies to you.

International stocks and bonds

Fidelity charges no commission on international stock trades, but you will pay a currency conversion fee when you buy or sell stocks denominated in foreign currencies. This fee is typically 1% to 2% of the transaction value and covers the cost of converting dollars to the foreign currency and back. The exact rate depends on market conditions at the time of your trade.

Bonds work differently from stocks. Fidelity charges a markup on bond trades—a spread added to the bond's price. The markup varies based on the type of bond and current market conditions. Treasury bonds typically carry smaller markups than corporate or municipal bonds. Unlike stocks, bond markups are not shown separately on your confirmation; they are built into the price you see.

How to see what you will pay before you trade

Fidelity's order preview screen shows most costs before you submit a trade. For stocks and ETFs, you will see the bid-ask spread and any regulatory fees. For mutual funds, you will see transaction fees and loads. For options, you will see the per-contract fee. For bonds, the markup is included in the displayed price.

The one cost that does not always show clearly is margin interest, because it accrues over time rather than appearing as a one-time charge. If you use margin, check your account settings to see your current interest rate and how much you are borrowing.

Frequently Asked Questions

Does Fidelity charge to transfer money into or out of my account?

No. Fidelity does not charge fees for deposits or withdrawals. If you transfer money from another brokerage, Fidelity will reimburse you for any transfer fees the other firm charges, up to $250 per transfer. This reimbursement is automatic and appears in your account within a few business days.

Do I pay a fee if I hold a stock or ETF and never sell it?

No. Holding a security costs nothing. You only pay when you buy or sell. Account maintenance fees (if any) are separate from trading costs and apply whether you trade or not.

What is the difference between a commission and a spread?

A commission is a fee a brokerage charges for executing a trade. A spread is the difference between the bid and ask price in the market itself. Fidelity charges no commission, but spreads still apply because they are part of how markets work, not something Fidelity controls.

Will I pay more if I place a limit order instead of a market order?

No. The fee structure is the same regardless of order type. However, a limit order may not fill at all if the price never reaches your limit, so you avoid the spread by not trading—but you also do not own the security.

Do I pay fees on dividends or interest my investments earn?

No. Dividends and interest are credited to your account with no fee. You only pay fees when you buy or sell a security, or when you use services like margin or advisory accounts.