Skip to main content

Fidelity Investments thinks it’s the best in the biz when it comes to trading stocks on behalf of investors. Of course, Fidelity thinks a lot of things—including that the mutual funds that are at its heart are worthless, and that bitcoins have a future. But Fidelity really believes in its trading, in its trade execution, in its ability to do things more efficiently, in the value of its use of higher-yielding money-market funds to park client cash, all designed to save those clients a few bucks.

And you know what? When promised free trading by literally everyone else, clients didn’t care. And so now Fidelity will have to go on doing all of those other nice things, but without the $4.95 per trade fee it has enjoyed for so long. But, like, however much that’s costing the company, it’s not a big deal, or whatever.

After the firm matched that offering, Fidelity executives have sought to play down its significance.

“We prioritized where we could provide the most value to investors,” Kathleen Murphy, president of Fidelity’s personal-investing business, said in an interview. “It’s much more important to have industry-leading practices on cash and trade execution.”

I guess those infrastructure fees must really be paying off.

Fidelity Is Latest to Cut Online Trading Commissions to Zero [WSJ]



Fidelity Has New, Questionably Legal Solution To Its Mutual Fund Problem

What announced expense ratios can’t do, perhaps a mysterious and hidden fee will.

By Singhaniket255 (Own work) [CC BY-SA 4.0], via Wikimedia Commons

Fidelity Increasingly Unsure Of This Whole Mutual Fund Thing

Who wants to let Abby Johnson administer their hedge-fund assets?

New Fidelity Investments Chief Takes No Prisoners

Her father knows what we're talking about.

By Singhaniket255 (Own work) [CC BY-SA 4.0], via Wikimedia Commons

Fidelity Bitcoin Custody Biz To Open Just As Bitcoins Become Worthless

For a cryptocurrency pioneer, Fido’s timing could be a bit better.

A very dangerous man. (Screenshot)

Puny Financial Giants Finally Standing Up To 88-Year-Old Bully

Fidelity, Morgan Stanley aren't going to take it... anymore.