Fidelity Investments Review

Fidelity Investments Review

Constancy continues to evolve as a significant drive within the on-line brokerage area. Constancy’s brokerage service took our prime spot total in each our 2019 and 2020 Greatest On-line Brokers Awards, because the agency has continued to reinforce key items of its platform whereas additionally committing to reducing the price of investing for traders. Constancy joined within the rush to chop fairness and base choices commissions to zero in October 2019 however stays dedicated to providing top-quality analysis and schooling choices to its purchasers. The agency additionally makes it straightforward for purchasers to earn curiosity by sweeping uninvested money right into a cash market fund. 

We’ll take a look at how Constancy ranks in a extra aggressive 2020 on-line brokerage area when it comes to its options, prices, and useful resource high quality with a view to show you how to determine whether or not it’s the proper match to your investing model. Other than this Constancy Investments dealer assessment, we have additionally reviewed the Constancy Go robo-advisor service.

Key Takeaways

  • Rated our greatest total on-line dealer and greatest low value day buying and selling platform.
  • Elevated concentrate on execution high quality and money administration assist purchasers enhance investing returns.
  • Deep pool of analysis and schooling for traders to attract on and asset screeners to assist slender down investing decisions.
  • Choices are positioned to serve the overwhelming majority of particular person traders, however derivatives merchants could need to look elsewhere.

Who Constancy Is For

As one of many bigger brokers within the U.S., Constancy is designed to serve the overwhelming majority of particular person traders. For the typical, buy-and-hold investor, Constancy’s well-rounded platform gives a wide array of instruments, analysis, and sources coupled with straightforward order entry. For extra lively traders and full-on merchants, Constancy gives Lively Dealer Professional, a downloadable program with streaming real-time knowledge and a customizable buying and selling interface. Regardless of protecting these two broad bases fairly completely, it is very important word that Constancy doesn’t at present provide commodities or futures choices.


  • Wonderful commerce executions

  • Terrific analysis and asset screeners (ETF analysis is excellent)

  • Uninvested money is swept right into a cash market fund

  • Versatile and customizable information feed


  • Prospects could have to make use of a number of platforms to make the most of most popular instruments

  • Non U.S. residents or residents can’t open an account

  • Prospects should manually refresh the info on the web site

  • No commodities or choices on futures

Execs Defined

  • Wonderful commerce executions: For the final 5 years, Constancy has finely tuned its commerce execution algorithms to emphasise value enchancment and to keep away from cost for order stream. On common, over 96% of orders for Constancy clients are executed at a value higher than the nationwide greatest bid or provide. The fee financial savings are listed on each order affirmation report. 
  • In depth analysis and asset screeners assist clients slender down investing decisions. There are quite a few pre-set screens out there for shares, ETFs, choices and stuck earnings that purchasers can edit to their very own specs. The inventory screener has virtually 140 standards, plus 21 themes akin to Robotics, Pure Meals, and Cloud Computing. Analysis centered on ETFs is in depth and contains analyst rankings, themes, and the power to go looking by means of funds by a selected inventory. 
  • Uninvested money is mechanically swept right into a cash market fund, after which pulled out and made out there for buying and selling when essential. Most different brokers require the shopper to manually transfer money right into a cash market fund. 
  • Versatile and customizable information feed could be sorted by watchlist or holdings and updates in real-time. The information feeds embody world sources in addition to premium U.S.-based feeds.

Cons Defined

  • Prospects could have to make use of a number of platforms to make the most of most popular instruments. Choices-specific instruments abound on Lively Dealer Professional, however elementary analysis for equities is generally out there solely on the web site. 
  • Non-U.S. residents or residents can’t open an account, which we notice is usually a downside for our world readers. 
  • Prospects should manually refresh the info on the web site to get up-to-the-tick info. Quotes stream on Lively Dealer Professional, nonetheless. 
  • Some purchasers could develop out of the Constancy choices as soon as they transfer into buying and selling futures and choices on futures.


