How to Cancel Fidelity Account in 2026 (Close Brokerage + Transfer Assets)

Updated 2026-03-03 · 7 min read

Fidelity Account Types You Might Have

• Individual Brokerage: Taxable investment account — stocks, ETFs, mutual funds, bonds
• Roth/Traditional IRA: Retirement accounts — early withdrawal penalties may apply
• 401(k)/403(b): Employer-sponsored retirement — can only move if you leave the job
• Cash Management Account (CMA): Checking/debit card + brokerage features
• 529 Plan: Education savings — state tax implications if closing
• HSA: Health Savings Account — tax-advantaged, think twice before closing

Option 1: Transfer Assets (Recommended)

Transferring investments to another broker via ACATS (Automated Customer Account Transfer Service) lets you move everything without selling — meaning no capital gains taxes triggered.

1. Open an account at your new broker (Schwab, Vanguard, E*TRADE, etc.)
2. Initiate the transfer FROM your new broker — they handle the ACATS paperwork
3. Provide your Fidelity account number and the types of assets to transfer
4. Wait 5-7 business days for the transfer to complete
5. Fidelity may charge a $0 transfer-out fee — they eliminated this fee in 2024
6. Once assets are moved, call Fidelity to officially close the empty account

Option 2: Sell Everything and Withdraw

1. Log into Fidelity.com or the Fidelity app
2. Sell all positions — mutual funds settle T+1, stocks settle T+1
3. Wait for all trades to settle (usually 1 business day)
4. Transfer cash to your external bank via EFT (electronic funds transfer)
5. Allow 1-3 business days for the cash to arrive
6. Call 1-800-343-3548 to close the account

Close Fidelity Cash Management Account

1. Update any direct deposits and automatic payments linked to the account
2. Transfer remaining balance to your external bank
3. Wait for all pending transactions to clear
4. Call 1-800-343-3548 and request CMA closure
5. Cut up your Fidelity debit card

Close Fidelity IRA

1. Best option: Transfer to another IRA via trustee-to-trustee transfer (no taxes or penalties)
2. If withdrawing cash: Under 59½ = 10% early withdrawal penalty + income taxes
3. Roth IRA contributions (not earnings) can be withdrawn penalty-free anytime
4. Call Fidelity at 1-800-343-3548 to initiate either option
5. They'll mail a distribution form or process the transfer

What About 401(k) Accounts?

If your employer uses Fidelity for 401(k), you generally can't close it while still employed there. Once you leave the job:

• Roll over to IRA: Transfer to a Fidelity IRA (or another broker's IRA) — no taxes
• Roll to new employer's 401(k): If your new employer accepts rollovers
• Cash out: 10% penalty + income taxes if under 59½ — almost never worth it
• Leave it: You can keep the 401(k) at Fidelity indefinitely after leaving the job

Before You Close: Consider This

• Fidelity has $0 commissions on stocks, ETFs, and options — already competitive
• Fidelity index funds (FZROX, FZILX) have 0.00% expense ratios — literally free
• No account minimums for most account types
• CMA is a solid checking alternative — free ATM reimbursement worldwide
• If you're leaving because of the interface, try the updated Fidelity app — significantly improved in 2025

Alternatives to Fidelity

• Charles Schwab: Similar features, excellent customer service, thinkorswim trading platform (acquired TD Ameritrade)
• Vanguard: Best for buy-and-hold index investors, lowest-cost fund provider
• Interactive Brokers: Best for active traders, lowest margin rates, international market access
• M1 Finance: Best for automated pie-based investing — set it and forget it

Bottom line: Fidelity is genuinely one of the better brokerages — closing it should be a deliberate decision, not a knee-jerk one. If you're leaving for a specific reason (better app, transfer bonus, employer change), the ACATS transfer route is almost always the smartest move. No selling, no taxes, no hassle.