Ready to make the switch from E*TRADE to Fidelity? This comprehensive guide will walk you through every step of the process, ensuring a smooth and hassle-free transfer of your valuable investments. Let's get started!
Transferring your brokerage account from one firm to another might seem daunting, but with the right information and a step-by-step approach, it's a straightforward process. Fidelity is a popular choice for many investors due to its robust platform, low fees, and extensive research tools. Whether you're looking to consolidate your investments, take advantage of Fidelity's offerings, or simply prefer their interface, this guide will help you navigate the transition.
Step 1: Assess Your Current E*TRADE Account
Before you initiate any transfer, it's crucial to understand what you're moving. This initial assessment will help prevent unexpected issues and delays.
1.1 Identify Your Account Type(s)
Are you transferring a traditional brokerage account, a Roth IRA, a Traditional IRA, a SEP IRA, a 401(k) rollover, or a combination? Different account types may have specific transfer requirements or tax implications. For instance, transferring an IRA is often a "trustee-to-trustee" transfer, which helps maintain its tax-deferred status. Ensure the account type you open at Fidelity matches the one at E*TRADE (e.g., Roth IRA to Roth IRA).
1.2 Review Your Holdings
Take a detailed inventory of all your investments in your E*TRADE account. This includes:
Stocks and ETFs: Note down the tickers and number of shares.
Mutual Funds: Check if Fidelity offers the exact same mutual funds. Some proprietary mutual funds from E*TRADE might not be available at Fidelity and would need to be liquidated (sold) before transfer.
Options, Bonds, and Other Securities: Verify their transferability.
Fractional Shares: Fractional shares generally cannot be transferred "in-kind" (as they are). E*TRADE will likely liquidate any fractional shares, and the cash proceeds will be transferred to Fidelity. Be aware of this, especially if you have a dividend reinvestment plan (DRIP) that has accumulated fractional shares.
Restricted or Illiquid Securities: Some less common or privately held securities might not be transferable. You may need to sell these before initiating the transfer.
1.3 Check for Outstanding Balances or Debts
Ensure your E*TRADE account has no outstanding debits, margin balances, or un-settled trades. Any such issues can cause delays or even rejection of your transfer request. If you have a margin account, you'll need to settle any margin loans before transfer or ensure Fidelity can accommodate the margin account and its associated debt.
1.4 Consider Any Pending Activity
If you have any pending trades, dividend payments, or corporate actions (like stock splits or mergers), it's best to wait until these are settled before initiating the transfer. This avoids complications during the transfer process.
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| How To Transfer From Etrade To Fidelity |
Step 2: Open a Corresponding Account at Fidelity
This is where you set up the "receiving" end of your transfer.
2.1 Visit Fidelity's Website or a Local Branch
You can start the account opening process online or in person. Fidelity's website has a user-friendly interface for opening new accounts.
Reminder: Reading twice often makes things clearer.
2.2 Choose the Correct Account Type
As discussed in Step 1, it's critical to open an account at Fidelity that matches the account type you're transferring from ETRADE. For example, if you're transferring a Traditional IRA from ETRADE, open a Traditional IRA at Fidelity.
2.3 Complete the Application
You'll need to provide personal information, including your Social Security number, contact details, and employment information. Have your E*TRADE account statement handy as you'll need its details.
2.4 Fund the Account (Optional, but Recommended for Fees)
While not always mandatory to initiate a transfer, it can be helpful to link a bank account to your new Fidelity account or deposit a small amount of cash. This can be useful for covering any potential transfer fees from E*TRADE, or if any fractional shares are liquidated into cash during the transfer process.
Step 3: Initiate the Transfer Request from Fidelity
The most common and recommended way to transfer assets between brokerages is through the Automated Customer Account Transfer Service (ACATS). This process is initiated by the receiving firm (Fidelity in this case), not the sending firm (E*TRADE).
3.1 Log In to Your New Fidelity Account
Once your Fidelity account is open and active, log in to their platform.
3.2 Navigate to the "Transfer Assets" or "Move Money" Section
This section is typically found under "Accounts & Trade" or a similar menu. Look for options like "Transfer an account from another firm" or "Initiate a Transfer of Assets (TOA)."
3.3 Select E*TRADE as the Delivering Firm
You'll be prompted to select the institution you're transferring from. Choose E*TRADE from the list.
Tip: Pause if your attention drifts.
3.4 Provide Your E*TRADE Account Information
You'll need your ETRADE account number and the exact registration (how the account name appears) from your E*TRADE statement. Accuracy here is paramount; any mismatch can delay or reject the transfer.
3.5 Choose a Full or Partial Transfer
Full Transfer: This moves all eligible assets and closes your E*TRADE account. This is generally the smoothest option as it leaves no lingering issues with the old account.
Partial Transfer: This allows you to select specific assets you want to transfer, leaving others in your E*TRADE account. If choosing a partial transfer, you'll need to specify exactly which securities and how many shares of each you want to move. Keep in mind fractional shares will likely be liquidated even in a partial transfer.
3.6 Review and Submit the Request
Carefully review all the information you've entered. You may be asked to electronically sign the transfer authorization form. Once you're confident, submit the request. Fidelity will then handle the communication with E*TRADE.
