Deciding to switch brokers can be driven by a variety of factors. Whether you're seeking a more robust platform or lower fees, Fidelity stands as a popular destination for Robinhood users looking to transfer their holdings. Here's a comprehensive guide to navigating the transfer process from Robinhood to Fidelity.
What is Fidelity and How Does it Work?
Fidelity Investments Inc., also known as Fidelity, is an American international financial services firm based in Boston, Massachusetts. It was previously known as Fidelity Management & Research or FMR.
Investors can trade stocks, bonds, mutual funds, ETFs, and options with Fidelity. Traders can also buy fractional shares, which allows investors to diversify into higher-cost equities by acquiring a portion of a share rather than the entire amount.
Offering financial and stock exchange services like Robinhood, Fidelity is ideal for expert traders and if you think Fidelity is a great option for you, consider keeping this in mind before transferring stocks from Robinhood to Fidelity.
What to Consider Before You Transfer Stocks from Robinhood to Fidelity
As an expert trader, transferring stocks from Robinhood to Fidelity is a great kick start to a wider range of trading features. Though seems good, the process might become complicated for you at a certain point if you are not aware of what it takes.
That said, here are some things to consider before transferring your stocks from Robinhood to Fidelity:
- Whether it's a partial or full transfer, Robinhood charges $75 for each stock transfer to another brokerage account. You'll have to consider whether the charge for transferring stocks from Robinhood to Fidelity is worth it, or whether it's preferable to sell your Robinhood assets and repurchase them with Fidelity or another broker.
- Robinhood will sell any fractional shares you own and only transfer entire shares. Fractional shares are supported by Fidelity, but you'll have to repurchase them after the transfer is complete.
- Even if you moved your trading assets to Fidelity, you may still receive tax paperwork from Robinhood for the current tax year. If you received any dividends in your Robinhood account during the tax year, this will happen.
How to Transfer Stocks From Robinhood To Fidelity
You can transfer stocks and cash from Robinhood to different brokerages such as Fidelity via ACATS (Automated Customer Account Move Service). Moreover, you can make a partial transfer if you prefer to retain your Robinhood account.
If you don't want to wait, you can start a full transfer and they'll close your account after it's completed. It's worth mentioning that transferring funds from Robinhood, whether partially or totally, costs $75.
Step-by-Step Guide to Transfer Stocks From Robinhood To Fidelity
Now you know what it takes to perform this transfer, here is a step-by-step guide to transfer stocks from Robinhood to Fidelity:
Step 1: Log in to Fidelity Investments and Choose Transfers
Log in to your Fidelity account and under the "Accounts and Trade" menu choose "Transfers". If you don't have a Fidelity account, you can open one at Fidelity.com.
Step 2: Choose to Transfer Investment Account
Scroll down the page until you see the "Transfer an account to Fidelity" section. Tap on "Start a transfer" under the Transfer Investment or Retirement Accounts section to transfer your stocks from Robinhood to Fidelity.
Step 3: Choose to Transfer Stocks from Robinhood Securities LLC
The next thing is to choose where you want to transfer your stocks from. Select "Robinhood Securities LLC" from the drop-down after searching to transfer stocks from Robinhood to Fidelity.
Step 4: Providing your Robinhood Account Number
The next thing you have to do is to enter your Robinhood 9-digit account number. You can get your Robinhood account number from their mobile application or on the top right-hand corner of your account statement. Then you must choose "Individual" as your account type from the drop-down. To continue, click next.
Step 5: Choose Where to Transfer Your Assets
You need to choose whether to transfer your stocks from Robinhood to a new Fidelity brokerage account or to an existing Fidelity brokerage account.
If you're a new Fidelity customer, you'll have the option of transferring to a new account. If you already have a Fidelity brokerage account, you can choose whether or not to move your Robinhood assets to it.
We assume, you are new to Fidelity, so let's see how you can transfer assets from Robinhood to a new Fidelity account.
Step 6: Choose to Transfer All or Part of Your Assets and Upload a Monthly Robinhood Statement
Next, you have the option of transferring all or some of your assets. You would choose all assets if you were moving all of your stocks from Robinhood. Whether it's a partial or full transfer, each asset transfer will cost $75.
As a result, you must ensure that you have sufficient funds in your Robinhood account to cover this fee. Fidelity will ask you to provide a copy of your Robinhood account's monthly statement, which you can obtain through the Robinhood application.
