Your Comprehensive Guide: Transferring Stocks from Morgan Stanley to Fidelity
Thinking about consolidating your investments or simply looking for a new brokerage experience? You've landed in the right place! Transferring stocks between brokerage firms like Morgan Stanley and Fidelity is a common and often straightforward process, thanks to systems like the Automated Customer Account Transfer Service (ACATS). This guide will walk you through every step, ensuring you're well-equipped for a smooth transition.
Let's dive in and unlock the secrets to a seamless stock transfer!
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| Can I Transfer Stocks From Morgan Stanley To Fidelity |
Step 1: Prepare for Your Transfer – The Groundwork
Before you initiate any transfer, a little preparation goes a long way. This initial phase is crucial to avoid delays and ensure all your assets move smoothly.
Sub-heading 1.1: Understand What Can and Cannot Be Transferred
Not all assets are created equal when it comes to transfers. The vast majority of standard stocks, ETFs, mutual funds, bonds, and cash can be transferred in-kind (meaning they don't need to be sold and repurchased). However, there are some exceptions:
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Proprietary Investments: Some investment products offered exclusively by Morgan Stanley might not be transferable to Fidelity. These often need to be sold and the cash proceeds transferred.
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Fractional Shares: This is a key point! Fidelity, like many brokerages, generally does not accept fractional shares in an ACATS transfer. If you have fractional shares at Morgan Stanley, they will likely be liquidated (sold) and the cash proceeds will be transferred to your Fidelity account.
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Restricted Stock Units (RSUs) and Employee Stock Purchase Plan (ESPP) Shares: These can often be transferred, but it's important to understand any vesting schedules or company-specific rules that might apply. Your company's stock plan administrator is your best resource for this information.
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Annuities or Certain Alternative Investments: These are typically not transferable via ACATS and may require a different process or liquidation.
Sub-heading 1.2: Gather Your Account Information
To make the process efficient, have the following details readily available:
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Your Morgan Stanley Account Number(s): This is the account you're transferring from.
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Your Fidelity Account Number(s): This is the account you're transferring to. If you don't have a Fidelity account yet, you'll need to open one first. Ensure the account type (e.g., individual brokerage, Roth IRA) at Fidelity matches the account type at Morgan Stanley for an easier transfer.
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Recent Account Statements from Morgan Stanley: These statements will provide crucial information like account numbers, types of holdings, and potentially cost basis information.
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Your Personal Identification: A copy of your driver's license or government-issued ID may be required for verification.
Sub-heading 1.3: Check for Fees at Morgan Stanley
While Fidelity generally does not charge fees to receive an ACATS transfer, Morgan Stanley may levy a "transfer out" or "account termination" fee. It's highly recommended that you contact Morgan Stanley directly to inquire about any potential fees associated with transferring your assets out. These fees can vary, but common charges for an ACATS transfer are around $95. In some cases, if your account balance is substantial, Fidelity might offer to reimburse transfer fees. It's worth asking them once your transfer is complete.
Step 2: Initiate the Transfer with Fidelity – The Receiving End
The most efficient way to transfer your assets is to initiate the transfer from the receiving firm, which in this case is Fidelity. They will then coordinate with Morgan Stanley.
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Sub-heading 2.1: Open a Fidelity Account (if you haven't already)
If you don't already have a Fidelity brokerage account, this is your first stop. Visit Fidelity's website or contact them directly to open the appropriate account type that matches your Morgan Stanley account (e.g., individual, joint, IRA).
Sub-heading 2.2: Start the Online Transfer Process
Fidelity has a robust online system for initiating asset transfers.
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Navigate to Fidelity's Transfer Page: Go to
Fidelity.com/toa -
Log In and Start a New Transfer: You'll be prompted to log in to your Fidelity account.
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Select "Transfer an Account to Fidelity": This will guide you through the initial questions.
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Enter Morgan Stanley as the Firm Name: Be sure to select the correct Morgan Stanley entity, especially if you have stock plan services.
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Provide Your Morgan Stanley Account Number: Enter the full account number from which you're transferring.
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Choose Your Fidelity Account: Select the existing Fidelity account where you want your assets to be transferred.
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Decide on a Full or Partial Transfer:
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Full Transfer: This option transfers all eligible assets and typically closes your Morgan Stanley account.
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Partial Transfer: This allows you to select specific securities or cash amounts you wish to transfer, leaving the remaining assets at Morgan Stanley. Be mindful of fractional shares with partial transfers; they will still be liquidated.
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Provide Morgan Stanley's Contact Information: You might need to input Morgan Stanley's Global Stock Plan Services address and phone number (e.g., Morgan Stanley, Global Stock Plan Services, PO Box 182616, Columbus, OH. 43218-2616. Contact Center Phone: 1-800-367-4777). This information is often pre-filled or easily accessible during the online process.
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Upload Required Documents: This is where you'll typically upload:
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Morgan Stanley Letter of Authorization for Stock Transfer: This form can often be found on the Morgan Stanley StockPlan Connect website. Ensure you fill this out accurately, including Fidelity's DTC Number (0226) if prompted.
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A Copy of Your Driver's License or Government ID.
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A recent Morgan Stanley account statement (if specifically requested by Fidelity for verification).
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Sub-heading 2.3: Review and Submit
Carefully review all the information you've entered to ensure accuracy. Any discrepancies can cause delays. Once everything looks correct, submit your request.
Step 3: The Automated Customer Account Transfer Service (ACATS) Process – What Happens Behind the Scenes
Once you submit your transfer request to Fidelity, the ACATS system takes over. This is primarily an electronic process designed to be efficient.
Sub-heading 3.1: Fidelity Contacts Morgan Stanley
Fidelity, as the receiving firm, will initiate the transfer request through the ACATS system to Morgan Stanley, the delivering firm.
