Are you ready to take control of your financial future? Investing can seem daunting, with questions about where to start, what to invest in, and perhaps most importantly, how much money you actually need. If you're considering Fidelity Investments, you've come to the right place! We'll break down the financial requirements for various Fidelity accounts and help you understand how to get started on your investment journey.
How Much Money Do I Need for Fidelity Investments? Your Step-by-Step Guide
The good news is that Fidelity has made investing more accessible than ever, with many accounts having no minimums to open. However, the amount you need to start investing will depend on the type of account and the specific investments you choose. Let's explore.
Step 1: Discover Your Investing Goals (And Why They Matter for Minimums!)
Before we dive into numbers, let's figure out what you want to achieve. This is crucial because different financial goals often align with different account types, each with its own set of minimums or investment strategies.
Are you saving for retirement? (e.g., IRA, 401(k) rollover)
Do you want to invest for a child's education? (e.g., 529 plan, UGMA/UTMA)
Are you building a general investment portfolio for long-term growth? (e.g., standard brokerage account)
Are you looking for a hands-off approach with professional management? (e.g., robo-advisor like Fidelity Go)
Do you want to actively trade stocks and ETFs?
Understanding your goals will directly influence the best account for you and, by extension, any minimum investment requirements.
Step 2: Explore Fidelity Account Types and Their Minimums
Fidelity offers a wide array of account types, catering to various financial needs. Here's a breakdown of common accounts and their typical minimums:
Sub-heading: Standard Brokerage Accounts
The Fidelity Account (Individual or Joint Brokerage): This is your versatile, general investment account. The fantastic news here is that there are typically no minimums to open a retail brokerage account at Fidelity, and no account fees. You can start investing with as little as $1 per security for fractional shares of stocks and ETFs. This means you don't need to buy a whole share if it's expensive; you can buy a "slice" of it.
Fidelity Cash Management Account: While not primarily an investment account, it's a great place to hold uninvested cash and often has no account fees or minimums. It can serve as a hub for your financial activities.
Sub-heading: Retirement Accounts (IRAs)
Individual Retirement Accounts (IRAs) are popular for long-term savings due to their tax advantages.
Traditional IRA and Roth IRA: Generally, there are no account-opening fees or minimums for Fidelity retail IRA accounts. You can start investing with as little as $1 for fractional shares. However, keep in mind that there are annual contribution limits set by the IRS ($7,000 for 2025, plus an additional $1,000 catch-up contribution for those age 50 and over).
SEP IRA and SIMPLE IRA: These are for self-employed individuals and small business owners. Fidelity typically has no account fees and no minimums to open these accounts.
Sub-heading: Managed Accounts (Robo-Advisors and Human Advisors)
If you prefer professional management, Fidelity offers solutions that may have different minimums.
Fidelity Go®: This is Fidelity's robo-advisor service. There's no minimum to open a Fidelity Go account, but to start investing, your account balance must be at least $10. For balances under $25,000, there's no advisory fee, making it very accessible for beginners. For balances of $25,000+, there's an advisory fee of 0.35% per year.
Fidelity Managed FidFolios®: These are professionally managed stock portfolios. They typically have an investment minimum of $5,000.
Fidelity Wealth Services: For more comprehensive wealth management with dedicated advisors, the minimum investment can be higher, often starting from $50,000 or more, depending on the service level.
Sub-heading: Education Savings Accounts
529 College Savings Plans: Fidelity offers 529 plans designed for education savings. Many 529 plans have no minimums to open and no account fees.
UGMA/UTMA Brokerage Accounts: These are custodial accounts for minors. There are no contribution limits, though gift tax rules apply for large contributions. There are typically no minimums to open these accounts at Fidelity.
Sub-heading: Youth Account
The Fidelity Youth® Account: Designed for teens aged 13 to 17, this account is a fantastic way for young people to learn about investing. It boasts no subscription fees, no account fees, and no minimum balances to open. Teens can invest with as little as $1 using fractional shares.
Step 3: Understand Investment Minimums for Specific Products
Even if an account has no opening minimum, some specific investments within that account might.
Stocks and ETFs: As mentioned, with Fidelity, you can often invest in US stocks and ETFs for as little as $1 using fractional shares. This has revolutionized accessibility, as you don't need hundreds or thousands of dollars to buy a single share of a high-priced stock.
