When it comes to managing your investments and planning for retirement, two big names often come to mind: Fidelity and Ameriprise. Both companies offer a range of financial products and services to help individuals invest and grow their money over time. But how do you know which one is the better fit for your needs?
In this comprehensive guide, we’ll compare Fidelity and Ameriprise across several key factors to help you determine the right financial services provider for your unique situation. We’ll look at their offerings, fees, financial strength, customer service, and more.
Whether you’re just getting started investing or are looking to consolidate accounts, read on to learn the main pros and cons of Fidelity and Ameriprise.
A Brief Comparison Table
| Category | Fidelity | Ameriprise |
| Investment Products | Huge selection of mutual funds and ETFs, over 3,500 available commission-free | More limited lineup focused on Columbia and American Funds offerings |
| Advisory Services | Digital-first robo advisors starting at 0.35%. Extra fee for dedicated advisor support. | Bundled financial planning and investment management from human advisors, starting at 1.25% |
| Minimum Investments | $0 minimums for most retail investing accounts | $500 – $2,500 minimums for most accounts |
| Fees | Avg. 0.52% expense ratio on Fidelity mutual funds, $4.95 equity trades | Avg. 0.81% expense ratio on Columbia funds, $0 equity trades |
| Financial Strength | Over $11 trillion in assets under management. AAA credit rating. | Over $1 trillion in assets under management. A+ credit rating. |
| Customer Service | 4.5 stars average across 200,000+ reviews | 3.8 stars average across 700+ reviews |
| Best For | DIY investors prioritizing low fees and extensive investment choices | Investors who value personalized, face-to-face financial planning and advice |
Overview Of Fidelity
Founded in 1946, Fidelity is one of the largest financial services companies in the world today. They offer retail brokerage services, mutual funds, ETFs, managed accounts, workplace retirement plans like 401(k)s, and more.
Some key facts about Fidelity:
- Based in Boston, MA
- Over $11 trillion in assets under administration
- 30+ million individual investors and 23,000+ businesses/organizations as clients
- 4,000+ mutual funds and ETFs available for purchase
- Online, mobile, in-person, and advisory services available
Pros
- Huge selection of investment products and accounts
- Low fees on many mutual funds and brokerage services
- Strong mobile and online experience
- Good workplace retirement plan options
- No minimum balances for most accounts
Cons
- High fees on some actively managed funds
- Limited branch locations compared to competitors
- Less personalized advisory services
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Overview Of Ameriprise
Originally founded in 1894, Ameriprise provides financial planning, asset management, insurance, annuities, banking products, and more.
Here are some quick facts on Ameriprise:
- Headquarters in Minneapolis, MN
- Over $1 trillion in assets under management
- 2 million+ individual clients served
- 10,000+ financial advisors
- Face-to-face, online, phone, and mobile services
Pros
- Personalized financial planning and advice
- Large network of financial advisors
- Wide range of accounts and products
- Competitive rates on cash management accounts
- Strong customer service reputation
Cons
- Account minimums can be high
- Numerous fees to be aware of
- Mixed reviews on managed portfolios
- Smaller selection of mutual funds and ETFs
Now that we’ve provided an overview of Fidelity and Ameriprise, let’s do a deep dive into how they compare across several important categories.
Investment Products Offered
When it comes to investing your money, both Fidelity and Ameriprise offer brokerage accounts, IRAs, mutual funds, ETFs, managed portfolios, and more. However, there are some key differences in their offerings:
Fidelity
- 4,000+ mutual funds from hundreds of fund companies
- Commission-free trading on over 3,500 Fidelity mutual funds
- Leading selection of index funds and ETFs, many with no expense ratio
- Robust research and screening tools
Ameriprise
- 120+ mutual funds from Columbia Threadneedle and 100s more available
- 2,700+ mutual funds available overall
- 130+ ETFs covering major indexes and sectors
- Access to American Funds not available at other brokers
- Separately managed accounts and AdvisorChoice model portfolios
Fidelity shines when it comes to mutual fund and ETF selection. You’ll find just about every major fund and ETF available there commission-free. Ameriprise has a smaller lineup focused on proprietary Columbia funds and American Funds offerings. Fidelity takes the edge here for everyday investors looking for low-cost, diversified funds.
However, Ameriprise may appeal more to investors who want professional management via separately managed accounts. Their AdvisorChoice models cover most major assets classes as well if you want a ready-made diversified portfolio.
Also Read: Comparison Between Alliant Credit Union And Navy Federal.
Advisory Services Offered
In addition to DIY investing, both Fidelity and Ameriprise offer advisory services that provide customized investment management and financial planning:
Fidelity
- Fee-based advisory services starting at 0.35% of assets
- Digital-first option in Fidelity Go with a 0.35% fee
- Access to CFP professionals for a fee
- Retirement planning tools and resources
Ameriprise
- Personalized financial plans included with advisors
- Access to dedicated advisor with face-to-face support
- Custom portfolios tailored to goals and risk tolerance
- Ongoing money management for fees starting at 1.25%
The biggest distinction here is human Vs. digital advice. Fidelity offers lower-cost digital advisors that are ideal for more hands-off investors. But you’ll need to pay an extra fee for personalized financial planning.
