Editorial Team

Fidelity vs. Unifimoney 2021

Fidelity is one of the largest investment management companies in the world and has over 3.3 trillion dollars worth of Assets Under Management (AUM). The company has been around for over seven decades and has built a solid reputation as one of the best mutual funds manager and brokerage tools available. 

Unifimoney, on the other hand, is very new, and it's also something completely new. It's an online bank that offers a comprehensive money-management app that combines all of your banking and investing needs. While Fidelity vs. Unifimoney comparison will mostly be about the investing features and tools of the two companies, both of them have much more to offer.

Fidelity vs. Unifimoney: Overview

Fidelity has always been famous for its mutual funds and low-fees. Even before commission-free trading became the norm, Fidelity focused on keeping fees low and allowing more people to invest. Unifimoney is a full-service online bank with a very strong investment platform. Even though it allows commission-free trading, it is Unifimoney's robo-advisor that sets it apart. 



Fidelity

Fidelity isn't the kind of platform that carves out a place for itself in the market; Fidelity is the market, along with a few other investment management giants. Its specialized products include expense-ratio-free index funds and 3,450 no-transaction-fee mutual funds. The latter alone can save you quite a bit of money as the average cost to purchase a mutual fund is somewhere around $30 per transaction. This is one of the reasons why Fidelity is favored by people who simply want to save for their retirement without learning the ins and outs of the stock market. 

They can invest in the mutual funds created by a trustworthy company with over seven decades of market experience without paying any fees. Ironically, Fidelity is also famous for its honed-to-perfection research tools and analyst coverage (especially when it comes to ETFs). So it's also favored by people on the other end of the investment-knowledge spectrum, i.e., active day traders. The company has grown enough to enter the money management business (which offers almost all the checking account services). But it's still preferred as an investment brokerage and not a primary bank account. Fidelity Go is the robo-advisor product.

Unifimoney

Unifimoney is an online bank with a powerful investment platform. It was created to making banking and investing easier and "one-window" for high-earning professionals who typically can't take too much time to actively manage their investment portfolio. Unifimoney takes care of that while eliminating the need for a separate checking account. Its high-yield hybrid account offers a very generous 0.2% APY, so even your un-invested cash is working in your favor. 

Unifimoney also allows you to trade cryptocurrencies, and you can leverage the rapid growth and volatility this asset class offers (albeit at higher risk). The standout feature of Unifimoney is its AI-powered robo-advisory services, provided in conjunction with Quantel AI. Its proprietary market correction index is something few (if any) in the robo-advisor market currently offers. This feature allows the robo-advisor to liquidate a part of your portfolio when it senses a market crash is coming. It can be instrumental in realizing your gains before the market crashes and buying "low" when the market starts to recover to maximize the returns.

Fidelity vs. Unifimoney: Major Differences

Fidelity and Unifimoney are, at their core, different companies. Fidelity is a massively-scaled investment management behemoth that has evolved its investment tools and created great mutual funds over the course of decades. Unifimoney, on the other hand, is a technology-backed disrupter in the online banking and robo-advisory market. Where Fidelity nudges its users towards active decision making regarding their investments, Unifimoney facilitates AI-powered hands-off investments. Let's see what the major differences between the two companies are so you can make the right choice regarding Fidelity vs. Unifimoney.

Investing

Fidelity has two trading platforms (Fidelity.com and Active Trader Pro) and one robo-advisor (Fidelity Go). Unifimoney has combined its banking features and trading platform in one super app.


Even though the underlying mutual funds basked that Fidelity Go (robo-advisor) assets are chosen from are created by seasoned financial experts, they might fall short against the un-biased, granular-level market research that Unifimoney's robo-advisor conducts on ETFs, stocks, and market conditions. Therefore, Unifimoney's robo-advisor might have a slight edge here.

But if you want to conduct your market research yourself, you will find Fidelity's investment tools and research data invaluable in creating and tweaking your investment portfolio. 

Fees

The Fidelity trading platforms are free for all users. You don't need to pay any commissions on the trade the robo-advisor executes on your behalf, and you won't be charged for portfolio rebalancing until your portfolio crosses the $9,999 threshold. Unifimoney starts charging a fee based on a percentage of your portfolio from the very beginning. Banking is free if you comply with the account activity requirements. 

For portfolios between $10,000 and $49,999, Unifimoney is more cost-effective for portfolios under $24,000 (it's the point where the fee for both platforms break-even, calculated for Tenjin AI basic fee). After that, Fidelity's flat $3 monthly fee is lower. 

For larger portfolios, both the basic and advanced tier of Unifimoney are cheaper than Fidelity Go.

Products And Services

Even though both Fidelity and Unifimoney are very different financial management companies, there is a lot of overlap between the products. Both offer checking accounts, credit cards, and robo-advisory. Fidelity branches out when it comes to investment products: options, annuities, college and health savings accounts.

Unifimoney's products are more akin to conventional banking products: Mortgages, student loan refinancing, and auto-loans.

Verdict

The choice here is fairly simple: If you are an established investor, Fidelity might be the better choice for you. But if you are a high-earner who wants to make their money management easier, hassle-free, and want to grow your wealth with the flexibility for as much or as little to no active intervention, then Unifimoney is the clear winner. The Fidelity vs. Unifimoney comparison reasserts the fact that different products are suited for different types of investors.

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*Important information and disclaimers

The above does NOT constitute an offer, solicitation of an offer, nor advice to buy or sell specific securities. The opinions listed above are not the opinions of Unifimoney Inc. or Unifimoney RIA, Inc. but represent the opinions of independent contributors. These contributors may or may not hold positions in the stocks discussed. Investors should always independently research any stocks listed and form their own opinions, while recognizing that any investments made may lose value, are not bank guaranteed and are not FDIC insured.