How to Use Fidelity App – Step-by-Step Guide for Beginners

If you’re just getting started with investing, the Fidelity app can feel overwhelming at first. This guide walks you through everything step by step, from opening your account to investing, automating your money, and even closing your account if you ever need to. By the end, you’ll understand exactly how the app works and how to use it confidently as a beginner.

Getting Started with the Fidelity App

The first step is simple: download the Fidelity app and open it. On the welcome screen, you’ll see two main options: open an account or log in.

Since you’re a new user, tap open an account.

Fidelity will then ask what type of account you want:

• General investing (taxable brokerage account)
• Retirement accounts (IRA types like Roth IRA or Traditional IRA)
• Crypto accounts
• Other options like custodial accounts or 529 plans

For most beginners, the general investing account is the best starting point.

Next, you’ll confirm whether you already have a Fidelity account and whether this account is just for you or shared. Most users will choose just for me.

Setting Up Your Fidelity Account

You’ll now enter your personal information:

• Full legal name (must match your ID)
• Phone number and email
• Home address

Fidelity requires identity verification, including:

• Social Security number
• Date of birth
• Citizenship

This is standard KYC (Know Your Customer) verification required by law.

In some cases, identity is verified instantly. In others, you may need to upload a driver’s license or passport using a secure third-party system.

After that, you’ll answer basic employment questions. Most users select “employed” or “not employed,” and answer a few compliance questions (usually all “no”).

Choosing Your Core Cash Position

One of the most important setup decisions is your core position, where uninvested cash sits.

You’ll typically see two options:

• SPAXX (Fidelity Government Money Market Fund)
• FCASH (interest-bearing cash option)

SPAXX is usually the better choice because it earns a higher yield while still keeping your money liquid. Your cash automatically earns interest here until you invest it.

Finishing Account Setup

Once you review your details and agree to the terms, submit your application.

Most accounts are approved instantly. If not, approval may take 1–3 business days.

After approval, you’ll create:

• Username
• Password
• Security verification (SMS or authenticator app)

Once completed, your Fidelity account is officially active.

Understanding the Fidelity Dashboard

When you log in, the home screen shows:

• Total account value
• Daily performance
• Investment chart (1M, 1Y, 5Y views)
• Account list

At the bottom, you’ll see five main tabs:

• Home
• Investing
• Transact
• Planning
• Discover

Each tab serves a different purpose, from tracking investments to research and financial planning.

What You Can Invest In on Fidelity

Fidelity gives you access to several types of investments:

Stocks

Individual companies like Apple or Tesla. You can also buy fractional shares starting from $1.

Index Funds

These track entire markets like the S&P 500 or total U.S. market. They offer instant diversification and are ideal for beginners.

Fidelity also offers Fidelity Zero funds, which have 0% expense ratios.

Mutual Funds

Actively managed funds with thousands of options. Many have no transaction fees.

Bonds and CDs

Low-risk investments with fixed returns.

Crypto

Includes Bitcoin, Ethereum, and other digital assets.

A Simple Beginner Portfolio

A common beginner strategy uses three core investments:

1. FSKAX (Total Market Fund)

This covers the entire U.S. stock market, including large, mid, and small companies. It’s the foundation of long-term investing.

2. FXAIX (S&P 500 Index Fund)

Tracks the 500 largest U.S. companies. It complements FSKAX with a focus on top-performing businesses.

3. SCHD (Dividend ETF)

Focuses on stable, dividend-paying companies. It provides regular income and adds balance to your portfolio.

Together, these create a simple structure:

• Growth (FSKAX + FXAIX)
• Income (SCHD)

Buying Your First Investment

To buy an investment:

1. Tap Transact
2. Search for a ticker (example: VTI)
3. Tap Buy

You can choose:

• Dollars (recommended for beginners)
• Shares

Then select order type:

• Market (buy immediately)
• Limit (set a price target)

Finally, confirm your order. Your investment will execute immediately (or at market close for mutual funds).

How to Track and Sell Investments

Tap Investing to view your portfolio.

You’ll see:

• Positions (what you own)
• Watchlist
• Market data

Each investment shows:

• Total value
• Gains/losses
• Purchase history

To sell:

1. Tap an investment
2. Select Trade → Sell
3. Enter amount
4. Confirm

Selling may trigger taxes, especially if held under one year.

Dividends and DRIP (Reinvesting Earnings)

Some investments pay dividends every few months.

You have two options:

• Take cash
• Reinvest automatically (DRIP)

DRIP allows dividends to buy more shares automatically, creating compounding growth over time.

For mutual funds, reinvestment is usually automatic. For ETFs and stocks, you must enable it manually in settings.

Automating Your Investments (Recurring Investing)

One of the most powerful features in Fidelity is automation.

To set it up:

1. Tap Transact
2. Tap Automate
3. Choose Recurring Investment
4. Select fund (e.g., FSKAX)
5. Choose amount (example: $25)
6. Pick frequency (weekly, biweekly, or monthly)
7. Confirm

This ensures you invest consistently without thinking about timing the market.

You can edit or delete recurring investments anytime.

Withdrawing Money from Fidelity

You can withdraw money at any time:

1. Tap Transact → Transfer
2. Choose Fidelity account → Bank account
3. Enter amount
4. Confirm

Important:

• Only cash in your core position (SPAXX) is immediately withdrawable
• Sold investments must settle first

Withdrawals usually take 1–3 business days.

Adding a Beneficiary

A beneficiary ensures your account goes to the right person if something happens to you.

To add one:

1. Go to Profile
2. Tap Beneficiaries
3. Select account
4. Add person and relationship

You can assign:

• Primary beneficiary
• Contingent beneficiary

You can also split percentages between multiple people.

Taxes and the 1099 Form

At the end of each year, Fidelity provides a 1099 form showing:

• Dividends earned
• Stocks sold
• Capital gains or losses

To find it:

1. Go to Profile
2. Tap Tax Forms
3. Download 1099 PDF

This is what you use for tax filing with software or an accountant.

Closing a Fidelity Account

If you ever need to close your account:

1. Search “close account”
2. Follow assistant steps
3. Ensure account balance is zero

Before closing:

• Sell or transfer investments
• Withdraw cash
• Stop recurring payments

Once closed, the account cannot hold any funds or assets.

Final Thoughts

Using the Fidelity app becomes simple once you understand the structure:

• Open account
• Fund it
• Invest consistently
• Automate contributions
• Let time do the work

The real key isn’t timing the market or picking perfect stocks. It’s consistency, patience, and automation.

If you stick with that, the app becomes less about trading and more about building long-term financial growth in the background.