Does Transfer of ETFs from Fidelity to Vanguard close account?

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Tex
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Does Transfer of ETFs from Fidelity to Vanguard close account?

Post by Tex »

If I contact Vanguard to initiate a transfer of ETFs held at Fidelity (taxable brokerage) to Vanguard (taxable brokerage) will the Fidelity account remain open?

I ask because I have to maintain a Fidelity brokerage account to receive my annual Stock grants. I had been selling my grants for ETFs and now I want to consolidate those ETFs with my Vanguard account because it would be easier to manage. Gotta keep the Fidelity brokerage open though for future grants.
livesoft
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Re: Does Transfer of ETFs from Fidelity to Vanguard close account?

Post by livesoft »

Easy to ask Fidelity about this. Maybe you have 1 cent in your settlement account?
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lazynovice
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Re: Does Transfer of ETFs from Fidelity to Vanguard close account?

Post by lazynovice »

I am not sure how long they will leave it open but it is somewhere close to a year. My adult kids have empty brokerage accounts that they set up only to receive shares from us that they sold immediately. Those have been open close to a year with zero balances. My husband and I have Traditional IRAs that sit empty except for one day a year when we fund them for back door Roths.

I am sure you are not the only employee of your company who keeps their account open for this sole purpose.
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Topic Author
Tex
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Re: Does Transfer of ETFs from Fidelity to Vanguard close account?

Post by Tex »

Thanks for the replies. I didn't realize that you can transfer partial assets between accounts. I can leave a $1 in and move the rest.
Nummerkins
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Re: Does Transfer of ETFs from Fidelity to Vanguard close account?

Post by Nummerkins »

Complete account transfer will result in a closure. They will reopen however -- I've done it
Partial transfer will not result in closure -- leave some shares/cash in that case.
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Re: Does Transfer of ETFs from Fidelity to Vanguard close account?

Post by placeholder »

I never do complete transfers because some brokerages will immediately close the account and then you have no access to account documents.
BuddyJet
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Re: Does Transfer of ETFs from Fidelity to Vanguard close account?

Post by BuddyJet »

When I did a partial transfer from Fidelity, they required that the remaining account value had to be over $500. It was a pull from the other broker.

I learned this after the partial transfer failed
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Topic Author
Tex
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Re: Does Transfer of ETFs from Fidelity to Vanguard close account?

Post by Tex »

Following up on my initial post. I transferred two ETFs (large balances) from Fidelity to Vanguard and the transfer was complete in under a week. Still pending the cost information to refresh, but that should occur in 1-2 weeks. I kept $500 in my money market fund that was excluded from my partial transfer order. The process was initiated from Vanguard.

The account remained open and everything occurred as anticipated. I don't think the $500 was necessary because Fidelity will not transfer the fractional ETF shares in your account (so those slivers remained in my Fidelity account and I will have to sell those shares to migrate the money).

The crazy thing to me is that Fidelity doesn't require a Medallion to transfer and they did not notify me of the transfer (despite having all notifications enabled for SMS/email). The money just vanished with no red alert from Fidelity which is a bit concerning. A couple years ago, I transferred my wife's IRA from Vanguard to her new 401k and it required a Medallion and a lot of notices from Vanguard giving me the heads up (email and paper mail). Maybe I'll receive a paper notice soon, but realistically it would be too late if someone had stolen your funds.
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whodidntante
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Re: Does Transfer of ETFs from Fidelity to Vanguard close account?

Post by whodidntante »

I have transferred partial assets out of my fidelity account many times. In my experience they will reject the partial transfer and tell you it must be a full transfer if you only leave a small amount behind. Leaving 5k behind has consistently worked. They did reject a transfer that would have left about $1,900 once.
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Re: Does Transfer of ETFs from Fidelity to Vanguard close account?

Post by placeholder »

I have transferred funds between all the major custodians and many minor ones and never had to do a signature guarantee (that would be onerous) plus notification generally depends on your alert settings.
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