Kevin JohnsonFidelity Investments is a leading multinational financial services company headquartered in Boston, Massachusetts. The company was founded in 1946 as Fidelity Management & Research (FMR). FMR launched Fidelity International Limited (FIL) in 1969 to serve non-US markets. This division spun off in 1980 into an independent, employee-owned business.
Fidelity started offering 401(k) products in 1982 and introduced computerized stock trading in 1984. In Oct 2019, the company launched Fidelity Digital Asset Services to provide crypto custody and trading.
Fidelity is one of the world’s largest asset managers, with $11.1 trillion under administration as of March 2023. In Jan 2023, Fidelity had 68,000 employees and plans to expand its workforce by 4,000 in the first half of 2023. [1]
Fidelity operates a brokerage firm, manages mutual funds, and provides fund distribution and investment advice. It also offers retirement services, index funds, wealth management, asset custody, securities execution and clearance, and life insurance.
In Mar 2021, Fidelity filed for a Bitcoin exchange-traded fund (ETF), but the SEC denied the application. In 2023, Fidelity filed for a spot in Bitcoin ETF. Providing Bitcoin ETF can help Fidelity fend off strong competitors, including BlackRock. The company also faces stiff competition from Vanguard, Schwab, TD Ameritrade, and E-Trade. [2]
Here is an in-depth analysis of Fidelity’s top 15 competitors and alternatives:
1. BlackRock, Inc.
Year founded: 1988
Headquarter: New York City, New York
BlackRock is an American multinational investment company. It started as an enterprise risk management and fixed-income institutional asset manager and later expanded its offerings. As of Dec 2022, BlackRock managed $8.59 trillion in assets.
BlackRock is the world’s largest asset manager. In Jun 2023, BlackRock filed for a spot Bitcoin ETF with the US SEC, and Fidelity responded by reapplying for Bitcoin ETF with the SEC two weeks later. BlackRock is the top Fidelity competitor and alternative. [3]
2. Vanguard Group, Inc.
Year founded: 1975
Headquarter: Valley Forge, Pennsylvania
Vanguard is an American registered investment advisor and the largest mutual funds dealer. The company is the world’s second-largest ETF provider after BlackRock iShares. As of July 2023, Vanguard managed $7.2 trillion in global assets.
Vanguard and Fidelity provide investment management and company-sponsored retirement plan services, but Vanguard has a unique operating structure. Unlike Fidelity, The Vanguard Group, Inc. is owned by its clients based on the company’s domiciled funds and ETFs.
As of Jun 2023, Vanguard offered 431 funds to over 30 million investors. Vanguard is one of the best alternatives to Fidelity for investment management, ETFs, and retirement plan services. [4]
3. The Charles Schwab Corporation
Year founded: 1971
Headquarter: Westlake, Texas
Charles Schwab Corp. is a leading American multinational financial services company. It offers banking, investing, consulting, and wealth management services. In Dec 2022, the company had around 35,300 employees.
Charles Schwab Corp. is America’s largest publicly traded brokerage business. The company manages $7.5 trillion in client assets. Various facets of Charles Schwab’s business compete against Fidelity and other brokers and investment bankers.
In 2019, Charles Schwab slashed commissions for stock, ETF, and options trades to zero. This move helped usher in a low-cost investing revolution. Charles Schwab Corp. is a formidable competitor for Fidelity. [5]
4. UpKeep
Year founded: 2014
Headquarter: Los Angeles, California
UpKeep is a mobile-first enterprise asset management (EAM) and computerized maintenance management system (CMMS). It caters to facility, property, restaurant, and manufacturing managers. According to G2, UpKeep has a 4.5-star rating out of 5 from 772 reviews versus 4.3 stars for Fidelity CMMS. [6]
UpKeep helps asset managers improve communication with real-time status updates for their teams. Businesses can use UpKeep’s mobile and desktop applications to streamline their workflows. Both apps ensure team members understand their tasks and deadlines. UpKeep is one of the best alternatives to Fidelity for asset managers. [7]
5. Wells Fargo & Company
Year founded: 1852
Headquarter: San Francisco, California
Wells Fargo is a leading American multinational financial services company. The company serves over 70 million customers in 35 countries globally. In May 2023, Wells Fargo agreed to pay $1 billion to settle a lawsuit for defrauding shareholders. [8]
Wells Fargo is the fourth-largest US bank after JPMorgan Chase, Citibank, and Bank of America. The company operates globally through regional banks.
