It's an excellent decision to consolidate your investments or explore new brokerage options! Moving money between financial institutions like E*TRADE and Fidelity might seem daunting at first, but with a clear understanding of the process, it can be quite straightforward. This comprehensive guide will walk you through every step, ensuring a smooth transition of your assets.
The Grand Migration: Moving Your Money from E*TRADE to Fidelity
Transferring funds or entire investment accounts between brokerages is a common practice, driven by factors like lower fees, better research tools, or simply a desire to consolidate your financial life. Fidelity and E*TRADE are both reputable brokers, but if Fidelity better aligns with your current investment goals, let's get you started!
There are generally two primary ways to move money:
Transferring funds directly (cash): This involves moving cash balances from one account to another, similar to a bank transfer.
Transferring assets (in-kind): This means moving your actual investments (stocks, ETFs, mutual funds) without selling them. This is often preferred to avoid potential tax implications from selling and then repurchasing.
We'll focus on the more common and often preferred method of transferring assets via an ACATS (Automated Customer Account Transfer Service) transfer, as it handles both cash and investments seamlessly.
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| How To Move Money From Etrade To Fidelity |
Step 1: Get Ready to Rumble! (Engaging the User)
Alright, buckle up, future Fidelity investor! Are you ready to take control of your financial journey and bring your E*TRADE assets over to your new home? This process, while requiring a bit of attention to detail, is designed to be as smooth as possible. Think of it like moving your entire investment portfolio, carefully packed and labeled, from one secure vault to another. Let's begin by ensuring you have everything you need for a successful transfer.
QuickTip: A careful read saves time later.
Sub-heading: Essential Pre-Transfer Checklist
Before you initiate any transfer, gather the following crucial information and documents:
Your E*TRADE Account Information: You'll need your E*TRADE account number(s) and the exact account type (e.g., Individual Brokerage, Joint Brokerage, Traditional IRA, Roth IRA, SEP IRA, etc.).
Your Fidelity Account Information: Similarly, have your Fidelity account number(s) readily available. If you don't have a Fidelity account yet, you'll need to open one first (we'll touch on that briefly).
A Recent E*TRADE Account Statement: This is vital! Fidelity will often request a recent statement (within the last 30-60 days) to verify your account details and holdings. This helps prevent errors and delays.
Confirmation of Your Holdings: Make a list of all the securities you hold in your E*TRADE account, especially if you're doing a partial transfer. This helps you track that everything arrives correctly.
No Pending Transactions: Ensure there are no pending trades, deposits, or withdrawals in your E*TRADE account. This can significantly delay the transfer.
Margin Debt Check (if applicable): If you have a margin account with E*TRADE, ensure you have sufficient funds or assets to cover any margin debt, or consider paying it off before the transfer. Uncovered margin debt can halt a transfer.
Awareness of Transfer Fees: While Fidelity generally doesn't charge for inbound transfers, ETRADE might charge an outgoing transfer fee (often around $75 for a full ACATS transfer). It's wise to check ETRADE's fee schedule or contact their customer service to confirm any potential charges. Sometimes, the receiving institution (Fidelity, in this case) might offer to reimburse these fees for transfers above a certain amount, so it's worth asking!
Step 2: Opening Your Fidelity Account (If You Haven't Already)
If you're already a Fidelity client with the appropriate account type, you can skip this step. Otherwise, this is your starting point.
Sub-heading: Tailoring Your New Fidelity Home
Reminder: Take a short break if the post feels long.
Choose the Right Account Type: Ensure the Fidelity account you open matches the account type you're transferring from ETRADE. For example, if you're moving a Traditional IRA from ETRADE, you'll need a Traditional IRA at Fidelity. Similarly for Roth IRAs, brokerage accounts, etc.
Online Application: Fidelity offers a streamlined online account opening process. You'll typically need to provide personal information (SSN, address, employment details), and link a bank account for initial funding if you plan to deposit new cash.
