Switching Brokerages In 2026: Vanguard To Fidelity—Step-By-Step Guide

Tens of millions of Americans own stock directly or through brokerage accounts, and the reasons to switch brokerages are compelling. In 2025, 62% of U.S. adults reported owning stock either directly or indirectly, with 23% actively maintaining investment or brokerage accounts. Whether you’re moving to access lower expense ratios, better customer service, superior trading platforms, or more favorable fee structures, switching from Vanguard to Fidelity is a decision that requires careful planning and execution.

Fidelity’s average ETF and mutual fund expense ratio of 0.07% compared to the industry average of 0.44% makes it an attractive alternative for cost-conscious investors. However, the mechanics of transferring your entire portfolio—especially understanding what Vanguard will charge, what Fidelity will accept, and how long the process takes—can seem overwhelming. This guide walks you through every step, from preparation through final confirmation, so you can make an informed decision about whether switching makes sense for your financial situation.

What Are the Current Fees for Transferring from Vanguard to Fidelity?

Short answer: Vanguard charges $100 to close accounts or transfer assets to another firm for most customers (effective July 1, 2024), though this fee is waived if you maintain $5 million or more in Vanguard assets. Fidelity does not charge a fee to receive your transferred assets.

Understanding the cost structure is the first step in deciding whether switching makes financial sense. Vanguard’s $100 account closure or transfer fee became effective July 1, 2024, and applies to most retail customers. This fee is significant because it’s charged per account being transferred, meaning if you have multiple accounts at Vanguard—a brokerage account, an IRA, and a taxable investment account—Vanguard could charge up to $300 in total transfer fees. However, the fee is automatically waived for customers with $5 million or more in total Vanguard assets, so high-net-worth investors may not face this barrier.

Vanguard Brokerage also charges a $25 annual account service fee for each brokerage account, which is another cost to factor into your decision. If you’re paying this fee currently and planning to consolidate accounts at Fidelity, eliminating this recurring charge could save you $25 per year on each account transferred.

On Fidelity’s side, the good news is straightforward: Fidelity does not charge a fee to move assets from another institution. This is a clear competitive advantage for customers considering a switch. However, your current financial institution (in this case, Vanguard) may charge to transfer your assets, which is why understanding Vanguard’s fee structure is essential before initiating a transfer.

Beyond Vanguard’s direct transfer fees, you should also be aware that your cost basis tracking methodology may change during the transfer. As of August 1, 2025, Vanguard transitioned its SpecID cost basis method to FIFO (First In, First Out) for all investments not previously changed. This impacts how tax liability is calculated if you sell securities after the transfer, so review your cost basis method preferences before moving your holdings.

How Long Does It Take to Transfer from Vanguard to Fidelity?

Short answer: Electronic ACAT transfers typically complete within 5 to 6 business days, with Fidelity generally processing transfers within 5 days if your current firm accepts electronic requests, and FINRA Rule 11870 requiring completion within 6 business days from the time your new firm enters your form.

Timeline is a critical factor when switching brokerages, especially if you’re concerned about being out of the market during the transfer period. The good news is that modern ACAT (Automated Customer Account Transfer Service) transfers have become significantly faster following recent regulatory changes.

If your transfer request is submitted electronically and Vanguard accepts electronic requests (which they do), Fidelity will typically process your transfer within 5 days. This means that in optimal conditions, your entire portfolio could be transferred and active at Fidelity within a week. However, it’s important to understand that this timeline assumes no complications arise during the transfer process.

The regulatory framework governing account transfers is FINRA Rule 11870, which requires firms to complete transfers within 6 business days from the time your new firm (Fidelity) enters your form into ACATS. This 6-business-day window became even more favorable to investors in October 2025, when the SEC removed Settle Prep Day from the ACATS transfer process, effective October 17, 2025. This regulatory streamlining reduced unnecessary waiting periods, allowing transfers to move through the system more efficiently.

To hit these optimal timelines, ensure all documentation is accurate and complete when you submit your transfer request to Fidelity. Incomplete or mismatched information (such as account numbers that don’t align between Vanguard and Fidelity) can delay the transfer beyond the standard 5 to 6-business-day window. Plan accordingly: if you transfer on a Monday, assume your holdings will be active at Fidelity by the following Friday at the earliest, though earlier completion is possible.

