Opening a Fidelity Account

To invest with Fidelity, you first open an account on their website or by phone. You will need your Social Security number, a valid ID, your current address, and employment information. The process takes about 10 minutes online.

Fidelity offers several account types. A taxable brokerage account has no contribution limits and no age restrictions — you can deposit and withdraw money whenever you want. An Individual Retirement Account (IRA) lets you save for retirement with tax advantages, but you cannot withdraw money before age 59½ without penalty (with some exceptions). A 401(k) is only available if your employer offers one; Fidelity administers it but your employer sets it up.

Once your account is open, Fidelity will ask you to link a bank account so you can transfer money in. This usually takes one to three business days. You do not have to fund the account immediately — you can open it and add money later.

Key Takeaways

  • You need a Social Security number, valid ID, address, and employment information to open an account, which takes about 10 minutes online or by phone.
  • Fidelity offers taxable brokerage accounts with no limits, IRAs with tax advantages but withdrawal restrictions, and employer 401(k)s if your company uses Fidelity.
  • You link a bank account to transfer money in, a process that usually takes one to three business days.
  • Before you invest, you choose what to buy — stocks, mutual funds, exchange-traded funds (ETFs), or bonds — and Fidelity provides research tools and educational resources to help you decide.
  • Fidelity charges no commission on stock and ETF trades, though some mutual funds and bonds carry fees that vary by product.

Choosing What to Invest In

Once money is in your account, you decide what to buy. Fidelity lets you purchase individual stocks, mutual funds (a pool of stocks or bonds managed by a professional), exchange-traded funds (ETFs) (similar to mutual funds but trade like stocks), and bonds.

If you are new to investing, mutual funds and ETFs are often simpler than picking individual stocks because they spread your money across many companies. Fidelity's website shows you the holdings, fees, and historical performance of each fund. You can filter by investment goal — retirement, growth, income — or by risk level.

Fidelity also offers target-date funds, which automatically shift from stocks to bonds as you approach retirement. If you retire in 2050, you would choose a 2050 target-date fund and let it rebalance itself over time. These are designed for people who want a hands-off approach.

Understanding Fidelity's Fees

Fidelity charges no commission when you buy or sell stocks or ETFs. This means you keep more of your money working for you instead of paying Fidelity a transaction fee.

Mutual funds and ETFs do charge internal fees, called expense ratios, which are a percentage of your investment taken annually. A fund with a 0.05% expense ratio costs $5 per year on a $10,000 investment. Fidelity's own funds often have lower expense ratios than competitors. You can see the expense ratio listed on every fund's detail page before you buy.

If you use a financial advisor at Fidelity, they charge a separate fee — usually a percentage of the money they manage for you. This is optional; you can invest on your own with no advisor fee at all.

How to Place Your First Trade

After you fund your account, log into Fidelity's website or mobile app. Search for the stock, ETF, or mutual fund you want to buy by its ticker symbol or name. Click on it to see the price, holdings, and performance history.

Click "Buy" and enter how many shares you want. For mutual funds, you usually enter a dollar amount instead of a share count. Review the order details and confirm. The trade executes immediately during market hours (9:30 a.m. to 4 p.m. Eastern time on weekdays). If you place an order after market hours or on a weekend, it will execute when the market opens the next trading day.

Your shares appear in your account within one business day. You can hold them as long as you want, sell them whenever you choose, or set up automatic monthly investments so money transfers and buys automatically.

Setting Up Automatic Investments

Instead of manually buying each month, you can set up automatic investment plans. You choose an amount, a frequency (weekly, biweekly, or monthly), and which fund or stock to buy. Fidelity withdraws the money from your linked bank account and invests it on the schedule you set.

This approach removes emotion from investing — you invest the same amount regardless of whether the market is up or down. Many people use this method to build wealth over time without having to remember to invest each month.

You can change or stop automatic investments anytime. There is no penalty for pausing or canceling.

Monitoring Your Account and Tax Documents

Log into your Fidelity account anytime to see your current balance, how much you have gained or lost, and a breakdown of what you own. Fidelity updates prices throughout the trading day.

At the end of each year, Fidelity sends you tax documents. For a taxable brokerage account, you receive a 1099-B form showing your sales and gains. For an IRA, you receive a 5498 form showing contributions. Your tax software or accountant will use these to file your taxes.

Fidelity also provides year-end statements and performance reports showing how your investments performed. You can download these anytime from your account.

Getting Help and Learning More

Fidelity offers free educational content on their website: articles, videos, and webinars on investing basics, how to read financial statements, and retirement planning. You can access these without paying anything.

If you have questions about your account or how to place a trade, you can call Fidelity's customer service at 1-800-343-3548. Representatives are available Monday through Friday, 8 a.m. to 10 p.m. Eastern time, and Saturday 8 a.m. to 7 p.m. Eastern time. You can also chat with someone through the website or mobile app.

Fidelity also offers in-person guidance at their branches in many cities. You can schedule a consultation to discuss your goals and investment strategy with someone face-to-face.

Frequently Asked Questions

How much money do I need to open a Fidelity account?

You can open an account with $0. However, to buy most stocks or ETFs, you need at least enough to purchase one share, which ranges from a few dollars to several hundred depending on the stock. Some mutual funds have minimum investments of $2,500, though Fidelity's own funds often have lower minimums or none at all.

Can I withdraw my money anytime?

From a taxable brokerage account, yes — you can sell your investments and withdraw the cash anytime. From an IRA, you can withdraw contributions anytime without penalty, but earnings withdrawn before age 59½ usually trigger a 10% penalty plus income tax. A 401(k) has stricter rules; you generally cannot withdraw before age 59½ without penalty unless you leave your job or face financial hardship.

What is the difference between a stock and a mutual fund?

A stock is ownership in a single company. A mutual fund pools money from many investors to buy a basket of stocks, bonds, or both. Stocks can be more volatile and require you to pick individual companies. Mutual funds spread risk across many holdings and are managed by a professional, making them simpler for beginners.

Do I have to pay taxes on my investments?

In a taxable brokerage account, yes — you owe taxes on dividends and capital gains when you sell. In an IRA, you do not pay taxes on gains until you withdraw in retirement. In a 401(k), taxes are deferred until retirement as well. Your tax situation depends on your account type and how long you hold investments.

What if I make a mistake when placing a trade?

If you placed an order during market hours and it has already executed, you can sell the shares immediately to reverse it, though you may lose money if the price moved. If you placed an order after hours and it has not executed yet, you can cancel it before the market opens. Contact Fidelity's customer service if you need help undoing a trade.