Fidelity Mutual Funds: Many Fidelity mutual funds, especially their popular Fidelity ZERO Index Funds, have no minimum initial investment and no expense ratios. This is a huge advantage for new investors. Other Fidelity mutual funds might have initial investment minimums that vary, sometimes around $2,500.
Third-Party Mutual Funds: If you want to invest in mutual funds from other companies through Fidelity, they might have their own minimums, which could be higher (e.g., $1,000, $2,500, or more).
Bonds and CDs: Minimums for these can vary significantly depending on the specific bond or CD.
Step 4: Consider Your First Deposit and Ongoing Contributions
While many Fidelity accounts have no opening minimums, you'll still need to put money in to start investing.
Initial Funding: You can often fund your account with a bank transfer (Electronic Funds Transfer - EFT), wire transfer, or even mobile check deposit.
Recurring Investments: Fidelity encourages setting up recurring investments, which can be as little as $10 or $25 per month, depending on the investment vehicle. This is a powerful strategy called dollar-cost averaging, where you invest a fixed amount regularly, regardless of market fluctuations.
Step 5: Factor in Fees (Or Lack Thereof!)
One of Fidelity's big selling points is its low-cost structure.
$0 Commission Trades: Fidelity offers $0 commission for online US stock, ETF, and options trades (though a small per-contract fee applies for options).
No Account Fees: For most retail brokerage and IRA accounts, there are no annual account fees.
Fidelity ZERO Funds: As mentioned, these have zero expense ratios, meaning you pay nothing for the fund's management.
Advisory Fees: If you opt for managed accounts like Fidelity Go or Wealth Services, you will pay advisory fees (e.g., 0.35% for Fidelity Go balances $25,000+, or higher for more comprehensive wealth management).
Understanding these costs is just as important as understanding minimums, as they impact your overall returns.
Step 6: Get Started!
Once you've considered your goals and reviewed the account options, opening a Fidelity account is generally a straightforward online process.
Online Application: You'll typically need personal details like your Social Security number, residential address, and employment information. The process can take just a few minutes.
Link Your Bank Account: Once approved, you can link your bank account to easily transfer funds.
Choose Your Investments: With money in your account, you can start selecting investments that align with your goals and risk tolerance.
Frequently Asked Questions (FAQs)
Here are 10 common "How to" questions related to money needed for Fidelity Investments:
How to start investing with very little money at Fidelity? You can start investing with as little as $1 by opening a Fidelity brokerage account or IRA and purchasing fractional shares of US stocks and ETFs, or investing in Fidelity ZERO index funds.
How to open a Fidelity brokerage account with no minimum? You can open a Fidelity brokerage account online with no minimum initial deposit or ongoing balance requirement. Simply complete the application and link your bank account.
How to invest in Fidelity mutual funds without a large initial sum? Many Fidelity mutual funds, particularly their Fidelity ZERO Index Funds (e.g., FZROX, FNILX), have no minimum initial investment, allowing you to start with any amount you wish.
How to use Fidelity Go with a low starting balance? While there's no minimum to open a Fidelity Go account, you need at least $10 for the robo-advisor to begin investing your money according to your chosen strategy.
How to contribute to a Fidelity IRA with minimal funds? Fidelity IRAs (Traditional or Roth) typically have no minimums to open, so you can contribute as little as you like, keeping in mind the annual IRS contribution limits.
How to invest in individual stocks on Fidelity without buying full shares? Fidelity offers fractional share investing, allowing you to buy a portion of a stock for as little as $1, rather than needing enough money for a full share.
How to avoid account fees when investing with Fidelity? Most Fidelity retail brokerage accounts and IRAs have no annual account fees. By choosing Fidelity ZERO funds and commission-free ETFs, you can further minimize costs.
How to save for a child's education with a small amount at Fidelity? Many Fidelity 529 plans have no minimums to open, and you can often start with small, recurring contributions to build up savings over time. The Fidelity Youth Account also has no minimums.
How to find investment options at Fidelity that don't require large lump sums? Look for Fidelity ZERO index funds, commission-free ETFs, and utilize fractional share investing for stocks, all of which allow you to invest with smaller amounts.
How to set up recurring investments at Fidelity to build wealth gradually? After opening an account, you can set up automatic, recurring transfers from your bank account to your Fidelity investment account, allowing you to invest consistently over time, often with minimums as low as $10 or $25 for certain investments.
