Transferring your investments can seem like a daunting task, but with the right guidance, it's a straightforward process. If you're looking to move your shares 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.
Let's dive in and get your investments where they need to be!
Step 1: Why Are You Making the Move? (Engage!)
Before we get into the nitty-gritty, take a moment to reflect. Why are you considering moving your shares from Morgan Stanley to Fidelity? Is it for lower fees, better research tools, more diverse investment options, or perhaps customer service? Understanding your motivation will help you appreciate the benefits of this transfer and stay motivated through the process.
Think about what you hope to gain by consolidating or moving your investments. This clarity will serve as your guiding light throughout the journey!
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| How To Transfer Shares From Morgan Stanley To Fidelity |
Step 2: Prepare for the Transfer – Gather Your Essentials
Preparation is key to a seamless transfer. Just like packing for a trip, you need to ensure you have all your necessary documents and information readily available.
Sub-heading: Important Documents and Information You'll Need:
- Your Morgan Stanley Account Information:
- Account Number(s): Make sure you have the exact account numbers for all the accounts you wish to transfer.
- Account Type(s): Are they individual brokerage accounts, IRAs (Traditional, Roth, SEP), joint accounts, trust accounts, or something else?
- Most Recent Account Statement: This is crucial as it will provide a snapshot of your holdings and often includes your account number and other vital details. Fidelity will likely request a copy.
- Your Fidelity Account Information:
- Fidelity Account Number(s): If you already have a Fidelity account, know the number of the account you want to transfer your assets into.
- Account Type: Ensure the Fidelity account you're transferring into matches the account type at Morgan Stanley (e.g., Traditional IRA to Traditional IRA). Mismatched account types can cause delays or even rejection of the transfer.
- Personal Identification:
- Driver's License or Government-Issued ID: A photocopy may be required, especially for certain transfer types or if there are name discrepancies.
- Cost Basis Information: While ACATS usually transfers this automatically, it's always a good idea to have your cost basis information handy for your investments. This will be on your past statements or tax documents.
Sub-heading: Critical Considerations Before Initiating the Transfer:
- Full vs. Partial Transfer: Decide if you want to transfer all the assets from your Morgan Stanley account or only specific holdings. A partial transfer requires you to list each security and the quantity you wish to move.
- Account Matching: As mentioned, ensure the account types at both institutions match.
- Proprietary Investments: Be aware that some proprietary mutual funds or alternative investments held at Morgan Stanley might not be transferable to Fidelity. You might need to liquidate these first, which could trigger capital gains or losses.
- Outstanding Balances: Make sure there are no outstanding debits, fees, or margin balances in your Morgan Stanley account that could prevent the transfer.
- Dividend Reinvestment Plans (DRIPs): Confirm if your DRIPs will transfer over or if you'll need to re-establish them at Fidelity.
- Active Trades: Avoid initiating a transfer if you have any open buy or sell orders in your Morgan Stanley account, as this can delay the process.
Step 3: Initiate the Transfer – Fidelity Takes the Lead
This is where the magic happens! The Automated Customer Account Transfer Service (ACATS) system is designed to make this process as smooth as possible. Generally, you initiate the ACATS transfer from the receiving firm (Fidelity in this case), not the sending firm (Morgan Stanley).
Tip: Look out for transitions like ‘however’ or ‘but’.
Sub-heading: Two Primary Ways to Initiate the Transfer with Fidelity:
Option 1: Initiate Online Through Fidelity (Recommended)
This is often the quickest and most streamlined method.
- Log in to your Fidelity Account: Go to Fidelity.com and log in to your existing account. If you don't have one, you'll need to open a new account first, ensuring the account type matches your Morgan Stanley account.
- Navigate to the "Transfer Assets" Section: Look for a section related to "Transfer Assets," "Move an Account," or "Transfer an External Account." This is typically found under "Customer Service" or "Accounts & Trade."
- Start a New Transfer: Select the option to "Start a New Transfer."
- Enter Morgan Stanley Information: You'll be prompted to enter the name of the firm you're transferring from (Morgan Stanley) and your Morgan Stanley account number.