Step 7: Fidelity Initiates the Transfer and Fractional Shares in Robinhood are Sold
Fidelity will begin the transfer procedure once you've filed your statement. You will receive an email from Robinhood within 24 hours of submitting your stock transfer request.
If you have fractional shares, Robinhood will sell them and deposit the money into your Fidelity account. As a result, only complete shares from Robinhood to Fidelity will be transferred. Your Robinhood account will be disabled as well. This implies you won't be able to place new transactions or deposit/withdraw money.
The complete procedure should take about 7 business days.
Any money you have in Robinhood, including revenues from fractional share sales, will not be transferred right away. Robinhood will run a residual sweep of any stocks left in your account about once a week following the original transfer. Following that, the funds are sent to the Fidelity account.
If you have any pending dividends in Robinhood, residual sweeps will continue. This means that it could take several weeks for all of your funds to be transferred. Your Robinhood account will be terminated once all of your assets have been transferred to Fidelity.
Step 8: Converting Your New Fidelity Brokerage Account Type from Margin to Cash
You'll notice that your assets are now type Margin after they've been transferred from Robinhood to Fidelity.
You'll need to switch the account from Margin to Cash to buy and sell your assets.
To convert your Fidelity Brokerage Account Type from Margin to Cash, you can contact Fidelity Account Support by dialing 800-343-3548. You can call using the Fidelity mobile application if you have it. Your account will subsequently be converted to a cash brokerage account by a representative. It can take up to 2 business days.
Fees Involved in Transferring Stocks Out Of Robinhood
If you buy stocks on margin or with a cash account, there are fees associated with Robinhood. Because neither of these factors applies to this guide, the only cost will be a withdrawal fee if your bank is not part of the network.
However, some of you might be using Fidelity, which is part of the same network.
Note!
Transferring your stocks/money between Robinhood and Fidelity can take some time, so don't be worried if you don't see it immediately! Give it a couple of hours and come back. All of the information should be available.
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How Much Does it Cost to Transfer from Robinhood to Fidelity?
Transferring stocks or cash from Robinhood to another outside brokerage will cost you $75 which will be charged to your account balance.
How Do I Transfer My Stocks From One Broker's Account to Another?
You can transfer money between brokerages without being charged a fee if you have stocks with two different brokerages. Depending on the amount in your account, the entire procedure should take about 2-3 business days.
The most important thing to remember when switching brokerages is that any fractional shares you may have will usually be unaffected. This should ease the transfer between accounts.
What Happens When You Transfer From Robinhood to Fidelity?
Expect to wait a few days for your money to appear in your Fidelity account after you transfer money from Robinhood.
Because both applications actually "lend" money to each other while searching for the proper amount of cash in your account, this is the case.
That said, depending on the type of account in which the stocks are stored, different procedures must be followed. It may take a few days in any situation, so be patient.
All trades will be free when you switch from Robinhood to Fidelity. This implies you can trade a commission-free ETF on Robinhood for a commission share on Fidelity without paying a fee.
Which is the Best Option Between Robinhood, Fidelity, and Webull?
Robinhood or Fidelity are recommended by many because they are both reputable brokerages with a proven track record.
Most people choose Fidelity since it offers more diversity with other securities besides just the big 4 (Amazon, Apple, Google, Microsoft) and also features options trading.
Others like Robinhood due of its simplicity and ease of use. You can't trade options on Robinhood, but you can on Fidelity, so that could be a key difference to consider.
However, other than the company's reputation for cryptocurrencies and derivatives, there isn't much of a difference between them when it comes to Webull. So, if those are your primary concerns, Webull is most likely the best option for you.
If you don't have any stocks yet, Fidelity is a good place to start because it offers a wider range of securities and funds to choose from.
The one disadvantage with Fidelity is that you would have to pay a fee anytime you want to transfer money from your account.
Final Thoughts
It makes little difference whether you choose Robinhood, Fidelity, or Webull because they are all excellent brokerages. It just depends on your tastes and the amount of money in your account.
If you don't have any money yet, Fidelity for stocks and Webull for cryptocurrencies are advised because they have the most options.
If you don't care about cryptocurrencies and just want to trade stocks and options, I recommend Robinhood for stocks and Fidelity for options.
So, in general, any of them should suffice. It all depends on your personal preferences.
However, if you have a specific reason for transferring stock assets between brokerages, our step-by-step guide above can help you out.