Fidelity is one of the most trusted names in the investment world. Whether you’re looking to buy stocks, invest in ETFs, build a retirement account, or simply learn more about managing your finances, Fidelity offers a robust platform to get started. In this guide, we’ll walk you through every essential step on how to use Fidelity: from opening a brokerage account to funding it, placing trades, and exploring the platform’s analytics and tools. If you’re new to investing or to Fidelity itself, this comprehensive guide is your perfect starting point.
Getting Started: Opening a Fidelity Brokerage Account
To begin, visit Fidelity’s website . Once you’re on the homepage, click “Open an Account.” Fidelity offers a variety of account types, including:
- Retirement (IRA, Roth IRA)
- Health Savings Accounts (HSAs)
- 529 College Savings Plans
- Cash Management Accounts
For this guide, we will focus specifically on the Brokerage Account.
Step 1: Choose Your Account Type
After clicking to open a brokerage account, you’ll be asked whether you are already a Fidelity customer. If you’re new, click “No.” You’ll then be prompted to choose between:
- Individual Account: For personal investing
- Joint Account: If you want to invest with a spouse or partner
Select the option that suits you and click “Next.”
Step 2: Provide Your Personal Information
You’ll need to enter the following:
- Full legal name
- Social Security Number
- Date of Birth
- Email Address
- Phone Number
- Residential Address
After filling out this section, proceed to the next page.
Step 3: Employment and Financial Information
Fidelity, like most brokerages, is required by law to collect information about your employment and financial background. You’ll be asked:
- Your employment status
- Your role or job title
- Employer’s name and address
You’ll also be required to answer some industry regulation and security questions. Most users will select “None Apply,” but it’s important to read these carefully before moving forward.
Choosing Where to Hold Your Uninvested Cash
This section is unique to Fidelity and worth understanding fully. You have two main options for holding uninvested cash:
- Fidelity Government Money Market Fund (SPAXX):
- Yields approximately 4.1%
- Pays dividends monthly
- Considered virtually risk-free
- Has an expense ratio of 0.42%
- Taxable Interest Bearing Cash Option (FCASH):
- Yields around 2.19%
- Lower return, but still a safe place for idle cash
Most users prefer SPAXX due to its higher yield and similar risk profile. Select your choice and click “Next.”
Review and Submit Your Application
Before finalizing your application, review all the details you’ve entered. This includes your name, address, Social Security number, and selected cash option. You’ll also need to read and agree to Fidelity’s terms and disclosures. Once you’ve confirmed everything, click “Open Account.”
You will receive your new account number—consisting of a letter and eight numbers. If you’ve ever had an account with Fidelity through a third party (like an employer), it might notify you of this during setup.
Verifying Your Identity and Creating Login Credentials
To verify your identity, you’ll need to:
- Re-enter your name, date of birth, and last 4 digits of your Social Security Number
- Enter the verification code sent to your phone
Once verified, create a username and password for your new account. Log in and complete any two-factor authentication required.
Congratulations! You’ve now created your Fidelity brokerage account.
Funding Your Fidelity Account
To fund your account, click “Add Funds.” You’ll see several options:
- Add a Bank Account
- Transfer from Another Brokerage
- Fund via PayPal
Let’s go with the most common option: Add a Bank Account.
Step-by-Step Bank Linking
- Select Electronic Funds Transfer (EFT)
- Choose to either log in through your bank (like Capital One or Chase) or manually enter your routing and account number
- Fidelity will send a verification code to your phone
- Once verified, complete the linking process
If you face issues manually entering your bank information (as can happen), the direct login method often works smoothly.
Completing the Transfer
After linking your bank:
- Select the Fidelity account to fund
- Choose your funding bank account
- Enter the amount to transfer (up to $250,000)
- Select the date for the transfer
- Confirm the transaction
Your funds will typically appear in your Fidelity account within 1–2 business days.
Placing Your First Trade
Once your account is funded, it’s time to make your first trade.
- Click “Trade” at the top left (it’s slightly hidden)
- Choose your investment (e.g., stock or ETF)
- Select the correct account if you have multiple
- Choose:
- Buy or Sell
- Quantity
- Order Type: Market (buy at current price) or Limit (set your price)
- Click “Preview Order”
- If everything looks good, click “Place Order”
Congratulations, you’ve made your first investment!
Monitoring Your Investments and Account
Once you’ve placed a trade, you can monitor everything in your dashboard:
- Positions Tab: See current holdings, gain/loss, and percentage allocation
- Activity & Orders: View past trades and fund transfers
- Analytics: Track performance with charts and graphs
You can filter activity by preset time frames (like the past year) or use custom dates, going back as far as five years.
Exploring Stock and ETF Details
Clicking on any stock or ETF—like SCHD, a popular dividend ETF—brings up detailed analytics, such as:
- Price change
- Net expense ratio
- Dividend history
- Top holdings
- Analyst ratings
- Fund profile
- Upcoming events
If you’re a dividend investor, pay special attention to:
- Last Distribution Date
- Dividend Yield
- Capital Gain Distribution
- Historical Performance
Fidelity doesn’t offer as much dividend history as platforms like Schwab, but you can use external tools like TradingView for deeper insights.
Using Fidelity’s Trading Platform
Beyond the basic interface, Fidelity also offers a more advanced Trading Dashboard. Here, you can:
- See all your positions in one view
- Trade more quickly with Buy/Sell options directly next to your assets
- Create watchlists for stocks and ETFs
- Access real-time charts
- View option chains and statistics
While the dashboard isn’t designed for high-frequency trading, it’s more than adequate for most long-term investors. Active traders may prefer Fidelity’s downloadable software, Active Trader Pro, for more advanced features.
How to Use Fidelity – Final Thoughts
Fidelity is one of the most reliable platforms for:
- Long-term investing in stocks and ETFs
- Dividend growth portfolios
- Retirement accounts like Roth IRAs
- Educational savings through 529 plans
Its strengths lie in its ease of use, research tools, and trusted reputation. While its trading interface is simple, it does the job for investors who don’t need real-time bells and whistles.
If you’re just starting your investing journey, Fidelity offers the perfect balance of security, functionality, and educational resources.
By following this step-by-step guide, you’ve not only learned how to use Fidelity, but you’ve also taken the first steps toward financial growth. Whether you’re building wealth, planning for retirement, or saving for your child’s education, Fidelity has the tools to support your goals.
