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If you’re looking for a hands-off and low-cost way to start investing, Fidelity Go just might be what you need. As a user-centric robo advisor from one of the world’s largest financial institutions, Fidelity Go is a sure bet for a wide range of investors.
However, figuring out if Fidelity Go is right for your needs isn’t always easy.
With so many features to consider, deciding whether to invest with Fidelity’s robo advisor can be a challenge. So, we’ve created this complete Fidelity Go review to do just that.
Up next, we’ll discuss everything you need to know about the brokerage’s popular automated investing service. That way, you can find the perfect investing platform for your financial goals.
on Fidelity’s website
Quick Summary: Fidelity Go is a robo advisory service from Fidelity Investments, Inc (Fidelity). The robo advisor does not charge management fees for accounts under $10,000 and it’s designed for younger investors.
What Is Fidelity Go?
Fidelity Go is a robo advisory service from Fidelity Investments, Inc (Fidelity). Fidelity is a major US-based international financial institution with more than $3 trillion in assets under its management.
Although many account holders use the brokerage’s self-directed investment platform, Fidelity Go is a low-cost way for anyone to invest with the guidance of Fidelity’s investment experts.
As a robo advisor, Fidelity Go doesn’t provide you with any direct contact with financial advisors. However, it does offer a streamlined way to automate your investments without the need to spend hours each week on market research.
How Does Fidelity Go Work?
Fidelity Go is designed to be a straightforward and easy-to-use way to invest your savings. To use the platform, you simply need to open an account and fund it. You’ll also need to provide information on your financial goals so Fidelity’s robo advisor can create a portfolio that’s right for you. Here’s how it works.
Investing Account Types
If you want to invest with Fidelity Go, you’ll first need to decide what type of account you’d like to open. As of the time of writing, the brokerage supports the following account types:
- Individual and joint brokerage: Your go-to option for general, all-around investing taxable individual and joint brokerage accounts are ideal for non-retirement purposes.
- Traditional IRA: A Traditional IRA is a type of tax-advantaged individual retirement account that’s great for those long-term investing goals.
- Roth IRA: Roth IRAs are similar to Traditional IRAs. But, they don’t provide any tax breaks now. Rather, they allow for tax-free distributions on qualified earnings in retirement.
- Rollover IRA: Perfect for folks who had a 401(k) at a former employer, rollover IRAs let you transition your pre-existing funds into an individual retirement account.
Opening an Account
After you determine which account type is right for your investment goals, you’re ready to open your Fidelity Go account.
Fidelity Go accounts are currently available to US residents over the age of 18. To open an account, you’ll need to go to Fidelity’s website, navigate to the Fidelity Go page, and fill out the online application.
The application form will also ask you about your financial goals. These questions try to gauge your investing style, risk tolerance, and time horizon. Doing so gives the robo advisor essential information that it needs to create your custom portfolio.
Finally, before opening your account, you’ll get a chance to review your proposed portfolio and investment strategy. This portfolio is designed to get you started, but you can always update your investing profile down the line if your financial situation changes. Doing so will tell the robo advisor that it’s time to rebalance your portfolio so that it best matches your goals.
As soon as you confirm that your proposed portfolio works for you, you’ll go ahead and confirm your account. The last step in the process is to transfer funds into your account. There is no minimum account balance with Fidelity Go, but you will need at least $10 in your account to start investing.
See Also: 7 Best Micro-Investing Apps
Fidelity Go Features
With a Fidelity Go account, you’ll have access to a slew of different features to help you make the most of your investment. Some of the most important features include:
|Minimum Investment||$0 ($10 to start investing)|
|Fees||0% (Accounts $50,000)|
|Investment Types||Portfolios built from Fidelity Flex mutual funds covering seven asset classes|
|Account Types||Individual Taxable, Joint Taxable, Traditional IRA, Roth IRA and Rollover IRA|
|Assets Under Management||Unknown|
|Socially Responsible Investing|
|Support||Live Chat and Phone|
Low Account Minimums
One of the biggest benefits of a Fidelity Go account is the account’s low balance minimums. With a $0 account minimum, Fidelity Go is one of the most accessible robo advisors in the industry.
