Fidelity Stocks & Shares ISA Review: My Real Returns After 8 Years
Do you ever look at your cash ISA and realise it’s quietly going backwards once inflation is taken into account?
That’s exactly what pushed me into investing back in 2016. Interest rates were poor, inflation was doing its thing, and leaving money sitting in cash no longer felt like the “safe” option it once was.
When you look at the average savings by age in the UK, it’s clear that a large number of people have very little cash put aside — which makes inflation quietly eroding savings an even bigger problem.
One of the platforms I chose — and have stuck with ever since — is a Fidelity International Stocks & Shares ISA.
In this review, I’ll show you:
• how my Fidelity ISA is actually invested
• the returns I’ve achieved over time
• the fees I pay in the real world
• why I also hold some individual stocks
• who Fidelity is (and isn’t) right for
This isn’t theory or best-case scenarios. It’s my money, over more than eight years, including the mistakes.
Fidelity review
After more than eight years of investing, Fidelity has remained one of my core platforms. It isn’t the cheapest or slickest, but its fund range, reliability and long-term performance make it a strong choice for serious, long-term investors.
Pros
- Easy to get started
- Huge range of funds
- Suitable for beginners and experienced investors
- Reliable app and online dashboard
Cons
- £1,000 lump sum unless you invest monthly
- Website can feel clunky at times
- £7.50 dealing fee for individual shares
Reviewed by Household Money SavingCapital at risk. Investments can fall as well as rise. This article reflects my personal experience and is not financial advice.
Why I moved away from a cash ISA
I started investing in 2016 after years of watching savings rates shrink.
Even before inflation surged, cash ISAs were barely keeping up. Once inflation really took hold, the maths stopped working altogether.
I didn’t have enough capital to invest in property, and I didn’t want all my money tied up in one place. Instead, I spread it across several platforms:
• a Lifetime ISA (originally Nutmeg, now J.P. Morgan Personal Investing)
• Plum, for small regular investments
• Fidelity, as my main long-term Stocks & Shares ISA
Over time, Fidelity became the backbone of my investing.
If you’re still deciding, I’ve also rounded up the best investment apps in the UK, which is useful if you want something simpler or more hands-off.
What is a Stocks & Shares ISA?
A Stocks & Shares ISA allows you to invest in shares, funds, bonds and investment trusts, without paying tax on gains or income.
Key points:
• You can invest up to £20,000 per tax year across all ISAs
• You can pay into more than one ISA in the same tax year, including more than one Stocks & Shares ISA
• The exception is a Lifetime ISA — you can only pay into one LISA per tax year, up to £4,000
• Money can usually be accessed within a few working days
Unlike a cash ISA, returns aren’t guaranteed — but neither is protecting cash from inflation over the long term.
Who is Fidelity?
Fidelity is a global investment firm founded in 1946, with millions of customers worldwide.
In the UK, Fidelity offers:
• Stocks & Shares ISA
• General Investment Account
• Junior ISA
• SIPP and Junior SIPP
This isn’t a flashy fintech app. It’s a traditional investment platform built for people who want choice, control and long-term investing tools.
Is your money safe with Fidelity?
Fidelity is regulated by the Financial Conduct Authority and covered by the Financial Services Compensation Scheme (FSCS).
That means you’re protected up to £120,000 per person, per firm, if Fidelity were to fail due to fraud or mismanagement.
This protection does not cover market losses — your investments can still go down — but platform failure risk is covered.
Fidelity ISA fees – what I actually pay
Fees are one of the most important parts to understand.
Platform (service) fee
• 0.35% per year on investments under £250,000
• 0.20% per year above £250,000
• Capped at £2,000 per year across all personal accounts
If your investments are under £7,500, the 0.35% fee still applies as long as you have a regular savings plan. Without one, a £45 annual minimum fee applies.
Fund fees
• Vary depending on the fund
• Typically range from around 0.11% to 1.19% per year
• Actively managed funds tend to be more expensive than tracker-style funds
• Fees are automatically deducted
Individual share dealing
• £7.50 per trade
Fidelity isn’t the cheapest platform out there, but fees are reasonable if you stick mostly to funds and invest long term.
How to open a Fidelity Stocks & Shares ISA
Opening an account is done entirely online and usually takes around 10–15 minutes.
- Go to fidelity.co.uk and select Investment accounts from the top menu.
- Choose Stocks & Shares ISA (or Investment Account if not using an ISA).
- Read the product information and click Open a Stocks & Shares ISA.
- Complete the “About you” section with your personal details.
- Review and confirm your information. If you’re using a referral link, this is where you add it.
- Add money to your account by either:
- making a £1,000 lump sum payment,
- setting up a Regular Savings Plan from £25 per month, or
- transferring investments from another provider.
- Once your account is open, you can choose and buy your investments.
Fidelity may ask for additional ID documents before allowing you to add money. This is part of standard anti-money-laundering checks.
