Morgan Stanley vs. Fidelity: what’s the difference?
Discover the unique differences between Fidelity and Morgan Stanley so that you can make an informed decision tailored to your financial journey.
Summary
Fidelity champions self-directed investing with diverse options, contrasting Morgan Stanley's personalized wealth management approach.
Fidelity's model blends commission-free trading with fee-based advisory services, and Morgan Stanley predominantly employs an AUM fee-based structure.
Fidelity provides extensive resources and support, whereas Morgan Stanley prioritizes financial advisors offering personalized guidance.
Unbiased can connect you to an expert financial advisor best suited to meet your needs.
Morgan Stanley vs. Fidelity: what are the differences?
Morgan Stanley and Fidelity are both well-established, respected names in the world of finance. However, there are clear differences between them.
Morgan Stanley is an investment bank that caters to affluent clients and institutions. It offers high-end wealth management and complex strategies.
Fidelity is a major asset management firm that focuses on broader accessibility. It provides investment options and platforms for a range of investors.
What fees can I expect from Fidelity & Morgan Stanley?
Fees are part of engaging with financial firms like Fidelity and Morgan Stanley.
These fees cover a range of services, including financial advice, trading commissions, and account maintenance.
Fidelity fees
Financial advice fees depend on the level of service chosen.
Robo-advisor "Fidelity Go" charges 0.35% annually, while dedicated Fidelity financial advisors' fees range from 0.50% to 1.04%. Trading fees are notably low, with $0 commissions for online US stocks, ETFs, and options (plus a $0.65 per contract fee). Mutual fund transactions are mostly free, while bond fees vary.
Morgan Stanley Fees
With a full-service approach, Morgan Stanley financial advisors have a fee structure reflecting their premium services.
The core of the firm’s fees is financial advice, typically charged as a percentage of assets under management, ranging from 0.50% to over 1%. This covers personalized wealth management and access to specialized investment strategies.
Beyond advisory fees, trading fees can vary based on execution method and account type.
Is Fidelity or Morgan Stanley better?
Choosing between Fidelity and Morgan Stanley depends on your individual needs and financial goals.
If you prioritize low fees and a DIY approach to investing, Fidelity financial advisor services may be a better fit. But Morgan Stanley's premium services might be more suitable if you're looking for in-depth financial planning and personalized advice.
Let’s take a closer look at the pros and cons of each firm.
Pros of Fidelity
Low fees make it cost-effective for most investors.
Diverse investment options cater to various strategies.
The user-friendly platform is suitable for both beginners and experienced investors.
Extensive educational resources empower investors to learn.
Cons of Fidelity
Personalized advice may be limited for basic accounts.
The platform's vastness can overwhelm beginners.
Access to complex investments is restricted compared to some firms.
Pros of Morgan Stanley
Comprehensive wealth management services tailored to high-net-worth individuals.
Personalized financial advice and access to dedicated financial advisors.
Access to exclusive investment opportunities and specialized investment products.
Strong research and analytical capabilities to support investment decisions.
Cons of Morgan Stanley
High fees and minimum investment requirements make Morgan Stanley financial advisors less accessible to smaller investors.
It is less suitable for DIY investors who prefer a hands-on approach.
Complex fee structures and potential performance-based fees can be confusing.
Morgan Stanley or Fidelity: which should I choose?
The Morgan Stanley vs. Fidelity choice depends on your unique circumstances and preferences.
In addition to fees, investment strategy, and various pros and cons, below are some other questions you should ask yourself when choosing between them.
How do Fidelity and Morgan Stanley remain competitive and adapt to changing market conditions?
Fidelity and Morgan Stanley remain competitive by adapting to evolving financial landscapes.
Fidelity customer service prioritizes technological innovation, low fees, expanded offerings, and customer-centricity.
Morgan Stanley focuses on high-net-worth individuals, personalized advice, strong research, and regulatory compliance.
By constantly evolving and innovating, both firms remain relevant in an ever-changing market.
Which platform provides better customer service and support?
Fidelity customer service generally receives higher praise, particularly for its accessibility and self-service resources. It offers 24/7 phone support, online chat, email, and a large knowledge base, along with proactive client outreach.
Morgan Stanley financial advisors shine in providing personalized support to their high-net-worth clients.
Can I access my Fidelity or Morgan Stanley accounts through their websites and mobile apps?
Both Fidelity and Morgan Stanley offer convenient access to your accounts through dedicated websites and mobile apps.
Fidelity's user-friendly website and mobile app allow for easy investment management, and access to research, portfolio tracking, and trading.
Morgan Stanley's financial services also include a secure online platform and mobile app, which enable users to view account information, access statements, communicate with their advisor, and manage investments.
What are Fidelity & Morgan Stanley’s specific investment strategies?
Fidelity and Morgan Stanley's investment strategies differ significantly, mirroring their distinct target audiences and service models.
In essence, Fidelity's strategy emphasizes accessibility and flexibility, while Morgan Stanley caters to those seeking personalized, high-touch wealth management and sophisticated investment solutions.
Fidelity investment strategies
Fidelity's core investment approach emphasizes empowering individuals to take control of their financial journey, offering tools and resources for self-directed investing.
They also cater to those seeking professional guidance through their Fidelity Wealth Services, where dedicated financial advisors provide personalized investment strategies for a fee based on assets under management.
Their robo-advisor platform, Fidelity Go, offers automated portfolio management at a competitive 0.35% annual fee.
Morgan Stanley investment strategies
Morgan Stanley's investment strategies revolve around a bespoke approach to wealth management, catering primarily to affluent individuals.
Their financial advisors work closely with clients to craft personalized portfolios aligned with their specific goals and risk appetite.
Morgan Stanley's commitment to excellence extends to its employees, making Morgan Stanley careers highly sought after in the finance industry.
Find the right financial advisor
Morgan Stanley and Fidelity are both strong contenders in the financial services industry, but they cater to different investor profiles.
Find a professional SEC-regulated financial advisor via Unbiased to ensure you get the best possible expert advice tailored to your needs and financial goals.
Writers
Our team of writers, who have decades of experience writing about personal finance, including investing and retirement, are here to help you find out what you must know about life’s biggest financial decisions.