Seamlessly Transitioning Your Investments: A Comprehensive Guide to Transferring Your E*TRADE Account to Fidelity
Hey there, savvy investor! Are you contemplating a move from ETRADE to Fidelity and feeling a little overwhelmed by the process? Don't worry, you're not alone! Many investors choose to consolidate their finances or switch brokerage firms for various reasons – perhaps better fees, more diverse investment options, or superior customer service. Whatever your motivation, this lengthy, step-by-step guide will walk you through everything you need to know to make your ETRADE to Fidelity transfer as smooth and stress-free as possible. Let's dive in!
Step 1: Why Are You Making the Switch? Define Your Transfer Strategy!
Before you even think about hitting that "transfer" button, take a moment to understand why you're moving your assets. This isn't just a philosophical question; it will directly impact your transfer strategy.
Are you unhappy with E*TRADE's platform or fees? Fidelity is known for its robust research tools, low-cost index funds, and $0 commission for most stock and ETF trades. Understanding your pain points at E*TRADE will help you appreciate the benefits Fidelity offers.
Are you consolidating multiple accounts? Many investors choose to have all their investment accounts under one roof for easier management and a holistic view of their portfolio.
Are you looking for specific investment products not offered by E*TRADE? Fidelity boasts a wide range of investment products, including a vast selection of mutual funds and options for cryptocurrency trading (though do note the specific limitations and offerings).
Knowing your "why" will empower you to navigate the transfer with clear objectives. This also helps you decide between a full account transfer (moving everything) or a partial transfer (moving only specific assets).
Step 2: Open Your New Fidelity Account (If You Haven't Already!)
This might seem obvious, but you can't transfer assets into an account that doesn't exist! If you don't already have a Fidelity brokerage or retirement account, this is your first concrete action.
Sub-heading: Choosing the Right Fidelity Account Type
Ensure the Fidelity account you open matches the account type you're transferring from E*TRADE. For instance:
Individual Brokerage Account at E*TRADE Individual Brokerage Account at Fidelity
Roth IRA at E*TRADE Roth IRA at Fidelity
Traditional IRA at E*TRADE Traditional IRA or Rollover IRA at Fidelity
Attempting to transfer assets between incompatible account types (e.g., a Roth IRA to a Traditional IRA) can lead to delays, complications, and even potential tax penalties.
Sub-heading: The Account Opening Process
Opening a Fidelity account is typically a straightforward online process that takes about 15-20 minutes. You'll generally need:
Your Social Security Number (SSN)
Contact information (address, phone, email)
Employment details
Information for linking a funding source (though not strictly necessary for a transfer, it's good to have in case of residual cash or future deposits).
Pro Tip: Have a recent E*TRADE statement handy during the Fidelity account opening process. It will contain crucial information like your account number and registered name, which you'll need to ensure consistency.
Step 3: Initiate the Transfer Request with Fidelity
This is where the magic happens! Fidelity will be the "receiving firm" and E*TRADE the "carrying firm." The easiest and most recommended way to transfer your assets is to initiate an Automated Customer Account Transfer Service (ACATS) transfer directly through Fidelity.
Sub-heading: Understanding ACATS: Your Best Bet for a Smooth Transfer
The ACATS system is an electronic service that automates and standardizes the transfer of assets between brokerage firms. It's designed to be efficient and largely hands-off once initiated.
What ACATS transfers: Most common securities like stocks, ETFs, mutual funds (if supported by both brokers), corporate and municipal bonds, and options.
What ACATS typically DOES NOT transfer: Certain illiquid securities, proprietary mutual funds not offered by Fidelity, and often, fractional shares (more on this later).
Sub-heading: Steps to Initiate the Transfer Online
Log in to your Fidelity account.
Navigate to the "Transfers" or "Move Money" section. Look for an option like "Transfer an account from another firm" or "Transfer investments to Fidelity."
Select E*TRADE as the firm you're transferring from.
Enter your E*TRADE account number. Double-check this for accuracy!
Specify the type of transfer:
Full Transfer: This moves all transferable assets and closes your E*TRADE account. This is often the simplest option.
