Transferring your investments from Robinhood to Fidelity might seem daunting, but the process is straightforward once you understand the steps. Whether seeking more advanced trading tools, better customer service, or simply consolidating your investments, this guide will walk you through the entire process.
What is an ACAT Transfer?
Before diving into the steps, it’s important to understand what happens behind the scenes. Most brokerage transfers use what’s called an Automated Customer Account Transfer Service (ACAT).
“ACAT transfers are the standard method for moving securities between brokerages without having to sell your positions,” explains Michael Johnson, a certified financial planner. “This means you won’t trigger any taxable events during the transfer.”
In simpler terms, an ACAT transfer is like changing the name on the title of your car—you still own the same car, but the paperwork shows a different dealer as the manager.
Step-by-Step Transfer Process
1. Open a Fidelity Account (If You Don’t Have One)
Before initiating any transfer, you’ll need an active Fidelity account that matches your Robinhood account type (individual, joint, etc.).
Example: Sarah, a 28-year-old software developer, decided to switch from Robinhood to Fidelity for more research tools. “I already had a 401(k) with Fidelity through work, but I needed to open an individual brokerage account to match my Robinhood account,” she recalls.
To open a new account:
- Visit Fidelity.com and click “Open an Account”
- Select “Individual Brokerage Account”
- Follow the prompts to complete your application
2. Prepare Your Robinhood Account
Before initiating the transfer:
- Ensure your Robinhood account has no pending transactions
- Make sure you have at least $75 in cash or buying power (to cover Robinhood’s transfer fee)
- Verify your account information matches exactly on both platforms
Pro Tip: Take screenshots of your Robinhood positions and transaction history for your records before starting the transfer.
3. Initiate the Transfer from Fidelity’s Side
It’s generally better to start the transfer process from the receiving institution (Fidelity).
Here’s how:
- Log in to your Fidelity account
- Navigate to “Accounts & Trade” > “Transfers”
- Select “Transfer an account to Fidelity”
- Enter your Robinhood account information when prompted
- Choose whether to transfer all assets (full transfer) or select positions (partial transfer)
“When I initiated my transfer from Fidelity’s website, they asked for my Robinhood account number,” says Mark, a recent transfer customer. “I found this in my Robinhood app under Account > Documents > Account Statement.”
4. Provide Your Robinhood Account Details
You’ll need:
- Your Robinhood account number
- A recent statement (can be downloaded from the Robinhood app)
- The account type (individual, joint, etc.)
Robinhood’s clearing firm information (which Fidelity may ask for):
- Clearing Firm: Robinhood Securities, LLC
- DTC Number: 6769
5. Review and Submit Your Transfer Request
Before finalizing:
- Double-check all account information matches exactly
- Verify which assets you’re transferring
- Understand any potential transfer fees
6. Monitor Your Transfer Progress
Once submitted, you can track your transfer status through Fidelity’s transfer tracker. The process typically takes 5-7 business days but can sometimes take longer.
“I could see the status updates in my Fidelity account,” shares Emma, who transferred last year. “My stocks started appearing in my Fidelity account within a week, though my fractional shares took a bit longer to resolve.”
What Happens to Fractional Shares?
One important consideration is that fractional shares cannot be transferred through ACAT.
“Robinhood will typically sell your fractional shares and transfer the resulting cash,” explains financial advisor David Chen. “For example, if you own 10.7 shares of Apple, the 0.7 fractional share will be sold, and you’ll receive cash for that portion.”
Potential Fees and Costs
Be aware of these potential costs:
- Robinhood transfer fee: $75 (deducted from your Robinhood account)
- Fidelity transfer fee: $0 (Fidelity doesn’t charge for incoming transfers)
Real-world example: “I didn’t have enough cash in my Robinhood account to cover the $75 fee,” says Tyler, a recent transfer customer. “Robinhood ended up selling a small portion of one of my stocks to cover the fee. I wish I’d deposited the cash beforehand.”
Some good news: Fidelity sometimes reimburses transfer fees for accounts with significant assets. It never hurts to ask their customer service about this possibility.
Common Issues and Troubleshooting
Account Restrictions
If your Robinhood account has any restrictions (like a pending deposit), your transfer may be delayed or rejected.
Example: “My transfer was rejected the first time because I had made a deposit to Robinhood two days before initiating the transfer,” says Rachel. “I had to wait for that deposit to fully clear before trying again.”
Name Mismatches
Even minor differences in how your name appears on each account can cause problems.
Solution: Ensure your name, address, and other personal information match exactly on both accounts before initiating the transfer.
Margin Accounts
If you have a Robinhood Gold account with margin enabled, make sure your Fidelity account is also margin-enabled if you want to maintain those positions.
After the Transfer: Next Steps
Once your assets arrive at Fidelity:
- Verify all positions transferred correctly
- Set up your beneficiaries
- Explore Fidelity’s tools and resources
- Consider closing your Robinhood account if no longer needed
“After my transfer completed, I spent some time getting familiar with Fidelity’s research tools,” says Marcus, who switched platforms in 2023. “The learning curve was worth it for the additional features.”
Final Thoughts
Transferring from Robinhood to Fidelity is a straightforward process when you follow these steps carefully. While there may be a small fee and some waiting involved, many investors find the robust features and customer service at Fidelity worth the switch.
Remember that market conditions can change during your transfer window, and you won’t be able to trade those securities while they’re in transit. Plan accordingly and consider initiating your transfer during a period when you don’t anticipate needing to make immediate trades.
Looking for more information about Robinhood or Fidelity?
Check out these related articles:
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Need access to your funds fast? See how Robinhood’s instant deposit feature works, including eligibility and limits, in our comprehensive explainer.
Worried about unexpected costs? Get the full breakdown of Robinhood’s fee structure and find out if there are any hidden charges in our transparent fee analysis.