Fidelity and Vanguard are two of the largest and longest standing brokerages on the market. With extensive offerings, best in class customer support, and a plethora of investment options, both Fidelity and Vanguard cater well to the needs of beginners and advanced traders alike.
So, which is best for you? This may come down to which platform delivers a better customer experience in app! However, many investors agree that Vanguard may be better suited for the long term while Fidelity may be best for more advanced traders with its extensive real time data.
Whichever you choose, this article covers the steps to transfer from Fidelity to Vanguard. Let's dive in!
Moving your assets from one company to another may seem complicated. But this really isn't the case. Rather than selling your assets and repurchasing them on another platform, you can perform what's called an in-kind transfer, or ACATS (automated customer account transfer service). This kind of transfer simply moves your account to another platform without ever triggering capital gains tax through the sale.
In order to transfer from Fidelity to Vanguard, you will need to complete the steps below:
Let's jump into each of these steps in more detail!
If you already have a Vanguard account, then you can move on to the next step.
As one of the oldest standing brokerages available, Vanguard has certainly adapted to changing investor needs. Creating an account with Vanguard is actually pretty simple. Though they do have an app, Vanguard requires an account application be filled out from their website. Opening an account with Vanguard takes roughly 7 minutes!
Before you start the process, be sure you are eligible. To create an account, you will need to have the following:
To open an account, follow these steps:
Once you have completed the account application, you will be able to start investing in 3 business days.
When performing an ACATS transfer, the steps required are typically the same for most platforms. If you want to transfer your assets from one platform to another, you will need to obtain the account number and login details of the existing account.
You will need your Fidelity account number to provide to Vanguard to initiate this transfer. You should also make note of what type of account you have with Fidelity. The account type you open with Vanguard has to be identical to the account you are transferring in.
This information can be found by downloading a copy of your most recent brokerage statement.
With a Vanguard account and your Fidelity account information, you are ready to initiate the transfer. Be aware that an outgoing transfer from Fidelity will incur a $75 fee. Vanguard does not charge for incoming ACATS transfers,
This process is pretty quick and will take just 10-15 minutes to complete online. While the funds may take 4-6 weeks to appear in your Vanguard account, the process is usually completed much sooner.
Before you start the transfer, you should also know about the assets that you can and cannot transfer to Vanguard.
Investments you can transfer:
Investments you can't transfer:
Any investments that you have that cannot be transferred must be liquidated first.
To initiate this ACATS transfer, follow the steps below:
Be aware that this transfer can take up to 4-6 weeks to complete, though typically is completed much sooner.
While the process is fairly simple, you ought to do your research before moving to a new platform. Each transfer typically has an ACATS transfer fee from the firm you are leaving. Additionally, the assets typically take a few weeks to appear, meaning you won't be able to access them until they are cleared in the receiving platform.
Once you have decided that you want to transfer from one platform to another, like Fidelity to Vanguard, then you can rest assured that the process is quick and painless.
Once you have a Vanguard account, you will just need to locate your Fidelity login information and account number. After that, it's as simple as following Vanguard's online transfer form.
If you have additional questions, be sure to reach out to Vanguard's customer support team.