What Happens to Your Investments During the Transfer?

Short answer: In-kind ACAT transfers keep your securities intact during the move, making the transfer tax-neutral for regular brokerage accounts because you’re not selling investments—you’re moving them directly from one custodian to another.

One of the most common concerns when switching brokerages is what happens to your actual investments while they’re in transit. The short answer is: they stay invested, but the mechanics are worth understanding in detail.

When you use an ACAT transfer (the standard method for moving accounts), you’re performing what’s called an “in-kind transfer” of securities. This means your actual holdings—individual stocks, mutual funds, ETFs, bonds—are transferred directly from Vanguard’s custody to Fidelity’s custody without being sold. You’re not converting to cash, paying transaction costs, or creating a taxable event. The securities simply change custodians while remaining the same holdings.

For regular taxable brokerage accounts, in-kind transfers are typically tax-neutral. You don’t realize any capital gains or losses during the transfer because no sale occurs. Your cost basis and holding period follow your securities to Fidelity, meaning if you held a stock at Vanguard for two years and transfer it to Fidelity, that two-year holding period remains intact for long-term capital gains purposes.

However, there’s a critical caveat: if Vanguard holds securities that Fidelity cannot accept (which is rare but possible with certain esoteric funds or legacy investments), those holdings may need to be sold at Vanguard before transfer, creating a taxable event. Before initiating your transfer, review your holdings and confirm with Fidelity that they can custody everything you own. In most cases involving standard stocks, ETFs, and mutual funds, this won’t be an issue, but it’s worth verifying.

During the 5 to 6-business-day transfer window, your investments remain invested in whatever you currently hold. You won’t miss market movements because your securities aren’t sitting in cash; they’re actively held throughout the process. This is another advantage of ACAT transfers over manual cash transfers, which can leave money temporarily idle.

Step-by-Step Process: How to Transfer from Vanguard to Fidelity

Short answer: The process involves gathering account details, opening a new Fidelity account, initiating an ACAT transfer request, confirming receipt at Fidelity, waiting 5 to 6 business days for completion, and verifying all holdings arrived correctly.

Moving your portfolio from Vanguard to Fidelity follows a structured process. Here’s the step-by-step walkthrough:

1. Gather Your Vanguard Account Information
   Collect all account numbers, investment holdings details, and cost basis records from your Vanguard accounts. You’ll need your exact account number and the account type (individual brokerage, IRA, etc.). Having this information ready prevents delays when you contact Fidelity. You should also make a note of which Vanguard accounts you plan to transfer—you don’t have to move everything, but be intentional about which accounts go to Fidelity.
2. Open a New Fidelity Account (if you don’t already have one)
   Visit Fidelity’s website and open a new account matching the account type you’re transferring from Vanguard. If you’re transferring an individual brokerage account, open an individual brokerage account at Fidelity. If you’re moving an IRA, open an IRA at Fidelity with the same IRA type (Traditional, Roth, SEP, etc.). The online account opening process takes 10 to 15 minutes and requires basic personal information, Social Security Number, and identification verification.
3. Initiate the ACAT Transfer Request at Fidelity
   Once your Fidelity account is open and verified, contact Fidelity to initiate the account transfer from Vanguard. You can do this online through Fidelity’s website, by phone, or in person at a Fidelity branch. Fidelity will provide you with an ACAT transfer form that collects information about your Vanguard account and your new Fidelity account. This is the document that kicks off the automated transfer process governed by FINRA Rule 11870.
4. Review the Transfer Form and Confirm Account Details
   Before submitting the ACAT transfer form, carefully verify that all account numbers, account types, and personal information match exactly between Vanguard and Fidelity. A mismatch in account numbers or names can delay the transfer significantly. Confirm which accounts are being transferred and whether you’re doing a full transfer (all holdings) or a partial transfer (specific holdings). Most investors do a full account transfer for simplicity.
5. Submit the ACAT Form and Receive Confirmation
   Once you’ve reviewed the form, submit it to Fidelity. You’ll receive a confirmation number and an estimated completion date, typically 5 to 6 business days from submission. Fidelity will electronically submit your transfer request to Vanguard’s system. Save this confirmation number—you’ll use it to track your transfer progress.
6. Monitor Your Vanguard Account for the Outgoing Transfer Request
   Within 1 to 2 business days, you should see an outgoing transfer request appear in your Vanguard account. You may be prompted to authorize or confirm the transfer. Some transfers complete automatically, while others require your explicit approval. Check your Vanguard account daily for this request and approve it promptly to keep the timeline moving.
7. Wait for Transfer Completion (5 to 6 Business Days)
   From the time Fidelity enters your ACAT form into the system, you have a 6-business-day window for completion under FINRA Rule 11870. In most cases, transfers complete in 5 business days, but allow the full 6 days. During this period, your holdings remain invested at Vanguard but are flagged as being transferred. You typically cannot buy or sell during the transfer window, so avoid making trading decisions until the transfer is complete.
8. Confirm Receipt at Fidelity
   Once the 5 to 6-business-day window has closed, log into your new Fidelity account and verify that all your holdings have arrived. You should see the same securities, quantities, and cost basis information. Check that your account values match what you transferred. If anything is missing or incorrect, contact Fidelity immediately to investigate.
9. Verify Vanguard Account Status
   Log into your Vanguard account and confirm that the transferred account has been closed or is now empty (depending on whether you did a full or partial transfer). If you transferred everything, your Vanguard account should show a zero balance and may automatically close after 30 to 60 days, though you can request immediate closure. If any holdings remain at Vanguard that you didn’t intend to transfer, contact Vanguard to resolve the discrepancy.
10. Update Your Banking and Automatic Investment Arrangements
    If you had automatic investments (such as monthly contributions) or direct deposits set up with Vanguard, update these to point to your Fidelity account. Similarly, update any external accounts (employer 401(k) rollovers, linked bank accounts for transfers) to reference your new Fidelity account numbers. This ensures your investment workflow continues seamlessly without interruption.

