Are you ready to take control of your financial future? Opening an account with Fidelity Investments can be a fantastic first step towards achieving your financial goals, whether it's saving for retirement, a child's education, or simply growing your wealth. Fidelity is a leading brokerage firm known for its wide range of investment options, competitive pricing, and robust research tools. Let's dive in and get you started!
A Comprehensive Guide to Opening an Account with Fidelity Investments
Opening an account with Fidelity is a straightforward process, designed to be user-friendly. We'll walk you through each step, ensuring you have all the information you need.
Step 1: Determine Your Financial Goals and Choose the Right Account Type
Before you even start filling out forms, the most crucial step is to understand why you're opening an account. Fidelity offers a variety of account types, each serving different purposes. Choosing the right one upfront can save you time and potentially offer tax advantages.
What are you hoping to achieve with this account? Are you:
Saving for retirement? Consider a Traditional IRA (tax-deductible contributions, tax-deferred growth) or a Roth IRA (after-tax contributions, tax-free withdrawals in retirement).
Saving for a child's education? A 529 College Savings Plan offers tax-advantaged growth and withdrawals for qualified education expenses. A Custodial Account (UGMA/UTMA) is another option for investing for a minor, but it gives the child control of the assets at a certain age.
Simply investing for general wealth growth? A Brokerage Account offers flexibility and a wide range of investment options.
Looking for a place to manage everyday spending and saving with some investment features? A Fidelity Cash Management Account combines checking-like features with investment capabilities.
Self-employed or a small business owner? Explore SEP IRA or Solo 401(k) options.
Wanting a professionally managed portfolio with minimal effort? Fidelity Go® is a robo-advisor service that manages your investments for you.
Take a moment to truly consider your goals. This will dictate the most suitable account type for you. If you're unsure, Fidelity's website has tools to help you determine the best fit.
Step 2: Gather Your Required Information and Documents
Once you've decided on the account type, it's time to collect the necessary information. Having these on hand will make the application process much smoother and faster.
Personal Information:
Full Legal Name
Date of Birth
Social Security Number (SSN) or Tax Identification Number (TIN) - You must be a U.S. Citizen or permanent resident alien.
Mailing Address and Physical Address (if different)
Contact Phone Number
Email Address
Mother's Maiden Name (for additional security verification)
Occupation
General Source of Funds (e.g., wages, self-employed income, inheritance)
Identification Documents:
Valid government-issued photo identification (e.g., Driver's License, Passport, State ID) issued at least 30 days ago. You may be asked to provide a photocopy or upload a digital image.
Bank Account Information (for funding):
Bank Name
Bank Account Number
Bank Routing Number
Tip: For joint accounts or custodial accounts, you'll need similar information for all account holders or the minor and custodian.
Step 3: Initiate the Online Application
Fidelity's online application is generally the quickest and most convenient way to open an account.
Visit the Fidelity Website: Go to Fidelity.com and navigate to the "Open an Account" section.
Select Your Account Type: Choose the specific account type you identified in Step 1 (e.g., "Brokerage Account," "Roth IRA," "529 Plan").
Start the Application: Click on the "Open Now" or "Get Started" button.
Follow the Prompts: The online application will guide you through a series of screens where you'll input the information you gathered in Step 2.
Personal Details: Enter your name, address, SSN, date of birth, etc.
Account Features: Depending on the account type, you might be asked about specific features like checkwriting or debit card options (for Cash Management Accounts).
Investment Profile: Fidelity will likely ask questions about your investment objectives, risk tolerance, and time horizon. Be honest and thoughtful with your answers, as this helps Fidelity understand your needs and provide relevant suggestions.
Beneficiaries: For retirement accounts like IRAs, you'll typically be prompted to designate beneficiaries. This is crucial for ensuring your assets are distributed according to your wishes.
Review and Consent: Carefully review all the information you've entered. You'll also need to read and electronically consent to various disclosures, terms, and agreements.
Important Note: While you can start an application online and save it to complete later, try to finish it in one sitting if possible to avoid delays.
Step 4: Fund Your Account
Once your application is submitted and approved, the next vital step is to fund your new Fidelity account. Without funds, you can't start investing!
Fidelity offers several convenient ways to deposit money:
Electronic Funds Transfer (EFT): This is one of the most common and easiest methods. You'll link your external bank account to your Fidelity account using your bank's routing and account numbers. Once linked, you can initiate one-time or recurring transfers. Funds are typically available for trading within 2-4 business days.
Bank Wire Transfer: For larger sums or faster availability, you can initiate a wire transfer from your bank to Fidelity. You'll need Fidelity's wire instructions (available on their website or by contacting customer service).
