Does Fidelity charge commission for stock trades?

Does Fidelity charge commission for stock trades?

Does Fidelity charge commission for stock trades is a common question among new and experienced investors. In short: does fidelity charge commission for stock trades? For most online U.S. equity and ETF trades in retail brokerage accounts, Fidelity has a $0 commission policy, but a variety of non-commission fees and special-case charges still affect the total cost of a trade. This article explains what “commission” means in brokerage terms, summarizes Fidelity’s retail commission policy, lists common associated fees and exceptions, and offers practical steps to check current rates before you trade.

Overview

This article covers what broker commissions are, how Fidelity currently handles retail online commissions, and the related charges that can materially affect the cost of trading. You will learn: the baseline commission rules for U.S. stocks and ETFs, options and fixed-income fee mechanics, sell-side regulatory assessments, special-case and issuer-specific fees (including a notable 2024 ETF surcharge episode), margin interest considerations, factors that affect trade execution and effective cost, and practical checklists to confirm fees before placing orders.

We use publicly reported articles and Fidelity’s published pricing materials for context. As with any brokerage topic, numbers and policies change; verify the current fee schedule on Fidelity’s official pricing pages before trading.

Short history of Fidelity’s commission policy

The retail brokerage industry experienced a major shift in late 2019 when most large brokers moved to zero-dollar online equity commissions. As of October 2019, according to major media coverage, leading brokerages announced elimination of online commissions for U.S. stocks, ETFs, and many mutual fund trades. Fidelity joined that industry-wide shift, moving its standard online U.S. stock and ETF commission to $0 for retail customers. That move changed retail trading economics and industry competition.

More recently, a 2024 episode drew attention when Fidelity discussed applying transaction-based service charges for certain ETFs issued by a few asset managers. As of March 2024, reporting indicated negotiations between brokers and ETF issuers about cost-sharing and possible surcharges; subsequent agreements avoided a broad, sustained surcharge rollout. The episode illustrated how broker–issuer arrangements and marketplace economics can create temporary friction even after the era of $0 listed commissions began.

Together, these events show that while the headline commission (the per-trade sticker price) can be $0, the broader set of transaction costs and contractual arrangements between brokers and product issuers remains fluid.

Current standard commission and fee schedule (retail online trading)

Below is a practical breakdown of Fidelity’s baseline fees for typical retail online trades. These statements describe the standard retail online schedules; specialized accounts (institutional, advisor-managed, employee equity plans) follow different schedules.

Online U.S. equity (stocks) and ETF trades

• For standard retail brokerage accounts, online U.S. stock and most U.S.-listed ETF trades are $0 per trade. That means there is no base commission charged by Fidelity for placing an online market or limit order for U.S. equities and most ETFs.
• This $0 commission applies to standard orders placed online through Fidelity’s website, mobile app, or approved electronic channels for retail accounts.

Options

• Options trades are not commission-free in the same sense; Fidelity charges a per-contract fee in many retail accounts. The typical stated retail rate is a per-contract charge (for example, $0.65 per contract) plus small regulatory and exchange fees that pass through to customers.
• Options transactions also incur exchange and regulatory fees that vary by product and trade size. For simple clarity: options buyers and sellers should expect per-contract charges (the base per-contract fee) in addition to any minor exchange/regulatory pass-throughs.

Sell-side activity assessment / regulatory fees

• Many brokers, including Fidelity, pass through regulatory or clearing assessments that apply to certain sell orders. These are often small, scaled charges assessed per dollar of principal or as flat regulatory pass-throughs.
• Historically, some sell-side activity assessments have been on the order of roughly $0.01–$0.03 per $1,000 of principal, but amounts and calculation methods change with regulatory and clearing updates. Options-related regulatory fees may also apply separately.
• These small assessments are not branded as commissions but do increase the effective cost of certain sell transactions.