Constancy is sort of pleasant to make use of total. The agency has addressed the problem of getting the instruments for merchants whereas nonetheless having a straightforward expertise for fundamental traders by basically splitting its providing into two platforms. Preliminary account opening with Constancy is easy, particularly if you happen to’re including an account to an present family. Nonetheless, including on account options akin to choices buying and selling or margin includes filling out an extra utility, and none of that knowledge (akin to your occupation) is copied out of your profile, so you must enter it once more. 

Much less lively traders primarily trying to purchase and maintain will discover Constancy’s web-based platform greater than ample for his or her wants, with quotes, charts, watchlists, and extra packed into an interface that manages to keep away from being overwhelming. The Positions web page integrates analysis knowledge into your portfolio, permitting you to drill down by means of your holdings to view evaluation and information with out leaving the platform. It’s also possible to see an evaluation of your particular portfolio when it comes to asset allocations and potential focus points. You will get to an order entry display by hovering your mouse over “Accounts and Commerce” on the principle menu and selecting “Commerce.” When you’re inside your account view, there’s a sub-menu with one-click entry to the commerce ticket. New customers have an in-ticket assist menu to click on that can stroll you thru all of the fields and associated assist instruments.

Constancy account web page.

Lively Dealer Professional is Constancy’s downloadable buying and selling interface, giving merchants and extra lively traders a deeper function set than is on the market by means of the web site. Lively Dealer Professional gives all of the charting capabilities and commerce instruments upfront. It’s customizable, so you may arrange your workspace to fit your wants. The software program can monitor related information streams; provide you with a warning to highs, lows, and different technical indicators in shares you’re following; and supply alerts on open positions.

Lively Dealer Professional.

Merchants are inclined to have a bias in direction of a specific platform for figuring out and executing trades, however Constancy’s Lively Dealer Professional covers all of the bases on what a dealer wants and lets you form it the way you need.

Commerce Expertise

The workflow for analyzing or buying and selling present positions on the web site is comparatively straightforward—you may discover hyperlinks to information and analysis for tickers in your portfolio or on a watchlist. It is whenever you’re looking for a brand new buying and selling concept that it will get clumsy to kind by means of the varied tabs and drop-down decisions. Most traders will discover what they’re on the lookout for within the Information & Analysis tab the place you could find shares by market cap, dividend yield, prime ranking in sector, and so forth. You may set just a few defaults for buying and selling on the internet, akin to whether or not you desire a market or restrict order, however most decisions should be made on the time of the commerce. 

On Lively Dealer Professional, you may set defaults for every thing commerce associated—measurement, sort, time, and quite a lot of different decisions. It’s also possible to place a commerce from a chart. Lively Dealer Professional gives real-time knowledge throughout the platform, together with in watchlists, charts, order entry tickets and choices chain shows. We’ve got reached some extent the place virtually each lively buying and selling platform has extra knowledge and instruments than an individual wants. Along with the filters, charting instruments, outlined alerts, and entry and exit instruments that can meet the wants of most lively merchants, Lively Dealer Professional additionally gives a likelihood calculator, choices analytics, measures of cross-account concentrations and way more.   

Constancy’s Cell Expertise

When it comes to cellular buying and selling, you may commerce shares, ETFs, choices, and mutual funds on the cellular app however not mounted earnings. Constancy has enabled fractional share buying and selling on its cellular apps; clients specify {dollars} quite than shares when coming into an order.

The cellular providing is complete, with almost as in depth a function listing as desktop, and full performance to do most of what traders and merchants must do when it comes to workflow. You may select your personal login web page and buttons on the backside of the gadget to your most frequently-used options, and outline the way you need your information introduced. Elementary evaluation is restricted, and charting is extraordinarily restricted on cellular. The charting, with a handful of indicators and no drawing instruments, remains to be above common when put next with different brokers’ cellular apps. Cell watchlists are shared with the desktop and internet functions, and the watchlist is distinguished within the app’s navigation. Most order sorts one can use on the internet or desktop are additionally on the cellular app, excluding conditional orders. 

