One week ago, when stocks were hitting all time highs as traders were blissfully ignoring all the same news that are sending markets crashing today, we reported that online brokerage Fidelity was true to its name and, well, broke, showing zero balances on countless accounts. At the time we said that "while we assume this pesky "glitch" will be resolved promptly, we should point out that if the market were to ever again suffer a down day and should investors wish to sell some/all of their holdings, this would be a convenient way to quickly and efficiently prevent that from ever happening."
Little did we know that this hypothesis would be test just three days later, because as of Monday morning, with stocks crashing and the Dow on pace to wipe out all gains for 2020, Fidelity has once again gone dark with the website barely working, and with countless clients eager to put on some "hedging trades" or at least get the hell out of Dodge, unable to do so because as Fidelity helpfully informs them, they suddenly have zero assets in their possession.
Needless to say, Fidelity's (rapidly declining) clients are not too happy but this repeat fiasco, and are aggressively considering some rather flagrant Infidelity vis-a-vis their online broker in light of what has become an almost daily farce on high vol days:
Looks like @Fidelity is trying to protect investors from themselves?— MarketCashCapital (@MarketCrashCap) February 24, 2020
Or I just lost all my monies already today. @Fidelity it would be great on a day like today if your site worked. pic.twitter.com/hSXFsZwnMH
Hey @Fidelity why does your app and website consistently just crap out during high volatility days? Also what is the point of a brokerage if you can't trade during high volatility days? Took so long to get an order in by the time I got an order fill I was down 10%. Thanks.— Aric Bardwin (@Dniesbor) February 24, 2020
Fidelity brokerage when the market gets an uptick in volatility: pic.twitter.com/e7jSkK4CBH— Chess (@chessNwine) February 24, 2020
Fidelity is down. I’m sure others will be too. Don’t panic sell. Bad idea. https://t.co/tNFQBZdQLv— Ross Gerber (@GerberKawasaki) February 24, 2020
@Fidelity AGAIN?! The company needs to put out a statement about these problems besides, "we are experiencing problems". What is the real problem and what are you doing to fix it? I don't want to change brokerages, but I'm real close. Please give me a reason not to. pic.twitter.com/Q6lHwR9eFU— Scott (@algoskeptic) February 24, 2020
@fidelity my accounts are now showing a zero balance. I know I’m not the only customer experiencing this. Fidelity needs to be prepared for days like this.— Rena (@RenaList2) February 24, 2020