Bonds, CDs, and U.S. Treasuries

• U.S. Treasury auctions and many Treasury secondary-market trades placed online may be offered at $0 commission for retail customers. For certain secondary-market corporate bonds or municipal bonds, brokers may charge transaction fees or per-bond service charges (examples include a small per-bond fee such as $1 per bond for some secondary issues).
• Large-block trades, inventory marks, or fixed-income transactions executed with broker assistance typically include markups, markdowns, or minimum per-trade fees to cover execution and distribution costs.

Mutual funds

• Fidelity generally offers $0 purchase commissions for Fidelity mutual funds and for many no-transaction-fee (NTF) third-party funds available through its platform. That means buying many Fidelity-managed funds online may carry no upfront transaction fee.
• Some non-Fidelity funds available on the platform may impose transaction fees, short-term redemption fees, or exchange fees—depending on the fund’s share-class policies and the distributor agreement.

Representative-assisted and FAST® trades

• Trades placed through a Fidelity representative, via telephone assistance, or through certain assisted electronic services (e.g., FAST/trading-by-phone programs) often carry higher, explicit fees per trade. These rep-assisted/FAST fees are intended to cover human-assisted execution and may apply even when the underlying product would be $0 commission if placed online.

Exceptions, special cases, and per-product service fees

Even with a $0 headline commission for many retail online trades, a variety of exceptions, special-case handling, and product-level charges can apply. Examples include:

• Certain less-common or low-liquidity ETFs may be subject to issuer- or broker-negotiated transaction-based service fees. The 2024 ETF surcharge discussions highlighted that large brokers can negotiate fee arrangements with some ETF issuers that result in additional per-trade charges for specific products if an agreement is reached.
• Large-block orders, directed orders sent to specific execution venues, or trades requiring manual handling can carry different fees or execution commissions.
• Foreign-listed securities, ADRs, or securities traded on non-U.S. exchanges generally have distinct pricing schedules, custody fees, and foreign exchange handling charges.
• Restricted stock transfers, employee equity compensation exercises, and some institutional account services follow different fee schedules and may include additional paperwork or transfer fees.
• Institutional accounts, advisor-managed accounts, and certain retirement-plan accounts often have negotiated or distinct commission and fee schedules.

If you trade niche ETFs, foreign securities, or use nonstandard channels (phone, rep-assisted, fixed-income inventory trades), always confirm the specific fee applicable to that product or trade channel.

Margin rates and borrowing costs

Margin interest is charged separately from trading commissions and is based on the margin debit balance and the published margin-rate tiers. Key points:

• Margin interest rates are tiered: higher debit balances typically qualify for lower percentage rates. Fidelity publishes margin-rate tiers and the corresponding annual percentage rates for various balance thresholds.
• Margin interest accrues on the borrowed funds portion of a margin account and is billed according to Fidelity’s margin-rate schedule. Borrowing costs can materially affect the total cost of leveraged positions even when commissions are $0.
• Securities lending (for short sales) and borrow availability fees may apply if you short-sell securities or if the borrow must be sourced from external parties.

Always review the broker’s current margin rate table before using margin; margin costs and the formula for computing interest are independent of the per-trade commission schedule.

Order routing, additional assessments, and trade execution considerations

The posted commission is not the only determinant of execution cost. Non-commission factors can materially affect realized trade cost and execution quality:

• Additional Assessments / Activity Assessments: Brokers sometimes include small activity assessments to recover self-regulatory organization (SRO) fees and clearing-related costs. These are often itemized on trade confirmations.
• Order routing and payment-for-order-flow: Brokers route orders to execution venues that may pay for order flow or otherwise affect execution quality. While payment-for-order-flow does not directly raise the posted commission, it can affect price improvement rates and the effective execution price.
• Execution venue choice: Different exchanges and dark pools can offer variable rebates or fees; routing to an aggressive venue may improve or worsen net trade cost depending on liquidity and price improvement.

Understanding execution quality (price improvement statistics, fill rates, and routing behavior) is important for active traders even when commissions are $0, because execution slippage and market impact can exceed what a commission would otherwise cost.