- Select Account Type: Choose the account type at Morgan Stanley (e.g., "Brokerage - Individual," "Traditional IRA").
- Choose Your Fidelity Account: Select the Fidelity account where you want the assets to be transferred.
- Full or Partial Transfer: Indicate whether you're performing a full or partial transfer. If it's a partial transfer, you'll need to meticulously list the security symbol, quantity, and CUSIP (if available) for each asset you want to transfer.
- Upload Documents: Fidelity will likely ask you to upload a copy of your most recent Morgan Stanley account statement and, in some cases, a specific Morgan Stanley Letter of Authorization for Stock Transfer (which can often be found on the Morgan Stanley website or provided by Fidelity). Ensure you also include a photocopy of your driver's license or government ID if requested.
- Review and Submit: Carefully review all the information you've entered. Double-check account numbers, spellings, and asset details. Once you're confident, submit the request.
- Sign Electronically (or Print and Mail): You may be able to sign the transfer request electronically. If not, you'll need to print, sign, and mail/fax the form to Fidelity as per their instructions.
Option 2: Using the Morgan Stanley Letter of Authorization (More Manual)
While Fidelity prefers you initiate from their side, some specific situations (especially involving stock plan services) might lead you to start with a Morgan Stanley form.
- Locate the Morgan Stanley Letter of Authorization for Stock Transfer: This form is typically available on the Morgan Stanley Stock Plan Connect website or by contacting Morgan Stanley directly.
- Fill out the Form Meticulously: Pay close attention to sections requiring Fidelity's DTC number (0226 for Fidelity) and your Fidelity account number.
- Include Required Documentation: Attach a photocopy of your driver's license or government ID.
- Mail or Fax to Morgan Stanley: Follow the instructions on the form for where to send it.
- Verbal Verification: Morgan Stanley may contact you by phone to verbally verify your request.
Important Note on ACATS: ACATS is designed to transfer assets "in-kind," meaning your shares transfer over without being sold and repurchased. This helps you avoid potential taxable events during the transfer process.
Tip: Focus more on ideas, less on words.
Step 4: The Waiting Game – Monitoring Your Transfer
Once you've submitted your transfer request, it's time for the behind-the-scenes work to begin.
Sub-heading: What Happens During the Transfer Process:
- Fidelity Submits the Request to DTCC: Fidelity, as the receiving firm, will submit your transfer request through the Automated Customer Account Transfer Service (ACATS) to the Depository Trust & Clearing Corporation (DTCC).
- DTCC Notifies Morgan Stanley: The DTCC then notifies Morgan Stanley, the delivering firm, of your transfer request.
- Morgan Stanley Reviews and Releases Assets: Morgan Stanley reviews the request to ensure all information matches and releases the assets to Fidelity. This includes verifying account ownership, matching account types, and checking for any holds or restrictions.
- Fidelity Receives and Processes Assets: Once released, Fidelity receives the assets and deposits them into your designated account.
Sub-heading: How Long Does It Take?
- Most ACATS transfers typically take 3-6 business days to complete once all paperwork is in good order.
- However, some transfers, especially those involving retirement accounts (IRAs), or if there are discrepancies in information, may take longer (e.g., 7-10 business days or even a few weeks).
- You can usually track the status of your transfer directly on the Fidelity website. They often provide a "Transfer Tracker" tool.
Sub-heading: Potential Delays and How to Avoid Them:
- Mismatched Account Information: Ensure the name, address, and account type on your Morgan Stanley and Fidelity accounts are identical. Even a small discrepancy can cause a rejection.
- Incomplete Paperwork: Double-check that all required fields are filled out and all necessary documents are attached.
- Non-Transferable Assets: If you have proprietary mutual funds or other illiquid assets at Morgan Stanley that Fidelity doesn't support, these will cause delays as they may need to be liquidated.
- Outstanding Balances/Fees: Clear any outstanding balances or fees with Morgan Stanley before initiating the transfer.
- Fraud Prevention Measures: Both firms have security protocols in place, and sometimes additional verification may be required, which can add to the timeline.
Step 5: Confirm and Reconcile – The Final Touches
Once Fidelity notifies you that the transfer is complete, it's crucial to verify everything.
