Feeling a shift in your investment strategy? Ready to consolidate your portfolio, or perhaps you've simply found a new platform that better suits your needs? Moving your valuable stocks from E*TRADE to Fidelity can seem like a daunting task, but I promise you, it's a straightforward process if you know the steps. Let's get you set up for a smooth transition!
Understanding the "Why" Behind the Move
Before we dive into the "how," take a moment to reflect on why you're making this move. Are you seeking:
Lower fees?
Better research tools?
More diverse investment options?
Enhanced customer service?
Simply consolidating accounts for easier management?
Whatever your motivation, understanding it will help you stay focused throughout the process and ensure you're making the right decision for your financial future.
Now, let's get down to business!
Step 1: Prepare for Your Seamless Transfer – The Foundation of a Smooth Move
This is where you engage and set yourself up for success. Don't skip these crucial preparatory steps!
Sub-heading: Check Your Account Compatibility and Status
Matching Account Types: Fidelity will only accept transfers into like-registered accounts. This means:
An Individual Brokerage account at E*TRADE must transfer to an Individual Brokerage account at Fidelity.
A Roth IRA at E*TRADE must transfer to a Roth IRA at Fidelity.
A Traditional IRA at E*TRADE must transfer to a Traditional or Rollover IRA at Fidelity.
Joint accounts must go to joint accounts.
If you don't have the corresponding account type at Fidelity yet, don't worry! You can typically open one during the transfer initiation process.
Account Status at E*TRADE: Ensure your E*TRADE account is in good standing.
No Pending Trades: Crucially, avoid placing any trades in the E*TRADE account you plan to transfer during the entire transfer process. This can significantly delay or even halt the transfer.
Settle Outstanding Balances: Clear any negative cash balances or margin calls. Outstanding fees or issues can hold up the transfer.
No Restrictions: Confirm there are no restrictions or holds on your E*TRADE account.
Review Securities Lending Programs: If you're enrolled in a securities lending program at E*TRADE, you'll need to opt out and allow a few business days for this change to process before initiating the transfer. Securities currently on loan cannot be transferred.
Sub-heading: Gather Your Essential Information
Having all your ducks in a row before you start will save you headaches later.
E*TRADE Account Details:
Your ETRADE account number(s).
Your E*TRADE login credentials (username and password, especially if you plan to link accounts electronically).
A recent E*TRADE account statement (within the last 90 days). This is vital for accurate account registration details, cost basis information, and verifying holdings.
Fidelity Account Details:
Your Fidelity account number(s) (if you already have an account).
Fidelity login credentials.
Personal Identification:
Valid government-issued identification (e.g., driver's license, passport).
Your Social Security Number.
Investment Details (for Partial Transfers): If you're only moving some of your investments, keep a clear record of the specific stock symbols and quantities you intend to transfer. For a full transfer, this isn't strictly necessary for the paperwork, but it's good practice for your own records to verify upon completion.
Sub-heading: Understand Transfer Fees (and Potential Reimbursements!)
E*TRADE's Outgoing Transfer Fee: ETRADE may charge a fee for outgoing asset transfers. Historically, this has been around $75 for a full transfer. It's highly recommended to contact ETRADE directly or check their fee schedule on their website to confirm the exact amount.
Fidelity's Incoming Transfer Policy: Fidelity generally does not charge a fee to receive assets.
Potential Reimbursement: Many brokers, including Fidelity, offer to reimburse transfer fees charged by the outgoing firm, especially for larger transfers.
Call Fidelity's customer service and inquire about their transfer fee reimbursement policy before you initiate the transfer. They often have a minimum transfer amount (e.g., $25,000 or $50,000) for reimbursement eligibility.
If eligible, you'll likely need to provide proof of the E*TRADE fee (e.g., a statement showing the charge).
Step 2: Initiate the Transfer – Fidelity Takes the Lead
This is the most critical step, and it’s usually handled by the receiving brokerage (Fidelity). This simplifies the process for you.
Sub-heading: The Automated Customer Account Transfer Service (ACATS)
The vast majority of brokerage account transfers in the U.S. are facilitated through the Automated Customer Account Transfer Service (ACATS). This standardized system streamlines the process between financial institutions.
