If you’re looking for the best investment app for beginners, you may feel overwhelmed by the number of options available in the U.S. market. But choosing the right investment app isn’t just about how many features it offers. It also depends on how easy it is to use, the fees it charges, the minimum amount required to get started, the types of investments available, and the educational tools it provides for new investors.
Among the options available to investors in the United States, Fidelity is one platform that deserves the attention of beginners. It combines an easy account-opening process, the ability to start with small amounts of money, and fractional investing in eligible stocks and ETFs, along with a wide range of investments and educational and research tools.
In this guide, we’ll take a comprehensive look at Fidelity and explain why it can be the best investment app for beginners, how to get started with it, how much money you need, what types of investments you can buy, and what fees you should know about before getting started.
Disclaimer
The content on Pocket Change Wealth is for educational and informational purposes only and should not be construed as professional financial, investment, or legal advice. Investing involves risk, including the possible loss of principal. Always do your own research or consult with a licensed financial advisor before making any investment decisions.
Table Of Contents
- Disclaimer
- What Is Fidelity?
- Why Is Fidelity One of the Best Investment Apps for Beginners?
- Is Fidelity Easy to Use for Beginners?
- How Much Money Do You Need to Start Investing With Fidelity?
- What Can You Invest in Through Fidelity?
- Is Fidelity Suitable for Long-Term Investing?
- Can You Use Fidelity for Retirement?
- What Is Fidelity Go?
- How to Open a Fidelity Account as a Beginner
- Is Fidelity Safe for Beginners?
- Fidelity Advantages for Beginners
- Fidelity Drawbacks Beginners Should Know
- Frequently Asked Questions
- Conclusion
What Is Fidelity?
Fidelity Investments is a financial services and investment brokerage company that provides individuals with a variety of accounts and services related to investing, retirement, and financial planning.
For beginners, a Fidelity Brokerage Account is one of the basic options that can be used to invest in a variety of assets, such as stocks, ETFs, bonds, mutual funds, and more.
Fidelity also offers retirement accounts, such as Traditional IRA and Roth IRA, along with an automated investing service called Fidelity Go.
This means you can start in a simple way and then use additional services and accounts as your investment goals and experience develop.
Why Is Fidelity One of the Best Investment Apps for Beginners?
There are several reasons why Fidelity can be an attractive option for someone who is just starting out.
1. You Can Start With a Small Amount of Money
One of the most common misconceptions among beginners is that investing requires thousands of dollars.
But Fidelity allows investors to buy fractional shares of eligible stocks and ETFs, and fractional investing can start with as little as $1.
This means you don’t have to buy an entire share if the price is too high.
For example, if a particular stock costs $500, you don’t need to have $500 to buy a full share. If the stock is eligible for fractional investing, you can invest a smaller amount and own a fraction of the share.
This feature can make investing more accessible for beginners who want to start with limited amounts of money.
2. There Is No Minimum to Open a Brokerage Account
According to Fidelity’s current information, there is no minimum amount required to open a retail brokerage account, and there are no fees to open a retail brokerage account.
This means you don’t have to wait until you have saved a large amount of money before opening an account.
However, having no minimum does not mean you should invest all the money you have.
Before getting started, it’s a good idea to make sure your financial situation allows you to take on investment risk and that the money you invest is not money you need to cover your basic expenses or upcoming financial obligations.
3. Low Fees for Online Trading
One of the most important things beginners look for when choosing the best investment app for beginners is fees.
Fidelity currently offers commission-free online trading for U.S. stocks and eligible ETFs.
This can be helpful for investors who want to invest smaller amounts without paying a commission on every online purchase or sale.
However, keep in mind that "commission-free" does not mean that every service and investment is free.
There may be other costs associated with certain products or transactions, and some mutual funds have their own expense ratios.
So, always review the fee details before investing.
4. Fidelity Offers a Wide Range of Investments
A beginner may start by buying one ETF or a few stocks, but their needs may change over time.
This is where one of Fidelity’s strengths comes in.
Users can access a wide range of investments, including:
- Stocks.
- ETFs.
- Bonds.
- Mutual funds.
- Some other investment options depending on the account type and eligibility.
This variety means you don’t necessarily have to change brokerage firms as your investment knowledge grows.
You can start simply and gradually expand your use of the available tools as you become more experienced.
5. Fractional Investing Makes Getting Started Easier
One of the most important features for beginner investors is the ability to buy Fractional Shares, which means owning portions of shares.
Instead of having to buy a full share, you can invest a specific dollar amount in eligible investments.
Fidelity explains that fractional investing in eligible stocks and ETFs can start with as little as $1.