Sub-heading: Verifying Your Transferred Assets:
- Log in to your Fidelity Account: Check your account statement and holdings to ensure all the shares you intended to transfer have arrived and are correctly reflected.
- Compare with Morgan Stanley Statement: Cross-reference your new Fidelity statement with your last Morgan Stanley statement to confirm that all assets and their quantities match.
- Check Cost Basis: Verify that the cost basis for your transferred investments is accurate in your Fidelity account. While ACATS is designed to transfer this, it's always good to confirm for tax purposes.
- Re-establish Services: If you had dividend reinvestment plans, electronic statement preferences, or other services set up at Morgan Stanley, you might need to re-establish them at Fidelity.
Sub-heading: What to Do If Something Isn't Right:
- Contact Fidelity Customer Service: If you notice any discrepancies or missing assets, immediately contact Fidelity's customer service. They can investigate and resolve any issues.
- Keep Records: Retain copies of all transfer forms, statements from both firms, and any communication related to the transfer. This documentation will be invaluable if any issues arise.
Step 6: Closing Your Morgan Stanley Account (Optional)
If you've completed a full transfer, your Morgan Stanley account may remain open with a zero balance, or it might be automatically closed.
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- Confirm Account Status: Contact Morgan Stanley to confirm if the account is officially closed or if there are any residual amounts (e.g., fractional shares liquidated to cash) that need to be transferred.
- Request Final Statement: Ask for a final statement for your records.
By following these steps, you can confidently transfer your shares from Morgan Stanley to Fidelity, putting your investments in a place that better suits your financial goals.
10 Related FAQ Questions
Here are 10 common "How to" questions related to transferring shares, with quick answers:
Tip: The middle often holds the main point.
How to Check the Status of My Transfer?
Most brokerage firms, including Fidelity, offer an online "Transfer Tracker" or "Account Transfer Status" tool within your account portal. You can also call their customer service line for updates.
How to Avoid Transfer Fees?
While Morgan Stanley may charge a fee for transferring out (typically $50-$100), Fidelity sometimes offers incentives or reimbursements for transfer fees, especially for larger transfers. It's always worth asking Fidelity if they have any such programs.
How to Transfer Fractional Shares?
Generally, ACATS does not transfer fractional shares. These are usually liquidated by the delivering firm (Morgan Stanley) and the cash equivalent is transferred to the receiving firm (Fidelity).
How to Transfer Retirement Accounts (IRAs)?
IRAs can be transferred via ACATS, but it's crucial to ensure the account type matches (e.g., Roth IRA to Roth IRA) to avoid potential tax implications. These transfers may take slightly longer due to additional verification.
How to Transfer Joint Accounts?
For joint accounts, all account holders typically need to sign the transfer authorization form. The names on both the delivering and receiving accounts must match exactly.
Tip: Keep the flow, don’t jump randomly.
How to Handle Non-Transferable Assets?
If you have assets that Fidelity doesn't support (e.g., certain proprietary mutual funds, alternative investments), Morgan Stanley will likely liquidate them, and the cash proceeds will be transferred to your Fidelity account. You may incur capital gains or losses from this liquidation.
How to Ensure My Cost Basis Transfers Correctly?
ACATS is designed to transfer cost basis information along with your securities. However, it's always wise to keep your own records and verify that the cost basis is accurately reflected in your Fidelity account once the transfer is complete.
How to Transfer from a Deceased Person's Account?
Transferring from a deceased person's account involves additional legal steps, such as providing death certificates, letters of testamentary, or trust documents. This process is more complex and typically requires direct communication with both brokerage firms' estate services departments.
How to Reverse a Transfer?
Once an ACATS transfer is initiated and in progress, reversing it can be very difficult or impossible. It's crucial to be absolutely sure about your transfer before submitting the request. If you've made a mistake, contact Fidelity immediately.
How to Transfer Shares Held in Certificate Form?
Physical share certificates generally cannot be transferred via ACATS. You would first need to deposit them with your current brokerage (Morgan Stanley) and have them converted to electronic form (book-entry) before initiating an ACATS transfer.
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