You initiate the ACATS transfer from Fidelity's side. Fidelity then contacts E*TRADE to request your assets.
Sub-heading: Your Options for Initiating the Transfer at Fidelity
Online (Recommended for Speed and Convenience):
Log in to your Fidelity account (or open a new one if you haven't already).
Navigate to the "Transfer Assets" or "Move an Account" section. This is usually found under "Accounts & Trade" or "Customer Service."
You'll likely be prompted to select the institution you're transferring from (E*TRADE).
Electronic Linking (Fastest Option): Fidelity often allows you to electronically link your ETRADE account by entering your ETRADE username and password. This is the quickest way as it populates much of the information automatically.
Manual Entry: If electronic linking isn't an option or you prefer manual entry, you'll fill out an online form with your ETRADE account details (account number, account type, account holder name as it appears on your ETRADE statement).
Choose your transfer type:
Full Transfer: This moves all eligible securities and cash from your E*TRADE account to your Fidelity account. This is generally the smoothest option.
Partial Transfer: This allows you to select specific investments or cash amounts to transfer. Be precise with stock symbols and quantities.
Electronically sign the transfer request.
Paper Forms:
While less common now, you can still request a Transfer of Assets (TOA) form from Fidelity.
Fill out the form completely and accurately, ensuring all information matches your E*TRADE account precisely. Even a small discrepancy can cause delays.
Attach a copy of your most recent E*TRADE statement.
Mail or fax the completed form and statement to Fidelity.
Sub-heading: Understanding "In-Kind" vs. "Liquidate and Transfer Cash"
In-Kind Transfer (Highly Recommended): This is the default and most common method for moving stocks. Your investments (stocks, ETFs, mutual funds, etc.) are transferred as is from E*TRADE to Fidelity.
Benefit: You remain invested in the market throughout the transfer process, avoiding potential capital gains taxes (unless you sell the assets later) and market timing risks.
Consideration: Not all investments may be transferable. Fidelity might not support certain niche securities or mutual funds offered by ETRADE. If this is the case, those specific holdings would typically be liquidated (sold) by ETRADE, and the cash proceeds transferred.
Liquidate and Transfer Cash: You instruct E*TRADE to sell all your holdings, and only the cash proceeds are transferred to Fidelity.
Benefit: Simplicity, if you want to reinvest differently at Fidelity.
Consideration: This will trigger taxable events on any capital gains or losses. You'll also be out of the market during the liquidation and transfer period, potentially missing out on market movements. Generally, this is not recommended unless you specifically want to reallocate your portfolio and understand the tax implications.
Step 3: The Waiting Game – Monitoring Your Transfer
Once you've initiated the transfer, the process is largely out of your hands, but you'll want to monitor its progress.
Sub-heading: Expected Timeline
Most ACATS transfers from E*TRADE to Fidelity typically take 5 to 10 business days (excluding weekends and holidays).
Complex transfers involving less common assets, issues with matching account details, or international securities can take longer.
Important: Refrain from placing any trades in the E*TRADE account during this period. Doing so can disrupt the transfer and cause significant delays.
Sub-heading: How to Track Your Transfer
Fidelity's Online Portal: Fidelity provides tools to track the status of your transfer online. Look for a "Pending Transfers" or "Transfer Status" section within your account. They will often update you on each stage of the process.
Communication from Fidelity: Fidelity will usually send you email notifications regarding the progress of your transfer.
Contact Customer Service: If you notice unexpected delays or have questions, don't hesitate to contact Fidelity's customer service. Have your transfer confirmation number ready.
Sub-heading: What Happens During the Transfer?
Securities Go "Out of Reach": During the core transfer period, your assets will temporarily be unavailable for trading at both E*TRADE and Fidelity. This is normal.
Fractional Shares: Fractional shares cannot be transferred via ACATS. If you hold fractional shares at ETRADE, they will typically be liquidated (sold) by ETRADE, and the cash proceeds will be transferred to your Fidelity account along with your whole shares.
