Fidelity is one of the most trusted names in American finance. For decades, it has been the go-to broker for retirement plans and self-directed investing. With its robo-advisor service, Fidelity Go, Fidelity attempts to solve the biggest problem facing new investors: Where do I start?
Fidelity Go removes the stress of picking investments by doing it for you. This service is designed to be a simple, professional entry point into the market.
The question for a beginner is: Does Fidelity Go, with its unusual fee structure and investment limitations, offer enough value compared to dedicated competitors like Betterment or Schwab?
The answer depends entirely on the size of your portfolio, as Fidelity Go’s unique pricing model creates the best free option in the market.
The Zero-Fee Advantage (Cost Structure)
Fidelity Go uses a simple, tiered pricing model that makes it incredibly attractive for the small-account beginner.
| Account Balance | Annual Advisory Fee | Human Coaching Access |
| Under $25,000 | $0.00 | No |
| $25,000 and Over | 0.35% of the entire balance | Yes (Unlimited 1-on-1 calls) |
Why It Wins for Beginners
- Free Management: You pay no advisory fee for balances under $25,000. This means you get professional portfolio management, automatic rebalancing, and diversification for free while your account is still small. This is unmatched value at the entry level.
- Zero Fund Expense Ratios: Fidelity Go invests your money into proprietary Fidelity Flex® mutual funds. These funds charge zero expense ratios. This means that unlike other robo-advisors where you pay the advisory fee plus the fund fees, with Fidelity Go, you only pay the advisory fee (which is $0 if your account is small).
Verdict on Cost: Fidelity Go is one of the lowest-cost robo-advisors available for accounts under $25,000, as your total fee is literally zero.
The Investment and Service Structure
Fidelity Go is a pure robo-advisor, meaning you do not pick the investments yourself.
1. Portfolio Construction
The process begins with an online questionnaire about your financial goals, time horizon, and risk tolerance. Based on your answers, the system suggests a portfolio that ranges from conservative (80% bonds/short-term investments) to aggressive (100% stocks).
- Investment Options: Your money is invested into a well-diversified mix of Fidelity Flex® funds (mutual funds), not ETFs. These funds cover domestic stocks, foreign stocks, bonds, and short-term investments.
2. Human Coaching Access
Once your account balance reaches $25,000, the annual advisory fee kicks in (0.35%), but you gain a valuable benefit: unlimited coaching sessions with a team of Fidelity advisors. These calls cover topics like budgeting, debt management, and retirement planning. This gives you a human safety net as your wealth grows.
3. Account Types
Fidelity Go supports a wide variety of accounts, including the most popular choices for a beginner:
- Taxable Brokerage Accounts (Individual/Joint)
- Roth and Traditional IRAs
- Rollover IRAs
- Health Savings Accounts (HSAs)
The Limitations for Beginners
Despite its low cost, Fidelity Go has two major limitations that may push a beginner toward a competing platform.
1. No Tax-Loss Harvesting (TLH)
Unlike competitors like Betterment and Wealthfront, Fidelity Go does not currently offer automated Tax-Loss Harvesting. TLH is a powerful feature that sells losing investments to offset capital gains and reduce your tax bill. Not having this feature means you may pay more in taxes in a taxable account.
2. Liquidation Required to Move Funds
If you decide you want to switch from the managed Fidelity Go account to a self-directed Fidelity brokerage account to pick your own stocks, you cannot transfer the funds directly. You must sell your Fidelity Go positions first (liquidate them for cash), which can trigger a taxable event (capital gains). This lack of transferability limits your options as you become a more experienced investor.
Final Verdict: Is Fidelity Go a Good Entry Point?
Yes, Fidelity Go is an excellent entry point for the absolute beginner due to its unmatched value proposition:
- Zero Cost to Start: You pay no advisory fees until your account reaches $25,000.
- Professional Management: You receive expert-managed rebalancing and diversification right away.
- Low Minimum: There is no minimum to open, and only a $10 balance is required to start investing.
Recommendation: Use Fidelity Go for your first Roth IRA (where TLH is irrelevant because the account is already tax-free). Once your balance approaches the $25,000 fee threshold, you should evaluate whether competitors like Betterment (which offers TLH) or a self-directed Fidelity account (which offers more control) are a better fit.