Vary of Choices

Constancy purchasers can commerce a large swath of belongings on the web site and on Lively Dealer Professional. Equities (together with fractional shares), choices and mutual funds could be traded on the cellular apps. One notable limitation is that Constancy doesn’t provide futures, futures choices, or cryptocurrency buying and selling. Other than that, traders can put money into and commerce the next: 

  • Shares lengthy and brief (3,000 on the easy-to-borrow listing)
  • OTCBB (penny shares) 
  • Mutual funds (over 3,500 no-load, no transaction charge) 
  • Bonds: company, municipal, treasury, CDs 
  • Single leg and multi-leg choices
  • Robo-advisory built-in into web site and cellular app
  • Worldwide (25 on-line, extra nations by means of Worldwide Buying and selling Gate) 
  • Foreign exchange (16 currencies on-line, four by way of dwell dealer. 190 buying and selling pairs) 
  • Fractional shares on cellular apps

Constancy purchasers also can commerce IPOs, international ORDs and ADRs, Preferreds, Rights, Warrants, Treasury Inflation-Protected Securities (TIPS), Municipal Resets, Excessive Yield Company Bonds, and Principal Protected Notes. Although purchasers can’t commerce cryptocurrencies on-line, they’ll view Coinbase cryptocurrency holdings by means of FullView.

Order Sorts

Constancy lets you enter all kinds of orders on the web site and Lively Dealer Professional, together with conditional orders akin to one-cancels-another and one-triggers-another. Conditional orders should not at present out there on the cellular apps.  

Closing a place or rolling an choices order is simple from the Positions web page. With Constancy’s basket buying and selling companies, you may choose a bunch of as much as 50 shares, referred to as a basket, that may be monitored, traded and managed as one entity. You may mechanically allocate investments throughout a number of securities with an equal greenback quantity or variety of shares. This functionality isn’t discovered at many on-line brokers.  

For those who’ve been shopping for into a specific inventory over time, you may choose the tax lot when closing a part of the place, or set an account-wide default for the tax lot selection (akin to common value, last-in-first-out, and many others.). It’s also possible to set an account-wide default for dividend reinvestment.

Buying and selling Expertise

The best way a dealer routes your order determines whether or not you’re prone to obtain the very best value on the time your commerce is positioned. That is referred to as value enchancment. Worth enchancment is principally a sale above the bid value or a purchase beneath the provide. Constancy’s commerce execution engine, Constancy Dynamic Liquidity Administration (FDLM), seeks the perfect out there value and provides purchasers a excessive fee of value enchancment. Constancy says that its purchasers who execute a 1,000 share marketable order can count on to save lots of on common, $16.66 on that transaction in comparison with the quote at order entry. That’s $13.86 higher than the {industry} common of $2.80, in keeping with Constancy’s inside statistics. (Knowledge from January by means of Sept. 2019.) As well as, your orders should not routed to generate cost for order stream. Constancy employs third-party good order routing know-how for choices. Worth enchancment on choices, nonetheless, is effectively beneath the {industry} common.

Backtesting of buying and selling methods could be achieved in Wealth-Lab Professional, a premium function out there to traders in households that place 36+ inventory, bond, or choices trades in a rolling 12-month interval, and have at the least $25,000 in belongings throughout their eligible Constancy brokerage account. Prospects can execute their technique buying and selling in Wealth-Lab Professional by qualifying for automated buying and selling, which requires $100,000 in fairness and 500 trades per yr. 


Constancy’s charges are consistent with most {industry} members, having joined within the race to zero charges in Oct. 2019. 

  • Constancy fees no commissions for on-line fairness, ETF or OTCBB trades. 
  • There isn’t a per-leg fee on choices trades. Per-contract commissions are $0.65. 
  • An order for 50 choices contracts is $32.50. 
  • Coated name commerce of 500 shares plus 5 contracts would value $3.25. 
  • Mutual fund fee for funds exterior the No Transaction Charge program is $49.95. 
  • Margin curiosity ranges from 9.325% for $10,000 stability to 7.825% for over $100,000 as of Jan. 2020.
  • There aren’t any charges for inactivity, account closure or switch, train/project, sending and receiving wires, sending checks, or paper statements and commerce confirmations. 
  • Most orders incur alternate charges, that are sometimes fractions of a penny per share or contract, which Constancy passes by means of to their clients. 
  • Sure mutual fund households will probably be charged $75 on the preliminary buy solely, together with {industry} big Vanguard Funds. Different fund households incurring this cost embody CGM Funds, Dodge & Cox Funds, and Sequoia Funds. 
  • Dwell dealer charge is $32.95 per commerce. 
  • Worldwide trades incur a variety of charges, relying in the marketplace, so take a cautious take a look at these commissions earlier than coming into an order.

