An article in Financial Advisor IQ about Fidelity cutting fees on its robo platform quotes Corporate Insight analyst Jackson Arnold.

Fidelity Investments is luring mass affluent investors by providing its pure robo-advice offering for little or no charge for small balances, according to news reports.

The move toward tiered pricing brings Fidelity in line with robo-advice startups such as Acorns and Ellevest, but waiving fees for small accounts does give Fidelity a competitive edge, says Jackson Arnold, analyst at Corporate Insight, according to Ignites.”


Fidelity Investments is luring mass affluent investors by providing its pure robo-advice offering for little or no charge for small balances, according to news reports.

Launched in 2015, Fidelity Go had charged 35 basis points in annual fees on all accounts, FA-IQ sister publication Ignites writes. Starting Aug. 1, however, it will not charge an advisory fee on accounts with less than $10,000, while those with between $10,000 and $49,999.99 will pay a monthly fee of $3, according to Ignites, which cites a new regulatory disclosure. Accounts with $50,000 or more will continue paying the 35 bps fee, the publication writes.

In addition, Fidelity will not earn management fees or expense ratios on accounts with less than $10,000, while those with up to $49,999.99 will earn it $36 a year and those with $50,000 or more will earn the company $175 a year, according to Ignites.

Read the full News story here »

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