There is another thread going on about Vanguard versus Fidelity and related safety and costs. But it made me think. About 3 years ago, I opened a Fidelity brokerage account and consolidated all my holdings there. I own Vanguard, TRP, Fidelity, Janus, PIMCO, and other mutual funds and ETF's, along with some stocks. They are all held in my Fidelity brokerage account and it is great to have everything consolidated in one place. And Fidelity's web site and tools are terrific. I am still diversified between fund companies, asset classes, etc.
My quesiton is - how does Fidlelty make money from me, other than obvious trading costs - which I have very little of? Do they receive something from the mutual fund companies that I hold? I know they think that I might be inclined to buy Fidelity funds over others, but they sell many other funds at no cost as well - and again, I am a buy and hold investor.
Retired on 5/31/2011 at 54