- Investment giant Fidelity is to launch a crypto and stock trading app for retail investors
- Fidelity Crypto has no launch date but will initially feature Bitcoin and Ethereum
- The platform will be a CFD offering, meaning that crypto cannot be deposited and withdrawn
Fidelity is to tap into the retail crypto market and offer a crypto trading app. Fidelity Crypto, which the financial powerhouse says will offer commission-free trading, will start off with Bitcoin, Ethereum and other traditional stock investments, with other cryptocurrencies being evaluated for potential future inclusion. Fidelity Crypto is the latest in a line of retail-focus crypto and stock trading apps, with Robinhood being the most cited example of such a platform.
Get on the early-access list to trade bitcoin and ethereum and discover educational resources that make crypto a lot less cryptic. https://t.co/n1akhp2gBg pic.twitter.com/sZjQo7qVNg
— Fidelity Investments (@Fidelity) November 3, 2022
Fidelity Opens Up Retail Trading
Fidelity first became interested in the crypto world in 2018, although to date its offerings have been geared towards institutional clients. Fidelity Crypto is its first retail-oriented product, backed by its institutionally focused Fidelity Digital Assets unit. Like other similar apps, users won’t be charged a commission, although a spread of 1% will be factored into every trade execution price.
The website for the platform, which has no release date at present, will see users able to trade crypto with as little as $1, while also boasting a “ growing library of on-demand education and market insights.” Fidelity Crypto will initially be open to 35 states and the company is currently taking early-access registrations from residents in those locations.
CFDs, Not Crypto
However, much like with the initial version of PayPal’s crypto app, the early version of Fidelity Crypto will not allow users to receive or send cryptocurrency transfers. This means that any purchases will not be of the cryptocurrencies themselves but will instead be for Contracts For Difference (CFDs), essentially meaning users will be placing a bet on the price using cryptocurrency that doesn’t actually exist on the platform.