Fidelity Account Types

Fidelity offers various types of brokerage accounts to cater to different investment needs. The primary account types include:

• Cash Accounts: Investors must pay the full amount for securities purchased, and no borrowing is allowed.
• Margin Accounts: Investors can borrow funds from Fidelity to purchase securities, using the securities as collateral. This account type increases purchasing power but also carries greater risks, including potential margin calls.
• Retirement Accounts: These accounts provide tax-advantaged savings for retirement, allowing pre-tax contributions.
• Joint Accounts: Accounts held by two or more individuals, allowing them to pool their resources for investment.
• Robo-Advisory Accounts: For those preferring a hands-off approach, Fidelity provides robo-advisory services that automatically manage investments based on the investor's risk tolerance and goals.

Fidelity Broker Account Opening Process

Opening a brokerage account with Fidelity is a straightforward process that typically involves the following steps:

• Select Account Type: Determine which account type suits your investment goals, such as cash or margin accounts.
• Gather Required Information: Prepare personal information, including:
• Full name
• Social Security Number or Tax Identification Number
• Address and contact details
• Employment status and income information
• Complete the Application: Fill out the online application form on Fidelity's website, providing all necessary details.
• Fund Your Account: After your account is opened, transfer funds from your bank account to your Fidelity account to begin investing. This can typically be done via electronic transfer or check.
• Review and Confirm: Carefully review all account terms and conditions before finalizing the account setup.

For more details, visit Fidelity's official site.