How my Fidelity Stocks & Shares ISA is invested
I opened my account in February 2016, with a long-term goal of holding investments for at least 25 years.
Core fund (main holding)
My main holding has always been the Fidelity Global Dividend Fund.
This fund:
• invests globally
• focuses on income and long-term stability
• tends to be more defensive than pure growth funds
It isn’t designed to shoot the lights out in bull markets, but it’s been far steadier than many growth-focused funds.
Additional funds (diversification)
In 2023, I diversified further by adding:
• Dodge & Cox Worldwide Global Stock Fund
• Fidelity Global Equity Income Fund
• Fidelity China High Yield Fund (hedged)
This reduced reliance on a single fund — but also diluted overall returns slightly.
Yes, I also hold individual stocks
Alongside funds, I’ve bought individual company shares through Fidelity.
These weren’t core investments. They were:
• partly for interest
• partly for learning
• partly because investing should still be engaging
I did research before buying — financials, outlook and risks — but stock-picking is still harder than it looks.
One share is currently down around 33%, which has dragged my overall return down. That experience reinforced why most of my money stays in diversified funds.
Think of individual stocks as the “satellite”, not the engine.
Fidelity Stocks & Shares ISA performance – my real returns
Annual percentage returns (net of contributions)
These figures show my ISA’s annual returns after removing money I added during each year. Returns are calculated using the investment gain divided by average invested capital, giving a more realistic picture of performance than simply comparing start and end values.
Performance since opening
• Gain: £15,746.62
• Total return: +56.00%
• Annualised return: +10.75%
Returns didn’t arrive smoothly. Markets dipped in 2020, recovered, then became volatile again later on. Staying invested — and continuing to contribute — made the difference.
That return hasn’t come in a straight line. There have been strong years, flat years, and periods where markets dropped sharply — particularly around 2020 and again during later market volatility.
However, staying invested and continuing to contribute has made a significant difference over time.
It’s also worth noting that this figure includes:
• income-focused funds
• diversified global holdings
• individual stocks that have underperformed
Without those weaker stock picks, the return would be higher — which reinforces why most of my money remains in funds rather than individual shares.
Final verdict – is a Fidelity ISA worth it?
For long-term investors who want control, flexibility and depth, yes.
Fidelity isn’t flashy and it won’t gamify investing. But over more than eight years it’s delivered strong, inflation-beating returns for me and remains one of my core platforms.
Leaving this money in a cash ISA would have been the real risk.
Fidelity referral code
If you want to start investing with Fidelity, use the button below and you’ll earn a free Amazon voucher if you invest £5,000 more.
Further reading
Take a look at why I invest more rather than pay off my mortgage.
And if you’re looking towards retirement, find out if £500,000 is enough to live on.
Fidelity Stocks & Shares ISA FAQs
Is Fidelity good for beginners?
Yes, if you’re willing to learn. It offers guidance tools but expects you to make decisions.
Are Fidelity ISA fees high?
They’re mid-range. Cheaper than some traditional platforms, pricier than some app-based providers.
Can you lose money with a Fidelity ISA?
Yes. Market risk applies. Time and diversification help reduce it.
Can I invest in individual shares in a Fidelity ISA?
Yes — but there’s a £7.50 dealing fee per trade.
Fidelity Stocks & Shares ISA review
Recently, I’ve been writing about my investment journey. Starting in 2016, I became a little fed up with terrible interest rates and the fact that, due to inflation, sticking my money in savings with a traditional bank meant it was losing value. And with not having enough money to purchase a second property, I decided to turn my hand to investing.
Now, I’m not the kind of person who likes to stick all my eggs into one basket, so I’ve decided to open several accounts.
One was a Lifetime ISA with Nutmeg. The government pays a hefty bonus of 25% on everything I put into the account (up to £1,000 per year). The downside is that there is a penalty if I withdraw early, so I try not to touch this money. Oh, you need to be under 40 to open an account and can’t put in more than £4,000 yearly.
Another of my investment choices was through an app called Plum. This is a great way to drip-feed an investment with small amounts at regular intervals. That way, I can continually build up my holdings without noticing big chunks missing from my bank. The drawback for me is that this is a General Investment Account, which means I could be liable for tax. They offer a Stocks & Shares ISA, but you can only open one yearly.
And my final choice was the stocks & shares ISA from Fidelity. Looking at various reviews of providers, plus the previous performance of funds, Fidelity stood out for me.
What is a Stocks & Shares ISA?
A stocks & shares ISA (also known as an investment ISA) allows you to invest in a wide range of shares, funds, investment trusts and bonds. You have an ISA allowance of £20,000 per tax year and do not have to pay tax on your gains. You can hold multiple stocks and shares ISA’s, but can only pay into one each year.
A stocks & shares ISA should be seen as a medium to long-term investment but you can access the money at any time, although it will usually take several days for your money to be withdrawn from your account.
Stocks and shares give you the potential to earn more money compared to a cash ISA but they also come with the possibility that you can lose some or all of your investment.