Fund the Account (Optional for Transfer): While not strictly necessary for an ACATS transfer (as the assets will be coming from E*TRADE), you can always make an initial deposit to your new Fidelity account if you wish.
Step 3: Initiating the Transfer – The Fidelity Side Takes the Lead!
This is where the magic happens! The receiving institution (Fidelity) is almost always the one that initiates an ACATS transfer. This makes the process much smoother for you.
Sub-heading: Navigating Fidelity's Transfer Portal
Log In to Fidelity.com: Access your Fidelity account online.
Navigate to Transfers: Look for a section like "Transfers," "Move Money," or "Deposit & Withdraw." You'll typically find an option for "Transfer an Account to Fidelity" or "Transfer Assets."
Select Your Transfer Type:
Full Transfer: This moves all eligible cash and securities from your E*TRADE account to your Fidelity account. This is often the simplest option.
Partial Transfer: This allows you to select specific investments or a portion of your cash to transfer. If choosing this, you'll need to specify exactly which assets (by security symbol and number of shares) or cash amount you want to move.
Provide E*TRADE Account Details: You will be prompted to enter your ETRADE account number, account type, and the name of the firm (ETRADE from Morgan Stanley).
Upload Required Documents: This is where your recent E*TRADE statement comes in handy. You'll typically be asked to upload it as part of the online application. This helps Fidelity verify account ownership and holdings.
Review and Authorize: Carefully review all the information you've entered. Accuracy is paramount here! Any discrepancy in account numbers, names, or account types can cause significant delays or rejection of the transfer. Once everything looks correct, digitally sign or acknowledge the transfer request.
Step 4: The Behind-the-Scenes Action: ACATS in Motion
Once you submit your request to Fidelity, they will take over. This is largely an automated process facilitated by the Automated Customer Account Transfer Service (ACATS).
QuickTip: Revisit key lines for better recall.
Sub-heading: What Happens After You Click "Submit"?
Fidelity Submits Request to E*TRADE: Fidelity sends an electronic request to E*TRADE via the ACATS system, informing them of your intention to transfer assets.
E*TRADE's Review and Response: E*TRADE will review the request. They have a short window (typically one business day) to respond, either by confirming the assets available for transfer or by rejecting the transfer (due to discrepancies, unresolvable issues like pending transactions, or ineligible assets).
Verification and Reconciliation: Both firms work to reconcile the list of assets to be transferred.
Transfer of Assets: Once approved, E*TRADE will transfer the specified assets (and cash) to Fidelity.
Important Note on Ineligible Assets: Not all assets are transferable in-kind. For example, some proprietary mutual funds offered by ETRADE may not be available at Fidelity. If you hold such assets, ETRADE might liquidate them to cash before transferring, or they might be excluded from the transfer. You'll be notified of any such exceptions.
Step 5: Monitoring Your Transfer's Progress
You're not left in the dark! Both Fidelity and E*TRADE provide ways to track your transfer.
Sub-heading: Keeping an Eye on Your Portfolio's Journey
Fidelity's Online Tracking: Fidelity usually provides an online status tracker where you can see the estimated completion date and any updates on your transfer.
Email Notifications: You might receive email notifications from Fidelity at various stages of the transfer process.
E*TRADE Account Access: While the transfer is in progress, you might notice your E*TRADE account shows a "transfer out" status or a reduced balance as assets are moved. Avoid making any trades in the account being transferred during this period, as it can disrupt the process.
Typical Timeline: Most ACATS transfers complete within 3 to 10 business days. However, complexities like partial transfers, ineligible assets, or discrepancies can extend this timeframe.
Tip: Read aloud to improve understanding.
Step 6: Verifying and Reconciling Your New Fidelity Account
Once Fidelity notifies you that the transfer is complete, it's time for the final check.
Sub-heading: Ensuring Everything Arrived Safely
Log In to Fidelity: Access your Fidelity account.
Verify Holdings: Compare the holdings in your new Fidelity account against the list of assets you intended to transfer from E*TRADE. Ensure all shares, mutual funds, and cash balances match.