How This Dealer Makes Cash From You and for You

The strain of zero charges has modified the enterprise mannequin for many on-line brokers. In lieu of charges, the best way brokers earn money from you is much less apparent—as are among the refined methods they earn money for you.

  • Curiosity on money: Constancy purchasers are mechanically enrolled in money sweep applications that pay a a lot larger rate of interest than most different brokers make out there. Constancy does earn money from the distinction between what you’re paid in your idle money and what they’ll earn on buyer money balances, however it’s laborious to begrudge them the cash when they’re already paying you an above common fee. 
  • Inventory mortgage applications: Constancy also can earn income loaning shares in your account for brief gross sales—together with your permission, in fact—and it shares that income with you. Constancy tells us that for two months of lending sure laborious to borrow securities, 38% of accounts earn $100 or much less, one other 37% earn between $100 and $1,000 and the remaining 25% earn over $1,000.  
  • Cost for order stream: Constancy doesn’t have interaction in cost for order stream (PFOF). That is the apply the place a dealer accepts cost from a market maker for letting that market maker execute the order. Relatively than concentrate on these funds, Constancy appears to be like for high quality commerce executions and ensures that your orders are reaching value enchancment on virtually each commerce. It is a crucial level of differentiation for Constancy as lots of its rivals have seen PFOF income develop – possible on the value of higher execution for his or her clients.   
  • Worth enchancment: Constancy purchasers get pleasure from a wholesome fee of value enchancment on their fairness orders, however beneath common for choices. On common, fairness orders obtain $0.0091 per share in value enchancment and choices orders obtain $0.0342 per contract.
  • Portfolio margining: Constancy purchasers who qualify can apply for portfolio margining, which might decrease the quantity of margin wanted based mostly on the general threat calculated. Sometimes, portfolio margining works greatest for purchasers who commerce derivatives that offset the danger inherent of their fairness positions.

Account Facilities

  • Constancy purchasers who qualify can apply for portfolio margining, which might decrease the quantity of margin wanted based mostly on the general threat calculated. Sometimes, portfolio margining works greatest for purchasers who commerce derivatives that offset the danger inherent of their fairness positions.
  • Constancy additionally shares the income it generates from its inventory mortgage program, and permits purchasers to decide on which shares of their portfolios could be loaned out. 
  • Uninvested money is swept into your selection of cash market funds.  
  • Constancy purchasers are mechanically enrolled in money sweep applications.
  • Dividend reinvestment is ready on the account degree for all dividend-paying shares.

Analysis Facilities

Constancy’s analysis choices on the web site embody versatile screeners for shares, ETFs, mutual funds and stuck earnings, plus quite a lot of instruments and calculators. 

Inventory and ETF screeners

The inventory screener is comparatively straightforward to make use of, with the power to display on ESG scores from MSCI. As standards are added, you’ll see the up to date variety of shares that go the display. A number of professional screens in addition to thematic screens are built-in and could be custom-made. The ETF screener has the same appear and feel because the inventory screener, however contains analyst rankings. There are thematic screens out there for ETFs, however no professional screens in-built. When researching ETFs, you may sort in a ticker (or group of tickers) to search out ETFs that include that inventory. 

Constancy inventory screener.

Mutual Fund Evaluator

The Mutual Fund Evaluator digs deeply into every fund’s traits. Although it tends to drive the person to Constancy funds, that is not sudden given the platform.

Choices Screeners

For choices, there are scanners powered by LiveVol with some built-in scans, plus the power to create a customized scan. In Lively Dealer Professional you may discover 26 predefined filters to seek for choices buying and selling alternatives based mostly on quantity, open curiosity, choice contract quantity, volatility differentials, earnings, and different standards. You may create customized screens from roughly 200 particular person standards.

Fastened Earnings Screeners

Fastened-income traders can use the bond screener to winnow down the almost 120,000 secondary market choices out there by quite a lot of standards, and may construct a bond ladder. The yield desk updates each 15 minutes based mostly on dwell knowledge. This scanner is versatile, however the format is under no circumstances inviting.  

