OCTOBER 10, 2025 | FEATURES | By Grace Bean
Fidelity became the first of its kind in 2021 when it granted trade access to young investors without additional cost or commission. What used to be an intimidating process has largely been replaced by online accounts that can be opened in minutes. Fidelity Investments, one of the largest brokerage firms in the world, is at the center of this shift. The company manages over $11 trillion in assets and now serves more than 40 million individual investors. For many college students, a Fidelity account is their first entry point into the financial markets.
What Is a Brokerage Account?
A Fidelity account is typically a brokerage account, which functions as a portal to the stock market and other investments. Unlike a savings account at a bank, which earns interest on your cash, a brokerage account allows you to buy and sell assets like stocks (shares of ownership in a company), bonds (loans you give to companies or governments), mutual funds (professionally managed bundles of investments), and ETFs (exchange-traded funds that track the performance of groups of stocks).
For students who may not have large sums of money to invest, Fidelity’s biggest appeal lies in accessibility. There are no minimum balances required, and investors can start with very small amounts of money. This lowers the barrier to entry that used to keep ordinary people, especially young people, out of the markets.
Why Has Fidelity Become Popular With Young Investors?
Until just a few years ago, buying or selling stock often came with a fee, sometimes $5 to $10 per trade. Fidelity now charges zero commission for most U.S. stock and ETF trades, meaning investors keep more of their money.
Fidelity allows investors to purchase fractional shares, or small slices of a stock. If a single share of Amazon costs $3,000, you could instead buy $10 worth of Amazon stock and own a fraction of a share. This concept makes high-priced companies accessible to students who only want to invest a few dollars at a time.
Low-Cost Index Funds
Fidelity is also known for its low-cost index funds, which are bundles of investments designed to mimic the performance of a larger market index like the S&P 500 (an index of 500 large U.S. companies). Rather than betting on individual stocks, index funds allow investors to spread their money across many companies at once. Fidelity’s “ZERO” index funds are especially attractive because they charge no management fees, known in finance as the expense ratio. An expense ratio is the percentage of your investment that goes toward the cost of running the fund. Keeping these costs low can make a big difference over decades of investing.
Terms You Should Know
Compound growth is the process of earning returns not just on your original investment but also on the gains that investment has already made. For example, if you invest $100 and earn 10 percent ($10), next year you earn interest not just on $100 but on $110. Over time, compounding can turn small contributions into substantial sums.
Diversification is the idea of not putting all your eggs in one basket. By investing in index funds or ETFs that spread money across hundreds of companies, students reduce the risk that one company’s failure will wipe out their savings.
Market volatility is when stocks can rise and fall sharply in value, sometimes daily. While this can be unsettling, it is a normal part of investing. Fidelity provides informative tools through the “Fidelity Learn” section of their website that help new investors understand that long-term trends matter more than short-term swings.
Why Students Should Pay Attention
Fidelity’s popularity reflects more than just a fad among finance bros. It signals a generational shift in how people view money and wealth. Earlier generations often waited until they were older, more financially established, or employed full-time before investing. Today, students can begin with just a few dollars, learning by doing and building financial habits early.
This shift matters for long-term financial stability. A 21-year-old who invests just $50 a month and earns an average 7 percent annual return could have nearly $250,000 by age 65, according to data collected by Fidelity. Starting later in life would make it much harder to reach the same result, thanks to compounding.
A Fidelity account is not just a badge of financial ambition, it is an accessible tool that introduces students to investing, saving, and financial planning. Whether someone chooses to trade actively or simply buy a low-cost index fund and let it grow, opening an account represents a practical step toward financial independence.
The growing conversation around Fidelity among college students reflects a larger story: the democratization of investing. With barriers to entry falling, financial literacy and participation in the markets are no longer reserved for professionals or the wealthy. They are becoming part of everyday life for a younger generations.