You've landed on this post because you're curious about starting your investment journey with Fidelity, and that's an excellent first step! Many people hesitate to invest because they believe they need a huge sum of money to begin. The good news is, with Fidelity, that's often not the case. Let's break down exactly how much you might need, depending on your goals and the type of account you're looking for.
How Much Money Do I Need to Start Fidelity Investments? A Comprehensive Guide
Investing can seem daunting, but platforms like Fidelity have made it incredibly accessible, even for those starting with a modest amount. The "minimum" isn't a single, fixed number across the board. It depends on what you want to invest in and how you want your investments managed.
Step 1: Define Your Investment Goal – Why Are You Here?
Before we dive into the nitty-gritty of minimums, let's get personal. What is your primary reason for wanting to invest? Are you saving for:
A down payment on a house?
Retirement?
Your child's education?
Just trying to grow your wealth over time?
Learning the ropes of the stock market?
Your answer will largely dictate the type of account that's best for you, and consequently, the minimum investment. For instance, retirement accounts (like IRAs) have different rules and sometimes different minimums than a standard brokerage account.
Step 2: Understanding Fidelity's Core Offerings and Minimums
Fidelity offers a wide range of account types and investment options, each with its own set of rules regarding minimums. Let's look at the most common ones:
Sub-heading: Fidelity Brokerage Account (Taxable)
This is your general investment account, suitable for short-term and long-term goals outside of retirement.
The Great News: There is no minimum to open or maintain a standard Fidelity brokerage account. That's right, you can open an account with $0!
Investing with small amounts: Fidelity allows you to buy fractional shares of stocks and ETFs for as little as $1.00. This means you don't need to buy a whole share of a high-priced stock; you can buy just a piece of it. This is a game-changer for beginners!
What you can invest in: Stocks, ETFs, mutual funds, bonds, and more.
Sub-heading: Fidelity IRA (Individual Retirement Account)
IRAs are specifically designed for retirement savings and offer tax advantages. Fidelity offers Traditional, Roth, and SEP IRAs.
No minimum to open an IRA: Similar to a brokerage account, you can open a Fidelity IRA with no minimum dollar amount.
Contribution Limits: While there's no minimum to open, the IRS sets annual contribution limits for IRAs. For 2025, you can generally contribute up to $7,000, or $8,000 if you're age 50 or over.
Mutual Fund Minimums: While the account itself has no minimum, some specific mutual funds might have their own minimum investment requirements. However, Fidelity offers a vast selection of mutual funds with no minimums to purchase, including their popular Fidelity ZERO® Index Funds.
Sub-heading: Fidelity Go® (Robo-Advisor Service)
If you prefer professional management and a hands-off approach, Fidelity Go is a great option. It's a robo-advisor service that builds and manages a diversified portfolio for you.
No minimum to open an account: You can open a Fidelity Go account with $0.
Minimum to invest: To actually start investing your money within Fidelity Go, you need a minimum of $10.
Fees: For balances under $25,000, there's no advisory fee. For balances of $25,000 and over, there's an annual advisory fee of 0.35%. This is very competitive!
Proprietary Funds: Fidelity Go portfolios are built using Fidelity Flex mutual funds, which have zero expense ratios, meaning you don't pay additional fees for the underlying investments within your managed portfolio.
Sub-heading: Fidelity Managed FidFolios®
For customized, professionally managed portfolios of individual stocks, this service might be for you.
Minimum Investment: There is no minimum to open, but to invest your money in a Managed FidFolios account, you need a minimum of $5,000.
Professional Management: These portfolios are managed by a team of professionals and often include tax-smart strategies.
Sub-heading: Fidelity 401(k)
A 401(k) is typically an employer-sponsored retirement plan.
Employer-Dependent: The minimum contributions for a 401(k) are set by your employer and the plan's rules, not by Fidelity directly. Fidelity often acts as the custodian for these plans.
Self-Employed 401(k): If you're self-employed, Fidelity offers a Solo 401(k). While there's generally no minimum to open, the benefit lies in the high contribution limits, allowing you to save significantly for retirement as both an employee and employer.
Step 3: Determining Your Actual Starting Capital
While Fidelity often allows you to open accounts with $0 or just $10, the real question is how much should you start with to make a meaningful impact?
Sub-heading: The Power of Small, Consistent Investments
Starting Small is Better Than Not Starting at All: Even if you can only afford to invest $25 or $50 a month, start there! The power of compounding is your greatest ally. Over time, even small amounts can grow significantly.
Automate Your Investments: Set up automatic transfers from your bank account to your Fidelity investment account. This "set it and forget it" approach builds discipline and ensures consistent growth.
Fractional Shares are Your Friend: As mentioned, with fractional shares, you can literally invest $1 into a stock like Apple or Amazon, gaining exposure to companies that would otherwise be out of reach for smaller investors.
