Tips for Fidelity Premium Services

[CONeal]

Does anyone have any insight they care to share of the services offered for premium services?

 

Would rather ask board members with experience with it.  When I spoke with a guy at the local branch he wasn't much help other then wanting to sell something.

 

My understanding is you can lend out shares at that level (local guy had no idea what I was talking about).  Is there anything else available?

[ERICOPOLY]

I and my family have fido premium accounts - there is nothing extra-ordinary about it. We also have accounts with TD Ameritrade. We closed Charles Schwab a few years back.

 

I tried lending out my shares but they wouldn't do it - this was a year back. I have a margin account so my guess is that they lend the shares out and keep the money to themselves.

 

A few services that are useful to me at Fido:

 

1. No fees for tendering

2. Trade fee $8

3. Can trade in ~20 markets

4. You supposedly get special customer service...

 

I called them up a couple of weeks ago asking if they'd offer me a home loan (I knew ahead of time that they don't offer these).

 

Then I explained how I could only get a mortgage through Wells Fargo if I moved my brokerage relationship to them.

 

The Fidelity guy immediately started offering $5 commissions and asking what else he could do.

 

[Redskin212]

My experience with Fidelity's premium service is that you need to ask a few questions to get a better deal or service.  They have a ton of clients and they try to offer this "premium" service but in reality it is nearly impossible given that they are really a low cost provider.  When you start questioning things, they tend to open up a bit more and offer more. 

[CONeal]

Thanks for all the very valuable information.

 

 

[Guest longinvestor]

My experience with Fidelity's premium service is that you need to ask a few questions to get a better deal or service.  They have a ton of clients and they try to offer this "premium" service but in reality it is nearly impossible given that they are really a low cost provider.  When you start questioning things, they tend to open up a bit more and offer more.

 

What more have they offered? Would like to ask them if you are willing to share. TIA.

 

 

 

[Redskin212]

Better terms on margin balances - lowest rate they publish on all o/s balances

[Rabbitisrich]

Better terms on margin balances - lowest rate they publish on all o/s balances

 

I once opened Fidelity account, and without my permission they assigned me to a "Private Banking" representative who was very gracious over the phone, and then immediately raised margin requirements for all of my levered positions and written puts. When I tried to close the account, they kept coming up with delays so that it took almost a month to complete the transfers. A form that I signed would be misplaced (with critical information), or I would get a call on Friday saying that I had to resubmit information. I'm pretty sure that Fidelity outsources their asset transfer process to the same team that handles Sirius radio cancellations.

[Rabbitisrich]

 

I called them up a couple of weeks ago asking if they'd offer me a home loan (I knew ahead of time that they don't offer these).

 

Then I explained how I could only get a mortgage through Wells Fargo if I moved my brokerage relationship to them.

 

The Fidelity guy immediately started offering $5 commissions and asking what else he could do.

 

Did you eventually open an account with Wells Fargo? Any opinions on their service and execution?

[Kraven]

I'm pretty sure that Fidelity outsources their asset transfer process to the same team that handles Sirius radio cancellations.

 

That's pretty funny.  I had a car that had XM in it.  Post merger between Sirius and XM I sold that car and got a new one that had Sirius in it.  So I signed up for Sirius and called to cancel XM.  They made a huge fuss about it and kept transferring me and asking me why.  I explained that I love the service it's just that I have a new car and no longer have XM in the car.  They finally cancelled it, but kept calling me and asking if I wanted to restart it again.  Apparently, at least at the time, even after the merger the 2 houses were kept separate.  I said what difference does it make, you still have my business and I don't have that car anymore.  They explained that it was separate for their purposes and maybe I could access it in the house.  It was really annoying.

[ERICOPOLY]

 

I called them up a couple of weeks ago asking if they'd offer me a home loan (I knew ahead of time that they don't offer these).

 

Then I explained how I could only get a mortgage through Wells Fargo if I moved my brokerage relationship to them.

 

The Fidelity guy immediately started offering $5 commissions and asking what else he could do.

 

Did you eventually open an account with Wells Fargo? Any opinions on their service and execution?

 

I've had a checking account with them since 1984.  But I was trying to get them to give me a mortgage in late 2010 based on my assets.  At the time, I had a lot of exposure to Wells Fargo equity and that was creating a problem -- they said something to the effect that they can't express an opinion on what their own equity is worth.  But they did say that if I moved my brokerage relationship over to them they'd be happy to put a mortgage together for me.

 

Fast forward to today, and now I have too much exposure to BAC.  I'd rather be with Merrill Edge if it comes down to needing to moving my RothIRA assets in order to get a mortgage, but I'll be hit with the same problem.  BofA will probably tell me that they can't express an opinion on the value of their stock.  However hopefully the size of the RothIRA will allow them to want to estabish the relationship anyway despite it not being based on an asset valuation. 

 

Merrill would be the best for me as they have an office a 1/3 mile walk down the road for me.  Very convenient.

 

[ERICOPOLY]

I also told Fidelity that I was concerned about their security.  I told the man that all somebody needs to do is trick me into installing their keystroke logging software, and then they'd have my username and password for Fidelity.  Once they log into my account, they use my account to bid up the prices of some illiquid penny stocks that they own (selling into my bid), and thus I'm robbed blind when the penny stock subsequently crashes a few minutes later.

 

So he sent me a Verisign tool that hangs on my keychain.  It is paired with my account and randomly generates a code that expires after 30 seconds.  I'm challenged for that code after logging in with my user name and password.  A third line of defence.

 

I wasn't charged for the Verisign tool.  Just had to know what to ask for  :)

[CONeal]

I use turbo tax for my tax preparation.  Does the verisign swab still allow you to log Into fidelity to automatically pull your trade information through turbotax?

[ERICOPOLY]

I use turbo tax for my tax preparation.  Does the verisign swab still allow you to log Into fidelity to automatically pull your trade information through turbotax?

 

I have no idea.  I'm only using Fidelity for my RothIRA -- problem doesn't exist for me.