Alexis Kestler
Hey there! If you‘re looking to move your investments over from Robinhood to Fidelity, you‘ve come to the right place. As a fellow investor and technology enthusiast, I totally get the appeal of Robinhood with its slick interface and commission-free trades. But sometimes, you may outgrow what Robinhood offers and want to graduate to a more full-service brokerage like Fidelity.
Don‘t worry – making the switch is totally doable if you know what to expect. In this detailed guide, I‘ll walk you through everything you need to know to seamlessly transfer your accounts based on my own experience. I‘ll share tips to make it a smooth transition, so you can enjoy the premium tools and services Fidelity provides without missing a beat!
Why Make the Switch From Robinhood to Fidelity?
Before we get into the nuts and bolts of transferring, let‘s look at some of the key reasons why you might want to graduate from Robinhood to Fidelity:
Broader range of investments – Hands down, one of the biggest motivators is that Fidelity gives you access to a lot more than just stocks and ETFs. You can invest in mutual funds, bonds, CDs, options, IPOs and more.
Superior research and tools – Fidelity has a team of hundreds of analysts and data scientists producing market research, forecasts, trading strategies and stock ratings. As a Fidelity customer, you get to leverage these institutional-grade insights.
Top-notch customer service – Need help with your account? Fidelity has got your back 24/7 by phone, chat or in person.
Advanced trading platform – Active traders love Fidelity‘s desktop Active Trader Pro platform with customizable layouts, level II quotes, options analysis tools and more.
Account security – Fidelity offers leading security features like biometric login, security keys and 24/7 fraud monitoring. I sleep better at night knowing my investments are secure.
Lower fees – This table compares key fees between Fidelity and Robinhood:
| Fee Type | Fidelity | Robinhood |
|---|---|---|
| Commission | $0 | $0 |
| Margin Interest Rate | 8.325% | 9.50% |
| Options Contract Fee | $0 | $0 |
| Mutual Fund Transaction Fee | $0 | N/A |
| Account Transfer Out Fee | $0 | $75 |
| Overnight Trading | Yes | No |
As you can see, Fidelity offers lower costs in key areas like margin trading, account transfers and access to mutual funds. Over time, these savings really add up!
Hopefully this gives you a good sense of the key advantages of using a full-service broker like Fidelity rather than sticking with a barebones app like Robinhood. Now let‘s get into the nitty gritty of how to actually transfer your account.
3 Things to Know Before Transferring From Robinhood to Fidelity
While the transfer process itself is pretty straightforward, there are some important things you should keep in mind beforehand:
1. Robinhood charges a $75 transfer out fee
Yep, Robinhood hits you with a $75 fee for full account transfers out, which is deducted from your balance before the transfer. Partial transfers over $500 also get the fee. It‘s annoying, but luckily Fidelity doesn‘t charge any transfer in fees.
2. The transfer takes 5-7 business days
Once initiated, give yourself at least a full trading week for the transfer to fully complete. Your account will be frozen during this time. Partial transfers may take longer.
3. Fractional shares get liquidated
Robinhood lets you buy fractions of stocks, but those fractional shares can‘t transfer over. They will be sold at market price before the transfer, with proceeds moved as cash.
Okay, now that you know what to expect, let‘s get into the step-by-step process!
How to Transfer Your Account From Robinhood to Fidelity
Here is the play-by-play for smoothly transferring your investment accounts over to Fidelity:
Step 1: Open Your New Fidelity Account
Start by visiting Fidelity.com to open a new brokerage account or IRA. Make sure the account type matches what you have with Robinhood – individual, joint, IRA, etc. Funding it is optional at this point.
Step 2: Initiate the Transfer Request
Once your new Fidelity account is open, go to the Transfers page and click "Start a transfer". Choose “Transfer an account to Fidelity” and enter Robinhood as the sending firm.
You‘ll need your Robinhood account number, which is available under the account menu. Enter it along with Robinhood‘s DTC number of 6769.
Step 3: Select Full or Partial Transfer
Now you‘ll need to decide whether to transfer your entire Robinhood account or just specific assets. For partial transfers, choose the asset types and quantities to move. Remember fractional shares will be liquidated.
Step 4: Send Request and Begin Monitoring
Carefully review your transfer request details before submitting. Fidelity will contact Robinhood to start the process. The Activity tab will show when Robinhood acknowledges it.
Step 5: Wrap Up Any Remaining Activity
Your Robinhood account will be frozen during the transfer. Use this waiting period to download any tax documents, transaction history and close out fractional shares.
Step 6: Get Trading in Fidelity!
In 5-7 days, your request will show as completed. You can now enjoy all of Fidelity‘s premium tools and trading platforms! Some assets may trickle over afterward.
And that‘s the process in a nutshell! Pretty straightforward overall. Now let‘s go over some commonly asked questions:
FAQs: Transferring From Robinhood to Fidelity
Here are answers to some of the most frequently asked questions about making the switch:
What assets can transfer over?
Stocks, ETFs, options, mutual funds, cash and cryptocurrency holdings can all transfer. Fractional shares are liquidated and move as cash proceeds.
How long does the transfer take?
Allow 5-7 business days for a full transfer. Partial transfers may take longer depending on assets moved.
What if I have a margin balance?
Unfortunately, you can‘t transfer an account with any margin debit. You‘ll need to pay off the margin balance first.
What about my cost basis info?
Not to worry – your cost basis data for tax reporting will carry over automatically during the transfer.
Can I cancel a transfer?
You may be able to cancel if Robinhood hasn‘t approved it yet. Contact Fidelity and Robinhood support ASAP to try halting it.
Do Robinhood restrictions apply?
Yes, your account is locked during transfer and you‘ll owe Robinhood‘s $75 transfer out fee.
When can I start trading in Fidelity?
You can start trading as soon as assets show up in your Fidelity account, typically within 24 hours of completion.
Does ACATS apply to the transfer?
Yes, the industry standard ACATS automated transfer protocol is used to move your account electronically.
And there you have it – the full low-down on making the switch from Robinhood over to Fidelity! As you can see, it‘s really not too painful of a process. The transfer mechanics are straightforward and Fidelity‘s superior account management tools make it worthwhile.
Ready to Join 25+ Million Fidelity Customers?
Here‘s a recap of the major benefits covered in this guide:
- Zero commission trades – same as Robinhood
- Fractional share trading – you can still invest any amount
- Thousands of no-fee mutual funds – key investing advantage
- Powerful desktop & mobile apps – leading trading platforms
- 24/7 customer support – no waiting for email replies
- Extensive research & tools – make informed investing decisions
- Industry-leading security – top measures like 2FA and encryption
Overall, Fidelity offers a transparent, full-service investing experience that‘s perfect for taking your portfolio to the next level.
Does a move to Fidelity from Robinhood seem right for you? If you have any other questions, feel free to reach out! I‘m always happy to help weigh the pros and cons of online investing platforms. Here‘s to growing your wealth!
