News | 01.05.21
Fidelity’s Challenge Is to Turn Day Traders Into Longtime Clients
Fidelity Investments ended the third quarter with $8.8 trillion in assets under administration, or what investors held in brokerage and retirement accounts on the firm’s platform, and in its funds, up from $8.32 trillion in December 2019. The firm processed 2.2 million trades a day through September 2020, nearly twice what it had during the year-earlier period, and has added more than 3.5 million new accounts since the end of 2019. The tally of new accounts ticked even higher in the fourth quarter, according to the firm. But a large chunk of the new money coming in pays little or no commissions or fees. Fidelity’s strategy has been to attract as many new investors to its platform as possible with low- or no-cost services. Once they are in, the firm is betting many will graduate to more lucrative offerings such as financial advice.
Read the full article on Wall Street Journal.