Fidelity Investments has rolled out a commission-free crypto trading product for retail investors despite lukewarm market sentiment.
This month, the brokerage made early access available to customers who wanted to join the waitlist. However, the official date to access “Fidelity Crypto” accounts is still unknown.
According to the company’s FAQ, invitations will be distributed based on sign-up timing and eligibility.
The website specifies, “Fidelity Crypto is your opportunity to buy and sell bitcoin and Ethereum in the Fidelity Investments app. Users will be able to trade crypto with as little as $1 while also having an integrated view of both your traditional and crypto investments.”
Fidelity Allows Both Traditional and Crypto Investments
Fidelity will soon reveal its custody and trading facilities of the supported coins. After which, users can monitor both traditional and cryptocurrency investments simultaneously.
According to the platform, a free commission offer only applies to online Fidelity ETF purchases made through a Fidelity retail account. The rest of the ETF sales are subject to an activity assessment fee. It can range from $0.01 to $0.03 for every $1,000 of principal.
“You will not be charged a commission on bitcoin or ether (“crypto”) trades placed through Fidelity Crypto,” the platform states.
However, with market sentiments remaining weak, the platform has also disclaimed the risk of loss.
Fidelity emphasized in an email that “investing in, buying, and selling digital assets presents a variety of risks that are not presented by investing in, buying, and selling products in other, more traditional asset classes.”
Younger Users Targeted
The privately-owned company also provides wealth management services along with 401(k) rollovers and retirement services, among other offerings. Recently, Democratic Senators called on Fidelity to rethink their retirement offering that permits customers to use bitcoin in 401(k) plans.
According to Fidelity’s Q3 retirement analysis, retirement savings rates were stable in the third quarter. The company also an increase in the number of account holders.
However, the domino impact of the FTX collapse is keeping the regulators worried. This month, the Ontario Teachers’ Pension Plan wrote down its $95 million FTX investment amid the collapse.
Despite macro challenges, Fidelity Investments is also continuing to hire staff to expand its customer base. On the investor front, Fidelity told Business Journal that young investors between the ages of 18 and 35 opened over half of all new retail accounts. Noting it as a higher percentage than seen in Q1 2021, Fidelity aims to target the same group with its new crypto offerings as well.
“Customers of all ages and from all life stages are demanding best-in-class digital experiences and personalized, in-depth planning services,” CEO Abigail Johnson said. “To meet these evolving customer needs, we are expanding Fidelity’s digital tools and launching new investment products and services.”
The younger age group has made up more than 40% of the company’s new retail for seven consecutive quarters; the paper quoted the company.