Partial Transfer: This allows you to select specific assets or a dollar amount to transfer, leaving the rest at E*TRADE. If choosing a partial transfer, you'll need to identify the specific securities or cash you wish to move.
Confirm your Fidelity account destination. Ensure you're transferring to the correct Fidelity account type.
Review and electronically sign the Transfer Initiation Form (TIF). This form authorizes Fidelity to request your assets from E*TRADE.
Important Note: Fidelity will generally offer to cover any outgoing transfer fees E*TRADE might charge. Make sure to check their current promotions or ask a representative about their reimbursement policy before you initiate the transfer.
Step 4: Gather and Provide Required Documentation (If Necessary)
While ACATS aims for a paperless process, sometimes additional documentation is needed, especially if there are discrepancies or special circumstances.
Recent E*TRADE Account Statement: Fidelity may request a copy of your most recent E*TRADE statement (dated within the last 90 days) to verify your account holdings and ensure a smooth match.
Proof of Identity: If your name on the E*TRADE account doesn't exactly match your Fidelity account (e.g., due to marriage, divorce, or a typo), you might need to provide supporting documents like a marriage certificate, divorce decree, or a "One-and-the-Same Letter."
Beneficiary Information: If transferring a retirement account, ensure your beneficiary designations are updated at Fidelity.
Be prepared to upload digital copies of these documents if prompted by Fidelity's online transfer system.
Step 5: Understand Potential Transfer Fees
While Fidelity often offers $0 commission for trades and may even reimburse transfer fees, it's crucial to be aware of potential costs.
Sub-heading: E*TRADE's Outgoing Transfer Fees
ETRADE may charge an outgoing transfer fee for a full or partial ACATS transfer. This fee can range from $50 to $100. It's highly recommended to contact ETRADE directly or check their fee schedule on their website to confirm their current charges.
Sub-heading: Fidelity's Reimbursement Policy
As mentioned, Fidelity often has promotions to entice new customers, which may include reimbursing outgoing transfer fees. Don't assume this is automatic. Confirm with Fidelity's customer service or review their current special offers page on their website to understand the eligibility requirements and how to request reimbursement (e.g., you might need to submit proof of the E*TRADE fee).
Step 6: Monitor Your Transfer Timeline and Progress
Once you've initiated the transfer, patience is key. The ACATS process is designed to be efficient, but it's not instantaneous.
Sub-heading: Typical Transfer Times
ACATS transfers typically take 3-7 business days to complete, though some sources suggest up to 5-10 business days. This timeframe can vary depending on the complexity of your holdings and how quickly both E*TRADE and Fidelity process the request.
Manual transfers (for non-ACATS eligible assets) can take longer, sometimes up to 4-6 weeks for things like rollovers from employer plans if physical checks or certificates are involved.
Sub-heading: Tracking Your Transfer
Fidelity's Online Portal: Fidelity typically provides an online tool or section where you can track the status of your transfer. Log in to your Fidelity account and look for something like "Transfer Status" or "Track a Recent Transfer."
Confirmation Numbers: Keep any confirmation numbers provided by Fidelity or E*TRADE.
Avoid Trading During Transfer: It's generally advised to refrain from trading in the account being transferred (at E*TRADE) during the transfer process. This can disrupt the transfer and cause delays.
Step 7: Verify Transfer Completion and Address Any Discrepancies
Once the transfer status indicates completion, it's time for your final checks.
Sub-heading: Reviewing Your New Fidelity Account
Confirm Total Amount Transferred: Does the total value of assets in your new Fidelity account match what you expected from your E*TRADE account?
Verify Holdings: For in-kind transfers, ensure all your intended securities (stocks, ETFs, mutual funds, etc.) have transferred correctly and that the share quantities are accurate.
Check for Residual Cash: Sometimes, a small cash balance or the proceeds from liquidated fractional shares might arrive separately after the main transfer. Keep an eye out for these "sweeps."
