Moving your investments from one brokerage to another can seem like a daunting task, but with a clear understanding of the process, it's often a straightforward and beneficial move. If you're looking to transfer your stocks from Morgan Stanley to Fidelity, you've come to the right place! This comprehensive guide will walk you through every step, ensuring a smooth transition for your valuable assets.
Are you ready to take control of your investment journey and potentially enjoy the benefits of Fidelity's platform? Let's get started!
Transferring Stocks from Morgan Stanley to Fidelity: A Step-by-Step Guide
The process of transferring stocks between brokerage firms is primarily handled through the Automated Customer Account Transfer Service (ACATS), an electronic system designed to make these transitions efficient and seamless. The receiving firm (Fidelity in this case) typically initiates the transfer on your behalf, minimizing your direct involvement with the sending firm (Morgan Stanley).
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| Can You Transfer Stocks From Morgan Stanley To Fidelity |
Step 1: Open and Fund Your Fidelity Account (If You Haven't Already!)
Before you can transfer any assets, you need a destination! If you don't already have one, your first crucial step is to open a brokerage account with Fidelity.
Sub-heading: Choosing the Right Account Type
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Individual Brokerage Account: This is the most common choice for personal investments.
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Retirement Accounts (IRA, Roth IRA, Rollover IRA): If you're consolidating retirement savings, ensure your new Fidelity account matches the type of account you're transferring from Morgan Stanley.
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Joint Accounts, Custodial Accounts, etc.: Fidelity offers various account types; choose the one that best suits your needs.
It's highly recommended to choose an account type at Fidelity that is identical to your Morgan Stanley account to ensure the smoothest possible "in-kind" transfer.
Step 2: Gather Your Morgan Stanley Account Information
To initiate the transfer, Fidelity will need specific details about your Morgan Stanley account. Having these readily available will significantly speed up the process.
Sub-heading: Key Information You'll Need
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Morgan Stanley Account Number: This is your primary account identifier.
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Account Type: Confirm if it's an individual, joint, IRA, etc.
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Account Registration: Ensure the names on the Morgan Stanley account precisely match the names on your new Fidelity account. Even a small discrepancy, like a middle initial difference, can cause delays.
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Most Recent Account Statement: It's a good idea to have a recent statement handy. This provides verification of your holdings and account details. You may need to upload a copy during the online transfer process.
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Morgan Stanley's DTC Number: While Fidelity will likely know this, it's good to be aware that Fidelity's 4-digit DTC Number is 0226. Morgan Stanley's will be different and often automatically populated by Fidelity.
Step 3: Initiate the Transfer with Fidelity
Tip: Don’t just scroll — pause and absorb.
This is where the magic happens! Fidelity will do most of the heavy lifting.
Sub-heading: Online Transfer Process (Recommended)
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Visit Fidelity's Transfer Page: Go to
Fidelity.com/toa(Transfer of Assets). -
Log In: Log in to your Fidelity account.
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Start a New Transfer: Look for an option like "Start a New Transfer."
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Enter Morgan Stanley's Information:
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In the "Firm Name" field, enter Morgan Stanley Global Stock Plan Services (or simply Morgan Stanley if that's the option provided).
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Enter your Morgan Stanley Account Number.
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Select the appropriate Account Type.
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Choose Your Fidelity Account: Select the Fidelity account where you want your assets to be transferred.
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Full or Partial Transfer: You'll be prompted to choose between transferring all account assets or only some of your assets.
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Full Transfer: If you select "Yes" to transfer all assets, Fidelity will initiate a full ACATS transfer. This generally liquidates any proprietary funds or investments not supported by Fidelity.
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Partial Transfer: If you select "No," you'll need to specify the security type, position, symbol, fund name, CUSIP, and quantity for each asset you wish to transfer. This is useful if you want to keep some assets at Morgan Stanley or if certain assets aren't transferable in-kind to Fidelity.
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Upload Required Documents: Fidelity may prompt you to upload a copy of your Morgan Stanley account statement and potentially a Morgan Stanley Letter of Authorization for Stock Transfer. This specific form can often be found on the Morgan Stanley website (e.g.,
https://www.stockplanconnect.com/forms/5738-SPS.pdf).-
Crucially, be sure to include a photocopy of your driver's license or government ID with any forms you send to Morgan Stanley, as per their instructions.