In May 2023, Wells Fargo CEO Charlie Scharf said, “The banking industry is strong,” but volatility and turmoil in the market threaten regional financial institutions. Wells Fargo & Co is one of the top competitors for Fidelity. [9]
6. UBS Group AG
Year founded: 1998
Headquarter: Zürich, Switzerland
UBS is a leading multinational investment bank and financial services company. It is a leading Swiss banking institution and the world’s largest private bank. In Mar 2023, UBS took over its rival Credit Suisse and asked the Swiss government to cover $6 billion in costs. [10]
UBS manages over $3.96 trillion in client assets. The company also inherited a portfolio of assets from Credit Suisse worth $35 billion, but the UBS-Credit Suisse merger increased the firm’s workforce to 120,000. In Jun 2023, UBS announced plans to cut over half the 45,000 staff from Credit Suisse. UBS is one of the top competitors for Fidelity. [11]
7. Franklin Templeton
Year founded: 1947
Headquarter: San Mateo, California
Franklin Templeton is a global investment firm. It helps clients achieve better outcomes by providing investment expertise, wealth management, and technology solutions. As of July 2023, Franklin Templeton managed $1.5 trillion in assets. [12]
Franklin Templeton and Fidelity offer investment and wealth management services, and both firms have over 75 years of experience in the sector. As of Jun 2023, Franklin Templeton had around 1,300 investment professionals in 30 countries and serves clients in over 155 countries through its subsidiaries. Franklin Templeton is one of the best alternatives to Fidelity for investment management.
8. TIAA
Year founded: 1918
Headquarter: New York, New York
TIAA is a leading provider of secure retirement and outcome-focused investment solutions. The company serves millions of individuals and thousands of institutions. As of Mar 2023, TIAA managed $1.2 trillion in assets. The firm was named to DiversityInc’s 2023 Top 50 Companies list, ranking at number eight. [13]
TIAA is the #1 not-for-profit retirement market provider. The company offered banking, mortgages, and investing services through TIAA Bank but sold its banking arm in November 2022 to focus on its retirement and asset management businesses. Fidelity also specializes in retirement and asset management. So, this move can increase TIAA’s competitive advantage over Fidelity. [14]
9. Voya Financial
Year founded: 1991
Headquarter: New York City, New York
Voya Financial is a leading health, wealth, and investment company. The firm has earned recognition as one of the Most Ethical Companies in the world by Ethisphere. In Apr 2023, Voya had 7,200 employees.
Voya and Fidelity provide wealth and investment management services. Around 14.7 million individuals, workplaces, and institutions use Voya’s products, solutions, and technologies to plan and invest their financial assets.
Voya also offers benefits administration capabilities through Benefitfocus, with 16.5 million individual subscription employees. Voya is one of the best alternatives to Fidelity for health and wealth investment. [15]
10. TD Ameritrade
Year founded: 1975
Headquarter: Omaha, Nebraska
TD Ameritrade is a stockbroker owned by Charles Schwab Corporation. Its electronic trading platform caters to traders of financial assets, including common stocks, preferred stocks, futures contracts, ETFs, forex, options, and mutual funds. As of Jun 2023, TD Ameritrade offered over 13,000 assets.
TD Ameritrade is a leading online broker, while Fidelity is a financial services company. Both provide innovative technology and products to help investors stay on top of the market. However, TD Ameritrade is a member of FINRA/SIPC, which offers diversified investment choices in one place.
Its intuitive platforms cater to all investors, from beginners to active traders and long-term investors. TD Ameritrade is one of the best alternatives to Fidelity for brokerage services. [16]
11. MaintainX
Year founded: 2018
Headquarter: San Francisco, California
MaintainX is a web-based CMMS tool that also runs on mobile devices. Operational teams in small-to-large businesses can use the solution to track assets and create work orders. On SoftwareAdvice.com, MaintainX has a 4.76-star rating out of 5 from 412 customer reviews. [17]
MaintainX and Fidelity cater to asset managers, but MaintainX only simplifies asset tracking and workflow creation. The platform provides an internal messaging system, customizable templates, and in-built features to improve team communication and workflow completion. MaintainX is one of the best alternatives to Fidelity for asset tracking.
12. Principal Financial Group
Year founded: 1879
Headquarter: Des Moines, Iowa
Principal Financial is a global financial company that offers investment management and insurance. It helps clients plan, protect, and invest their income and retirement benefits. In Jun 2023, Principal had 19,000 employees.
