Fidelity Investments Review

For many, Fidelity Investments is the gold standard when it comes to gold IRA companies. They assist thousands of commercial and personal clients every day to maximize the amount of their 401k or IRA. Available nationwide with several offices in metropolitan areas, you can easily walk into a Fidelity office and rollover your retirement account, begin investing into precious metals, or focus on a precious metals IRA if you wish.

Could they be the right investment representative for you? Here are some of the details of what managing an IRA with Fidelity is like right now.

How Much Does It Cost To Have a Gold IRA?

At Fidelity Investments, you’re going to pay a margin fee above any trade that you fail to complete during the day. In terms of a gold IRA, that means you may end up owing an additional 8.5% on top of any margin you may owe at the end of any trading day. All equity trades in the United States involving your IRA or 401k will also have a $7.95 fee per trade, whether buying or selling. Options trades include an additional $0.75 per contract.

Market orders are a possibility, but this generally involves the purchase of an ETF – although some tangible assets can be purchased directly. That means you’re purchasing a paper representation of gold, sort of like a stock, instead of a tangible asset. Although priced similarly to real gold, what happens if there’s an emergency? Are people going to want the paper or are they going to want the real thing?

One nice aspect of having an online account with Fidelity Investments is that it is very easy to see if you’re on pace for retirement goals. Called myPlan, your gold IRA can be measured up to what your retirement needs happen to be so you can know if added investments into the tax advantaged account are required.

What Types of Precious Metals Are Offered?

Instead of purchasing inventory items, at Fidelity Investments you’re going straight through the market for the purchase of a commodity. That means you have fewer options available to you, especially if you prefer rare coins, but you also have more safety throughout the entire transaction process. You can trade in all valid precious metals that are available to an IRA or a 401k. You simply place your buy or sell order and then Fidelity takes the work from there.

In order to begin purchasing precious metals from Fidelity Investments, you will need to make a minimum initial investment of $2,500. Orders must be placed in either whole ounces or by a whole number of coins. Fidelity explicitly says this on their website: “The precious metals market is extremely volatile, and investing directly in physical precious metals may not be appropriate for most investors.”

It is clear that Fidelity encourages the trade of ETFs to most investors and discourages that trade of physical precious metals.

How Is the Buying and Selling Process Handled?

There are two basic ways to work with Fidelity Investments to make trades. You can walk into a local office and initiate a trade from there or you can start the process online after you’ve rolled your IRA or 401k over into a Fidelity account and setup an account through their secure website. Trades are negotiated from the moment you initiate the buy order and you’ll have an idea of the maximum that you’ll be paying based on that order.

If you are purchasing precious metals, then there are fees that are based on a percentage of the gross value amount of the purchase. The minimum fee is 0.99% on the entire purchase and that applies to orders above $100k. For orders below $10,000, the fee is 2.9%. Selling precious metals out of the gold IRA at Fidelity also involves a minimum 0.75% fee on the gross value. Sales under $50k have a 2% fee.

What Timeframes Can Be Expected?

If you’re trading on behalf of your gold IRA, then you won’t see any of the tangible assets, but you will get same-day confirmation of your requests – especially if you place your buy or sell order online. If you’re trading on behalf of yourself, it may take up to 90 days for you to receive your tangible assets depending on the specific details of the purchase.

It is important to note that only 5 specific coins are permitted to be held within the context of a gold IRA at Fidelity Investments. Only American coins are allowed and include the American Eagle, American Buffalo, Silver American Eagle, and Platinum American Eagle. Bullion quality bars are also available for purchase.

Is Fidelity Investments the Right Gold IRA Company To Choose?

In looking at Fidelity Investments, the first thing you’ll notice is that there are a lot of complaints filed against them from a wide variety of sources. To some extent that’s expected for an organization that has a large national presence because negative incidents are almost always reported and good ones only rarely. When you look at the complaints, however, a problem is repeated over and over: decisions are made without the consent of the customer, often when it is believed that customer doesn’t realize they have legal recompense.

The advantage that Fidelity Investments offers is that they are a full-service brokerage firm that offers all available account options. It is easier to create multiple investment options for a diverse portfolio than with many other companies, but this isn’t necessarily an advantage to the individual who wants to begin a gold or precious metals IRA.

For a good, ethical company that listens to you, we fully recommend Regal Assets over Fidelity Investments. Although there are online trading advantages if you’re looking for stocks or ETFs to meet your precious metals needs in a tax-advantaged retirement account, there are disadvantages to the trading of physical, tangible items. You deserve to know how your gold IRA company is representing you and that’s what you’ll get when your retirement account is with them.