Fidelity has been around since 1946 and is the largest provider of 401(k)s in the U.S. The brokerage firm offers foreign currency trading through its subsidiary, Fidelity Forex, where you’ll have access to exchanges in more than 20 currencies.
Fidelity Forex allows investors to diversify their portfolio to capitalize on international currencies and emerging markets. All you need to do is sign up for international trading online. Once your Forex account is set up, you’ll be able to invest in online trading in 25 countries.
Investing with Fidelity is recommended for new investors getting started in the foreign exchange market. You can work with an advisor to have all (or portions) of your investment portfolio professionally managed while still participating in self-directed investing. Fidelity also offers something different from most other brokerage firms — local branches, with 140 locations for help.
Sleek and high-functioning platform
Not all tools are accessible to all users
Fidelity Forex’s Services & Features
|Price||$$0.65 per options contract|
|Standout features|| User-friendly platform|
Best-in-class research tools
Excellent mobile app
|Forex trade cost type||Commissions|
|Minimum deposit||Varies depending on account type|
|Clearing method||Market maker|
|Maximum leverage (international)||50:01:00|
|Maximum leverage (U.S)||50:01:00|
With its sleek and intuitive design, Fidelity’s trading platform makes investing feel like less of a dark art. All of your trading options are color-coded in rankings and charts, so you can find the most essential information at a glance. You can also sort stocks through several filters like size, performance, and even commission-free offerings.
If you’re serious about gaining an edge in the investing world, Fidelity is the best platform bar none. With research from more than 20 top firms, it had by far the most impressive library of tools that we saw. Fidelity’s Learning Center covers everything from options trading to margins loans, giving you top-notch technical analysis to help inform your investment strategy.
Fidelity Forex vs. ATC Brokers
Fidelity Forex is more user-friendly than ATC Brokers for investors with limited expertise. ATC has advanced tools better suited for experienced traders. Fidelity offers an extensive learning library to get newer traders up to speed and has enough tools to satisfy a more advanced investor. If you’d like to diversify into currencies without too much fuss, go with Fidelity Forex. If you’d like to add metals and CFDs, ATC Brokers’ platform is more comprehensive.
Fidelity Forex vs. Ally Invest
Forex and Ally Invest have similar low-cost trading models, but Fidelity is the more robust choice for international trading. To get more international exposure using Fidelity, you can trade American Depository Receipts (ADRs) and a limited amount of foreign OTC securities. Fidelity offers both ADRs and OTC equities, plus you can open an international account to trade in foreign equity and currencies.
Fidelity Forex vs. Thinkorswim
Thinkorswim is Ameritrade’s trading platform, while Fidelity uses the Active Trader Pro platform. Both provide plenty of features novice and advanced traders could make use of, but the thinkorswim platform is more sophisticated. Thinkorswim is available to customers with no minimum trade requirements making it the best choice for its level of sophistication and lack of investment requirements to access the platform.
When you purchase a stock through an online trading platform, you’re essentially purchasing a small piece of ownership in a publicly traded company. Being a shareholder gives you the right to vote in shareholder meetings (if your stake is large enough), receive a portion of the company’s profits, and sell your shares.
Not only can you wire money into a Fidelity brokerage, mutual fund, or retirement account, you can also wire money out of one. Bear in mind, however, that while Fidelity does not charge a fee for transferring into a Fidelity account, your bank may charge a fee for the wire transfer.
Fidelity uses something it calls a “core position” to store your uninvested cash or recently sold securities. It works like a bank account: When you buy or sell stocks, the money comes from this core position. If you want to transfer that money to a separate bank account, it will generally take about five or six days — three days for it to become available in your core position after you sell and another two or three to transfer to your bank.
The Bottom Line
If you’re interested in adding international exposure to your portfolio, you’ll find Fidelity Forex, backed by its parent company of Fidelity, is a smart choice. You’ll have access to Fidelity’s research and investment tools and will be able to trade in over 20 foreign exchanges.
Fidelity Forex is a good starting place for new to intermediate investors, although Active Trader Pro is robust enough for more advanced investors. Besides the online platform, you’ll have access to 140 locations in major cities to discuss your investment goals with an advisor or get further guidance on Forex trading.