However, it’s worth noting that you will need at least $10 in your account to start investing. So, while you can open an account and transfer just a few dollars into it, you won’t see any returns on your investment until you have at least $10 in your portfolio.
Portfolio Creation & Asset Allocation
Unlike with a self-directed investing account where you’re in charge of your portfolio, using a robo advisor like Fidelity Go involves handing the management of your account over to Fidelity. To help ensure that your portfolio meets your personal financial profile, Fidelity Go uses a questionnaire-type system to create your ideal portfolio asset allocation.
As we’ve mentioned, when you first open an account, you’ll be asked to answer a bunch of questions about your financial goals, time horizon, and risk tolerance. The robo advisor uses this information to create a portfolio that’s best suited to your needs.
Once you review and confirm your portfolio’s proposed asset allocation, your assets are then invested into Fidelity Flex mutual funds.
Each of these mutual funds is targeted toward a different asset class or investing strategy to help diversify your portfolio. Fidelity Flex mutual funds invest in seven different asset classes such as foreign and domestic stocks, fixed income, real estate, cash, and cash equivalents.
There are currently a few dozen different Fidelity Flex mutual funds, so we can’t say precisely which ones might end up in your portfolio. But, some example funds include:
- US Bond Index Fund (FIBUX) – This bond fund attempts to track the Bloomberg Barclays U.S. Aggregate Bond Index. It invests mostly in intermediate-term US-based bonds with an average maturity of five to ten years.
- Short-Term Bond Fund (FBSTX) – Designed to invest in short-term bonds with an average maturity of two years, this fund tries to offer slightly higher investment returns without adding excessive risk.
- Core Bond Fund (FLXCX) – This bond fund aims to track the Bloomberg Barclays U.S. Universal Bond Index. It invests mostly in high-quality intermediate-term bonds, but it also puts some 20% of the financing in lower-quality bonds to balance risk and reward.
- Inflation-Protected Bond Index Fund (FBUIX) – With this fund, at least 80% of assets are invested in inflation-protected securities such as intermediate-term US Treasury bonds as a lower-risk investment strategy.
- Small Cap Fund (FCUTX) – This stock fund invests mostly in smaller companies, such as those found on the Russell 2000 Index. It invests in a blend of growth and value stocks.
- Mid-Cap Index Fund (FLAPX) – Offering exposure to mid-cap growth and value stocks, this fund attempts to track the US-based Russell Midcap Index.
- Large-Cap Growth Fund (FLCLX) – With this fund, assets are invested in large-cap stocks such as those on the Russell 1000 Index. This fund mostly invests in major corporations with blue-chip stocks.
- 500 Index Fund (FDFIX) – This stock fund attempts to track the S&P 500 Index. It does so by investing more than 80% of assets in the 500 largest US-based stocks.
- International Index Fund (FITFX) – Providing you with exposure to international markets, this fund tries to track the MSCI All Country World Index. This includes some of the largest foreign-held companies in the world, including from Asia, Europe, and South America.
- Real Estate Fund (FFERX) – This fund invests mostly in stocks from companies that are involved in the real estate industry. This includes mortgage lenders or Real Estate Investment Trusts (REITs), the latter of which owns and operates real estate holdings.
While all of these Fidelity Flex funds have different goals and investment strategies, they all share one common trait: They have no management fees and no fund expenses. These funds, which are only available to managed Fidelity accounts, like Fidelity Go, use your account advisory fee to pay for their upkeep, saving you money in the process.
We should note, though, that Fidelity Go accounts don’t currently allow for socially responsible investing (SRI).
Furthermore, you’re also quite limited in the steps you can take to customize your Fidelity Go portfolio. Instead, your only option to change your investment strategy is to update your goals, risk tolerance, and time horizon in your profile. Doing so will trigger the robo-advisor to automatically rebalance your account to match your new goals.
See Also: 12 Best IRA Accounts
Once you open and fund a Fidelity Go account, your money will be invested into Fidelity Flex mutual funds according to your portfolio’s asset allocation strategy.
However, if your account’s asset allocation strays from your target, Fidelity’s robo advisors will automatically rebalance your portfolio. Doing so often means buying and selling various securities within your account to achieve your ideal asset allocation.
