Fidelity, a blue-chip name in investing, now offers crypto options. You can buy Bitcoin, Ether, and Litecoin from your brokerage account or through ETFs. The platform also offers commission-free trading.
Fidelity’s crypto accounts are held by Fidelity Digital Asset Services, LLC, a limited-purpose trust company that operates under bank-style oversight and protections. These accounts are not FDIC or SIPC-insured.
Fees
Fidelity Crypto is an interesting entry into the digital asset market from a traditional financial institution. It has a lot to offer mainstream investors: big-brand trust, an integrated way to add BTC/ETH/LTC to a traditional portfolio, and clear pricing and custody. It also offers spot crypto ETFs in a regular brokerage account (FBTC and FETH) for broader, “picks and shovels” exposure. Its low-drama, all-in-one approach is attractive to long-term investors who prefer stock-like wrappers to holding coins directly.
The platform offers a layered approach to security, starting with pooled assets and continuing with physical protections, network precautions, and privacy measures at the blockchain level. Its regional availability is intentionally limited to align with US financial regulations, and it holds money transmitter licenses in multiple states. Its parent company, Fidelity Investments, has more than 75 years of experience in the mutual fund industry.
Another key differentiator from most exchanges is that Fidelity’s custodial services are in-house. This means that you won’t be sharing your assets with third-party custodians, which can sometimes lead to data breaches. Moreover, Fidelity will never rehypothecate your funds, which is an important safeguard against fraud.
Unlike most exchanges, Fidelity does not charge transaction fees. The platform is free to use and offers a variety of order types, including market and limit orders. However, advanced order types, such as OCO/OTO, trailing stops, and advanced margin trading, are not available. In addition, the platform does not charge account maintenance or custody fees. However, users should be aware of the network fees charged when transferring out of the platform to external wallets.
While it is a positive sign that Fidelity is making moves in the cryptocurrency space, many users will find its offering to be limited compared to other newer platforms. In particular, its lack of a large list of coins is likely to be an issue for power users, and it does not offer advanced features such as margin trading or OCO/OTO.
Additionally, users should be aware that their crypto transactions are taxable. In the US, this can mean paying either capital gains or income taxes, depending on the type of transaction and how long you’ve held the assets. To avoid potential tax penalties, consider using Koinly to calculate your crypto taxes automatically.
Trading tools
Fidelity Crypto focuses on integrating digital assets into a broader investment account, so advanced features like margin trading and complex charting are absent. This makes the platform more suitable for passive buy-and-hold strategies rather than active day trading. Similarly, the coin selection is intentionally narrow, with only Bitcoin, Ethereum, and Litecoin available for trading. This simplicity may appeal to new investors, but experienced traders looking for a broader portfolio will need to look elsewhere.
Security is a key aspect of the platform. Fidelity takes a layered approach to protecting client assets, including pooling, physical protections, and network precautions at the blockchain level. They also use two-factor authentication and secure login processes to prevent unauthorized access to user accounts, as well as monitor suspicious activity. Furthermore, their services are regulated by the US government, providing peace of mind that they’re following strict regulatory standards.
In addition to these security measures, Fidelity also offers a variety of trading tools for those who want to trade their coins actively. The website is mobile-friendly and uses a straightforward interface with simple white backgrounds accented by green action buttons. However, the platform can feel a little slow and unresponsive at times. In addition, it doesn’t offer a paper trading account, which would make it difficult to test trading strategies without risking real money.
Despite these drawbacks, Fidelity Crypto is a good option for beginners who are new to the world of cryptocurrency trading. Its centralized custody system offers greater security than other exchanges and provides an easy-to-use experience for newcomers to the industry. Its fee structure is also competitive, offering a flat 1% spread on all purchases and sales.
Fidelity Crypto is a service of Fidelity Digital Assets, LLC, which is a registered broker-dealer and member of NYSE and SIPC. The company holds Money Transmitter licenses in over ten states, demonstrating its compliance with state-level financial regulations and anti-money laundering laws. Fidelity is one of the few exchanges to operate in this way, allowing it to provide additional services such as identity verification and Know Your Customer checks prior to opening an account.
Margin rates
The margin rates associated with Fidelity Crypto Trading are relatively low compared to other brokers. They are based on the rate at which the broker lends money to investors, and vary depending on the securities you pledge as collateral. They can also be higher than those of other loan sources, such as credit cards. For this reason, you should carefully consider the risks and costs before borrowing on margin.
2025 Kiplinger’s Personal Finance. Fidelity Investments was named Best Online Broker for Beginning Investors, Best App for Investing, and Best Robo-Advisor for Low-Cost Investing. (Click to see full ratings and details)
Margin trading entails greater risk and is not suitable for all investors. This includes the potential for losses and the incurring of margin interest debt, which the Securities Investor Protection Corporation or other government agency does not protect.
Security
Fidelity takes security seriously and employs multiple layers of protection for your assets. This includes the use of strong encryption, firewalls, and proactive 24/7 system surveillance. Additionally, we use voice biometrics to verify clients and block unauthorized movement of funds from their accounts. We also offer additional account protections such as 2-factor authentication and a mobile app that can alert you to suspicious activity.
Investing in crypto involves risk, including the risk of total loss. The price of crypto may fluctuate, and the Federal Deposit Insurance Corporation or the Securities Investor Protection Corporation does not insure investments in digital assets. As a result, investors should only invest in crypto with an amount they are willing to lose.
Investors should carefully consider the investment objectives, risks, charges, and expenses of an exchange-traded fund before investing. This information can be found in the fund’s prospectus or offering circular. Investors should also review the fund’s daily pricing and yield performance, as well as its historical return, distribution rate,s and fees.
The securities and investments offered by Fidelity Investments are not insured or guaranteed by the Federal Deposit Insurance Corporation or the Securities Investment Protection Corporation. They are subject to market volatility and illiquidity. These products are not suitable for all investors.
A growing number of investors are investing in cryptocurrencies. But many are confused about what custody options are available. This guide explains Fidelity’s custody offerings in plain language. It also outlines where protections end and how insurance works (and doesn’t work). It includes practical steps, eps whether you choose self-custody, go with a platform,orm or take a hybrid approach.
Choosing custody is like choosing where to keep valuables: convenience, access,ccess and trust all trade off. Using cold storage and operational controls reduces some remote-hack risks but doesn’t remove insider, contract, or regulatory freeze exposures. Private insurance can help after some thefts, but coverage has limits and exclusions. Check the insurer’s specific wording and caps – assumptions about unlimited coverage or SIPC-like protection are incorrect. Fidelity’s custodial services are covered by FDAS’ contractual terms and private insurance – not the broad SIPC backstops that brokerage cash and securities get.