Fractional shares and minimums

• Fidelity offers fractional-share trading under programs such as Stocks by the Slice, enabling investors to buy fractional shares of U.S. stocks and ETFs by dollar amount rather than whole shares.
• Fractional trading typically follows the same $0 commission policy for eligible U.S. equities and ETFs, but there are minimum dollar thresholds (e.g., a $1 or $5 minimum per fractional purchase) and specific settlement rules.
• Fractional ownership improves accessibility but does not change the underlying commission structure for whole-share trades.

How fees affect different types of investors

The practical impact of Fidelity’s commission and fee structure varies by investor profile:

• Buy-and-hold investors: For long-term investors who trade infrequently and focus on U.S. stocks and common ETFs, the $0 online commission materially reduces transaction costs and simplifies portfolio implementation. Non-commission fees (sell-side assessments, redemption fees on certain mutual funds) are less frequent but should be checked.

• Active traders and day traders: Although the per-trade headline may be $0, active traders should evaluate execution quality, price improvement statistics, margin rates, and whether the broker’s options per-contract fees and activity assessments increase costs. Rep-assisted trades and fast-phone trades are more expensive and typically irrelevant to electronic active traders.

• Options traders: Options traders must account for the per-contract fee (for example, $0.65/contract) and exchange/regulatory pass-throughs. High-frequency options trading can accumulate notable per-contract costs.

• Fixed-income traders: Bond traders may encounter per-bond fees on secondary corporate or municipal issues, minimum markup/markdowns on dealer-intermediated trades, and different pricing for U.S. Treasuries versus corporate bonds.

• Investors in niche or nonstandard ETFs: Certain niche ETFs may face special transaction-based service fees if their issuers and brokers negotiate such arrangements. Buyers of these products should verify any product-specific surcharges before trading.

Comparison with other major brokers

Fidelity’s headline zero-commission policy for online U.S. equities and ETFs aligns with other major retail brokers that implemented similar price changes in late 2019. Comparatively:

• Most large retail brokers now advertise $0 commissions for online U.S. stock and ETF trades for standard retail accounts.
• Differences remain in secondary cost areas: options per-contract fees, margin-rate tiers, sell-side activity assessments, broker-assisted trade fees, and fixed-income transaction charges.
• When comparing brokers, evaluate the entire cost picture: per-contract options rates, margin interest, execution quality metrics, account tools, and broker-assisted trade fees—not only the headline $0 commission.

This means that while headline commissions are often the same across major brokers, effective costs can differ materially by investor type and trade pattern.

Recent controversies and policy changes

A notable recent item involved 2024 media coverage about certain brokers contemplating a surcharge for trades in ETFs from particular issuers. As of March 2024, reporting documented that Fidelity had discussed applying transaction-based service fees for some ETFs, prompting public attention and negotiations with issuers. The situation was resolved through agreements that avoided a broad, permanent surcharge rollout. The episode highlighted several structural points:

• Broker–issuer commercial arrangements matter: issuers, who sponsor funds, and brokers must agree on distribution, listing, and servicing economics.
• A $0 posted commission does not eliminate all commercial frictions: brokers may seek to recoup costs or negotiate fees with issuers for certain low-margin products.
• Temporary policy proposals can attract media attention and regulatory scrutiny, and they often prompt clarifying disclosures to customers.

As with any policy discussion, read official broker disclosures and check up-to-date announcements for final outcomes rather than relying solely on preliminary news reports.

How to verify current fees and where to find official fee schedules

To confirm current, authoritative pricing information: consult Fidelity’s official fee and pricing pages and downloadable commission & fee schedule. Specifically look for the broker’s “Commissions, Margin Rates, and Fees” section and the full brokerage commission & fee schedule PDF. These official documents list current per-contract options fees, activity assessments, margin-rate tiers, mutual fund transaction rules, and broker-assisted trade charges.

