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FideliTrade is a precious metal investment company. They are full-service. They have operations in Wilmington, Delaware.
If you are considering doing business with them, you are likely going to be concerned with whether or not they are a reputable and reliable company.
According to BBB, the company was founded in 1997. The President of the company is Jonathon Potts and the Vice President of it is Grace Stockley.
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All About The Company
It was in 1997 when Jonathon Potts started contemplating his future with Wilmington Trust. He was the Vice President of the company at the time. He was running the precious metals division of the company.
The bank announced that they would be exiting the precious metals business and subsequently, everyone in the division suddenly had their jobs on the line because of it.
Jonathon made the strategic decision to buy out the precious metals part of the business instead of waiting for reassignment from the bank. It was a very unusual proposition at the time, but it was a proposal that made sense for Jonathon.
The proposal essentially had Jon taking longtime customers of the bank. Because the bank was looking for the best solution for not only its employees but also its customers, it ended up accepting the offer.
That's when FideliTrade was born. It started operating around 1998. The bank sent off 5 employees from the division to work at the new company. The company started in an office space that was around 720 sq ft.
Nowadays, the company has grown considerably. It now has over 50 full-time employees and they occupy (4) different buildings. They now have office space totaling over 72,000 sq ft.
FideliTrade has a range of different subsidiaries. One of them being Delaware Depository.
This company is one of the biggest depositories in the entire country. They hold bullion for everyone including IRA custodians, commodity exchanges, financial institutions, and even individuals.
FideliTrade is also now an authorized purchaser of the US Mint which is something that only 11 other companies can say throughout the globe. This allowed the bullion in the company's vaults and the company itself to have a bright future.
The unprecedented demand for the services is a direct result of the Geopolitical and economic instability that's occurring worldwide. This tends to lead a lot of investors to seek safe havens when it comes to their investment opportunities.
They want to put their money into safer assets which is what precious metals are.
A lot of sophisticated money managers have started to seek out FideliTrade because they provide cost-effective and a transparent approach to getting into precious metals investing.
Different Products and Services from FideliTrade
With them, you can either buy or sell precious metals. These include platinum, palladium, silver, and gold. You can buy or sell bars or coins. They use their subsidiary for storage.
The storage depository is located in Wilmington, Delaware like its headquarters. For anyone that wants international storage options, they also have custody services located in different parts of the world including Toronto and Zurich.
You can either opt for segregated or non-segregated storage for your precious metals. When you opt for segregated storage, you can place the metals in a completely separate facility that is isolated from the bars and coins of other clients.
You get your bars individually packaged and sealed into a container. They are individually labeled for assurance and peace of mind.
When you opt for non-segregated storage, you end up getting your precious metals kept in the same spot as other customers. You can purchase, sell, or take delivery of your precious metals whenever you want.
They will also work directly on your behalf as a dealer if you want to open up a precious metals IRA. They work with multiple IRA custodians. They will help you with picking the different precious metals that you may want to add to your IRA.
When you opt to go with FideliTrade as your dealer of choice, you don't have to pay shipping costs that would normally be charged.
Who They Work With
FideliTrade works with previous customers of different precious metals operations including the Wilmington Trust Company. They offer bullion services and they deliver it straight from the source.
They get their bullion right from the government and other commercial mints. They have an exchange-approved depository which should give you peace of mind as a client of theirs no matter if you are trading or leveraging their distribution services.
They don't have any debt. And they have plenty of capital. This can assure clients that they are not going to go away and they will always fulfill their obligations on behalf of their customers.
Clients wouldn't need to have to worry about the company not staying solvent and having their precious metals at risk because of it. Every client's asset is insured to $1 billion.
When you open up an account with FideliTrade, you can get the assistance you need with a lot of your precious metals transactions from someone with a lot of experience. FideliTrade doesn't use salespeople on a commission basis.
Therefore, you can always count on being given the best advice possible that's not incentivized by profit. Also, you will get the most competitive prices from a reputable company that has decades of satisfied customers like yourself.
You can always use your account for both IRA and non-IRA transactions. Also, you can get your bullion held in various locations too. FideliTrade will hold bullion in the USA at Delaware and California locations and globally in Toronto and Zurich.
They offer precious metals trading and support services to all kinds of investment managers and advisors through their clearing service in Delaware.
With Delaware Clearing Service, your clients will have the chance to purchase various precious metals in coins and bars.
They can either take delivery of the precious metals or have them held safely and securely in custody where they will be protected and insured. The entire service has been created with both the investor and the advisor in mind.
Any advisor can work directly with their client to optimize an investment plan and strategy that allows them to best suit their financial goals while getting personalized guidance and the best prices on the market for their precious metals investments.
You can widen your service offering by providing your clients direct access to the precious metals markets while leaving the operational framework to FideliTrade.
The institutional clientele for FideliTrade includes banks, investment funds, and brokerage firms. They work alongside wholesalers, dealers, and even exchanges.
Having a commercial account will allow you to effectively trade different products effortlessly.
You will have the chance to trade them online or even over the phone. The commercial trading hours run from 8 am EST to 8 pm EST M-Th and 8 am EST to 5 pm EST on Fridays.
The company offers all kinds of specialized precious metals administrative and clearing services to a worldwide set of commercial entities.