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Review and Submit: Carefully review all the information you've provided. Once everything looks accurate, select "Submit."
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Sign and Submit (if required): You may need to digitally sign the request, and if any physical forms are required, print, sign, and mail them to Fidelity.
Sub-heading: Alternative: Manual Transfer (Less Common for Full ACATS)
While the online method is preferred, you could also contact Fidelity directly by phone. They will guide you through the process and help you complete the necessary forms.
Step 4: Monitor Your Transfer
Once you've submitted your request, the transfer process begins!
Sub-heading: Understanding the ACATS Timeline
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Most ACATS transfers are completed within 3-5 business days, though some sources indicate up to 6 business days for the transfer itself to complete after initiation.
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If paperwork is required, the overall process may take longer, potentially 7-10 business days once Morgan Stanley receives your completed paperwork.
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Both Fidelity and Morgan Stanley will communicate with you as milestones are reached.
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You can often track the status of your transfer on Fidelity's website.
Sub-heading: What to Expect During the Transfer
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"In-Kind" Transfer: The goal is usually an "in-kind" transfer, meaning your stocks, bonds, ETFs, and most mutual funds are moved as-is without being sold. This avoids potential capital gains taxes that would arise from liquidation.
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Proprietary Funds/Untransferable Assets: Be aware that some proprietary Morgan Stanley funds or less common assets might not be transferable in-kind to Fidelity. In such cases, they may need to be liquidated (sold) by Morgan Stanley, and the cash proceeds will then be transferred to your Fidelity account. If this happens, consider the tax implications of such sales.
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Cost Basis Information: Fidelity should automatically receive your cost basis information for the transferred securities. If not, you may need to update it on Fidelity's website after the transfer is complete.
Step 5: Address Any Potential Issues
While ACATS is designed for efficiency, sometimes minor hiccups can occur.
QuickTip: Pause at lists — they often summarize.
Sub-heading: Common Reasons for Delays or Rejections
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Name Mismatch: As mentioned, even small differences in names between accounts can cause issues.
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Account Type Mismatch: Transferring a Traditional IRA to a Roth IRA, for example, is not a direct "in-kind" transfer and would likely require liquidation and re-contribution (with tax implications).
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Restricted Shares or Special Assets: Certain types of shares (e.g., restricted stock units, private placements) may require additional paperwork or may not be transferable via ACATS.
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Outstanding Trades or Holdings on Margin: Ensure there are no pending trades or margin balances in your Morgan Stanley account before initiating the transfer.
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Incomplete Paperwork: Missing signatures or information on forms is a frequent cause of delay.
Sub-heading: How to Resolve Issues
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Communicate with Fidelity: Fidelity's customer service is your primary point of contact. They will usually inform you if there's an issue and guide you on how to resolve it.
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Contact Morgan Stanley (if instructed): In some cases, Fidelity might direct you to contact Morgan Stanley for specific issues related to their end of the transfer.
Step 6: Verify Transferred Assets
Once Fidelity confirms the transfer is complete, log into your Fidelity account to verify that all your expected assets have arrived and that the quantities are correct.
Sub-heading: Check Your Cost Basis
It's crucial to confirm that the cost basis information for your transferred securities is accurately reflected in your Fidelity account. This is vital for accurate tax reporting when you eventually sell those investments. Fidelity provides tools to update cost basis if needed.
Fees Associated with Transferring Stocks
This is often a key concern for investors!
Sub-heading: Morgan Stanley Outbound Transfer Fees
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Morgan Stanley typically charges an ACATS transfer fee for outgoing transfers. This fee can vary, but generally, it's around $75 - $125 per account. It's advisable to check Morgan Stanley's current fee schedule or contact them directly for the most up-to-date information.
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Note: Some users have reported that if you have a managed account at Morgan Stanley with advisory fees, it might be beneficial to first "dump the advisor" and convert to a self-directed account, which could potentially reduce or simplify the transfer fee. This would require discussing options with Morgan Stanley.
Sub-heading: Fidelity Inbound Transfer Fees
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Fidelity typically does NOT charge any fees to receive a transfer of assets.
