Are you ready to make a smart move with your investments? Transferring your assets from Robinhood to Fidelity can be a great decision for many investors, offering a broader range of investment options, robust research tools, and excellent customer service. While the idea of moving your entire portfolio might seem daunting, the process is actually quite straightforward thanks to the Automated Customer Account Transfer Service (ACATS).
This comprehensive guide will walk you through every step, ensuring a smooth and successful transfer. Let's get started!
The Grand Migration: A Step-by-Step Guide to Transferring Your Investments from Robinhood to Fidelity
Moving your investments isn't just about changing brokers; it's about aligning your financial home with your evolving investment goals. Fidelity is known for its extensive offerings, competitive pricing, and strong reputation, making it a popular choice for investors seeking more than what a commission-free platform like Robinhood typically provides.
Before we dive into the nitty-gritty, it's crucial to understand that this transfer involves moving your existing investments (stocks, ETFs, etc.) from one brokerage to another without selling them. This is called an in-kind transfer and generally has no immediate tax implications for taxable accounts, as no sale or purchase occurs.
Step 1: Prepare for Takeoff – The Pre-Transfer Checklist
This initial phase is all about getting your ducks in a row and understanding the potential hurdles. Don't skip these crucial preparatory steps!
1.1 Open and Fund Your Fidelity Account (If You Haven't Already)
If you don't have a Fidelity account yet: This is your first priority. Visit the Fidelity website or download their app and follow the prompts to open the type of account you need (e.g., individual brokerage, Roth IRA, Traditional IRA).
Fund your Fidelity account: While you're transferring investments, it's a good idea to have some cash in your new Fidelity account to cover any potential fees or to make new investments once the transfer is complete. You can link your bank account for easy transfers.
1.2 Gather Essential Information from Robinhood
You'll need specific details from your Robinhood account to initiate the transfer at Fidelity.
Your Robinhood Account Number: You can typically find this in the Robinhood app by navigating to "Account" -> "Investing" (or similar).
Robinhood's DTC Number (6769): This is a unique identifier for Robinhood Securities (RHS) and is often required for ACATS transfers.
Account Type: Confirm whether your Robinhood account is an individual brokerage account, Roth IRA, Traditional IRA, etc. This needs to match the account type you're transferring to at Fidelity.
Recent Robinhood Statement: Having a recent statement handy can be incredibly useful as it contains all the necessary account details, including your full account number and a list of your holdings. Download a digital copy for easy reference.
1.3 Understand the Types of Transfers: Full vs. Partial
You have two main options when transferring:
Full ACATS Transfer: This moves all eligible securities and any cash from your Robinhood account to Fidelity. After a full transfer, your Robinhood account will be put on hold and eventually closed.
Partial ACATS Transfer: This allows you to select specific investments you wish to transfer, leaving others in your Robinhood account. Your Robinhood account will remain active.
1.4 Address Fractional Shares and Cryptocurrency (Crucial Considerations!)
This is where things can get a little tricky, so pay close attention.
Fractional Shares: Robinhood is well-known for its fractional share investing. However, Fidelity typically does not accept fractional shares in an ACATS transfer. If you initiate a full ACATS transfer, Robinhood will automatically liquidate any fractional shares you hold, and the cash proceeds will be transferred to Fidelity. If you're doing a partial transfer, you'll need to sell your fractional shares on Robinhood before initiating the transfer, or they will remain in your Robinhood account. You can then transfer the cash proceeds to Fidelity after they settle.
Cryptocurrency: Robinhood allows you to trade cryptocurrencies. However, cryptocurrencies cannot be transferred via ACATS. If you have crypto holdings in Robinhood, they will not transfer to Fidelity. For a full ACATS transfer, Robinhood will automatically liquidate your crypto holdings, and the cash proceeds will be transferred. If you wish to keep your crypto, you'll need to sell it on Robinhood and withdraw the cash, or consider transferring it to a dedicated crypto wallet or exchange before initiating the ACATS transfer for your securities.
