FIDELITY INVESTMENTS INSTITUTIONAL SERVICES COMPANY, INC. (2024)

FAQs

What does Fidelity Institutional do? ›

Clearing & Custody Solutions

Technology, brokerage services, trading capabilities, and collaborations that help banks, broker-dealers, Registered Investment Advisors, family offices, and wealthy families achieve their goals.

Fidelity has average trading and low non-trading fees, including commission-free US stock trading. On the negative side, margin rates and fees for some mutual funds can be high. We compared Fidelity's fees with two similar brokers we selected, E*TRADE and TD Ameritrade.

Fidelity Clearing & Custody Solutions provides a comprehensive clearing and custody platform, brokerage services, trading capabilities and practice management and consulting to registered investment advisors (RIAs), including strategic acquirers and professional asset managers, as well as retirement recordkeepers, ...

To be eligible for Fidelity Private Wealth Management through Fidelity^® Wealth Services ("FWS") or Fidelity^® Strategic Disciplines ("FSD"), clients are subject to a qualification and acceptance process, and must typically invest at least $2 million, in the aggregate, in FWS and/or FSD and have investable assets of at ...

Institutional investors make money by charging fees and commissions to their members or clients. For example, a hedge fund may charge a certain percentage of a client's investment gains or total assets.

Individual investors are sometimes told by fee-based advisors that they can purchase “institutional” share classes of a mutual fund instead of the fund's Class A, B, or C shares. Designated with an I, Y, or Z, these shares do not incorporate sales charges and have smaller expense ratios.

If a brokerage fails, another financial firm may agree to buy the firm's assets and accounts will be transferred to the new custodian with little interruption. The government also provides insurance, known as SIPC coverage, on up to $500,000 of securities or $250,000 of cash held at a brokerage firm.

Protecting your assets

With our Customer Protection Guarantee, we reimburse you for losses from unauthorized activity in your accounts. We also participate in asset protection programs such as FDIC and SIPC to help provide the best service possible.

Overall, you might save money at Fidelity if you trade options, but Vanguard will be cheaper if mutual funds are your focus. The key difference is that Fidelity is low-cost for a wide range of investor types, while Vanguard is a great low-cost solution aimed primarily at buy-and-hold investors.

The Boston-based Johnson family owns 49% of mutual fund company Fidelity. The other 51% is owned by employees. Abigail Johnson is the third generation of the family to run the company.

How do I stop Fidelity from taking money out of my account? ›

Go to Fidelity.com/pws or call 800-343-3548. Use this form to establish, change, or delete an ongoing automatic withdrawal plan for a Brokerage or Mutual Fund Only Traditional, Roth, Rollover, SEP, or SIMPLE IRA account.

Fidelity Go

Professional, affordable money management with automatic rebalancing to keep your strategy on track. No minimum to open an account,¹ and access to coaching when your balance reaches $25,000.

The universe of 401(k) accounts with balances of $1 million or more at Fidelity Investments rose to a record 485,000 in the first quarter, according to the company. With stocks surging, the number of retirement account millionaires jumped 15% from the prior quarter and 43% since March 2023.

There is no advisory fee for accounts with less than $25,000. Investments of $25,000 or more are charged 0.35% per year, but that level gets you unlimited one-on-one financial coaching sessions.

Any minimums in terms of investable assets, net worth or other metrics will be set by individual wealth managers and their firms. That said, a minimum of $2 million to $5 million in assets is the range where it makes sense to consider the services of a wealth management firm.

An institutional broker is a person or company that helps big organizations like banks, pension funds, and insurance companies buy and sell stocks and other investments. They act as a middleman between the buyer and seller and get paid for their services.

An Institutional investor plays a crucial role in the financial markets by managing funds on behalf of their clients, shaping market trends, and influencing the prices of securities through their trading activities.

Those seeking management, pre-packaged investment products, and access to rich banking features won't be disappointed. FIdelity's research and educational tools are superior and suitable for nearly all investor levels. Portfolio analysis, tools, and calculators are good, although scattered across the platform.

Fidelity Investments operates a brokerage firm, manages a large family of mutual funds, provides fund distribution and investment advice, retirement services, index funds, wealth management, securities execution and clearance, asset custody, and life insurance. Boston, Massachusetts, U.S.