Step 4: Monitor the Transfer Process
Once initiated, the ACATS transfer process typically takes 3 to 10 business days to complete. However, complex transfers or issues can extend this timeframe.
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4.1 Use Fidelity's Transfer Tracker
Fidelity usually provides an online transfer tracker where you can monitor the status of your request. This is your primary tool for staying informed.
4.2 Avoid Trading During the Transfer
It's highly advisable to refrain from making any trades in your E*TRADE account once the transfer is initiated. Trading activity during the transfer can cause complications and delays, sometimes even requiring a new transfer request.
4.3 Be Prepared for Potential Fees
ETRADE Outgoing Transfer Fee:* ETRADE charges a fee for outgoing full account transfers, typically around $75 for a full transfer and $25 for a partial transfer. This fee will usually be debited from your ETRADE account. If there isn't enough cash, it might create a debit balance in your new Fidelity account.
Fidelity Reimbursement: Fidelity may offer to reimburse transfer fees from other institutions, especially for larger transfers. Check Fidelity's current promotions or inquire with their customer service about potential fee reimbursements before you initiate the transfer. If eligible, you'll typically need to submit a request with proof of the E*TRADE fee once the transfer is complete.
4.4 Respond to Any Requests for Information
Both Fidelity and E*TRADE might contact you for additional information or clarification during the process. Respond promptly to avoid delays.
QuickTip: A careful read saves time later.
Step 5: Verify Transfer Completion
Once Fidelity notifies you that the transfer is complete, it's time to verify everything has moved correctly.
5.1 Log In to Your Fidelity Account
Check your account statements and holdings to ensure all the intended assets have arrived.
5.2 Confirm Accuracy of Holdings
Did all your stocks, ETFs, and other securities transfer "in-kind" as expected?
Were fractional shares liquidated and the cash transferred?
Is the cost basis information accurate for your transferred securities? This is very important for tax purposes. If the cost basis isn't immediately available, it may take a few more days for E*TRADE to transmit this information to Fidelity.
5.3 Check for Any Debit Balances
If E*TRADE charged a transfer fee and you didn't have enough cash in the account, you might see a negative cash balance in your Fidelity account. You'll need to deposit funds to cover this.
5.4 Close Your E*TRADE Account (if full transfer)
If you performed a full transfer, ETRADE should automatically close your account after all assets and any residual cash (like liquidated fractional shares or dividends) have been transferred. However, it's a good practice to confirm this with ETRADE customer service a few weeks after the transfer is complete.
Frequently Asked Questions (FAQs)
Here are 10 common questions related to transferring from E*TRADE to Fidelity, with quick answers:
How to transfer specific stocks from E*TRADE to Fidelity?
To transfer specific stocks, initiate a partial transfer through Fidelity's "Transfer Assets" section and specify the exact tickers and number of shares you wish to move.
How to avoid E*TRADE transfer fees?
While E*TRADE charges outgoing transfer fees, Fidelity may offer to reimburse these fees, especially for larger transfers. Check Fidelity's current promotions or contact their customer service before transferring to see if you qualify for a reimbursement.
QuickTip: Skim fast, then return for detail.
How to track my E*TRADE to Fidelity transfer?
Once you initiate the transfer through Fidelity, you can track its progress using Fidelity's online "Transfer Tracker" tool, typically found within your account dashboard.
How to transfer an IRA from E*TRADE to Fidelity?
Open a corresponding IRA account (e.g., Traditional IRA to Traditional IRA) at Fidelity, then initiate a "trustee-to-trustee" transfer through Fidelity's "Transfer Assets" process. This helps maintain the tax-deferred status of your IRA.
How to transfer fractional shares from E*TRADE to Fidelity?
Fractional shares generally cannot be transferred in-kind. E*TRADE will typically liquidate them into cash, and the cash proceeds will then be transferred to your Fidelity account.
How to deal with un-transferable assets from E*TRADE?
If ETRADE holds assets not supported by Fidelity (e.g., specific mutual funds or illiquid securities), you'll need to liquidate (sell) them in your ETRADE account before initiating the transfer, and then the cash proceeds will be transferred.
How to ensure my cost basis transfers correctly to Fidelity?
The ACATS system is designed to transfer cost basis information automatically. However, it's crucial to verify the accuracy of your cost basis at Fidelity after the transfer is complete. If there are discrepancies, contact Fidelity customer service with your E*TRADE statements as proof.
How to handle pending trades during a transfer?
It's best to allow any pending trades, dividend payments, or corporate actions in your E*TRADE account to settle completely before initiating the transfer to avoid complications and delays.
How to speed up the transfer from E*TRADE to Fidelity?
Ensure all information provided to Fidelity is accurate and matches your E*TRADE account exactly. Respond promptly to any requests for additional documentation from either firm. A full transfer often processes more smoothly than a partial one.
How to get help if my transfer is delayed?
First, check Fidelity's online transfer tracker for updates. If the delay persists or the tracker doesn't provide sufficient information, contact Fidelity's customer service directly. They will be able to investigate the status with E*TRADE.
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