Transfer Fidelity to M1 Finance and Vice Versa
Transferring investment accounts between Fidelity and M1 Finance is easy thanks to the ACATS network. This fully-electronic system simplifies the process. Just follow our step-by-step guide.
Transfer from Fidelity to M1 Finance
First step: Since accounts themselves aren’t moved through the ACATS system, the first step is to open a brokerage account with M1 Finance. The securities from your Fidelity account will be transferred into this new M1 account. If you choose a full transfer, your Fidelity account will be closed. With a partial transfer, the Fidelity account will remain open.
Your M1 Finance account must have the same name and account type as your Fidelity account. For example, a custodial account can’t be transferred into an IRA.
Second step: After opening your M1 Finance account, you may need to prepare the Fidelity account for the transfer. If it’s an advisory or self-managed account, keep in mind that Fidelity’s robo program uses mutual funds, which will need to be liquidated (M1 Finance doesn’t offer mutual fund trading). Selling assets in a taxable account could have tax implications, so it’s a good idea to consult a CPA.
Other assets at Fidelity may not be transferable through ACATS, or M1 Finance may not support trading in them. This includes bonds, foreign stocks, cryptocurrencies, annuities, short positions, and options. Some OTC stocks may not transfer either, so check with M1 Finance beforehand.
Investment products that cannot be moved will need to be sold, transferred to another Fidelity account, or excluded from a partial transfer.
Note that fractional shares of stocks and ETFs cannot be transferred under any circumstances. If you don’t sell them, Fidelity will do so during the transfer process.
Third step: Once ready, request the ACATS transfer on the M1 website or mobile app. On the website, click on the Invest tab in the top menu and look for the option to transfer an account to M1. This will take you to the ACATS form. You can choose to transfer the full account or just specific assets. For a full transfer, you’ll see a list of outgoing brokerage firms—select Fidelity’s logo.
For a partial transfer, the form layout is slightly different. You’ll select Fidelity from a drop-down list and specify whether the transfer is full or partial. You’ll also need to provide your Fidelity account number and type.
Once completed, submit the transfer. When the investments from Fidelity arrive in your M1 account, they’ll appear in the Holdings section. You’ll need to manually place them into Pies.
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Transfer from M1 Finance to Fidelity
Moving your account from M1 Finance to Fidelity follows a similar process.
First step: You’ll need to open an account with Fidelity. If you already have an account that meets the requirements (same name and account type), you can use that. The Fidelity account can be either advisory or self-directed.
Second step: Both accounts will need some preparation. Cryptocurrencies can’t be transferred through ACATS, so those will need to be handled separately. If a margin balance is coming over, be sure to enable margin trading in the Fidelity account.
Fidelity robo accounts can only accept cash transfers, which means all assets in the M1 Finance account will need to be liquidated.
Third step: Request the ACATS transfer on the Fidelity mobile app or website. On the website, click on the Transfers link under the Accounts & Trade tab. On the next page, select the option to deposit, withdraw, or transfer money. From there, select the link to transfer an account to Fidelity. Be sure to specify M1 Finance as the outgoing firm.
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How Long Does an ACATS Take?
Fidelity estimates that an incoming transfer will take 3 to 5 business days. M1 Finance estimates 5 to 7 business days for transfers to complete. If fractional shares are liquidated, the cash may take a little longer to arrive.
Updated on 10/16/2024.
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