Transfer a Fidelity Account to Tastytrade Or Vice Versa
Fidelity is an excellent broker offering a complete range of investment tools and services. Tastytrade is also a top-tier broker and is quite unique in its approach to brokering trades in the financial markets.
Whether you want to transfer a Fidelity account to Tastytrade or vice versa, here’s how to do it.
Transfer Methods
There are two main transfer methods you can use when moving your account. You can initiate an automated customer account transfer (ACATS) or manually transfer your assets to a new broker. Here’s how to do both.
Transfer a Fidelity Account to Tastytrade
The first thing
you’ll need to do is open an account at Tastytrade.
To transfer your Fidelity account to Tastytrade using the ACATS transfer method, you should use the
ACAT application at Tastytrade.
The first thing you want to do is collect some information about your Fidelity account. You will
need the following:
- the Fidelity account number
- login information for the Fidelity account
- a digital copy of a recent account statement
Navigate to the ‘Deposits’ page at Tastytrade. From there, select ‘ACAT.’
Next, choose the account type that you will be transferring, and enter the account details (account number). Remember that the Fidelity and Tastytrade account types must match.
The next step is to create a link between your Fidelity and Tastytrade accounts. Tastytrade uses the Plaid service, so you must log into your Fidelity account during this step.
You will then decide on a transfer type. You can transfer all of your assets or some of them.
The final step is to confirm the transfer agreement and upload any documents Tastytrade asks for.
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Transfer a Tastytrade Account to Fidelity
To set up an automated account transfer from Tastytrade to Fidelity, you will initiate the transfer from Fidelity.
The first thing you must do is navigate to the account transfers page. Fidelity has a couple of options for account transfers. The one you choose should match the type of account you plan to transfer. To move your brokerage account, select ‘Start a Transfer.’
You will then select Tastytrade from the broker list on the next page. If you do not see the broker listed, use the search functionality to locate it.
Once you have selected Tastytrade, the next step is to provide Fidelity with details of the account you are transferring. You will enter the account number of your Tastytrade brokerage account and choose the account type (i.e., retirement, individual margin, etc.).
You will then decide if the transferred assets should go to an existing Fidelity account or if you would like to open a new one. If you opt for a new account, select one that matches the type of account you are transferring in.
The next step is optional, but it speeds up the transfer process. You can upload a recent broker statement from Tastytrade. Fidelity uses the statement to fill in any missing information it may have.
Finally, you can initiate a full or partial ACATS transfer.
All that’s left is to review your request and confirm the request.
Top Transfer Destinations
Setting up a Manual Transfer
To transfer your account manually, you must do a few things.
The first step is to liquidate all the open positions in your account.
Once you have sold everything in your portfolio, you’ll need to wait for all your transactions to settle. Trade settlement usually takes three days.
If you have any other recent transactions in your account (like money transfers or margin call payments), you’ll also need to wait for those transactions to settle.
With your account in cash and no outstanding debts to your broker, you can transfer your funds to your bank account. Once your transfer settles in your bank account, you can use them to fund your new brokerage account.
Reminders and Considerations
Whether you choose the manual or automatic account transfer process, there are a few things to remember.
One is that automatic transfers restrict the types of securities you can move. Fractional shares, complex options positions, foreign stock, and cryptocurrencies are examples of securities that many brokers will not accept through the ACATS system.
Another thing to remember is that full ACATS transfers result in the ‘old’ Account being closed as soon as the transfer is complete. If you want to close your old brokerage account but use the manual account transfer method, you’ll need to request an account closure.
It’s also good to remember that ACAT transfers do not work with different account types. If you have a cash account at Fidelity, you’ll transfer to a cash account at Tastytrade.
Finally, checking the receiving broker for ACATS transfer reimbursement is always good. Many brokers reimburse at least $75.
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