Do Fidelity Reimburse your Transfer Fee?
When you move your account from one broker, they may charge you a transfer fee or an exit fee. Often this is around $50 and a common question is will Fidelity reimburse my transfer fee? The short answer is yes. Under certain conditions.
This fee is often known as an ACAT fee, which is some sort of abbreviation for Account Transfer. The key requirement is that the value of the account you are moving to Fidelity, such as a cash trading account, margin account, Roth account etc has a value of at least $25,000.
However the good news is that if your balance is less than $25,000 you may still be eligible for a reimbursement, an employee from Fidelity confirms this on this Reddit thread. So it is worth senidng them a secure email to check.
Let's take a look at the steps you need to take to reimburse transfer fees on the Fidelity broker application.
Steps requried to get Fidelity to Remiburse your Transfer Fee
- Log into your Fidelity account
To begin, you will need to log into your Fidelity account using your username and password. Once you have logged in, you should see a dashboard with various options and tools.
- Go to the "Transfer" tab
Next, click on to the "Transfer" tab on the dashboard. This will bring up a menu with several options, including "Transfer Money" and "Transfer Securities." Select the option that you need.
- Complete the transfer form
After choosing your option, you will be asked to complete a transfer form which will have information about the account you are transferring money or securities from, as well as the account you are transferring them to.
Make sure to complete all of the required fields, including the amount of money or securities you are transferring, which as mentioned must be at least $25,000
- Request reimbursement of transfer fee
With your transfer form completed, you then will need to confirm your transfer.
Before confirming, look for an option to request reimbursement of transfer fee. Mark this option and submit the form.
However some users report that you may need to contact Fidelity customer support to request the transfer fee reimbursement.
After you have confirmed the transfer, Fidelity will process it though they may charge a fee for the service. However, if you had requested reimbursement of transfer fee as shown above, then this fee will be reimbursed to the account the money was transferred to, usually within 2-3 business days.
It's important to note that Fidelity may not reimburse all types of transfer fees.
It's a good idea to check with them to confirm if the fee you are trying to reimburse is eligible. Also, note that the process and steps may vary slightly depending on the type of account you have with Fidelity.
You might also be interested in the comparison between 2 Fidelity funds FSKAX vs FZROX and Fidelity's Level 2 Options requirements.