1.5 Be Aware of Fees
Robinhood's ACATS Outgoing Transfer Fee: Robinhood charges a $100 fee for both full and partial ACATS outgoing transfers. This fee will be debited from your Robinhood account's available cash balance. Ensure you have sufficient funds to cover this.
Fidelity's ACATS Incoming Transfer Fee: Fortunately, Fidelity does not charge a fee for incoming ACATS transfers.
1.6 Resolve Account Issues and Pending Activity
Negative Balances or Restrictions: Ensure your Robinhood account has no negative balances or outstanding restrictions. These can significantly delay or even halt your transfer.
Pending Trades/Deposits/Withdrawals: Avoid any pending trades, deposits, or withdrawals in your Robinhood account once you decide to initiate the transfer. Settle all activity before proceeding.
Unsettled Funds: If you've recently sold investments, the funds need to settle before they can be transferred. This typically takes 1-2 business days.
Step 2: Initiate the Transfer – Making the Official Request at Fidelity
This is the main action step where you tell Fidelity you want to bring your investments over.
2.1 Log In to Your Fidelity Account
Go to Fidelity's website (Fidelity.com) and log in to your account.
2.2 Navigate to the Transfer Assets Section
Look for a section related to "Transfer Assets," "Move Accounts," or "Deposit & Transfer." This is usually found under a "Transfers" or "Accounts" menu.
2.3 Select "Transfer an Account from Another Firm"
Fidelity will guide you through an online form. You'll need to indicate that you're transferring an investment or brokerage account.
2.4 Provide Your Robinhood Account Information
This is where you'll input the details you gathered in Step 1.
Select "Robinhood" as the firm you're transferring from.
Enter your Robinhood account number and specify the account type (e.g., individual brokerage).
Indicate whether it's a full or partial transfer. If partial, you'll likely be prompted to list the specific assets you want to transfer.
Specify the Fidelity account you want the assets transferred into. Make sure the account types match (e.g., Robinhood individual brokerage to Fidelity individual brokerage).
2.5 Review and Submit Your Request
Carefully review all the information you've entered to ensure accuracy. Any discrepancies can cause delays.
You may be asked to upload a recent Robinhood statement as part of the verification process. This helps Fidelity confirm your holdings and account details.
Digitally sign the transfer authorization form if prompted.
Step 3: The Waiting Game – What Happens Behind the Scenes
Once you've submitted your request, the Automated Customer Account Transfer Service (ACATS) goes to work.
3.1 Fidelity Contacts Robinhood
Fidelity will send your transfer request to Robinhood's clearing firm, Robinhood Securities (RHS), via the ACATS system.
3.2 Robinhood Processes the Request
Robinhood will verify the transfer request and ensure all conditions are met (e.g., no restrictions, sufficient cash for fees, handling of fractional shares/crypto).
If you initiated a full ACATS transfer, your Robinhood account will be restricted from buying, selling, depositing, or withdrawing to prevent any activity that could delay the transfer. You will still own the securities and their market value will update in the app.
The $100 ACATS fee will be debited from your Robinhood account. If you don't have enough cash, the transfer may be delayed until you deposit sufficient funds or securities are liquidated to cover the fee.
3.3 Assets Are Transferred
Once Robinhood processes the request, the eligible securities will be transferred to Fidelity.
3.4 Tracking Your Transfer
Fidelity usually provides a way to track the status of your transfer online. Log in to your Fidelity account and look for a "Transfer Tracker" or similar feature.
You may also receive email updates from Fidelity regarding the progress of your transfer.
3.5 How Long Does It Take?
Most ACATS transfers from Robinhood to Fidelity typically take 3-7 business days to complete from the time Fidelity submits the request.
Factors that can cause delays include:
Mismatched account information.
Fractional shares or crypto not handled correctly.
Account restrictions or negative balances.
Pending activity in your Robinhood account.
Complex or illiquid securities.
Step 4: Post-Transfer – Settling In at Fidelity
Your investments have arrived! Now it's time to ensure everything is in order.