Unlike some robo advisor services, Fidelity Go’s portfolio rebalancing doesn’t happen on a schedule. Instead, Fidelity will rebalance your portfolio whenever necessary based on market patterns or changes in your investment strategy to ensure that you stay on track.
However, Fidelity Go does not currently support tax-loss harvesting. So, your account will only be rebalanced to help match your ideal asset allocation, not to help minimize your tax bill.
Access to Other Fidelity Products
While this review is all about Fidelity Go, we can’t overlook the fact that opening one of these accounts also gives you access to the majority of Fidelity’s other products.
As one of the largest financial institutions in the world, Fidelity offers pretty much any investment or cash management tool that you can think of, including:
- Self-directed investing
- Advisor-managed investing
- Wealth management services
- Health Savings Accounts (HSA)
- 529 education savings accounts
- Business investment and retirement accounts
- Charitable investment accounts
- Trust and estate accounts
- Custodial accounts
- Retirement annuities
- Life insurance
- Credit cards
Of course, you will have to apply for and open each of these account types separately. But your Fidelity Go account makes the process as quick and easy as possible.
Fidelity Spire App
Opening a Fidelity Go account gives you instant access to the brokerage’s brand-new Fidelity Spire app. The Spire app provides a user-friendly platform where you can quickly check your account balances and investment returns.
Furthermore, the Spire App provides enhanced goal-setting features, financial education, and other resources to help you make the most of your investments. The app even has a simulated trading feature where you can learn to trade on the stock market without the possibility of losing any real money.
As Fidelity Go accounts are managed accounts, you won’t be able to buy and sell securities in your account on the Spire app. However, if you also have a Fidelity self-directed investing account, you’ll be able to place trades and manage your other account features on the Spire app.
Fidelity Go Pricing & Fees
As we’ve mentioned, Fidelity Go is a low-cost robo advisor. But, what exactly does “low-cost” mean? Here’s a deep-dive into the brokerage’s pricing structure to help you understand the fees and costs associated with a Fidelity Go account:
Fidelity Go is fairly unique in the robo advisor world because it’s one of the only services that doesn’t charge you more for having a lower account balance. In fact, it does the opposite.
With Fidelity Go, you won’t pay anything in management fees if you have less than $10,000 in your account. For accounts with balances of $10,000 to $49,999, you’ll pay $3 per month. Finally, accounts with more than $50,000 in assets will pay a management fee of 0.35% annually.
Ultimately, if you have less than $50,000 in your account, you won’t pay more than $36 per year to invest with Fidelity Go. That’s a pretty low rate, especially when compared to brokerages that charge more to folks with lower account balances.
It’s also worth mentioning that Fidelity Go accounts only invest in Fidelity Flex mutual funds, all of which have no expense ratio. That means that you won’t get charged both a management fee and an expense ratio on the mutual funds held in your portfolio. Over the years, this can save you a whole lot of money in fees.
Other Account Fees
In addition to advisory fees, it’s always important to consider the other costs associated with opening an investment account. The good news is that Fidelity has more or less eliminated all of the fees that are traditionally associated with robo advisor accounts.
They don’t charge trading commissions, transaction fees, or rebalancing fees. Of course, things like wire transfers do incur a charge, but this is standard throughout all financial institutions.
Fidelity Go Security
As one of the largest financial institutions in the world, Fidelity offers top-notch security.
The brokerage uses high-end security tools like two-factor authentication, secured calling, and secured texting. All Fidelity accounts also come with continuous fraud protection and the ability to instantly lock your accounts if you suspect any unauthorized transfers.
Additionally, while it is possible to lose money while investing, Fidelity is a reputable brokerage that’s a member of the SIPC. This means that your assets are protected up to $500,000 in securities and $250,000 in cash if the brokerage fails.