Sub-heading: Considering Your Financial Situation
Before you invest a large sum, ensure you have:
An Emergency Fund: Ideally, 3-6 months' worth of living expenses saved in an easily accessible, liquid account (like a high-yield savings account). This protects you from having to sell investments at a loss if an unexpected expense arises.
No High-Interest Debt: If you have credit card debt or other high-interest loans, consider paying those down first. The interest you save often outweighs the potential returns from investing.
A Realistic Budget: Understand how much disposable income you truly have to invest after covering all your necessities.
Step 4: The Account Opening Process
Opening an account with Fidelity is generally straightforward and can be done online.
Sub-heading: Gather Your Information
You'll typically need:
Your Social Security number (or Tax ID)
Your employer's name and address (if applicable)
Bank account information to link for funding (routing and account numbers)
Sub-heading: Online Application
Fidelity's website guides you through the process step-by-step. You'll choose the account type, provide your personal details, and agree to terms and conditions. The entire process often takes less than 15 minutes.
Sub-heading: Funding Your Account
Once your account is open, you can transfer money via:
Electronic Funds Transfer (EFT): Linking your bank account for easy transfers. This is usually the quickest way.
Wire Transfer: For larger sums, though less common for initial small investments.
Check: You can mail a check to Fidelity.
Rollover from another retirement account: If you're transferring an existing IRA or 401(k).
Step 5: Choosing Your Investments
This is where the excitement truly begins!
Sub-heading: Do Your Research
Start Simple: For beginners, low-cost index funds or ETFs are often recommended. These offer broad diversification at a minimal cost. Fidelity is well-known for its ZERO® expense ratio index funds, meaning you pay no management fees for these funds. This is a huge advantage!
Understand Risk Tolerance: How comfortable are you with the value of your investments going up and down? This will help you choose investments that align with your comfort level.
Utilize Fidelity's Tools: Fidelity offers a wealth of research tools, screeners, and educational resources to help you make informed decisions.
Sub-heading: Diversify Your Portfolio
Don't put all your eggs in one basket! Spread your investments across different asset classes (stocks, bonds, real estate, etc.) and industries to mitigate risk.
Step 6: Monitoring and Adjusting Your Investments
Investing isn't a "set it and forget it" once you've funded your account (unless you're using a robo-advisor like Fidelity Go).
Regular Review: Periodically review your portfolio to ensure it's still aligned with your financial goals and risk tolerance.
Rebalance: Over time, some investments may grow more than others, shifting your portfolio's original allocation. Rebalancing involves selling some of your overperforming assets and buying more of your underperforming ones to get back to your target allocation.
Stay Informed: Keep an eye on market trends and economic news, but avoid making impulsive decisions based on short-term fluctuations. Investing is a long-term game.
10 Related FAQ Questions
How to open a Fidelity brokerage account with no money?
You can open a standard Fidelity brokerage account online with a $0 initial deposit. There is no minimum requirement to open or maintain the account.
How to start investing in stocks with Fidelity with a small amount?
You can start investing in stocks with as little as $1 by utilizing Fidelity's fractional shares program, which allows you to buy "slices" of individual stocks or ETFs.
How to invest in Fidelity mutual funds with low minimums?
Fidelity offers a wide selection of mutual funds, including their popular Fidelity ZERO® Index Funds, which have no minimum investment requirements to purchase.
How to set up a Fidelity IRA with a low starting balance?
You can open any type of Fidelity IRA (Traditional, Roth, SEP) with no minimum dollar amount. While specific mutual funds might have minimums, many are available with $0 minimums.
How to use Fidelity Go if I only have a small amount to invest?
You can open a Fidelity Go account with $0, and begin investing with as little as $10. For balances under $25,000, there's no advisory fee.
How to avoid fees when investing with Fidelity?
Fidelity offers $0 account fees, $0 commissions for online stock, ETF, and options trades, and several Fidelity ZERO® Index Funds with no expense ratios, helping you minimize costs.
How to contribute regularly to my Fidelity account?
You can set up automatic investments from your linked bank account to your Fidelity investment account, allowing you to consistently contribute small or large amounts on a schedule.
How to learn about investing before putting money into Fidelity?
Fidelity provides extensive free educational resources, including articles, videos, webinars, and tools on their website, ideal for beginners to learn about investing basics and strategies.
How to transfer an existing investment account to Fidelity?
Fidelity offers a streamlined process to transfer existing investment accounts (like IRAs or brokerage accounts) from other institutions to Fidelity, often with no transfer fees from Fidelity's side.
How to know which Fidelity account is right for my goals?
Fidelity's website has tools and guides to help you determine the best account type (e.g., brokerage, IRA, Fidelity Go) based on your financial goals, time horizon, and whether you prefer to manage investments yourself or have them professionally managed.