This can be especially useful if you have a small amount of money you want to invest or if you want to spread your money across several investments.
6. The Fidelity App Provides Educational and Research Tools
Fidelity isn’t just an app where you open a buy or sell order.
The platform also provides a range of tools that can help investors research, learn, and keep track of their portfolios.
Through the app, users can monitor their accounts and investments, view market information, and use different research tools.
For beginners, educational resources can be especially important because they can help them understand basic concepts before making investment decisions.
Is Fidelity Easy to Use for Beginners?
Yes, Fidelity can be suitable for beginners, but there is one important point to keep in mind.
Fidelity is a large investment platform, not simply a basic app for buying stocks.
Because of this, you may initially find a large number of options, tools, and account types.
But you don’t need to learn everything on your first day.
If you’re a beginner, you can start with the basics:
- Choose the right type of account.
- Fund the account with an appropriate amount.
- Learn the basics of investing.
- Understand the risks.
- Choose investments you understand.
- Build a diversified portfolio.
- Invest regularly.
Over time, you can learn how to use more of the available tools.
How Much Money Do You Need to Start Investing With Fidelity?
You can open a brokerage account with Fidelity without a minimum amount, and fractional investing in eligible investments can start with as little as $1.
But the more important question isn’t:
What is the smallest amount I can invest?
It’s:
What amount can I invest regularly without affecting my financial needs?
One person may choose to invest $25 per month, while $100 per month may be suitable for someone else.
There is no single amount that works for everyone.
What matters is that the amount fits your financial situation and that you can continue investing without putting yourself under unnecessary financial pressure.
What Can You Invest in Through Fidelity?
Fidelity offers a variety of investment options, but beginners don’t need to use all of them.
Stocks
A stock represents an ownership stake in a company.
When you buy a stock, you become a small owner of that company.
However, individual stocks can be volatile, and a stock’s price can rise or fall significantly.
That’s why you should understand the company and the risks associated with investing in it before buying its shares.
ETFs
An ETF is an investment fund that trades on the market and can contain a collection of stocks, bonds, or other assets.
For some beginners, broad ETFs may be a simple way to get greater diversification instead of choosing a small number of individual stocks.
Bonds
Bonds represent a different type of investment and can play a role in some investment portfolios.
However, whether they are suitable depends on the investor’s goals, investment time frame, and ability to tolerate risk.
Mutual Funds
Fidelity also offers a wide range of mutual funds.
As with any investment, you should understand the fund’s objective, what it invests in, and the fees and expenses associated with it before buying shares.
Is Fidelity Suitable for Long-Term Investing?
Yes, Fidelity is very suitable for investors who focus on the long term.
The platform isn’t limited to stock trading. It also offers retirement accounts and tools that can be used to pursue long-term financial goals.
This is important because long-term investing is different from short-term trading.
If your goal is to build wealth over years or decades, focusing on regular investing, diversification, and risk management may be more important than trying to predict whether the market will go up or down tomorrow.
Of course, there is no guarantee of making a profit, and the value of your investments can decline at any time.
Can You Use Fidelity for Retirement?
Yes.
Fidelity offers retirement accounts, including:
- Traditional IRA.
- Roth IRA.
These accounts differ from a regular brokerage account in terms of rules, tax benefits, and contribution requirements.
Therefore, investors should understand how each type of account works before choosing the account that best fits their goals.
If you’re unsure about the tax implications, it may be helpful to consult a tax professional or qualified financial advisor.
What Is Fidelity Go?
Not every beginner wants to choose their investments and manage their portfolio themselves.
That’s why Fidelity offers Fidelity Go, an automated investing service or Robo-Advisor.
Instead of choosing every investment yourself, the service helps manage the portfolio based on the information and goals you provide.
According to Fidelity’s current information, you can open a Fidelity Go account with no minimum, and you can start investing with $10.
The fees also depend on the account balance, so you should review the current pricing before signing up.
For beginners who want to invest without managing every detail of their portfolio themselves, this option may be suitable.
How to Open a Fidelity Account as a Beginner
You can open a Fidelity account online.
You will typically need to provide the required personal and financial information, verify your identity, and then link your bank account and transfer money.
After that, you can choose an investment that fits your strategy.
In simple terms, the steps can look like this:
Step One: Choose an Account Type
Decide whether you want a regular brokerage account or a retirement account such as an IRA.
Step Two: Provide Your Information
Complete the information Fidelity requires to create your account and verify your identity.
Step Three: Fund Your Account
Link your bank account and transfer the amount you want to invest.
Step Four: Choose an Investment
Find the investment you want to buy and make sure you understand it.
Step Five: Choose the Amount
If the investment is eligible for fractional investing, you can choose a dollar amount instead of buying a full share.