Key Statistics: What You Should Know About Account Transfers and Investor Behavior

Comparison Table: Vanguard vs. Fidelity Transfer Costs and Timeline

Tax Considerations Before You Transfer

Short answer: ACAT in-kind transfers of securities are typically tax-neutral for regular brokerage accounts because no sale occurs, though you should verify your cost basis method and confirm that all securities can be custodied at Fidelity before transferring.

Tax implications are often overlooked when switching brokerages, but they’re critically important. The good news is that ACAT transfers, by design, minimize tax complications. Because you’re moving securities directly without selling them, there’s no recognition of capital gains or losses at the time of transfer. Your holdings arrive at Fidelity with the same cost basis they had at Vanguard.

However, there are specific scenarios where tax complications arise. First, if Vanguard holds any securities that Fidelity cannot custody—which occasionally happens with certain mutual funds, options positions, or international securities—you may be forced to sell those holdings at Vanguard before the transfer. When you sell to complete the transfer, any gains or losses are realized and reportable on your current-year tax return. To avoid this surprise, contact Fidelity before initiating your transfer and confirm they can custody your entire portfolio.

Second, pay attention to Vanguard’s cost basis method change effective August 1, 2025. Vanguard transitioned from its SpecID cost basis method to FIFO (First In, First Out) for all investments not previously changed. This affects which share lots are considered sold when you eventually liquidate positions at Fidelity. FIFO is less tax-efficient than SpecID for many situations, so review your cost basis preferences before transferring. You may have an opportunity to lock in your preferred method during the transfer process.

For IRAs and retirement accounts, transfers are always tax-neutral regardless of the method used—you’re moving retirement-protected assets, so no immediate tax consequence occurs. However, ensure you’re transferring to the same IRA type (Traditional to Traditional, Roth to Roth) to avoid unintended Roth conversion events.

Frequently Asked Questions About Switching from Vanguard to Fidelity

Does Fidelity charge a fee to transfer in assets from Vanguard?

No, Fidelity does not charge a fee to move assets from another institution. However, Vanguard charges a $100 account closure or transfer fee for each account transferred (unless you have $5 million or more in Vanguard assets), so the cost of switching comes from Vanguard’s side, not Fidelity’s.

Will my investments be sold if I transfer from Vanguard to Fidelity?

No, your investments will not be sold during an ACAT transfer. Your securities are moved in-kind, meaning they remain invested as the same holdings at Fidelity. The only exception is if Fidelity cannot custody a specific security you own, which is rare for common stocks, ETFs, and mutual funds.