In contrast, Ameriprise bundles financial planning with its investment advisors. So you get holistic advice and money management in one – but for a higher typical fee. Ameriprise also has a large national network of advisors you can meet in person.
So Ameriprise is better if you prefer face-to-face guidance and hand-holding. Go with Fidelity for quality robo-advising on a budget.
Account Minimums And Fees
Cost is often one of the most important factors when choosing an investment provider. Here’s how Fidelity and Ameriprise compare when it comes to minimum investments and ongoing fees:
Fidelity
- $0 minimums for retail brokerage, IRAs, robo-advisor
- Most mutual funds can be purchased with no minimum
- Average expense ratio of 0.52% on Fidelity mutual funds
- $4.95 equity trades, $0 option trades, $0 mutual fund trades
Ameriprise
- $500 – $2,500 minimums for most account types
- $5,000 minimum for portfolio management account
- Account fees up to $149/year depending on size
- Avg. expense ratio of 0.81% on Columbia funds
- $0 equity and ETF trades, $0 – $30 mutual fund transaction fees
For the buy-and-hold investor making infrequent trades in no-minimum mutual funds, the trading and transaction fees are negligible at either broker. But Fidelity clearly stands out for its complete lack of minimum investments for core accounts. This removes barriers for new investors who want to start small.
Ameriprise provides some fee-free trades as well, but you’ll need to maintain higher minimum balances to avoid recurring account fees. For larger portfolios, these fees are less concerning. But Fidelity gets the advantage for low-cost, low-minimum investing.
Financial Strength And Stability
No matter which firm you choose, you want it to be financially stable and able to weather market volatility. Here’s how Fidelity and Ameriprise compare:
Fidelity
- Over 50+ years in business as a private company
- AAA credit rating from Standard & Poor’s
- $11B+ in operating income, $217B+ in equity
- Member SIPC insurance protects assets up to $500,000
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Ameriprise
- In business for over 120 years
- A+ credit rating from Standard & Poor’s
- $1.8B in operating income, $3.5B+ in equity
- Also a member of SIPC
Both companies are leaders in the financial services industry with strong balance sheets and lengthy track records. Fidelity has the advantage of scale with over 3x the assets under management and 6x the revenue compared to Ameriprise. But both firms have earned stellar credit ratings signalling long-term financial health.
For insurance in case of broker insolvency, the Securities Investor Protection Corporation (SIPC) protects account securities up to $500,000 at each firm. Additional asset protection may be provided to clients as well.
Ultimately, both Ameriprise and Fidelity represent very low risks from a financial stability perspective given their size, history, and high credit. Go with the firm that best fits your needs as an investor.
Also Read: Comparison Between Fisher Investments And Ameriprise.
Customer Satisfaction And Reviews
It’s always helpful to hear directly from other investors on their experiences. Here are some key customer satisfaction stats for each company:
Fidelity
- 4.5 out of 5 stars average across 200,000+ reviews
- 73% of customers say they’d recommend Fidelity to a friend
- Positive feedback for low fees, zero minimums, and transparent pricing
- Some complaints around website glitches and tough-to-reach support
Ameriprise
- 3.8 out of 5 stars across 700+ reviews
- 68% of customers would recommend Ameriprise
- Praised for quality face-to-face advisory services
- Criticized by some DIY investors for pushy advisors and high fees
Looking at third-party review sites and surveys, Fidelity appears to come out a bit ahead in overall customer satisfaction. Investors seem particularly happy with Fidelity’s low costs and lack of investment minimums.
Reviews for Ameriprise are more mixed. Feedback is very positive from those who use Ameriprise financial advisors but less stellar from do-it-yourself investors utilizing the brokerage services. This aligns with Ameriprise’s greater focus on advisor-client relationships versus pure investment management.
Frequently Asked Questions (FAQ)
Ameriprise is one of the larger full-service investment firms, ranked in the top 25 with over $1 trillion in assets under management. It’s known best for its personalized financial planning and advisor services. However, it trails leading discount brokers like Fidelity when it comes to low-cost self-directed accounts.
Yes, Fidelity is an excellent option for DIY investors who want to manage their own money. Benefits include low trading costs, $0 minimums on most accounts, and an outstanding selection of mutual funds and ETFs. Advisory services are available too for those seeking professional management.
With over 120 years in business and an A+ credit rating, Ameriprise is very financially sound. They have sufficient capital, manage risk prudently, and have high confidence from ratings agencies. SIPC insurance also protects accounts up to $500,000.
Fidelity Investments is consistently ranked as one of the top investment firms and mutual fund providers. It’s the #1 largest brokerage by accounts and trading volume. For mutual funds, Fidelity ranks third by assets under management behind Vanguard and American Funds.
Also Read: Comparison Between BlackLine And Trintech.
The Bottom Line
When weighing Fidelity against Ameriprise, Fidelity has the advantage for low-cost DIY investing with its $0 minimums and index mutual fund focus. Ameriprise shines when it comes to personalized financial advice and planning, especially for those who value face-to-face guidance.
Think critically about your specific needs. Are you a hands-on investor looking for retirement account basics at the lowest cost? Or do you prefer delegating management to professionals even at higher fees? Your priorities here will determine whether Fidelity or Ameriprise is a better fit as your financial services provider.
