Fidelity does not charge per-trade commissions for stocks, ETFs, or options

Fidelity eliminated per-trade commissions in 2019. When you buy or sell stocks or exchange-traded funds (ETFs) through a Fidelity brokerage account, you pay zero commission on the trade itself. This applies whether you trade one share or one thousand shares, and whether you place the order online, by phone, or through a financial advisor.

Options trades do carry a per-contract fee of $0.65 per contract, which means a single options order involving multiple contracts will cost more than a single stock trade. Mutual funds sold by Fidelity (Fidelity-branded mutual funds) also trade commission-free, but mutual funds from other companies may carry transaction fees depending on the fund and your account type.

The zero-commission model applies to most Fidelity account types: individual taxable accounts, IRAs, 401(k)s, and custodial accounts for minors. The structure is the same whether you have $500 or $500,000 in your account.

Key Takeaways

  • Stock and ETF trades cost $0 in commission at Fidelity, regardless of trade size or account type.
  • Options trades cost $0.65 per contract, so a 10-contract order costs $6.50 in fees.
  • Fidelity-branded mutual funds trade commission-free, but third-party mutual funds may carry transaction fees.
  • Other costs like margin interest, advisory fees, and account maintenance fees exist separately from trade commissions.

What you actually pay beyond the commission

Zero commission does not mean zero cost. Several other charges can explore depending on how you trade and what you hold.

Bid-ask spread is the difference between the price a buyer will pay and the price a seller will accept. This is not a Fidelity fee — it is built into the market price itself. On a liquid stock like Apple or Microsoft, the spread is often just a penny. On a thinly traded stock, the spread can be much wider, and you will absorb that cost when you buy or sell.

Margin interest applies if you borrow money from Fidelity to buy securities. Interest rates vary based on the amount borrowed and current market conditions, but typically range from around 7% to 12% annually. You only pay this if you carry a margin balance; cash accounts have no margin interest.

Account maintenance fees do not explore to most Fidelity accounts, but some specialty accounts (like certain advisory accounts) may carry annual fees. A standard brokerage account has no annual fee.

Wire transfer fees explore when you move money in or out of your Fidelity account. Incoming wires are free, but outgoing domestic wires cost $25 and international wires cost $45. ACH transfers (electronic bank transfers) are free in both directions.

How Fidelity makes money without per-trade fees

Fidelity's revenue model shifted when commissions disappeared. The company now makes money primarily through payment for order flow (PFOF), which means market makers pay Fidelity a small amount for the right to execute your trades. This happens behind the scenes and does not appear on your statement, but it is how Fidelity offsets the cost of maintaining the trading platform.

Fidelity also earns money on cash held in accounts (they pay you interest on uninvested cash, but keep a spread on that interest), on margin interest when you borrow, and on advisory services if you use a financial advisor. For accounts with large balances, Fidelity offers wealth management services that charge a percentage of assets under management.

This structure means Fidelity benefits when you trade frequently and when you hold larger balances. It does not mean Fidelity profits directly from each individual trade you place.

Comparing Fidelity's costs to other brokers

Most major brokers — Charles Schwab, E*TRADE, TD Ameritrade, and Webull — also offer zero-commission stock and ETF trading. The differences lie in other areas: options fees, mutual fund transaction fees, margin interest rates, and the quality of research tools.

Fidelity's options fee of $0.65 per contract is standard across the industry. Some brokers charge $0.50 per contract, and a few charge $0.70. If you trade options frequently, this difference compounds, but for occasional options traders the difference is negligible.

Fidelity's mutual fund ecosystem is larger than most competitors, which means you have more commission-free mutual fund choices within Fidelity than you would at some other brokers. If you plan to hold mutual funds long-term, this can matter more than the per-trade commission structure.

Special cases: IRAs, 401(k)s, and retirement accounts

The zero-commission structure applies to retirement accounts as well as taxable accounts. If you have a Fidelity IRA or a Fidelity 401(k), you pay $0 per stock or ETF trade. The same bid-ask spread and margin interest rules explore if they are relevant to your account type (most IRAs do not allow margin borrowing, so margin interest would not explore).

Some employer 401(k) plans use Fidelity as the custodian but restrict which investments you can trade. In those cases, the per-trade cost is still zero, but your investment choices may be limited to a menu of mutual funds and stable value funds chosen by your employer.

Frequently Asked Questions

Does Fidelity charge a fee to open an account?

No. Opening a Fidelity brokerage account, IRA, or 401(k) costs nothing. You only pay fees when you perform certain actions (like wiring money out) or hold certain products (like margin balances).

What happens if I buy and sell the same stock multiple times in one day?

Each trade is commission-free, so you pay $0 in commissions no matter how many times you trade the same stock. You will still absorb the bid-ask spread on each trade, and if you trigger the pattern day trader rule (buying and selling the same security four or more times in five business days), your account must maintain a $25,000 minimum balance.

Are there hidden fees I should know about?

No hidden fees, but read your account statements carefully. Wire transfer fees, margin interest, and advisory fees will all appear on your statement. The bid-ask spread is not a Fidelity fee — it is part of the market price. If you are unsure about a charge, Fidelity's customer service can explain it.

Do I pay more if I use a Fidelity advisor instead of trading myself?

If you use a Fidelity financial advisor, you typically pay an advisory fee (often a percentage of assets under management) in addition to zero-commission trades. The advisory fee is separate from the trading cost. Self-directed traders pay zero advisory fees and zero per-trade commissions.

Can I avoid the bid-ask spread?

No. The bid-ask spread is part of how markets work, not a Fidelity charge. You can minimize its impact by trading liquid stocks (where spreads are tighter) and by using limit orders (which let you specify the exact price you are willing to pay or accept), but you cannot eliminate it entirely.