(broker review) - Fidelity differentiates itself from the other low cost internet brokers by attracting more experienced traders willing to pay up for the extra research and analysis tools available to active traders. The web platform is customizable allowing a trader to design the site to enhance their trading style. The ability to customize the platform comes at a price. In order to trade through the Active Trader platform one must pass the >36 per year trade minimum. Less active traders are given access to many of the same features and tools but not the ability to construct their own trading platform.

In addition to the trade frequency requirement, Fidelity has also constructed a commission structure that incorporates trading frequency and account balance. Their account tiers, Gold, Silver, Bronze, provide for various commission structures. The Gold level, for a trader that make more than 120 trades per year or have in excess of $1 million, pays a flat $8.00 plus $0.005 per share ($0.75 / contract). Silver level members that make more than 36 trades or have an account between $50, 000 and $1 million pay $10.95 and $0.015 per share ($0.75 / contract). Traders in the Bronze level pay $19.95 per trade and $.045 per share ($0.75 / contract).

Fidelity is known for customer service and wins various customer service awards every year. This is saying something since most of its customers are more experienced than average and thus have more sophisticated needs. Fidelity reps are known for being knowledgeable about a variety of investment related subjects and processes and being able to answer most questions without having to refer to a specialist. Reps and specialists are available by phone and email. Fidelity is also one of the first online brokers to provide a chat function so that customers may connect to reps directly over the web.

As previously mentioned Fidelity provides a variety of valuable research and analysis tools that are reminiscent of features provided by upscale full service brokers. In addition to market and asset opinions, Fidelity also provides asset analysis for different asset classes as well as Exchange Traded Funds. Among other features are trade simulation and back testing tools that are available to all Fidelity customers. Those members in either the Gold or Silver service tiers are also provided upscale service perks. They include such services as personal financial advisors as well portfolio investment guidance and retirement planning.

Fidelity has tried to find a niche by delivering relatively low cost services through an online platform but packaged as an upscale service provider. Traders that do not trade frequently or have large account balances will certainly pay for the extra features and service perks provided by this firm.

Broker Reviews by Better-Trades.com