LPL Financial vs. Fidelity: A Comprehensive Comparison for Financial Planning

When it comes to choosing a financial advisor, LPL Financial and Fidelity are two of the most well-known and respected names in the industry. Both companies offer a wide range of financial products and services, including investment management, retirement planning, and insurance. However, there are also some key differences between the two firms.

Company Overview

LPL Financial is the largest independent broker-dealer in the United States. The company was founded in 1989 and is headquartered in Fort Mill, South Carolina. LPL Financial has over 17,000 financial advisors serving more than 1.5 million clients.

Fidelity is a privately held financial services company that was founded in 1946. The company is headquartered in Boston, Massachusetts. Fidelity is one of the largest asset managers in the world, with over $11 trillion in assets under management. Fidelity has over 27,000 employees and serves more than 32 million customers.

Financial Products and Services

Both LPL Financial and Fidelity offer a wide range of financial products and services, including:

• Investment management
• Retirement planning
• Insurance
• Banking
• Trust services

However, there are some key differences in the products and services offered by the two firms. LPL Financial focuses primarily on providing financial planning and investment management services to individual investors. Fidelity, on the other hand, offers a broader range of financial products and services, including banking, trust services, and insurance.

Investment Philosophy

LPL Financial and Fidelity have different investment philosophies. LPL Financial believes in a personalized approach to investing. The company's financial advisors work with clients to develop customized investment plans that meet their individual needs and goals. Fidelity, on the other hand, believes in a more passive approach to investing. The company's investment managers create and manage investment portfolios that are designed to track the performance of the broader market.

Fees

The fees charged by LPL Financial and Fidelity vary depending on the services provided. However, in general, LPL Financial charges higher fees than Fidelity. This is because LPL Financial provides more personalized financial planning services. Fidelity, on the other hand, offers more passive investment management services, which are typically less expensive.

Customer Service

LPL Financial and Fidelity both offer excellent customer service. Both companies have a team of dedicated customer service representatives who are available to answer questions and assist clients with their financial needs. However, LPL Financial has a more personalized approach to customer service. The company's financial advisors are available to meet with clients in person or over the phone. Fidelity, on the other hand, offers more online customer service support. The company's website has a wealth of information and resources available to clients.

Which Company is Right for You?

The best way to determine which company is right for you is to compare the products and services offered by LPL Financial and Fidelity. You should also consider the investment philosophy of each company and the fees charged. Finally, you should make sure that the company you choose has a good reputation for customer service.

If you are looking for a personalized approach to financial planning, then LPL Financial may be a good option for you. However, if you are looking for a more passive approach to investing or a broader range of financial products and services, then Fidelity may be a better choice.

Conclusion

LPL Financial and Fidelity are both excellent financial planning firms. However, there are some key differences between the two companies. LPL Financial offers a more personalized approach to financial planning, while Fidelity offers a more passive approach to investing. The fees charged by LPL Financial are higher than the fees charged by Fidelity. Ultimately, the best way to determine which company is right for you is to compare the products and services offered by each company and to consider your own financial needs and goals.

Frequently Asked Questions

What is the difference between LPL Financial and Fidelity?

LPL Financial is the largest independent broker-dealer in the United States, while Fidelity is one of the largest asset managers in the world. LPL Financial focuses primarily on providing financial planning and investment management services to individual investors, while Fidelity offers a broader range of financial products and services, including banking, trust services, and insurance.

Which company is better, LPL Financial or Fidelity?

The best way to determine which company is better for you is to compare the products and services offered by each company and to consider your own financial needs and goals.

What is the investment philosophy of LPL Financial?

LPL Financial believes in a personalized approach to investing. The company's financial advisors work with clients to develop customized investment plans that meet their individual needs and goals.

What is the investment philosophy of Fidelity?

Fidelity believes in a more passive approach to investing. The company's investment managers create and manage investment portfolios that are designed to track the performance of the broader market.

What are the fees charged by LPL Financial and Fidelity?

The fees charged by LPL Financial and Fidelity vary depending on the services provided. However, in general, LPL Financial charges higher fees than Fidelity.

Which company has better customer service, LPL Financial or Fidelity?

LPL Financial and Fidelity both offer excellent customer service. However, LPL Financial has a more personalized approach to customer service. The company's financial advisors are available to meet with clients in person or over the phone. Fidelity, on the other hand, offers more online customer service support.

Additional Resources

• LPL Financial website
• Fidelity website
• Securities and Exchange Commission (SEC) website
• Financial Industry Regulatory Authority (FINRA) website

Glossary of Terms

• Broker-dealer: A company that buys and sells securities for clients.
• Financial advisor: A person who provides financial advice and planning services to clients.
• Investment management: The process of managing investments for clients.
• Retirement planning: The process of planning for retirement and saving for retirement goals.
• Insurance: A contract that provides financial protection against risks such as death, disability, and illness.
• Banking: The business of accepting deposits and making loans.
• Trust: A legal entity that holds and manages assets for the benefit of others.