As a savvy investor, it is important to carefully review and understand your brokerage account’s customer agreement. Today, we will focus on the customer agreement for Fidelity Investments, one of the largest and most respected brokerage firms in the world.
First, let’s define a customer agreement. This is a legally binding contract that establishes the terms and conditions between the brokerage firm and the account holder. It covers areas such as account opening and maintenance, trading and investment policies, fees and charges, termination, and dispute resolution.
One of the most important sections of the Fidelity Investments customer agreement is the account opening and maintenance requirements. You will need to provide personal information, such as your name, address, Social Security number, date of birth, and employment information. You will also need to select the type of account you want to open, such as an individual account, joint account, or IRA.
Once your account is open, you will need to maintain a minimum balance or deposit, depending on the type of account. For example, a Fidelity brokerage account requires a minimum deposit of $2,500. If your account falls below the required minimum, Fidelity may charge fees or close your account.
The customer agreement also covers trading and investment policies. Fidelity offers a wide range of investment options, including stocks, bonds, mutual funds, ETFs, and options. However, the customer agreement outlines restrictions on certain types of transactions, such as short selling or margin trading.
You should also be aware of the fees and charges associated with your Fidelity account. Fidelity charges commissions on trades, as well as fees for certain services, such as wire transfers, check writing, and paper statements. You can find a full list of fees on the Fidelity website or by contacting customer service.
Finally, the customer agreement outlines the process for terminating your account or resolving disputes with Fidelity. If you want to close your account, you will need to follow the instructions provided by Fidelity and may be subject to fees or penalties. If you have a dispute with Fidelity, you can file a claim through the firm’s arbitration process or seek resolution through the courts.
In conclusion, understanding the Fidelity Investments customer agreement is essential for managing your brokerage account and protecting your investments. Be sure to carefully review the terms and conditions before opening an account and contact Fidelity customer service if you have any questions or concerns. Happy investing!