Check Deposit: You can deposit a physical check via mobile upload (using the Fidelity app) or by mailing it to Fidelity.
Direct Deposit: You can set up direct deposit for your paycheck, Social Security benefits, or pension directly into an eligible Fidelity account (like a Cash Management Account).
Transfer from Another Fidelity Account: If you already have another Fidelity account, you can easily transfer funds between them.
Transfer of Assets (TOA): If you have an existing investment account at another institution (e.g., a 401(k) from a former employer or an IRA from another brokerage), you can initiate a "Transfer of Assets" to move your holdings to Fidelity. This process can be electronic or require paper forms, and Fidelity often helps facilitate this transfer. This is often called a "rollover" for retirement accounts.
Third-Party Payment Apps: You can even link your Fidelity account to payment apps like PayPal or Venmo for certain transfers.
Remember: While you can often select investments immediately, the funds may not be fully settled and available for withdrawal for a few business days, depending on the funding method.
Step 5: Start Investing!
Congratulations! Your Fidelity account is open and funded. Now comes the exciting part: putting your money to work.
Explore Investment Options: Fidelity offers a vast array of investment products:
Stocks: Individual shares of publicly traded companies.
Exchange-Traded Funds (ETFs): Baskets of securities that trade like stocks.
Mutual Funds: Professionally managed portfolios of stocks, bonds, or other investments. Fidelity offers its own funds, including many with $0 expense ratios, as well as funds from other companies.
Bonds and CDs: Debt instruments that can provide income and diversification.
Options: More complex investment strategies for experienced investors.
Cryptocurrencies: Fidelity now offers the ability to trade certain cryptocurrencies within select accounts.
Utilize Fidelity's Research Tools: Fidelity provides a wealth of research, analysis, and educational resources to help you make informed investment decisions. Take advantage of their screeners, analyst reports, and market insights.
Consider Diversification: Don't put all your eggs in one basket. Diversifying your investments across different asset classes and sectors can help manage risk.
Set Up Recurring Investments: To build wealth consistently, consider setting up automatic, recurring investments into your chosen funds or ETFs. This is a powerful strategy for dollar-cost averaging.
Monitor Your Portfolio: Regularly review your account performance and make adjustments as needed to stay on track with your financial goals.
By following these steps, you'll be well on your way to a successful investing journey with Fidelity. Happy investing!
10 Related FAQ Questions
How to choose the right Fidelity account type for me?
Answer: Consider your primary financial goal: retirement, education savings, general investing, or cash management. Fidelity's website has a "Help Me Choose" tool, and you can also consult with a Fidelity representative.
How to link my bank account to Fidelity?
Answer: After logging into your Fidelity account, navigate to the "Transfers" or "Deposit Money" section. You'll typically find an option to "Link a Bank Account" where you'll enter your bank's routing and account numbers.
How to transfer an existing 401(k) to Fidelity?
Answer: This is called a 401(k) rollover. You'll typically open a Rollover IRA at Fidelity, and then work with Fidelity and your previous employer's plan administrator to initiate the transfer. Fidelity provides guidance and forms for this process.
How to set up recurring investments with Fidelity?
Answer: Once your account is funded, go to the "Transfers" or "Invest" section. You should see an option to set up "Automatic Investments" or "Recurring Deposits," where you can specify the amount, frequency, and investment destination.
How to contact Fidelity customer service?
Answer: You can contact Fidelity customer service by phone (numbers are available on their website), through their virtual assistant, or by visiting an Investor Center in person. Logging in before contacting them often provides more personalized assistance.
How to find my Fidelity account number and routing number?
Answer: For most Fidelity accounts, you can find your account number on your portfolio summary page after logging in. For Cash Management accounts, you can typically find both your account and routing numbers under the account details.
How to deposit a check into my Fidelity account?
Answer: You can deposit a check using the Fidelity mobile app's mobile check deposit feature, or by mailing a physical check to Fidelity.
How to withdraw money from my Fidelity account?
Answer: You can typically withdraw money via electronic funds transfer (EFT) to a linked bank account, by requesting a check, or in some cases, via wire transfer.
How to understand the fees associated with Fidelity accounts?
Answer: Fidelity is known for its competitive pricing, often with $0 commissions for online U.S. stock, ETF, and options trades, and many no-transaction-fee mutual funds. However, specific fees can vary by account type and investment choice. Consult Fidelity's commission and fee schedule on their website for detailed information.
How to get investment advice from Fidelity?
Answer: Fidelity offers various levels of advice, from online planning tools and educational resources to guided portfolio management services like Fidelity Go® (robo-advisor) and personalized financial planning with advisors, which may have associated fees and minimums.