Who is Fidelity?
Fidelity International is a privately-owned investment management company that was established in 1946. They now have a diversified investment brokerage, offering the full range of investment products. Accounts include
- Stocks and Shares ISA
- Personal pension (Fidelity SIPP)
- Investment Account
- Junior ISA
- Junior SIPP
Is your money safe?
Fidelity is covered by the Financial Services Compensation Scheme (FSCS). That means should something go wrong at Fidelity (such as fraud or misrepresentation), then you can reclaim up to £85,000 back.
Fidelity is also regulated by the Financial Conduct Authority (FCA).
Fidelity platform fees
Stocks & shares ISA’s require a lot more effort to run compared to their cash counterparts and because of this, they come with management fees. The charges you have to pay to Fidelity depend upon how much you have invested.
| Value of investments | Service fee |
| Less than £7,500 | 0.35% if you have a regular savings plan or £45 if you don’t |
| £7,500 or more but less than £250,000 | 0.35% |
| £250,000 or more but less than £1 million | 0.20% |
| £1 million+ | 0.20% a year for the first £1 million and no service fee for investments over £1 million. This means the maximum fee you will ever pay for all of your personal accounts is £2,000 a year. |
On top of the fees from Fidelity, you will also need to pay charges for the fund you choose. These range from an annual charge of 0.11% to 1.19%. The fee is automatically taken from the value of your investments.
Getting started
If you’re a complete novice to investing, Fidelity provides a useful tool in helping you choose a fund. Called Navigator, it will guide you through the whole process.
For example, it will ask whether you want to grow your funds or earn an income. Choosing a growth option means that the money you make will be reinvested, whilst the income option means that your earnings will be paid into your bank.
You’ll also get to choose whether you want your funds to be tightly managed by experts. Although that means the chance to earn more, it increases the fee you pay for your funds. Alternatively, your money can be spread across various markets to lower your fees.
Finally, you get to choose your level of risk. Options are:
- Avoiding loss is my priority
- I prefer slow and steady
- I’m willing to lose to make some
- Focused on growth
- Risk losses for potentially higher returns
If you’re unsure what you would be comfortable with, there’s even a risk calculator tool you can use to help you decide.
Once you’ve put in all your preferences, you’ll be given a fund which most suits you, with a breakdown of the costs and previous fund performance.
You don’t have to accept. And you can always go through all the funds available on the Fidelity website and choose the one you think is most suitable.
How much do you need to start investing?
To open your Fidelity stocks & shares ISA, you’ll either need to make a lump sum investment of £1,000 or set up a Regular Savings Plan (RSP) of at least £25 per month.
Once you’re up and running, you can monitor your account from the main website or the Fidelity app.
My Fidelity stocks and shares ISA performance
I opened my account in February 2016. Because I planned to hold the fund for over 25 years, I decided to go for a higher-risk option, the Fidelity Global Dividend Fund.
I started with just a few hundred pounds and set up a direct debit. Since then, I have just watched it grow… although some years have been better than others. The end of the 2020 financial year saw a small drop in value, but since then, it’s made a comeback.
Since opening my Fidelity account, I have seen a total return of 11.90% or 5.19% per year. Although, it’s important to note that my Fidelity Global Dividend Fund has increased by 20.52%.
You see, in the early part of 2023, I decided to diversify my portfolio and purchase extra funds, which included:
- Dodge & Cox Worldwide Funds – Global Stock Fund
- Fidelity Funds – Global Equity Income Fund W-GBP
- Fidelity Funds – China High Yield Fund W-MINCOME(G)-GBP (hedged)
I also bought some stocks in individual companies.
Overall, these haven’t performed quite so well (with one stock losing 33%), which is why my total returns have reduced to 11.90%.
Fidelity refer a friend
Fidelity does run a referral scheme, which allows you to earn a bit extra… although it does require your friend to invest a sizeable sum. Just share your unique link and if your friend invests at least £5,000 in a new Stocks and Shares ISA, you’ll receive a £50 Amazon gift card each.
Fidelity stocks and shares ISA pros and cons
Pros:
- ✅ Easy to get started
- ✅ Lots of funds to choose from
- ✅ Suitable for novice and experienced investors
- ✅ Easy to use app
Cons:
- ❌ You will need £1,000 to open an account unless you set up a direct debit
- ❌ The website takes a bit of navigating
- ❌ A £7.50 fee for buying individual company shares
My Fidelity stocks & shares ISA review conclusion
Overall, I have been very happy with the returns from this ISA. If it continues to grow at its current rate and I stop investing in individual companies that I know little about, it should provide me with a decent income when I reach 60. Rather than continuing to grow my ISA, I can start withdrawing the profits instead.
The fees for funds vary wildly, so consider that when choosing which is the right one for you.
Click on the button below to take a look at what Fidelity has to offer.
[maxbutton name=”Fidelity”]
Please note that the above is for information purposes only and does not constitute financial advice. Investments can go down as well as up.
