How to Transfer From Robinhood to Fidelity

 

Robinhood has become a great option for those who want to transfer stocks, invest their funds, and perform options trading.

However, Robinhood isn’t the only brokerage out there.

We are quite aware that there have been some polemics around Robinhood, which might lead users to look for new alternatives.

In this case, Fidelity Investments seems like a great option for transferring stocks to an outside brokerage.

If you have decided to take the step, then let’s do it.

Worry not - we’ll show you the whole process so you can do it by yourself.

Continue reading this informative blog post to learn more about the following matters:

• How to transfer from Robinhood to Fidelity;
• How does transferring Robinhood stocks to Fidelity work?;
• What to know before moving your Robinhood account’s assets from one platform to another.

3 Things to Know Before Transferring Brokerage Account from Robinhood to Fidelity

There are many reasons that might lead you to transfer money from Robinhood to Fidelity.

Overall, both brokerages are top-notch, so, at the end of the day, it might all come down just to personal preferences.

Both platforms offer significant advantages, such as mutual funds and awesome trading tools, and if you want to transfer stocks from Robinhood to Fidelity, it’s pretty easy as well.

Nevertheless, there are three things you must know before you start transferring stocks from your Robinhood profile to Fidelity’s.

1. There’s a Charge for Account Transfer

When you start an account transfer requirement, you are actually using the standardized ACATS system.

Although Fidelity won’t charge you anything, Robinhood will indeed take $75 out of your cash balance whenever you move your stocks from Robinhood to another brokerage account.

2. You Need to Wait a Few Days for All Your Assets to Transfer

The account transfer process won’t take place immediately.

You need to wait for between 5 and 7 business days before your Robinhood assets fully move to a new account.

Besides, remember that the fractional shares must be liquidated at the current market value, which won’t be immediate.

So, have some patience!

3. You Might Still Receive Tax Forms from Robinhood

The dividends in your account will still generate tax reports even after you transfer assets.

As a consequence, remember that if you need to properly fill out taxes forms, you must take into account the stocks from Robinhood that you have moved to Fidelity beforehand.

How to Transfer from Robinhood to Fidelity

In order to move your assets and proceed with the initial transfer of your funds from one brokerage to another, you also must consider the following:

• Your Robinhood profile must not be facing account restrictions at the moment you request the transfer of your stocks;
• You can’t have negative balances in your account prior to the transfer. Otherwise, the process won’t take place efficiently;
• A residual sweep will keep taking place in your Robinhood profile even after the transfer as long as there are pending dividends.

Now, you have all the basics you need in order to proceed with the transfer. Without further ado, let’s do it!

Step 1: Register a New Fidelity Account

First of all, you need to create a Fidelity Account.

You can sign in to the platform by going to their website and following all the steps shown on the screen.

Step 2: Go to “Transfer investing Account”

Since Fidelity understands that many users constantly move from other brokerages to theirs, they have an option to move stocks from the very beginning.

You can also transfer your stocks if you have an existing account on Fidelity, so worry not.

Tap on the “Start a Transfer” button, and proceed.

Step 3: Select “Robinhood Securities LLC” and Start a Transfer Request

Here, a list will appear. You need to select Robinhood, whether you want to make a full account transfer or just move part of your assets.

Step 4: Find Your Robinhood Account Number and Type it In

Now, you need to type in all your Robinhood account details into the Fidelity platform.

In case you need it, the Robinhood’s DTC number is 6769. Nevertheless, your account number is way more important.

You can find it by logging into Robinhood, selecting your account icon, and in the left corner, tap Investing.

Your 9 digits number will be shown - copy it.

Step 5: Start the Transfer Process to a Fidelity Brokerage Account

After you paste your number on Fidelity, the platform will ask you the details of your transaction.

You can either make a full or partial transfer of your stocks from Robinhood.

In any case, your fractional shares in Robinhood will be sold as you decide.

Whether you choose partial or full transfer, the process will be similar.

Step 6: Change Your Fidelity Account Type

As we mentioned before, you need to wait for a week, most likely.

Then, you will receive an email telling you that your Fidelity account is funded and ready to go!

Once your fractional shares in Robinhood are completely sold, you should change your margin individual account to a Cash Account.

This way, you can buy, sell and trade stocks in your new Fidelity Investment account.

That’s all you need to know for now. For more Fidelity and Robinhood content, GrowFollowing is the best website around.

FAQ

Why is an Online Transfer Disabled on the Robinhood App?

Perhaps your account got restricted due to suspicious activity. You might as well have triggered Robinhood’s safety measures.

Learn how to solve this here: Robinhood Withdrawal Disabled.

About the author

Steve

Steve specializes in cryptocurrency and finance. As a born researcher, he won’t leave any stone unturned when it comes to topics he covers.