Fidelity Go Pros
- No account balance minimums
- $10 account investment minimum
- Low account advisory and management fees
- Advisory fees are lower for people with lower account balances
- Invests in Fidelity Flex funds with zero expense ratios
- No trading, transaction, or rebalancing fees
- Easy access to all other Fidelity accounts and features
- Access to Fidelity financial planning tools
Fidelity Go Cons
- No tax-loss harvesting features available
- Doesn’t allow for socially responsible portfolios
- Minimal ability to customize your investments
- No option to have a human financial advisor
- Limited selection of account types
- Doesn’t invest in non-Fidelity mutual funds
- Accounts only open to US-based investors
Fidelity Go Alternatives
Not sure if Fidelity Go is right for you? Here are some great Fidelity Go alternatives to check out instead:
Betterment is a user-centric robo advisor that’s popular among investors that want to keep expenses at a minimum. With Betterment, account holders can access a range of financial tools and services, including human-assisted investment advice.
Their robo advisor portfolios offer fractional shares investing, automated portfolio rebalancing, tax-loss harvesting, and socially responsible investing. So, Betterment offers a wider range of different features for more sophisticated investors.
Like Fidelity Go, Betterment also has no account minimum. However, Betterment does charge between 0.25% and 0.4% in annual fees on robo advisor accounts, which is slightly more than Fidelity. However, if you’re okay with spending a little bit more for access to a wider range of features, Betterment is a solid choice.
Read our full Betterment review to learn more.
SoFi Automated Investing
A relatively new player in the robo advisor industry, SoFi Automated Investing is a streamlined way to invest with minimal hassle and expense. Like Fidelity Go, SoFi Automated Investing is all about making the investing process as simple as possible.
The minimum investment is just $1 and SoFi’s algorithms will use your stated financial goals and risk profile to create a portfolio that’s right for you. Similar to Fidelity Go, SoFi also doesn’t charge an annual management fee. But, unlike Fidelity Go, SoFi Automated Investing extends this 0% fee to all account holders, regardless of their account balance.
Furthermore, SoFi also offers socially responsible investing and unlimited access to certified financial advisors. That makes SoFi Automated Investing a nice choice for people who want to have a small amount of control over their investments but that prefer to let someone else handle the details.
Check out our full SoFi Automated Investing review to learn more.
Starting from 0%
Socially Responsible Investing
Assets Under Management
Socially Responsible Investing
Assets Under Management
Digital — 0.25%/yr and Premium — 0.40%/yr
1 year managed for free
Socially Responsible Investing
Assets Under Management
Who Should Sign up for Fidelity Go and Who Should Avoid It?
Fidelity Go is the ideal choice for investors that want a hands-off way to grow their savings. The simplicity and ease of use of Fidelity Go make it a nice option for people that take a passive approach to their personal finances.
Additionally, the fact that Fidelity Go doesn’t have an account minimum means that it’s great for first-time investors. Fidelity Go’s innovative pricing structure also makes it a solid choice for people with lower account balances.
That being said, Fidelity Go’s lack of tax-loss harvesting, socially-responsible investing, and human financial advisor features may make it a non-starter for some more sophisticated investors. Furthermore, the robo advisor’s lack of customization features isn’t ideal for people who like to have more control over their investments.
Ultimately, Fidelity Go is a great place to start investing for folks with smaller assets or for folks that prefer to let someone else handle their investments for them.
Fidelity Go FAQ
Here are our answers to some of your most frequently asked questions about investing with Fidelity Go:
Is Fidelity Go Good for Beginners?
Fidelity Go is a good choice for newer investors because it has no account minimums, which are often a barrier for first-time investors. Furthermore, Fidelity Go charges no account management fee for accounts with less than $10,000 in assets. This makes it a nice option for investors that want to get started with smaller amounts of capital.
Who Chooses My Investments with Fidelity Go?
With Fidelity Go, your investments are chosen for you by a combination of computer-driven algorithms and the investment professionals at Strategic Advisers LLC. Strategic Advisers LLC is an investment advisory firm that’s a subsidiary of Fidelity Investments.
At the end of the day, Fidelity Go is a low-cost option for hands-off investors that want to open an account with a major financial institution. The service offers an easy-to-use platform for anyone to start investing without the high account minimums and fees that you often find at large brokerages.
At the same time, Fidelity Go’s lack of sophisticated features, like tax-loss harvesting and human financial advice, make it less suitable for advanced investors.
But, if simplicity, affordability, and reliability are important to you, Fidelity Go might be a solid choice.
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