Instruments and Calculators

Constancy gives a number of instruments and calculators, from making a price range to reviewing your funding technique. The Instruments and Calculators web page reveals them abruptly and allows you to choose from the lengthy listing of about 40 out there. The instruments embody a really helpful hypothetical commerce instrument, which reveals the influence in your portfolio from a future purchase or promote. 

Buying and selling Concept Mills

These on the lookout for an choices buying and selling thought on the web site can dive into the Technique Pairing Software, which lets purchasers who know what underlying and choice technique pursuits them to scan for buying and selling concepts. The Technique Evaluator evaluates and compares totally different methods; outcomes can mechanically populate a commerce ticket. You may seek for lined name and calendar unfold methods from Argus’ Purchase and Maintain inventory listing. 

Information and Analysis

The web site options quite a few information sources, which could be sorted by holdings and watchlists and updates in real-time. The information sources embody world markets in addition to the U.S. On Lively Dealer Professional, you may arrange streaming information feeds and video from Bloomberg TV. 

Constancy purchasers have entry to built-in third-party analysis from sources akin to Customary & Poors, Hightower Report, Ned Davis Analysis and Zacks. In Sectors and Industries, you may try a urged allocation technique based mostly on CFRA analysis. Quantitative and qualitative measures on every inventory analysis web page embody MSCI knowledge and standing towards friends. Technical evaluation occasions as measured by Recognia are displayed on charts. You’ll discover extra proprietary and third-party analysis on every inventory or ETF web page. 

Technical Evaluation and Charting

Constancy’s web-based charting has built-in technical patterns and occasions supplied by Recognia, and social sentiment rating supplied by Social Market Analytics. The superior chart gives the power to see as much as 40 years of historic value knowledge, 30 days intraday knowledge, prolonged hours knowledge, and greater than 60 absolutely customizable technical indicators. Charting is extra versatile and customizable on Lively Dealer Professional. Although charting on the cellular app is comparatively restricted, it’s nonetheless higher than that supplied by most different brokers. 

Lively Dealer Professional Amazon chart.

Portfolio Evaluation

You may pull your non-Constancy accounts into FullView for evaluation of your whole belongings, which additionally allows you to give restricted entry to your investments to an advisor. FullView could be sluggish to load and a little bit tough to customise when you’ve added a number of non-Constancy accounts. The reviews provide you with a superb image of your asset allocation and the place the modifications in asset worth come from. The portfolio efficiency reviews constructed into the web site could be custom-made and in comparison with quite a lot of benchmarks. 

Account balances, shopping for energy and inside fee of return are introduced in real-time. Purchasers can add notes to their portfolio positions or any merchandise on a watchlist. One function that might be useful, however not but out there, is the tax influence of closing a place. 

Constancy plans to reinforce the portfolio expertise by including methods to maintain monitor of upcoming occasions impacting your portfolio, together with open orders, anticipated dividends, and earnings bulletins. This enhancement will even let you monitor the estimated earnings your portfolio is producing on a position-by-position foundation to higher handle and predict money flows.


Constancy’s On-line Studying Middle incorporates greater than 600 items of content material in areas together with choices, mounted earnings, elementary and technical evaluation, and retirement. The tutorial content material is made up of articles, movies, webinars, infographics, and recorded webinars. The content material is a mix of Constancy and third-party created content material, which incorporates programs supposed to information the learner ahead. Constancy additionally gives weekly on-line teaching periods, the place purchasers can attend a small group (eight–10 attendees) on-line academic session to have in-depth discussions across the matters of choices and technical evaluation. The cellular apps function what Constancy calls Studying Packages that assist starting traders higher perceive market and investing ideas.  

In July, 2020, Constancy launched a cellular app referred to as Constancy Spire, supposed to assist younger adults on their journey in direction of reaching their monetary objectives. The free app helps customers set and prioritize objectives, and work out the place to speculate relying on the timeframe. Constancy Spire lets you hyperlink objectives to 2 various kinds of Constancy accounts. For a short-term objective established in Constancy Spire, the Constancy Money Administration account is advisable, with no charges or minimal balances, and ATM charge reimbursement. For long-term objectives, with the chance for funding development over time, customers can determine whether or not to speculate on their very own or enroll in a robo-advisory service akin to Constancy Go. Customers may also settle for the suggestions from Spire and handle their investments independently in an everyday Constancy brokerage account.

