Quote:
Originally Posted by Aces4
Does Fidelity do this for people out of the goodness of their heart or are there fees?
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It is a very competitive industry and not the “goodness of their heart”.
Since Fidelity (and Vanguard as well) have very little bricks and mortar their costs are lower than the big banks. No transaction fees to buy bonds or CD’s … they make their money on these from the bid/ask spread. No fees for checking or brokerage accounts .. Small fees for trading stocks.
Fidelity makes their money in their 401k business and managing/selling their mutual funds and ETF’s. They have $9.6 trillion under management and $24 billion revenue. They are a private company, but i believe they are very profitable
I have used Fidelity for checking & online bill pay for years without issue.