Is Fidelity Safe for Beginners?
Security is one of the most important things to consider when choosing the best investment app for beginners.
Fidelity provides a range of security measures designed to protect accounts and information, such as encryption, security monitoring, and two-factor authentication.
However, it’s important to distinguish between account security and investment risk.
Protecting your account from unauthorized access does not mean your investments are protected from market losses.
If you buy a stock and its price falls, the value of your investment can decline even if your account is completely secure.
Fidelity Advantages for Beginners
The main advantages of Fidelity can be summarized as follows:
- No minimum to open a retail brokerage account.
- Ability to start with small amounts of money.
- Fractional investing in eligible stocks and ETFs.
- Fractional investing in eligible investments starting from $1.
- Commission-free online trading for U.S. stocks and eligible ETFs.
- A wide range of investments.
- Research and analysis tools.
- Educational resources.
- Retirement accounts.
- Fidelity Go automated investing service.
- A mobile app for managing your account and investments.
Fidelity Drawbacks Beginners Should Know
Despite its many advantages, there are some things you should keep in mind.
The Platform May Seem Complicated at First
Having a large number of accounts, investments, and tools can make Fidelity feel overwhelming to a new user.
But you don’t need to use all the features from the beginning.
Too Many Options Can Overwhelm Beginners
Having thousands of investment options doesn’t mean you need to buy many of them.
Sometimes, a simple strategy may be more suitable for a beginner than trying to choose dozens of investments.
Not All Services Are Free
Even if you don’t pay a commission on certain trades, there may be fees or expenses associated with certain products and services.
So, always check the current fees before investing.
Frequently Asked Questions
Is Fidelity a Good Investment App for Beginners?
Yes, Fidelity can be a strong option for beginners thanks to its easy brokerage account setup, no minimum to open an account, fractional investing, educational resources, and variety of available investments.
How Much Money Do I Need to Start Investing With Fidelity?
You can open a brokerage account with no minimum, and fractional investing in some eligible stocks and ETFs can start with as little as $1. However, the right amount for you depends on your financial situation, goals, and ability to tolerate risk.
Is Fidelity Free?
Fidelity offers commission-free online trading for U.S. stocks and eligible ETFs and does not require a minimum to open a retail brokerage account. However, there may be other fees or expenses associated with certain products and services.
Can I Buy Fractional Shares With Fidelity?
Yes. Fidelity allows you to buy fractional shares of eligible stocks and ETFs, and fractional investing can start with as little as $1.
Is Fidelity Safe?
Fidelity provides a range of security measures to protect customer accounts, such as encryption, two-factor authentication, and security monitoring. However, this does not mean the investments themselves are risk-free; the value of stocks and funds can rise or fall.
Is Fidelity Suitable for Long-Term Investing?
Yes. Fidelity is suitable for long-term investing and offers brokerage accounts and retirement accounts such as Roth IRAs and Traditional IRAs, along with a wide range of investments.
Does Fidelity Offer Automatic Investing?
Yes. Fidelity offers Fidelity Go, a Robo-Advisor service designed for investors who prefer to manage their investments in an automated way.
Can I Start Investing With $100 in Fidelity?
Yes. If the investment you choose is eligible for fractional investing, you can invest part of the $100 instead of buying a full share. However, the amount you invest should depend on your financial situation and goals.
What Is the Best Investment for a Beginner on Fidelity?
There is no single investment that is right for every beginner. The choice depends on your goals, investment time frame, and ability to tolerate risk. Some beginners may prefer diversified ETFs instead of trying to choose individual stocks.
Conclusion
If you’re looking for the best investment app for beginners, Fidelity is a strong option for U.S. investors who want to get started in a simple way while having the ability to develop their investment strategy over time.
Fidelity combines several important benefits for beginners, such as no minimum to open a brokerage account, the ability to start with small amounts, fractional investing in eligible stocks and ETFs, commission-free online trading for U.S. stocks and eligible ETFs, as well as a wide range of investments and educational and research tools.
The availability of retirement accounts and Fidelity Go also makes the platform useful at different stages of your investment journey.
But remember that the best investment app does not guarantee that you will make money. An app is simply a tool. Your investment success ultimately depends more on your understanding of risk, the investments you choose, how well you diversify your portfolio, and your ability to stick to a long-term strategy.
If you’re a complete beginner, don’t try to make quick profits or predict daily market movements. Start by learning, invest only money you can afford to have exposed to market fluctuations, and focus on building good investing habits over time.
Fidelity can be an excellent starting point for a beginner investor, but your financial success will ultimately depend more on your strategy and discipline than on the app you use.