The Moments web page is meant to information purchasers by means of main life modifications. Subjects embody house purchases, getting married or divorced, dropping a mother or father or partner, having or adopting a baby, sending a baby to varsity, transitioning into retirement, and others. The web page is superbly laid out and gives some actionable recommendation with out getting deep into particulars.

Constancy moments web page.

Buyer Service

  • 24/7 telephone line 
  • On-line chat with human agent 
  • FAQs primarily centered on trading-related info 
  • You may discuss to a dwell dealer (there’s a surcharge for any trades positioned by way of the dealer)  

Constancy would not report the time spent on maintain for these dialing in, however they seem to reply in a short time on Twitter to complaints despatched to their account (@constancy). The response to these in deep misery on Twitter sometimes reads, “I am sorry for the frustration. This is not how we would like you to really feel, and we need to ensure your feedback are forwarded to the suitable staff. Are you able to ship us a DM together with your full title, contact information, and particulars on what occurred? Thanks.”


Constancy’s safety is as much as {industry} requirements:

  • Cell app customers can log in with biometric (face or fingerprint) recognition.  
  • Safety questions are used when purchasers log in from an unknown browser. 
  • Larger threat transactions, akin to wire transfers, require two-factor authentication.
  • Constancy carries extra Securities Investor Safety Company (SIPC) insurance coverage which features a $1.9 million restrict on uninvested money. In line with Constancy, that is the utmost extra SIPC safety at present out there within the brokerage {industry}.
  • By Nov. 2019, there have been no vital knowledge breaches at any Constancy location reported by the Id Theft Analysis Middle.

Our Verdict

Constancy gives glorious worth to traders of all expertise ranges. These with an curiosity in conducting their very own analysis will probably be proud of the sources supplied. Purchase-and-hold traders and frequent fairness merchants are particularly effectively served, which speaks to how massive and well-rounded Constancy is as an internet dealer. One consequence of that is which you could spend a while digging for the instrument or function you have to make a specific funding choice – it exists, however you’ll have to seek for it. That’s the trade-off for having such a deep function set, nonetheless, and the separation of Lively Dealer Professional and the principle platform helps to take away some potential litter. As soon as you’re arrange and buying and selling, Constancy’s execution high quality is terrific at most commerce sizes and their concentrate on producing curiosity in your idle money is admirable. 

That mentioned, derivatives merchants, particularly those that commerce futures and futures choices, are one of many few teams of traders who gained’t discover a house at Constancy. There are instruments for choices merchants, however competing platforms do a greater job of serving to discover buying and selling alternatives. In a few spots, there are nonetheless awkward transitions between sure options, akin to screeners, and the buying and selling expertise. For the typical investor, nonetheless, Constancy makes a powerful case for being the net brokerage of selection with its deep function set and dedication to creating and saving you cash. 

Constancy’s growth outlook is concentrated on bettering the person expertise, saying that its objective for 2020 is persevering with to fulfill buyer expectations round shopper expertise and ease of use.

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Investopedia is devoted to offering traders with unbiased, complete critiques and rankings of on-line brokers. Our critiques are the results of months of evaluating all elements of an internet dealer’s platform, together with the person expertise, the standard of commerce executions, the merchandise out there on its platforms, prices and costs, safety, the cellular expertise and customer support. We established a ranking scale based mostly on our standards, accumulating 1000’s of knowledge factors that we weighed into our star-scoring system.

As well as, each dealer we surveyed was required to fill out an intensive survey about all elements of its platform that we utilized in our testing. Most of the on-line brokers we evaluated supplied us with in-person demonstrations of its platforms at our workplaces.

Our staff of {industry} consultants, led by Theresa W. Carey, performed our critiques and developed this best-in-industry methodology for rating on-line investing platforms for customers in any respect ranges. Click on right here to learn our full methodology.

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