Because fees and exact dollar amounts can change, verifying the date on the published fee schedule is important before placing trades.

Practical checklist before placing trades at Fidelity

Use this short checklist before executing a trade:

1. Confirm the product type: Is the security a U.S. stock, an ETF, an option, a bond, or a foreign-listed security? Each has different fee rules.
2. Verify trade channel: Is the trade online, mobile, rep-assisted, or via FAST? Online generally yields $0 for eligible U.S. stocks and ETFs; rep-assisted incurs higher fees.
3. Check options per-contract fees if trading options and note exchange/regulatory pass-throughs.
4. Look for sell-side or activity assessments on the product type (especially for large sell orders or special securities).
5. For fixed-income trades, confirm per-bond fees or minimums and whether the trade is an auction or secondary-market execution.
6. If using margin, review current margin-rate tiers and compute expected borrowing cost.
7. For niche ETFs, check whether any issuer- or platform-specific service fees apply.
8. Review the trade confirmation for itemized fees and the account’s trade blotter for cumulative costs.

FAQ (short Q&A)

Q: Do you pay commissions to buy U.S. stocks at Fidelity? A: Generally no for online retail trades of U.S. stocks and most ETFs; the posted commission is $0 for eligible online trades.

Q: Are there any hidden fees? A: Not hidden, but additional items can apply—sell-side assessments, regulatory fees, special ETF service fees, bond transaction charges, and rep-assisted trade fees. These are typically disclosed on trade confirmations and fee schedules.

Q: How much are options commissions? A: Options commonly incur a per-contract fee (for example, $0.65 per contract) plus exchange and regulatory fees. Confirm current per-contract rates on Fidelity’s fee schedule.

Q: Where to check the current schedule? A: See Fidelity’s commissions/margin pages and the full brokerage commission & fee schedule PDF on the broker’s official site. Verify the published date.

References and primary sources

• Fidelity — Public pricing and trading pages and the official commission & fee schedule (consult the broker’s published PDFs and pricing disclosure for the latest figures).
• Media and industry coverage of the 2019 zero-commission industry shift: major financial outlets reported the widespread move in October 2019 (industry reporting summarized the change in broker pricing policies).
• Coverage of the 2024 ETF surcharge discussion (reported in financial press in early 2024) that described broker–issuer negotiations and the eventual resolution of proposed surcharges.
• Independent broker reviews and comparisons (industry review sites and financial press) that highlight differences in options contract fees, margin rates, and broker-assisted charges.

Note: reporting dates help provide context. For example, as of October 2019, major outlets reported the zero-commission shift; and as of March 2024, outlets reported on broker–issuer discussions about ETF surcharges. Always check the date on any reporting.

Note on scope and currency

Brokerage fees, per-contract amounts, activity-assessment calculations, and margin-rate tiers change over time. This article describes the standard retail guidance and common fee types rather than guaranteeing specific dollar amounts. Before trading, consult Fidelity’s official, up-to-date commission and fee schedule for the authoritative figures.

Practical next steps and platform note

If you trade U.S. equities and ETFs and value low headline commissions, Fidelity’s $0 retail online commission is an important simplification. However, consider the full fee picture—options per-contract fees, margin costs, sell-side assessments, and any product-specific service charges—when estimating the total cost of trading.

If you trade cryptocurrencies or want integrated Web3 tools, consider exploring Bitget’s exchange and Bitget Wallet for crypto execution and custody services. For brokerage trading of stocks and ETFs, use the fidelity pricing pages to confirm the most current fees.

Further explore: check Fidelity’s published fee PDF, compare margin-rate tiers, and use a trade-cost worksheet to estimate per-trade and monthly costs for your strategy.

Reporting dates used for context

• As of October 2019, major financial news outlets reported the industry-wide zero-commission change that included Fidelity.
• As of March 2024, media reported discussions around potential ETF surcharges and subsequent resolutions involving Fidelity and ETF issuers.