Cost Basis Information: It's crucial that your cost basis information for transferred securities is accurate at Fidelity. While ACATS typically transfers this automatically, it's a good idea to verify. Incorrect cost basis can lead to headaches at tax time.
Sub-heading: What if Something is Missing or Incorrect?
Contact Fidelity Customer Service: If you notice any discrepancies, missing assets, or incorrect information, immediately contact Fidelity's customer support. Provide them with your account numbers and specific details of the issue. They will likely coordinate with E*TRADE to resolve it.
Be Patient and Persistent: While issues are rare with ACATS, they can occur. Be patient but persistent in following up until everything is resolved to your satisfaction.
Step 8: Close Your E*TRADE Account (Optional, But Recommended for Full Transfers)
If you performed a full account transfer, your E*TRADE account should automatically close once all assets, including any residual cash, have been transferred. However, it's a good practice to:
Confirm Closure: Contact E*TRADE directly after the transfer is complete to confirm your account has been officially closed.
Check for Residual Balances: Ensure there are no lingering small cash balances or overlooked securities.
Download Statements and Tax Documents: Before closing, download any past statements or tax documents you might need for your records.
By following these steps, you can confidently navigate the process of transferring your E*TRADE account to Fidelity, unlocking new opportunities for your investment journey.
10 Related FAQ Questions (How to...)
Here are 10 frequently asked questions related to transferring brokerage accounts, particularly from E*TRADE to Fidelity, with quick answers:
How to check my E*TRADE account number?
Your ETRADE account number can typically be found on your account statements (paper or electronic), by logging into your ETRADE online account, or by contacting E*TRADE customer service.
How to find my Fidelity account number?
Your Fidelity account number is available on your account statements, by logging into your Fidelity online account, or by contacting Fidelity customer service.
How to know if my E*TRADE assets are transferable to Fidelity?
Most standard securities like stocks, ETFs, and widely held mutual funds are transferable via ACATS. Proprietary mutual funds, some alternative investments, and often fractional shares may not be directly transferable. Check with Fidelity's customer service or review their transfer guidelines if you have specific, less common holdings.
How to deal with fractional shares during the transfer?
During an ACATS transfer, fractional shares are typically not transferred in-kind. They are usually liquidated (sold) by the originating brokerage (E*TRADE), and the cash proceeds are then transferred to your new Fidelity account.
How to avoid taxes when transferring my E*TRADE account?
For investment and retirement accounts, an "in-kind" transfer (transferring assets without selling them) through ACATS generally avoids triggering taxable events like capital gains, as you are simply moving ownership. Selling assets for cash before transferring (a "cash transfer") can trigger capital gains taxes. Always consult a tax advisor for personalized advice.
How to check the status of my Fidelity transfer?
Log in to your Fidelity account online and look for a section or link related to "Transfer Status," "Track Your Transfer," or "Move Money." Fidelity typically provides real-time updates on your transfer's progress.
How to get E*TRADE transfer fees reimbursed by Fidelity?
Fidelity often offers promotions to reimburse outgoing transfer fees from other institutions. Check Fidelity's current special offers page on their website or contact their customer service to understand the eligibility requirements and the process for requesting reimbursement. You'll likely need to provide proof of the fee charged by E*TRADE.
How to transfer only specific investments from E*TRADE to Fidelity?
When initiating the transfer request at Fidelity, select the "partial transfer" option. You will then be prompted to specify which securities or the amount of cash you wish to transfer from your E*TRADE account.
How to ensure my cost basis transfers correctly to Fidelity?
The ACATS system is designed to transfer cost basis information automatically along with your securities. However, it's crucial to verify this information in your Fidelity account once the transfer is complete. If you notice any discrepancies, contact Fidelity customer service immediately and be prepared to provide original statements or trade confirmations from E*TRADE.
How to handle untransferable assets from E*TRADE?
If ETRADE holds assets that cannot be transferred to Fidelity (e.g., proprietary mutual funds not offered by Fidelity), you have a few options: you can sell them before initiating the transfer and transfer the cash, keep them at ETRADE, or explore if Fidelity offers a similar investment you can purchase once the cash is transferred.
