Opening a Fidelity account takes 10 to 15 minutes online

You can open a Fidelity brokerage account directly on their website without visiting a branch. The process starts at fidelity.com — click "Open an account" and choose the account type that matches what you want to do. If you're saving for retirement, you'll pick a Roth IRA or Traditional IRA. If you're investing money you don't need for retirement, you'll pick a standard brokerage account (sometimes called a taxable account).

Fidelity will ask for your Social Security number, date of birth, address, and employment information. They'll verify your identity using information from credit bureaus — you don't need to upload documents. Once approved, you can fund the account by linking a bank account or mailing a check. Bank transfers usually arrive within one to three business days.

After your money lands in the account, you're ready to buy investments. Fidelity doesn't require a minimum deposit to open most accounts, though some specialized accounts have minimums of $2,500 or more. Check the account type details before you confirm.

Key Takeaways

  • You choose between a retirement account (IRA) and a regular brokerage account based on whether the money is for retirement or general investing.
  • The account opening process is online and takes about 15 minutes, with identity verification happening automatically.
  • You fund the account by linking a bank account or mailing a check, and transfers usually clear within three business days.
  • Once funded, you can buy individual stocks, mutual funds, exchange-traded funds (ETFs), or bonds through Fidelity's website or mobile app.
  • Fidelity charges no commission on stock and ETF trades, but some mutual funds and bonds may carry fees depending on the fund.

Choosing between a retirement account and a regular brokerage account

The first decision is whether you're investing money you'll need before age 59½ or money you're setting aside for retirement. If it's for retirement, open an IRA — either a Roth IRA (you pay taxes now, withdraw tax-free later) or a Traditional IRA (you may deduct contributions now, pay taxes on withdrawals later). If it's money you want to use sooner or after you've maxed out your IRA contributions, open a standard brokerage account.

IRAs have annual contribution limits set by the IRS. For 2024, you can contribute up to $7,000 per year to an IRA if you're under 50, or $8,000 if you're 50 or older. A standard brokerage account has no contribution limit — you can invest as much as you want. The trade-off is that you'll owe taxes on dividends and capital gains each year in a brokerage account, while an IRA lets your money grow tax-deferred (or tax-free, in the case of a Roth).

If you're self-employed or own a small business, Fidelity also offers SEP IRAs and Solo 401(k)s, which allow much higher annual contributions. These require separate setup and have more paperwork, but they're worth exploring if you have business income.

What to buy: stocks, funds, and bonds

Once your account is funded, you can buy three main types of investments through Fidelity. Individual stocks let you own a piece of a single company — you search for the company's ticker symbol (like AAPL for Apple) and place an order. Fidelity charges no commission on stock trades, so you only pay the price of the stock itself.

Mutual funds and exchange-traded funds (ETFs) are baskets of many stocks or bonds bundled together. An ETF that tracks the S&P 500, for example, holds pieces of 500 large U.S. companies in one fund. Fidelity offers thousands of mutual funds and ETFs, including many it manages itself. Some funds charge an annual fee (called an expense ratio) that comes out of your returns automatically — this ranges from nearly 0% for index funds to 1% or more for actively managed funds. Fidelity's own index funds often have very low fees.

Bonds are loans you make to companies or governments — they pay you interest over time. Fidelity lets you buy individual bonds or bond funds. Individual bonds are straightforward: you hold them until they mature and get your money back plus interest. Bond funds fluctuate in value like stocks, so they're riskier but more flexible if you need to sell before maturity.

Placing your first trade on the Fidelity website

Log into your Fidelity account and click "Trade" or "Invest" in the main menu. You'll see a search box where you can type a company name or ticker symbol. Once you find what you want to buy, click it and you'll see the current price and a form to enter how many shares (for stocks) or dollars (for funds) you want to purchase.

You'll choose between a market order and a limit order. A market order buys when ready at whatever the current price is — it's fast but the price might shift slightly by the time your order goes through. A limit order lets you set a maximum price you're willing to pay — the order only goes through if the price drops to that level or below. For most first-time investors, a market order is simpler.

Review the order summary, which shows the number of shares, the price per share, and the total cost. Click "Submit" or "Place Order" and the trade executes when ready during market hours (9:30 a.m. to 4 p.m. Eastern time on weekdays). You'll see the investment appear in your account balance right away.