Principal Financial serves over 62 million customers and supports local communities. The firm managed $660 billion in client assets as of March 2023. In 2023, Principal Financial was recognized as one of the Most Ethical Companies by Ethisphere and is a worthy competitor for Fidelity. [18]
13. E*TRADE
Year founded: 1982
Headquarter: Arlington, Virginia
E*TRADE is a subsidiary of Morgan Stanley that offers multiple electronic trading platforms to trade financial assets. It caters to active stock and ETF traders. According to The Motley Fool, E*TRADE has a 4.5-star rating out of 5. [19]
E*TRADE entices long-term investors with thousands of mutual funds and allows investors to trade the funds with no transaction fee. However, its branch network isn’t as robust as Fidelity.
Beginners and passive investors can leverage E*TRADE’s ETF research, screening, and prebuilt portfolios to invest without the hassle. As a subsidiary of Morgan Stanley, E*TRADE has enough resources to grab some customers from Fidelity.
14. Morningstar, Inc.
Year founded: 1984
Headquarter: Chicago, Illinois
Morningstar is a leading independent investment insights provider. It offers real-time global market data, debt securities, and investment management services in North America, Europe, Australia, and Asia. As of Mar 2023, Morningstar managed $249 billion in assets.
Morningstar offers products and services for individual and institutional investors, financial advisors, asset managers and owners, and retirement plan providers. The company operates via subsidiaries in 32 countries.
In 2022, Morningstar reduced its operations in Shenzhen, China, to focus on its global business. Morningstar is a worthy alternative to Fidelity. [20]
15. Legg Mason
Year founded: 1899
Headquarter: Baltimore, Maryland
Legg Mason is an investment and asset management firm. The company managed $783 billion in client assets as of June 2020. In Jul 2020, Franklin Resources acquired Legg Mason for $4.5 billion to expand its portfolio.
Both Legg Mason and Fidelity are asset managers, but Legg Mason is a mid-size player. The acquisition of Legg Mason increased Franklin Resources’ assets under management to over $1 trillion. The company expanded its investment breadth under its new owner. As a subsidiary of Franklin Resources, Legg Mason has the funds to compete against Fidelity. [21]
References & more information
- Nishant, N. (2023, Feb 16). Fidelity Investments to expand the workforce by 4,000 in the first half of 2023. Reuters
- Pound, J. (2023, Jun 29). Fidelity joins the rush for a Bitcoin ETF, following BlackRock, Ark Invest, and others. CNBC
- Mattackal, L. and Singh, M. (2023, Jun 27). Cryptoverse: Bitcoin bounces on BlackRock buzz. Reuters
- Vanguard Investments Canada Inc. (2023, Jun 26). Vanguard Announces Cash Distributions for the Vanguard ETFs. Globe Newswire
- Miller, A. (2023, Jun 17). Why Charles Schwab became a financial supermarket. CNBC
- G2 (2023, Jun 20). Top 10 Fidelity Alternatives & Competitors. G2.com
- TA Reviews (2023, Jan 10) UpKeep Maintenance Management Product Overview. Technology Advice
- CNN Staff (2023, May 16). Wells Fargo reaches a $1 billion settlement with shareholders over recovery from scandals. CNN
- Mandl, C. (2023, May 3). Wells Fargo CEO says regional banks are strong but expects turmoil. Reuters
- Aljazeera Staff (2023, Mar 19). UBS’s potential takeover of Credit Suisse: What you need to know. Aljazeera.com
- Inman, P. (2023, Jun 28). UBS is preparing to cut over half of the inherited Credit Suisse workforce. The Guardian
- Franklin Templeton Investments Corp. (2023, Jun 29). Franklin Templeton Canada Announces Results of Special Meetings. Newswire
- TIAA (2023, May 3). TIAA Named to DiversityInc’s 2023 Top 50 Companies. PRNewswire
- Chakravarty, R. (2023, Jun 27). TIAA’s banking unit to return to legacy EverBank brand. Banking Dive
- Voya Financial, Inc. (2023, Apr 5). Voya Financial schedules announcement of first-quarter 2023 results. Business Wire
- Sher, D. (2023, Jun 26). TD Ameritrade Review. Investing.com
- SoftwareAdvice Reviews (2023, May 22). About MaintainX. SoftwareAdvice.com
- Principal Financial Group (2023, Jun 29). Principal® to announce second quarter 2023 financial results. Business Wire
- Frankel, M. (2023, May 24). E*TRADE Review: All-In-One Shop for Your Money. The Motley Fool
- Morningstar, Inc. (2023, Apr 26). Morningstar, Inc. Reports First-Quarter 2023 Financial Results. PRNewswire
- Williamson, C. (2022, May 18). Franklin is open to more acquisitions, CEO tells Morningstar conference. PI Online
- Featured Image by Aidan Hancock
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