4.1 Verify Your Holdings at Fidelity
Once Fidelity notifies you that the transfer is complete, log in to your Fidelity account and meticulously check your holdings.
Ensure all the expected securities have arrived and that the share quantities are correct.
Verify that your cost basis information for each security has transferred over accurately. This is crucial for calculating future capital gains or losses for tax purposes. While brokerages are required to transfer cost basis, it sometimes takes a few extra days to appear or may require manual input for older, non-covered securities.
4.2 What About Residual Sweeps?
It's common for some cash or dividends to arrive in your old Robinhood account after the initial transfer is complete. This is known as a "residual sweep." Robinhood will typically process these leftover assets and transfer them to your Fidelity account on a weekly basis. You usually don't need to do anything; they will arrive automatically.
4.3 Closing Your Robinhood Account (Full Transfers Only)
If you performed a full ACATS transfer, your Robinhood account will typically be closed automatically after all assets, including residual sweeps, have been transferred. If you notice it's still open after a few weeks, you can contact Robinhood customer service to confirm its closure.
Step 5: Optimize Your New Fidelity Home
Now that your investments are safely at Fidelity, explore the platform's features and tailor it to your needs.
5.1 Explore Fidelity's Research and Tools
Fidelity offers a wealth of research reports, screening tools, and educational resources. Take the time to familiarize yourself with these to enhance your investment strategy.
5.2 Consider New Investment Opportunities
With Fidelity's broader range of investment products (mutual funds, bonds, etc.), you might discover new opportunities that weren't available on Robinhood.
5.3 Set Up Account Features
Dividend Reinvestment: Decide whether you want to reinvest dividends for your transferred stocks.
Alerts and Notifications: Set up alerts for price movements, news, or account activity.
Link Bank Accounts: Ensure your primary bank account is linked for easy deposits and withdrawals.
Frequently Asked Questions (FAQs)
Here are 10 common questions about transferring investments from Robinhood to Fidelity, with quick answers:
How to initiate the transfer from Robinhood to Fidelity?
You initiate the transfer directly from Fidelity's website or app by selecting to transfer an account from another firm and providing your Robinhood account details.
How to find my Robinhood account number and DTC number?
Your Robinhood account number can be found in the app under "Account" -> "Investing." Robinhood's DTC number for ACATS transfers is 6769.
How to deal with fractional shares when transferring from Robinhood to Fidelity?
Fractional shares generally cannot be transferred to Fidelity via ACATS. For a full transfer, Robinhood liquidates them. For a partial transfer, you must sell them yourself before the transfer.
How to transfer cryptocurrency from Robinhood to Fidelity?
You cannot transfer cryptocurrency directly via ACATS. Robinhood will liquidate your crypto holdings during a full transfer, or you'll need to sell them and transfer the cash manually if you want to move the value.
How long does it take to transfer investments from Robinhood to Fidelity?
Most ACATS transfers take 3-7 business days once initiated, though delays can occur due to various factors.
How much does it cost to transfer investments from Robinhood to Fidelity?
Robinhood charges a $100 fee for outgoing ACATS transfers (full or partial). Fidelity does not charge an incoming transfer fee.
How to track the status of my transfer?
You can usually track the status by logging into your Fidelity account and looking for a "Transfer Tracker" or similar section. Fidelity may also send email updates.
How to ensure my cost basis transfers correctly?
While brokerages are required to transfer cost basis, always verify it once the assets arrive at Fidelity. Keep a copy of your Robinhood statements for reference.
How to handle uninvested cash during the transfer?
Any uninvested cash in your Robinhood account will typically be transferred along with your securities during a full ACATS transfer. Residual cash or dividends that arrive later will be sent via "residual sweeps."
How to close my Robinhood account after transferring to Fidelity?
If you completed a full ACATS transfer, Robinhood will usually close your account automatically after all assets (including residual sweeps) are gone. If it remains open after a few weeks, contact Robinhood support to confirm closure.