Is Fidelity safe? 2025 full guide

Fidelity Investments is one of the largest investment companies in the US. It offers retirement accounts, brokerage services, and other financial products for millions of customers.

If you're thinking of opening an account - or even if you already have one - you may wonder if your money is protected with Fidelity. Since you're often investing your life savings or retirement funds, it's important to know that your assets are secure.

So, how safe is Fidelity Investments? We’ll answer all your questions in this guide.

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Table of contents
Is Fidelity safe to use? Is Fidelity safe to hold large amounts of money? What are Fidelity's safety features? Pros and cons of Fidelity What’s the best way to send money internationally? Tips and tricks for avoiding scams Bottom line: Is Fidelity safe?

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Is Fidelity safe to use?

Yes, Fidelity is a trustworthy financial institution with a long track record of protecting customer assets. Your money is protected in multiple ways, whether you're using the platform for stock trading, managing your retirement accounts, or other purposes.

There are different types of insurance coverage and cybersecurity measures in place. More on that later.

Is Fidelity safe to hold large amounts of money?

Thanks to their comprehensive protection programs and cybersecurity measures, Fidelity is a safe and reliable option for holding large amounts of money. It's designed to do just that.

There are several investment options available to you with Fidelity:³

• Stocks
• EFTs
• Mutual funds
• Bonds & CDs
• International
• Precious metals
• Crypto

Your investments are likely going to be covered by either the Federal Deposit Insurance Corporation (FDIC) or the Securities Investor Protection Corporation (SIPC).¹ We’ll dive into each below.

Plus, the Fidelity Customer Protection Guarantee promises to reimburse you for any losses from unauthorized account activity.²

What are Fidelity's safety features?

Fidelity protects your money through multiple layers of security. This typically includes federal insurance, extra coverage, and strong cybersecurity measures.

FDIC insurance¹

The FDIC is a government agency that protects your money if a bank fails so that you don't lose your savings. The Federal Deposit Insurance Corporation (FDIC) protects your cash deposits at Fidelity for up to 250,000 USD.

FDIC coverage usually applies to the following:

• Certificates of deposit (CDs)
• Cash in management accounts
• Cash in retirement accounts and health savings accounts
• Money in Fidelity's Deposit Sweep Program

This protection means that your cash is safe even in the unlikely scenario that Fidelity (or the banks that they partner with) shuts down.

SIPC coverage¹

The Securities Investor Protection Corporation (SIPC) is a nonprofit organization that protects your stocks, bonds, and other securities if Fidelity were to fail or go bankrupt.

This coverage includes:

• Up to 500,000 USD in securities
• Up to 250,000 USD in cash held for investment
• All Fidelity brokerage accounts

Fidelity also provides additional coverage beyond SIPC limits called "excess of SIPC." This extra protection provides up to 1 billion USD in total coverage and up to 1.9 million USD for cash awaiting investment.

It's the maximum currently available in the brokerage industry.

Customer Protection Guarantee²

Fidelity promises to reimburse you for any losses from unauthorized activity in your accounts, as long as you check your accounts regularly, review statements within 30 days, and report suspicious activity immediately.

Make sure to keep your contact information up-to-date so that you can receive communications about your account activity. This protection applies to your Fidelity brokerage accounts, crypto accounts, and retirement plan accounts.

Cybersecurity⁴

Fidelity knows that they're a likely target for hackers and scammers, so they use multiple security layers to protect your information. Your data is protected with cybersecurity measures such as:

• 24/7 network monitoring
• Firewalls and anti-malware protection
• Secure data centers with round-the-clock security
• Regular security training for all staff
• Strict access controls for sensitive information

Overall, Fidelity vigilantly monitors your investments and personal data so that all of your assets are safe.

Pros and cons of Fidelity

Fidelity is a leading investment company in the US, but you may still wonder, "Is Fidelity good?". Here are some pros and cons to consider.

Pros	Cons
Different investment options in one place, including crypto User-friendly mobile app and trading platform Strong reputation and financial stability FDIC insurance, SIPC coverage, and cybersecurity measures in place	High fees for broker-assisted trades International wire transfers have currency conversion markups⁵

Overall, Fidelity is a safe and reliable option for long-term investors who want a secure, established platform.

What’s the best way to send money internationally?

Banks are certainly one option for sending money internationally, as are services like PayPal. But the problem with banks is they can often be slow, expensive and inconvenient. Luckily, there’s a better alternative out there.

You can send money worldwide with Wise for low fees and the mid-market exchange rate. It’s easy and quick to set up a payment online, and you’re guaranteed secure transfers even when sending large sums.

Wise is a money service business (MSB) regulated by 12 international financial authorities, and uses sophisticated security features to keep you and your money safe.

Open a Wise account, and you can send, spend and convert between 40+ currencies whenever you need to. You can even receive money from all over the world using your own local account details.

As if all that wasn’t enough, there’s a Wise Multi-Currency Card too. For a one-time fee of just $9, you can spend in over 150 countries in the local currency. Your USD is automatically converted at the mid-market rate, for just a small conversion fee.

Open a Wise account today

💡 Need to make a business payment? With the Wise Business account, you can send up to 1,000,000 USD per transfer from licensed states.

Some key features of Wise Business include:

Better visibility and organization of business finances. This is helpful for account reconciliations and audits Major local account details for a simple one-off fee to receive international payments with ease No monthly account fees or minimum balance requirements Receive payments from e-commerce platforms such as Amazon or via Stripe Create invoices using the free Wise invoice generator or invoice templates Accounting integrations, including a QuickBooks Bill Pay connection Access to BatchTransfer: Signing up to Wise Business allows access to BatchTransfer which you can use to pay multiple invoices in one go.

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Discover the difference between
Wise Business vs Personal

Tips and tricks for avoiding scams

Fidelity does their best to keep your funds and personal data secure, but you also should stay vigilant and aware of potential scams. Here's how to do that.

• Boost your login protection: Set up two-factor authentication on your Fidelity account and create a unique password that's not easy to guess. Also, never share your login credentials with anyone, even if they claim to be from Fidelity

• Monitor your accounts: Regularly check your account activity and set up alerts for trades, withdrawals, and other transactions. If you notice something suspicious, get in touch with Fidelity right away

• Watch out for phishing attempts: Be suspicious of emails claiming to be from Fidelity that ask you to verify account information or click on links

• Verify investment opportunities: Be wary of anyone pressuring you to make fast investment decisions or promising guaranteed returns. If something feels too good to be true, it probably is

Fidelity is a safe provider, but it's hard for them to protect you if you willingly send money to scammers. So, keep your login information private and always think all financial decisions through before taking any action.

Bottom line: Is Fidelity safe?

Fidelity is one of the most secure financial institutions you can trust with your money.

Your account will likely be protected by federal insurance, additional security coverage, and strong cybersecurity measures. That said, no provider is completely immune to security threats, so it's important to be aware of scams and keep your account information secure.

Sources

1. Fidelity - Financial security
2. Fidelity - Fidelity customer protection guarantee
3. Fidelity - Investment choices
4. Fidelity - Our security measures
5. Fidelity - Foreign currency wire transfers

Sources checked 01.23.2025