They have a comprehensive menu of different custody, trading, delivery, and support services which helps brokerage firms and different commercial enterprises to effectively improve their investment product mix and add new services to their offerings.
It also helps them earn even more income while maximizing cross-selling opportunities while minimizing the loss of customer assets to other competitors. The best part, all of this can be gained with minimal risk or cost.
Segregated Storage for Precious Metals
You will have the opportunity to choose whether or not you want to use segregated offerings. When you go for segregated storage, it means that you get your precious metals stored completely separate from other clients' metals.
You get all of your precious metals individually packed and stored in your container. It's also going to be labeled individually indicating it's yours.
When you don't go for segregated storage, you will have all of your precious metals stored in an assigned account that's been mixed with various other investors' metals of the same type.
Regardless of which one you choose, you can always take ownership of your items at any time. Likewise, you can continue to buy and sell as you wish.
Precious Metals Trading
Because they are an authorized Mint distributor, you can buy precious metals at the most competitive prices. The max ACH amount you can do is $29,999. Whereas, the maximum for credit cards is $2,999 and fees apply to credit card use.
When you are looking to liquidate, you can get it done with FideliTrade. They will purchase your precious metals from you. They will also buy bullion even if you didn't get it from them in the first place.
This plan is available when you buy the bulk generic bullion they sell. This is a specific interest in their bulk holdings. FideliTrade's accumulation plan is either a monthly or bi-monthly automated purchase in their bulk-generic bullion.
You can choose what type of bullion you want and how much you want to put into it. This is a program that allows you to effectively leverage the dollar cost averaging strategy and it eliminates having to worry about day-to-day monitoring of the market.
You can also buy your precious metals on either the 1st or 16th of each month. There are no added fees to join and you only need to pay $99 worth of any metal type.
The company works hand-in-hand with its depository to ensure that every piece of metal that enters the facility is completely tested and inspected for authenticity. There are a lot of resources that go into ensuring everything is properly authenticated.
They invest heavily in counterfeit detection equipment, personnel, and tech. There are dimension measurement equipment, precision scales, agents, ultrasound equipment, and X-ray machines to ensure that everything is completely authentic.
With all of these safeguards in place, FideliTrade can stand behind all of its metals and they've built and maintained a reputation within the industry based on its attention to detail. They are very proud of the reputation that they have garnered in the industry.
Frequent Asked Questions
What does the purity mean?
When it comes to precious metals, they are measured in purity ratings. Their purity of them is measured in "parts per thousand." It is usually referred to as the metal's fineness.
It will indicate the proportion of the metals contained within the refined product. Thus, any bullion bar that is 999.9 fine is 99.99 percent pure gold. It's generally referred to as "four nines" gold because of it.
What are the differences between rare or numismatic coins and bullion coins?
A bullion coin is mass-produced by a government mint. They are legal tender in a region. These coins typically sell for a premium over the intrinsic value of the metal itself.
The prices of bullion coins move along with the price fluctuations of the underlying commodity. For instance, a gold bullion coin would move alongside the price of gold.
Whereas, a numismatic or rare coin is collected. It's valued because it's scarce and because it has unique features attached to it.
Any special collectible qualities can make these coins and metals more valuable than the actual underlying commodity they contain.
Can I include other metals in my IRA?
Precious metals have been allowed to be placed in Self-Directed IRAs since as early as 1986. The range of accepted products has increased and there are a wide variety of metals allowed in them.
Any platinum, palladium, gold, or silver coin can be added to one. FideliTrade ensures that you are only getting products that can be placed into them if you are investing in your IRA.
What's the process like?
FideliTrade works alongside different IRA custodians who allow these metals to be placed in their IRAs. FideliTrade can help to serve as your dealer for different non-IRA and IRA transactions.
Once you open up your account and fund it with an approved IRA custodian, you can use your new FideliTrade account to start investing in precious metals.
All you need to do is allow a member of the client services department to know that you are purchasing precious metals for your IRA and they can help you select from a list of eligible products.
They will work directly with your custodian of choice to fund the transaction. The IRA custodians will require signed documents from you that you confirm the purchase. The transactions will typically take a few weeks to settle once you make the purchase.
Is FideliTrade a Scam?
As mentioned above, the company is legitimate and they have been in business for a long time. They are not a scam. They have a real physical address which a lot of online companies don't have.
They have a good reputation and everything checks out. It's best to do your due diligence on your own before choosing any company for precious metals investing.
Pros and Cons
Pros
Cons
Final Thoughts
FideliTrade is a reputable and legitimate precious metals trading company that you can count on. They have been in business for over 20 years.
They not only have a physical address, but they offer convenient online trading which is a rarity. They have very helpful reps on staff with a lot of experience.
They are very transparent in their business operations and they have a stellar BBB rating.
FideliTrade is an acceptable company, but we do not recommend them. They are not the best option for individual purchases of precious metals, and certainly not the best option for investors looking to protect their savings with a gold IRA.
There are much better companies to work with that we recommend.
You can get a Free Gold Investors Guide from our top gold and precious metals company recommendation by clicking the link above or you can read our article of the top companies we reviewed this year:
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I started BMOGAM Viewpoints as a way to compile all my views on investing in one place. I own my home, have some real estate, and own a few stocks like most people, but what really drives my interest in investing is I have a strong love of precious metals, especially gold.