Sub-heading 3.2: Morgan Stanley's Validation and Processing
Morgan Stanley has a set period (typically three business days) to validate the transfer request. They will:
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Confirm Your Information: Verify that your name, account numbers, and other details match.
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Cancel Open Orders: Any open buy or sell orders in your Morgan Stanley account will be canceled to prevent issues during the transfer. It's crucial to avoid placing new trades in the account during this time.
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Prepare Assets for Transfer: This involves compiling all the transferable securities and cash.
Sub-heading 3.3: Transfer of Assets and Cost Basis
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Once validated, Morgan Stanley will transfer your assets electronically to Fidelity. This includes your securities in-kind and any cash balance. Importantly, your cost basis information for covered shares (shares acquired after January 1, 2011) should also be transferred automatically. While Fidelity generally receives this data, it's a good idea to keep your own records. For uncovered shares or in case of discrepancies, you may need to manually update cost basis information at Fidelity.
Step 4: Monitor and Confirm Your Transfer – The Final Stretch
Even with an automated system, it's wise to keep an eye on your transfer's progress.
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Sub-heading 4.1: Track Your Transfer Status
Fidelity provides tools to track the status of your transfer online. Log in to your Fidelity account and look for a "Transfer Tracker" or similar feature.
Sub-heading 4.2: Expect Confirmation from Fidelity
Once the transfer is complete, Fidelity will notify you, and your transferred assets will appear in your Fidelity account. You'll also receive confirmation statements.
Sub-heading 4.3: Verify Your Holdings and Cost Basis
Once the transfer is complete, meticulously review your Fidelity account:
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Ensure all expected securities and cash have arrived.
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Verify the quantities of each holding.
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Check the cost basis information for your transferred shares. If anything looks incorrect, contact Fidelity's customer service promptly to resolve it.
Step 5: Address Any Remaining Issues – Troubleshooting
While ACATS transfers are generally smooth, occasional issues can arise.
Sub-heading 5.1: Common Reasons for Delays or Rejections
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Mismatched Account Information: Names, account numbers, or Social Security Numbers not matching exactly between the two firms.
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Non-Transferable Assets: Attempting to transfer proprietary or otherwise ineligible investments.
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Open Orders: Having pending trades in your Morgan Stanley account during the transfer process.
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Fractional Shares Not Liquidated: If you initiated a partial transfer and did not liquidate fractional shares.
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Restricted Shares: Unvested or otherwise restricted shares that cannot be moved.
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Margin Balances or Debts: Outstanding balances or margin calls at Morgan Stanley.
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Sub-heading 5.2: Contacting Customer Support
If you encounter any issues or delays, the first point of contact should generally be Fidelity's customer service. Since they initiated the transfer, they are best positioned to investigate and communicate with Morgan Stanley on your behalf. Have all your account details and transfer reference numbers ready.
Transfer Timeline
The ACATS system is designed for speed. Typically, an ACATS transfer can take:
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Full Transfers: 5 to 7 business days from the day Fidelity receives the complete request.
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Partial Transfers: 3 to 5 business days from the day Fidelity receives the complete request.
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Manual Transfers (if required): Up to 10 business days or longer if additional paperwork or special handling is needed.
Keep in mind that these are general timelines, and factors like market conditions, incomplete paperwork, or complex holdings can sometimes extend the process.
10 Related FAQ Questions: How To...
Here are some quick answers to common "How to" questions related to transferring stocks:
How to check the status of my transfer?
Log in to your Fidelity account and look for the "Transfer Tracker" or "Status Tracker" tool on their website or app.
How to avoid delays in my stock transfer?
Ensure all your account information (names, account numbers) matches exactly between Morgan Stanley and Fidelity, liquidate any fractional shares, and avoid placing trades in the Morgan Stanley account once the transfer is initiated.
How to transfer restricted stock or ESPP shares?
First, confirm with your company's stock plan administrator if the shares are vested and eligible for transfer. Then, follow the general ACATS process, noting any specific forms or requirements from Morgan Stanley for these types of shares (like a specific Letter of Authorization for Stock Transfer for Restricted Stock).
QuickTip: Use posts like this as quick references.
How to find Fidelity's DTC number?
Fidelity's DTC (Depository Trust Company) number is 0226. This is often required on transfer forms.
How to transfer only a portion of my stocks?
During the online transfer initiation process at Fidelity, select the "Partial Transfer" option and specify the exact securities and quantities you wish to move.
How to handle fractional shares during a transfer?
Fractional shares generally cannot be transferred in-kind via ACATS. They will be liquidated by Morgan Stanley, and the cash proceeds will be transferred to your Fidelity account.
How to ensure my cost basis transfers correctly?
For "covered shares" (acquired after January 1, 2011), the cost basis should transfer automatically. For "uncovered shares" or if there's a discrepancy, you may need to manually update the cost basis in your Fidelity account after the transfer is complete. Keep your Morgan Stanley statements for reference.
How to know if Morgan Stanley charges a transfer fee?
Contact Morgan Stanley's customer service or review their fee schedule (often available on their website under "Pricing & Fees" or "Account Transfer and Termination Fees") to determine if they charge an outgoing ACATS transfer fee.
How to get reimbursed for transfer fees?
After your transfer is complete, you can often request reimbursement for transfer fees from Fidelity. Use their Virtual Assistant or contact customer service to inquire about their policy and how to submit a reimbursement request.
How to close my Morgan Stanley account after the transfer?
If you initiate a "Full Transfer" with Fidelity, your Morgan Stanley account will typically be closed automatically once all assets have been moved. If you did a "Partial Transfer" and wish to close the remaining account, you'll need to contact Morgan Stanley directly.
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