How long will it take for my accounts to be fully transferred to Fidelity?

According to FINRA Rule 11870, transfers must complete within 6 business days from the time Fidelity submits your ACAT form to Vanguard. In most cases, Fidelity processes transfers within 5 business days if your transfer request is submitted electronically and Vanguard accepts electronic requests.

Will I pay capital gains taxes when transferring my accounts to Fidelity?

No, in-kind ACAT transfers are tax-neutral for regular brokerage accounts because no securities are sold during the transfer. Your cost basis and holding periods follow your investments to Fidelity without creating a taxable event.

Can I transfer my IRA from Vanguard to Fidelity?

Yes, you can transfer IRAs from Vanguard to Fidelity using the same ACAT process. Ensure you’re transferring your IRA type to the corresponding type at Fidelity (Traditional IRA to Traditional IRA, Roth to Roth) to avoid unintended tax consequences. IRA transfers are always tax-neutral.

What should I do if my transfer is delayed beyond 6 business days?

If your transfer hasn’t completed after 6 business days, contact both Fidelity and Vanguard to investigate. Delays can occur due to missing documentation, account number mismatches, or securities that cannot be transferred. Your transfer confirmation number from Fidelity will help both firms track the status quickly.

Do I need to close my Vanguard account after the transfer, or does it close automatically?

Your Vanguard account will typically close automatically after 30 to 60 days if you transfer all holdings and maintain a zero balance. Alternatively, you can contact Vanguard and request immediate account closure, which may be processed within a few business days after the transfer completes.

When Does It Make Sense to Switch from Vanguard to Fidelity?

Short answer: Switching makes financial sense if you’re seeking lower expense ratios (Fidelity’s 0.07% average vs. industry average of 0.44%), want to avoid Vanguard’s $25 annual account service fee and $100 transfer fee, or prefer Fidelity’s trading platforms and customer service.

The decision to switch should ultimately be based on the long-term financial benefit relative to the transition cost. Vanguard’s $100 per-account transfer fee creates a one-time cost hurdle that you’ll need to justify against the ongoing savings you expect at Fidelity.

If you currently pay Vanguard’s $25 annual account service fee on multiple accounts, switching to Fidelity (which does not charge this fee) saves you $25 to $75+ per year depending on how many accounts you have. Over five years, this alone could recoup the $100 transfer fee. Additionally, if your holdings include funds with higher expense ratios, moving to Fidelity’s lower-cost alternatives—with an average ETF and mutual fund expense ratio of 0.07% compared to the industry average of 0.44%—could save you thousands over time.

Consider switching if you meet any of these criteria: (1) you own multiple Vanguard accounts paying the $25 annual fee; (2) your portfolio holds higher-expense mutual funds that Fidelity offers in lower-cost versions; (3) you value Fidelity’s trading platform and research tools more than Vanguard’s; (4) you’re consolidating accounts across multiple institutions and Fidelity offers a better overall experience; or (5) you have less than $5 million in Vanguard assets and want to avoid the $100 transfer fee as a matter of principle.

Conversely, staying with Vanguard may make sense if you’re a high-net-worth customer with $5 million or more in assets (transfer fee is waived), have strong relationships with Vanguard advisors, hold mutual funds that don’t have exact Fidelity equivalents, or anticipate future increases in your Vanguard holdings.

Bottom Line

Switching from Vanguard to Fidelity is a straightforward process that takes 5 to 6 business days and doesn’t require you to sell your investments. The key costs are Vanguard’s $100 account transfer fee (if you have less than $5 million in assets) and eliminating the $25 annual account service fee at Fidelity. For investors seeking lower expense ratios—Fidelity’s 0.07% average compared to the 0.44% industry average—or better trading platforms, the long-term savings often justify the one-time transfer cost. Use the step-by-step process outlined above to ensure your transfer completes smoothly and verify that all holdings arrive at Fidelity correctly.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always consult a qualified financial advisor before making financial decisions.

For more on this topic, read: 529 Plan Transfer Rules 2026: Moving Funds Between States Explained.

For more on this topic, read: Is A Financial Advisor Worth It In 2026? When You Actually Need One.