|Type of account||Can Fidelity lend my securities?||How much can Fidelity lend?|
|Margin account with a debit balance/loan||Yes||Up to 140% of the value of the debit balance|
|Margin account without a debit balance/loan||No||n/a|
|Cash account (no margin)||No||n/a|
Trading with Fidelity:
Due to recent market activity, we're experiencing higher than normal wait times. We've collected the most asked questions to help you self-serve online. We'll be updating this page as we continue to monitor current events and understand where our customers need help.
Can Fidelity lend my shares?
If you have a debit balance in a margin account, Fidelity may lend your securities. Up to 140% of your margin debit balance may be lent (a regulatory requirement that applies to all brokerage firms). For example, if you have a $1,000 debit balance, then brokerage firms can choose to lend up to $1,400 of the market value of securities in your account.
What happens if Fidelity lends securities from my account?
If securities are on loan, you maintain full economic ownership of the securities and may sell the securities at any time. However, your voting rights are relinquished, and you may receive substitute cash payments in lieu of distributions such as interest or dividend payments, which could be taxed at different rates than shares not on loan.
Are there scenarios when shares can't be lent from my account?
If you do not have a margin debit balance in a margin account, we will not lend your shares. View more details based on account type.
How do I vote in a shareholder meeting?
Once the voting window has opened, visit proxy votingLog In Required and you’ll see your specific security and the related due date. You’ll also be able to access additional details and documents.
What's the fastest way to transfer money to Fidelity so I can start trading?
The fastest way to get money into a Fidelity account is to send it via bank wire. You'll need to start the bank wire with your current institution. Bank wires typically process same day and the money is immediately available for trading at Fidelity. Your bank may charge a fee to send a wire, but Fidelity doesn't charge a fee to receive one. You can start this process with your current financial institution using this information to wire to Fidelity.
As an alternative, you could choose to transfer money from your financial institution via EFT. For more information, see how to choose between an electronic funds transfer (EFT) or a bank wire.
How do I add money to my account?
What are the ways I can transfer money to my Fidelity account?
There are several ways to transfer money to Fidelity from an outside account, including electronically (EFT), via bank wire or check, and through servicers like Venmo or PayPal. You can see all of your options on our deposits page.
How do I link a bank account to my Fidelity account?
To link a bank account to your Fidelity account, log in to Fidelity.com and go to Manage BanksLog In Required. Select the Link a New Bank Account button. You will need the routing and account numbers for your bank account to complete the setup.
What is Fidelity's routing number for electronic funds transfer (EFT)?
The Fidelity routing number, also known as the ABA number, for electronic funds transfer (EFT) or direct deposit is 101205681. If you're setting up direct deposit, visit Determine Your Routing and Account Numbers for more information.
What are the instructions for wiring money to a Fidelity account?
You can find Fidelity's incoming bank wire instructions at Information Needed to Wire to Your Fidelity Account.
How do I track the status of my wire transfer?
You can check the status of your wire transfer from your Fidelity account. Log in and select the Activity & Orders tabLog In Required from your Portfolio Summary page.
How do I track the status of my transfer of assets (TOA) request?
The Transfer Tracker lets you monitor the status of any in-progress request to transfer all or part of an account to Fidelity.
What's the difference between a transfer of assets (TOA) and transferring money?
A transfer of assets means you're transferring accounts or investments from one broker or financial firm to another. Transferring money is a transfer of cash from one account to another, like a transfer from your bank account to a Fidelity account, either electronically or via bank wire or checks.
How long does a transfer of assets (TOA) take compared to a general money transfer?
Processing time for transfer of assets (TOA) depends on your current firm's rules and the type of accounts and investments you're transferring. Typically, TOAs take between 3–5 business days to process. General money transfers via bank wire are typically available same day, while transfers via EFT and mobile check deposit are usually credited same day but may take additional time before you can buy investments with the funds.
When can I trade with money from a transfer of assets or a general transfer?
A general money transfer into your Fidelity account via EFT, bank wire, or mobile check deposit may be immediately available for trading. Cash available in a brokerage account you transfer to Fidelity can be used to buy investments immediately, but cash available, shares, or investments in the account can't be sold or withdrawn until the transfer process is complete. Cash transfers can be withdrawn once the money clears in your Fidelity account.
How do I add trading features to my account?
- How do I apply for options trading?
How does margin work?
A margin account lets you leverage securities you already own as collateral for a loan to buy additional securities.
