Fidelity is free to open an account and free to hold most investments, but you pay for certain trades and services

Fidelity does not charge you to create an account or to own stocks, bonds, mutual funds, or exchange-traded funds (ETFs) in most cases. You will not see a monthly account fee or an annual maintenance charge just for having money there. However, Fidelity makes money when you trade individual stocks or options, when you use certain advisory services, or when you hold funds that carry internal costs.

The real answer to "is Fidelity free" depends on what you plan to do with your account. A person who buys a few index funds and leaves them alone pays almost nothing. A person who trades stocks frequently or uses a financial advisor will pay more. Understanding where the costs hide helps you decide whether Fidelity fits your situation.

Key Takeaways

  • Opening a Fidelity account costs nothing, and holding most stocks and ETFs costs nothing per year.
  • Stock trades through Fidelity cost $0 per trade, but options trades cost $0.65 per contract.
  • Fidelity mutual funds that Fidelity itself manages (Fidelity funds) typically have no transaction fee, but mutual funds from other companies may charge a fee to buy or sell.
  • Fidelity's robo-advisor service (Go) charges 0.35% of your account balance per year, while human financial advisors charge 0.50% or more.
  • Some funds held inside your account charge internal fees (called expense ratios) that reduce your returns automatically, regardless of whether you trade.

Stock and ETF trades cost nothing

Fidelity charges $0 to buy or sell individual stocks and $0 to buy or sell ETFs. This applies whether you place the trade online, by phone, or through the Fidelity mobile app. You can trade as often as you want without per-trade fees.

The catch is that you still pay the bid-ask spread — the difference between what buyers will pay and what sellers will ask. This is not a Fidelity fee; it is built into the market price itself. When you buy a stock, you pay slightly more than the last sale price. When you sell, you receive slightly less. Fidelity does not pocket this difference, but you do pay it as an invisible cost of trading.

Options trades and certain mutual funds carry fees

If you trade options (contracts that give you the right to buy or sell a stock at a set price), Fidelity charges $0.65 per contract. A single options trade might involve multiple contracts, so a trade could cost $1.30, $1.95, or more depending on how many contracts you buy or sell.

Mutual funds from other companies sometimes carry a transaction fee when you buy or sell them through Fidelity. Fidelity's own mutual funds (branded as Fidelity funds) typically have no transaction fee. If you are considering a mutual fund from another company — say, a Vanguard fund or an American Funds fund — check whether Fidelity lists a transaction fee before you buy. The fee usually appears in the order screen before you confirm the purchase.

Expense ratios reduce returns automatically

Many mutual funds and ETFs charge an expense ratio — a yearly percentage of your investment that pays for the fund's management and operations. This fee is not something you pay separately; it is deducted from the fund's value automatically. A fund with a 0.10% expense ratio costs you $10 per year on every $10,000 invested.

Index funds and ETFs typically have low expense ratios, often between 0.03% and 0.20%. Actively managed funds (where a manager picks stocks to try to beat the market) often charge 0.50% to 1.00% or higher. Fidelity offers both types. The expense ratio is the same whether you hold the fund for one day or ten years — it is a yearly cost built into the fund itself.

You can see a fund's expense ratio before you buy. Fidelity displays it in the fund's details page, usually labeled as "expense ratio" or "annual operating expense."

Advisory services and robo-advisor fees

Fidelity offers a robo-advisor called Fidelity Go that automatically builds and manages a portfolio based on your age and risk tolerance. This service costs 0.35% of your account balance per year. On a $10,000 account, that is $35 per year. On a $100,000 account, it is $350 per year.

Fidelity also offers human financial advisors through its full-service advisory program. Fees for human advisors typically start at 0.50% of assets under management and can go higher depending on the complexity of your situation and the services you need. Some advisors charge flat fees or hourly rates instead.

If you simply open a Fidelity brokerage account and manage it yourself, you do not pay for advisory services unless you choose to use them.

Retirement accounts have no annual fees

Fidelity does not charge an annual fee to hold an IRA (traditional, Roth, or SEP), a 401(k), or other retirement accounts. The only costs you pay are the expense ratios on the funds inside the account and any trading fees if you buy or sell individual stocks or options.

This applies whether you open a Fidelity IRA on your own or roll over a 401(k) from a previous employer into a Fidelity IRA. Some employers' 401(k) plans do charge administrative fees, but those are set by the employer, not by Fidelity.

How to minimize costs at Fidelity

If you want to keep costs as low as possible, focus on low-cost index funds and ETFs. Fidelity's own index funds and ETFs often have expense ratios below 0.10%. Buy them and hold them; do not trade frequently. Avoid options trading unless you understand the strategy and the $0.65-per-contract fee is worth it to you.

If you are considering a robo-advisor or human advisor, compare the 0.35% to 0.50%+ annual fee against the value you expect to receive. For a small account, that fee might be larger than the benefit. For a complex financial situation, it might be worth the cost.

Check the expense ratio of any fund before you buy, whether it is a Fidelity fund or from another company. Over decades, a difference of 0.50% per year compounds into thousands of dollars in lost returns.

Frequently Asked Questions

Does Fidelity charge a monthly fee just to have an account?

No. Fidelity does not charge a monthly or annual account maintenance fee. You can open an account, deposit money, and hold it indefinitely without paying Fidelity anything unless you trade, use advisory services, or hold funds with internal expense ratios.

Do I pay Fidelity when I buy stocks?

You pay $0 to Fidelity for the trade itself. You do pay the bid-ask spread (the difference between the buy and sell price in the market), but that is not a Fidelity fee — it is a cost of trading in any market. You also pay any expense ratio if the stock is held inside a mutual fund or ETF.

What is the difference between Fidelity's expense ratios and trading fees?

A trading fee is what Fidelity charges you when you buy or sell (like $0.65 per options contract). An expense ratio is what a fund charges yearly to cover its costs, and it is deducted automatically from the fund's value. Both reduce your returns, but they work differently and apply to different things.

Can I use Fidelity for free if I only buy index funds?

Yes. If you buy Fidelity index funds or low-cost ETFs and hold them, you pay only the fund's expense ratio (which is typically 0.10% or less per year) and nothing to Fidelity itself. No trading fees, no account fees, no advisory fees.

Does Fidelity charge to transfer money in or out?

Fidelity does not charge you to deposit money or to withdraw it. If you transfer investments from another brokerage to Fidelity, Fidelity will reimburse you for any transfer fees the other brokerage charges (up to a limit). Check Fidelity's current transfer reimbursement policy before you move accounts.