Check Cost Basis: It's crucial to verify that the cost basis of your transferred securities is correctly reflected in your Fidelity account. This information is essential for accurate tax reporting when you eventually sell those investments. While ACATS typically transfers cost basis data automatically, it's always good practice to double-check. If you notice any discrepancies, contact Fidelity's customer service immediately.
Confirm Cash Balances: Ensure any cash you intended to transfer has arrived.
Review for Fees: Check your E*TRADE account for any outgoing transfer fees that might have been charged. If Fidelity offered a reimbursement, follow their instructions to claim it.
Final Thoughts and Important Considerations
Patience is Key: While ACATS is efficient, transfers can sometimes take longer than expected. Be patient, and don't hesitate to contact Fidelity's customer service if you notice significant delays or have questions.
Tax Implications (ACATS): A direct ACATS transfer of assets is generally a non-taxable event because you are not selling your investments. However, if any assets are liquidated to cash by E*TRADE during the transfer because they are not transferable in-kind, those liquidations would be taxable events. Always consult with a tax professional for personalized advice.
Communication is Crucial: If you encounter any issues, communicate with Fidelity's customer service first, as they are the initiating firm. They can often provide the most accurate status updates and help resolve problems.
10 Related FAQ Questions: How to...
How to know if I should do a full or partial transfer?
Quick Answer: Choose a full transfer if you want to move everything and close your ETRADE account. Opt for a partial transfer if you only want to move specific investments or a portion of your cash, keeping the ETRADE account open.
How to handle uninvested cash during the transfer?
Quick Answer: Uninvested cash in your ETRADE account will typically be transferred along with your securities during an ACATS transfer. If you only want to move cash, you can also initiate an Electronic Funds Transfer (EFT) from ETRADE to your bank, and then from your bank to Fidelity.
How to transfer an IRA from E*TRADE to Fidelity?
Quick Answer: The process is largely the same as a taxable brokerage account. When opening your Fidelity account, select the corresponding IRA type (Traditional, Roth, SEP, etc.) and initiate an ACATS transfer from Fidelity, specifying it's an IRA transfer. This is often referred to as a "direct rollover" for retirement accounts.
How to find my E*TRADE account statement for the transfer?
Quick Answer: Log in to your E*TRADE account online, navigate to the "Statements" or "Documents" section, and download a recent account statement.
How to check the status of my transfer with Fidelity?
Quick Answer: Log in to your Fidelity account and look for a "Transfers," "Activity," or "Account Service" section, where you should find a link to track the status of your inbound transfer.
How to deal with E*TRADE charging a transfer fee?
Quick Answer: First, verify ETRADE's fee schedule. Then, check if Fidelity offers a transfer fee reimbursement program. If they do, you'll typically need to provide proof of the fee charged by ETRADE to Fidelity for reimbursement.
How to ensure my cost basis transfers correctly?
Quick Answer: The ACATS system is designed to transfer cost basis information. After the transfer, check your Fidelity account's "Positions" or "Tax Info" section to verify. If there are discrepancies, contact Fidelity customer service with your E*TRADE statements showing the original cost basis.
How to transfer mutual funds that E*TRADE offers but Fidelity doesn't?
Quick Answer: If a mutual fund is proprietary to ETRADE or not offered by Fidelity, it will likely be liquidated to cash by ETRADE before the transfer. This cash will then be sent to Fidelity. Be aware that this liquidation is a taxable event.
How to avoid delays during the transfer process?
Quick Answer: Ensure all information provided is perfectly accurate (account numbers, names, account types). Have a recent statement ready. Avoid any pending transactions in your E*TRADE account during the transfer.
How to transfer an employer stock plan account from E*TRADE to Fidelity?
Quick Answer: Transfers from employer stock plan accounts can sometimes be more complex due to specific plan rules or restrictions. It's best to contact Fidelity directly and explain that you are transferring an employer stock plan account from E*TRADE. They may have specific forms or procedures to follow to ensure a smooth transfer.
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