Here’s an example: Suppose you use $5,000 in cash and borrow $5,000 on margin to buy a total of $10,000 in stock. If the stock rises in value to $11,000 and you sell it, you would pay back the $5,000 borrowed on margin and realize a profit of $1,000. That’s a 20% return on your $5,000 investment.
If you didn’t use a margin loan, you would have paid $10,000 in cash for the stock. Not only would you have tied up an additional $5,000, but you would have realized only a 10% return on your investment. The 10% difference in the return is the result of leveraging your assets.
However, leverage works as dramatically when stock prices fall as when they rise. For example, let’s say you use $5,000 in cash and borrow $5,000 on margin to purchase a total of $10,000 in stock. Suppose the market value of the stock you’ve purchased for $10,000 drops to $9,000. Your equity would fall to $4,000, which is the market value minus the loan balance of $5,000. In this instance, you could suffer a loss of 20% due to a 10% decrease in market value.
When ready to start trading on margin, it's important to understand how to read your margin balances. View a video to learn more (1:15)
This example does not account for any fees, commissions, interest, or taxes you may be required to pay.
- How do I add margin to my account?
- How do I track the status of my margin and/or options application?
Can I place orders before the market opens and after it closes?
Yes, orders in the premarket session can be entered and executed between 7:00 a.m. and 9:28 a.m. ET, and orders in the after-hours session can be entered and executed between 4:00 p.m. and 8:00 p.m. ET. However, your order may be executed in whole or in part, or you may not receive as favorable a price as when the market is open because of the lack of liquidity in extended-hours trading.
How do I add extended-hours trading on my account?
To add extended-hours trading privileges to a new account, you will need to review and accept the extended-hours trading agreementLog In Required.
How do I get started with trading?
How do I place a stock or ETF trade?
You can watch this video to learn how to place a stock and ETF trade on Fidelity.com with tips on how to choose an order type and order duration. Watch now (1:36)
If trading in the Fidelity mobile app, you'll find a similar video when placing your first trade.
Why is the trade settlement date important?
The trade settlement date is important because it is the date when you actually own the stock or exchange-traded fund you've bought, or if you've sold a security, it's the date when you can expect to access the cash from the sale. Watch this video to learn more
What do I need to know to help avoid trading violations?
To help avoid trading violations, it's important to understand and pay attention to settlement dates so you aren't attempting to use unavailable funds to cover a purchase. Of specific concern are day trading violations where you attempt to buy and sell in the same day, before a trade is settled.
Where do I find information on trade violations?
To find information on trade violations, log in to your account, go to the Balances page and at the bottom, view Trade Restrictions & Violations. You'll not only have easy access to information on trade violations, but also commission and price improvements, and account agreements.
What is a wash sale?
If you have a security, sell it for a loss, and then replace it with the same or a "substantially identical" security 30 days before or after the sale, that's called a wash sale. Watch this video to learn more about wash sales (1:40)
What is day trading?
Day trading is defined as buying and selling the same security—or executing a short sale and then buying the same security— during the same business day in a margin account. Pattern day traders, as defined by FINRA (Financial Industry Regulatory Authority) rules must adhere to specific guidelines for minimum equity and meeting day trade margin calls.
For more information, see Day trading under Trading Restrictions.
What does it mean to be a pattern day trader?
A pattern day trader is anyone who meets the following criteria:
- Any margin customer who executes 4 or more day trades in a 5-business-day period.
- The number of day trades must comprise more than 6% of total trading activity for that same 5-day period.
- Any margin customer who incurs 2 unmet day trade calls within a 90-day period. You can check your classification at the bottom of your Balances page: Go to your Trading Profile and select the Trade Restrictions & Violations link.
Can I buy fractional shares on stocks like GameStop or AMC Entertainment?
Yes, there are generally no restrictions on which stocks you can purchase as fractional shares. Learn more about fractional shares.
The Fidelity Learning Center brings together all of Fidelity's best thinking in one place, including Fidelity Viewpoints®. It's your source for timely insights, education, and perspectives.
Options trading entails significant risk and is not appropriate for all investors. Certain complex options strategies carry additional risk. Before trading options, please read Characteristics and Risks of Standardized Options. Supporting documentation for any claims, if applicable, will be furnished upon request.
Keep in mind that investing involves risk. The value of your investment will fluctuate over time, and you may gain or lose money.
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