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Fee Reimbursement: Fidelity may, on a case-by-case basis, reimburse some or all of the transfer fees charged by Morgan Stanley, especially for larger transfers. After your transfer is complete, you can usually request a fee reimbursement through Fidelity's virtual assistant or by contacting their customer service.
Tip: Don’t skip — flow matters.
Tax Implications of Stock Transfers
One of the significant advantages of an "in-kind" transfer (moving shares as-is) is that it generally does NOT trigger a taxable event.
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No Capital Gains or Losses: Since you're not selling the securities, you don't realize any capital gains or losses at the time of transfer. Your original purchase date and cost basis transfer with the securities.
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Liquidation Impact: If any assets are liquidated by Morgan Stanley because they are not transferable in-kind to Fidelity, then those sales would be taxable events. You would be responsible for any capital gains or losses realized from those sales.
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Cost Basis Accuracy: Maintaining accurate cost basis information is paramount for future tax reporting when you eventually sell the transferred assets from your Fidelity account.
10 Related FAQ Questions
How to initiate a stock transfer from Morgan Stanley to Fidelity?
You primarily initiate the transfer by contacting Fidelity and completing their online transfer of assets (TOA) form or by speaking with a Fidelity representative. Fidelity then works with Morgan Stanley to move your assets.
How to avoid fees when transferring stocks from Morgan Stanley to Fidelity?
While Morgan Stanley typically charges an outbound ACATS fee, Fidelity generally does not charge inbound fees. You can sometimes avoid Morgan Stanley's fee by having Fidelity reimburse it, especially for larger transfers. It's worth asking Fidelity about their reimbursement policy after your transfer is complete.
How to transfer Restricted Stock Units (RSUs) from Morgan Stanley to Fidelity?
Transferring RSUs often requires specific forms from Morgan Stanley's Stock Plan Services, in addition to the standard ACATS process. You may need to complete a Morgan Stanley Letter of Authorization for Stock Transfer (often found on their StockPlanConnect portal) and submit it to both Morgan Stanley and Fidelity as part of the transfer process.
How to transfer a partial account from Morgan Stanley to Fidelity?
When initiating the transfer with Fidelity, you'll have the option to select a "partial transfer." You will then need to specify the exact securities (stock symbol, quantity, etc.) you wish to move from Morgan Stanley to Fidelity.
Tip: Review key points when done.
How to track the progress of my stock transfer to Fidelity?
Once you've initiated the transfer online with Fidelity, you can typically log into your Fidelity account and find a "Track Your Transfer" or similar section that provides updates on the status of your asset transfer.
How to ensure my cost basis transfers correctly from Morgan Stanley to Fidelity?
Under the ACATS system, cost basis information is generally transferred automatically along with your securities. However, it's crucial to log into your Fidelity account after the transfer is complete and verify that the cost basis is accurate. If it's not, Fidelity has procedures for you to manually update this information.
How long does it take to transfer stocks from Morgan Stanley to Fidelity?
An ACATS transfer typically takes 3-5 business days once initiated electronically. If additional paperwork is required or there are discrepancies, the process could take 7-10 business days or longer.
How to transfer non-standard assets (e.g., annuities, private placements) from Morgan Stanley to Fidelity?
Non-standard assets like annuities, certain limited partnerships, or private placements may not be transferable "in-kind" via ACATS. They might need to be liquidated by Morgan Stanley before the cash proceeds are transferred, or they may require a manual transfer process outside of ACATS, which can take longer. Consult both firms about such specific holdings.
How to contact Fidelity for assistance with a stock transfer?
You can contact Fidelity's customer service by phone (their general customer service number or their Stock Plan Services line if applicable) or through their secure messaging system online. Their website also provides comprehensive FAQs and guides for asset transfers.
How to handle tax implications if some stocks are liquidated during the transfer?
If any of your stocks are liquidated (sold) by Morgan Stanley during the transfer because they are not transferable "in-kind" to Fidelity, those sales will result in capital gains or losses. You will receive a Form 1099-B from Morgan Stanley for that tax year, and you'll need to report these transactions on your tax return. Consult with a tax advisor for personalized guidance.
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