Fidelity Account Types

Fidelity offers a diverse range of investment accounts tailored to meet specific financial goals and investment needs. The main types of accounts include:

• Individual Retirement Accounts (IRAs):
• Traditional IRA: Allows tax-deductible contributions and tax-deferred growth until withdrawal, typically after age 59½.
• Roth IRA: Contributions are made with after-tax dollars, allowing for tax-free growth and withdrawals in retirement, provided certain conditions are met.
• Brokerage Accounts:
• A versatile account for buying and selling a wide range of investments, including stocks, bonds, mutual funds, and ETFs, with no contribution limits and no early withdrawal penalties.
• Health Savings Accounts (HSAs):
• Designed for individuals with high-deductible health plans to save for qualified medical expenses with tax advantages.
• 529 College Savings Plans:
• Tax-advantaged accounts for saving for education expenses, allowing contributions to grow tax-free when used for qualified expenses.
• Cash Management Accounts:
• A hybrid account that combines features of a checking account with investment options, offering competitive interest rates and easy access to funds.
• Trust Accounts:
• Legal entities that hold assets for the benefit of specific individuals, managed by a trustee.
• Custodial Accounts (UGMA/UTMA):
• Accounts designed to help adults save for minors, with control over investment decisions until the minor reaches adulthood.

Fidelity Broker Account Opening Process

Opening a brokerage account with Fidelity is a straightforward process that can be completed in a few simple steps:

• Determine Your Account Type:
• Decide whether you want a cash account (buy investments with available cash) or a margin account (borrow money to buy securities).
• Fill Out the Application:
• Provide personal details such as your Social Security number, residential address, employment information, and investment profile. The application process usually takes only a few minutes online.
• Fund Your Account:
• Link your brokerage account to a bank account and transfer money. Fidelity requires a minimum investment to start trading, but you can also invest in fractional shares.
• Invest Using Your Funds:
• Once your account is funded, you can begin investing in various financial products. Consider setting up recurring investments to employ a dollar-cost averaging strategy.
• Monitor Your Investments:
• Regularly check your portfolio to ensure it aligns with your financial goals and make adjustments as needed.

For more detailed information, you can visit Fidelity's account opening page.