Cost Basis Information: Fidelity will generally request your cost basis information from E*TRADE. This is crucial for accurate tax reporting. It might take a little longer for this information to appear in your Fidelity account after the shares themselves have arrived, but it will usually follow.
Step 4: Verify and Reconcile – Confirming a Successful Move
The transfer isn't truly complete until you've confirmed everything is in order.
Sub-heading: Review Your Fidelity Account
Confirm Holdings: Once Fidelity notifies you the transfer is complete, log in to your Fidelity account immediately.
Compare the list of transferred assets with your personal records from E*TRADE. Ensure all intended stocks, ETFs, mutual funds, and cash balances have arrived.
Verify quantities: Double-check that the number of shares for each security matches what you expected.
Check Cash Balances: Ensure any cash from liquidated fractional shares or uninvested cash has been transferred correctly.
Verify Cost Basis: Look for the cost basis information for your transferred securities. While it may not appear instantly, it should populate within a few days to a week after the assets arrive. This is important for calculating capital gains/losses when you eventually sell.
Account Statements: Keep an eye out for your first statement from Fidelity that reflects the transferred assets.
Sub-heading: Address Any Discrepancies Promptly
If anything is missing, incorrect, or if you don't see your cost basis information within a reasonable timeframe, contact Fidelity's customer service immediately. They can investigate and resolve any issues.
It's always a good idea to keep copies of all transfer forms, E*TRADE statements, and any communication related to the transfer for your records.
By following these steps, your move from E*TRADE to Fidelity should be a smooth and stress-free experience, allowing you to focus on your investment goals with your new brokerage!
Frequently Asked Questions (FAQs)
How to start the transfer process from E*TRADE to Fidelity?
You initiate the transfer directly from the Fidelity website or by contacting Fidelity customer service. They will guide you through completing an Automated Customer Account Transfer Service (ACATS) form, which authorizes Fidelity to request your assets from E*TRADE.
How to know if my E*TRADE account is ready for transfer?
Ensure your E*TRADE account has no pending trades, outstanding balances (like margin calls or fees), or holds/restrictions. It's also advisable to opt out of any securities lending programs beforehand.
How to handle fractional shares during an E*TRADE to Fidelity transfer?
Fractional shares cannot be transferred via ACATS. E*TRADE will typically liquidate (sell) any fractional shares you hold, and the resulting cash proceeds will be transferred to your Fidelity account along with your whole shares.
How to transfer an IRA from E*TRADE to Fidelity?
The process is similar to transferring a regular brokerage account. Ensure you open the exact same type of IRA (e.g., Roth IRA to Roth IRA, Traditional IRA to Traditional IRA) at Fidelity before initiating the transfer.
How long does it take to move stocks from E*TRADE to Fidelity?
Most ACATS transfers typically take 5 to 10 business days to complete. However, complex transfers or discrepancies in account information can extend this timeline.
How to track the status of my transfer from E*TRADE to Fidelity?
You can generally track the progress of your transfer directly through your Fidelity online account. Look for a "Pending Transfers" or "Transfer Status" section. Fidelity also usually sends email updates.
How to avoid delays when transferring stocks?
Ensure all information on your transfer request form precisely matches your ETRADE account details (name, address, account number, account type). Avoid placing any trades in the ETRADE account once the transfer is initiated.
How to get my E*TRADE transfer fees reimbursed by Fidelity?
Contact Fidelity's customer service before initiating the transfer to inquire about their transfer fee reimbursement policy. They often offer reimbursement for transfers above a certain asset value, and you'll typically need to provide proof of the E*TRADE fee.
How to confirm all my investments have transferred correctly to Fidelity?
Once Fidelity notifies you of the transfer's completion, log in to your Fidelity account and compare your new holdings with your most recent E*TRADE statement. Verify all securities, quantities, and cash balances.
How to ensure my cost basis information transfers from E*TRADE to Fidelity?
Fidelity will request your cost basis information from E*TRADE as part of the ACATS transfer. While the assets may appear sooner, the cost basis data might take a few additional days to populate in your Fidelity account. If it doesn't appear within a week or so after the transfer, contact Fidelity customer service.
