If you’ve been investing with Robinhood but are now considering making a switch to Fidelity for your stock trading, the good news is that you can easily transfer your assets without needing to sell your stocks and incur potential taxes. This guide will walk you through every step to ensure that your transfer of stocks from Robinhood to Fidelity is smooth and efficient.
Why Transfer from Robinhood to Fidelity?
While Robinhood offers a user-friendly experience, there are several compelling reasons why investors might prefer Fidelity for long-term investments. Fidelity provides:
- Comprehensive research tools and educational resources
- Customer support with branches nationwide
- A wider selection of investment products including mutual funds and bonds
- Advanced platforms for active traders and passive investors alike
Making the switch is relatively simple, but there are a few key things to know to ensure your transfer goes smoothly.
Can You Transfer Stocks from Robinhood to Fidelity?
Yes, you can easily transfer stocks from Robinhood to Fidelity through the Automated Customer Account Transfer Service (ACATS). This system allows for a direct transfer of your assets, including stocks, ETFs, and other supported securities, without selling them. This is advantageous because it helps you avoid taxes associated with selling and ensures that you retain your investments as-is.
How to Transfer Stocks from Robinhood to Fidelity?
Here’s a detailed step-by-step guide to transfer stocks from Robinhood to Fidelity:
Step 1: Open a Fidelity Account
Before initiating the transfer, you need to have a Fidelity account set up. You can open an account online via Fidelity’s website in a few minutes. If you already have an account, you can skip this step. When opening an account, ensure that the type of account at Fidelity (e.g., individual brokerage account, IRA) matches the account type you hold with Robinhood. This is crucial because ACATS transfers can only occur between accounts of the same type.
Step 2: Gather Information About Your Robinhood Account
To start the transfer process, you will need details from your Robinhood account. Ensure you have the following:
- Your Robinhood account number: You can find this in the Settings section of the Robinhood app.
- The type of account (e.g., individual taxable brokerage)
- List of securities you wish to transfer (Fidelity will typically transfer everything, but it’s good to know what’s being moved).
Step 3: Log into Your Fidelity Account and Initiate the Transfer
- Log into Fidelity and navigate to the Account Transfer section. You’ll find this under “Transfer” in the main navigation.
- Select Transfer from another brokerage and choose Robinhood as your current brokerage.
- Provide your Robinhood account number and the required details.
- Choose whether to do a full or partial transfer. A full transfer will move all your stocks and assets from Robinhood to Fidelity, while a partial transfer allows you to select specific stocks or assets to move.
Step 4: Confirm Transfer and Wait for Processing
Once you submit the transfer request, Fidelity will initiate the ACATS transfer with Robinhood. The transfer typically takes 5-7 business days, although it can take longer in some cases.
During this time:-
- Your Robinhood account may be restricted from trading as the assets are in the process of being moved.
- Cash balances may not transfer. Ensure you transfer any uninvested cash separately or plan for it to remain in your Robinhood account.
- Ensure all securities are transfer-eligible (for example, fractional shares and cryptocurrency cannot be transferred through ACATS).
Step 5: Monitor the Transfer
You can log into your Fidelity account to track the status of your transfer. Fidelity will notify you when the transfer is complete. Once the transfer is finalized, all your stocks and ETFs will appear in your Fidelity portfolio.
What Happens After the Transfer?
Once your stocks have successfully been transferred to Fidelity, you can start trading and managing your investments on their platform. Your cost basis, open positions, and gains or losses should transfer over without any issues. However, always double-check to ensure that all securities have been transferred correctly.
Important Considerations
- Fractional shares will not transfer. If you hold any fractional shares on Robinhood, they will be liquidated, and the cash proceeds will be transferred to your Fidelity account.
- Cryptocurrencies held on Robinhood will not transfer. If you want to move your crypto holdings, you will need to sell them on Robinhood and transfer the cash.
- Transfer fees: Robinhood charges a $75 fee for outgoing ACATS transfers, whether full or partial. Be aware of this cost when deciding whether to transfer.
Transfer Stocks from Robinhood to Schwab
If you are looking to transfer your stocks to Charles Schwab, the process is very similar to transferring to Fidelity. Schwab also supports ACATS transfers, and the steps involve:
- Opening a Schwab account (or using an existing one).
- Logging into the Schwab platform and initiating the transfer from Robinhood.
- Waiting for the transfer to complete, typically in 5-7 business days.
The same considerations apply regarding fractional shares, cryptocurrencies, and transfer fees.
Frequently Asked Questions:-
Can I Transfer My Stocks from Robinhood to Fidelity Without Selling Them?
Yes, you can transfer your stocks without selling them by using the ACATS system. This allows you to move your assets directly to Fidelity, avoiding the tax implications of selling and repurchasing.
How Long Does It Take to Transfer Stocks from Robinhood to Fidelity?
The ACATS transfer process usually takes 5-7 business days, although the timing can vary depending on the complexity of the assets being transferred.
Is There a Fee to Transfer Stocks from Robinhood to Fidelity?
Yes, Robinhood charges a $75 fee for outgoing transfers, whether full or partial. This fee is deducted from your account before the transfer.
Can You Transfer Fractional Shares from Robinhood to Fidelity?
No, fractional shares cannot be transferred via ACATS. Robinhood will sell any fractional shares you own, and the cash value will be sent to your Fidelity account.
Can You Transfer Cryptocurrency from Robinhood to Fidelity?
No, cryptocurrencies cannot be transferred through ACATS. You will need to sell your cryptocurrency on Robinhood and transfer the proceeds.
Conclusion
Transferring your stocks from Robinhood to Fidelity is a straightforward process when done through the ACATS system. With a few steps, you can move your assets without selling them, allowing you to take advantage of Fidelity’s resources and tools. Be mindful of transfer fees, fractional shares, and cryptocurrency holdings, as these may require additional steps. Ultimately, the move can offer significant benefits for your long-term investment strategy.