Understanding fees and how Fidelity makes money

Fidelity charges no commission on stock trades, ETF trades, or most mutual fund trades. This is a major shift from how brokerages worked 20 years ago — you're not paying per trade. However, you still pay fees indirectly through the investments themselves.

When you buy a mutual fund or ETF, the fund charges an annual expense ratio — a percentage of your investment that goes to pay the fund manager and cover operating costs. A fund with a 0.03% expense ratio on a $10,000 investment costs you $3 per year. A fund with a 1% expense ratio costs $100 per year on the same investment. Over decades, this difference compounds significantly. Fidelity's index funds (which track market indexes like the S&P 500) typically have expense ratios below 0.10%, making them cheap to own.

Some mutual funds also charge a sales load — an upfront fee when you buy or sell. Fidelity offers thousands of no-load funds, so you can avoid this fee entirely. If you hold individual stocks or bonds, you pay nothing beyond the price of the security itself. If you use Fidelity's advisory services or hold certain types of accounts, there may be additional fees — the account details page will spell these out before you open.

Setting up automatic investments and reinvesting dividends

Once you've made your first trade, you can automate future investments. Fidelity's automatic investment plan (sometimes called dollar-cost averaging) lets you set up recurring transfers from your bank account — weekly, bi-weekly, or monthly — and automatically buy a fund or stock each time. This removes the temptation to time the market and builds discipline into your investing.

You can also set dividends to reinvest automatically. When a stock or fund pays you a dividend (a share of company profits), Fidelity can use that money to buy more shares of the same investment instead of holding it as cash. Over time, reinvesting dividends significantly boosts your returns because you're earning returns on your returns. You can turn this on or off for each investment individually.

Both of these features are optional and free to set up. They live in your account settings under "Investing" or "Automatic Investments." You can change or cancel them anytime.

Using Fidelity's research tools and educational resources

Fidelity provides research reports, stock screeners, and educational articles directly in your account. When you're researching a stock, click on it and you'll see analyst ratings, earnings history, and news articles. The stock screener lets you filter stocks by criteria like price-to-earnings ratio, dividend yield, or market cap — useful if you want to find stocks that match your investing style.

Fidelity's learning center includes videos and articles on topics like how to read a balance sheet, what diversification means, and how to think about risk. These are free and don't require you to be a customer. The Fidelity mobile app also includes market data, alerts, and the ability to trade on the go.

If you want personalized guidance, Fidelity offers advisory services where a human advisor helps you build an investment plan. These services charge a fee (typically 0.35% to 1% of your assets per year, depending on the service level) and require a minimum account balance. For most new investors, the free research tools and educational content are enough to get your free guide.

Frequently Asked Questions

Do I need a minimum amount of money to start investing on Fidelity?

No minimum is required to open a standard brokerage account or most IRAs. Some specialized accounts like managed portfolios or advisory services have minimums of $2,500 to $25,000. You can start with whatever amount you have — even $100 — and add to it over time.

What's the difference between a market order and a limit order?

A market order buys or sells when ready at the current market price. A limit order lets you set a maximum price you'll pay (for a buy) or a minimum price you'll accept (for a sell) — the order only goes through if that price is reached. Limit orders are safer if you're worried about price swings, but they might not fill if the price never reaches your target.

Can I lose more money than I invest?

With stocks and funds, your loss is limited to what you invested — if a stock goes to zero, you lose 100% of that investment, but not more. With certain advanced strategies like margin trading or options, you can lose more than your initial investment. As a new investor, stick to regular stock and fund purchases to avoid this risk.

How long does it take to sell an investment and get my money back?

Stock and fund sales settle in two business days — the money lands in your Fidelity account on the second day after you sell. You can then transfer that money to your bank account, which usually takes one to three business days. So from selling to having cash in your bank is typically three to five business days.

Should I invest in individual stocks or funds as a beginner?

Most financial advisors recommend funds (especially low-cost index funds) for beginners because they're diversified — one fund holds hundreds of companies, so a single company's failure doesn't sink your investment. Individual stocks require more research and carry more risk. You can do both, but starting with funds is a safer way to learn.