If you’re no longer using your account or you’re moving to another brokerage, knowing how to close a Fidelity brokerage account correctly can save you from unnecessary headaches. Fortunately, Fidelity makes the process fairly simple through its virtual assistant, but there are a few important things you should know before getting started.
How to Close a Fidelity Brokerage Account Through the Fidelity App
To close a Fidelity brokerage account, open the Fidelity app and tap the search icon in the top-right corner. Type “close account” into the search bar.
Several suggested questions will appear. Select “How do I close an account?” and Fidelity’s virtual assistant will guide you through the process.
Before proceeding, you’ll see several important notices. After your account is closed:
- Direct deposits and automatic debits will stop working.
- Any associated debit cards will be cancelled.
- Beneficiaries and bill pay recipients will be removed.
- Margin privileges and other trading features will be terminated.
If you have automatic payments, recurring transfers, or direct deposits set up, make sure to update those before continuing.
Once you’re ready, tap Yes to begin.
Select the Account You Want to Close
The virtual assistant will display all eligible Fidelity accounts.
You might see:
- An individual brokerage account
- A Roth IRA
- Multiple investment accounts
If the account you want isn’t listed, it may be a managed account, trust account, or 401(k), which usually requires assistance from Fidelity over the phone.
Why Fidelity Won’t Let You Close the Account Yet
Many people try to close a Fidelity brokerage account only to discover that they still have cash or investments remaining.
Fidelity requires the account balance to be completely zero before it can be closed. If money, stocks, ETFs, or mutual funds remain in the account, you’ll see a message asking you to resolve them first.
The assistant provides three options:
- Transfer or withdraw
- Sell securities
- Contact us
Sell Investments Carefully
If your account still contains stocks, ETFs, or mutual funds, you must remove them before you can close a Fidelity brokerage account.
However, if you’re transferring to another brokerage, selling everything may not be the smartest move. Selling investments can create taxable capital gains.
Instead, consider an ACATS (Automated Customer Account Transfer Service) transfer. This allows you to move your holdings directly to another brokerage without selling them.
Benefits of an ACATS transfer include:
- No need to liquidate investments.
- Cost basis remains intact.
- No taxes are triggered simply by transferring assets.
If you’re exiting investing entirely and need cash, then selling your positions may be necessary.
Transfer or Withdraw Remaining Cash
After all investments have been removed, you’ll need to transfer or withdraw any remaining cash.
Use the Transfer or Withdraw option to send funds to a linked bank account.
If you haven’t linked a bank account yet, Fidelity may mail a paper check instead, which can take longer to arrive.
Contact Fidelity for Special Situations
The Contact Us option is useful if:
- Your account is locked.
- You have a managed portfolio.
- A transfer is pending.
- There are restrictions preventing closure.
In these situations, a Fidelity representative can help resolve the issue.
How to Finalize and Close a Fidelity Brokerage Account
Once your balance reaches zero and there are no pending transactions, return to the virtual assistant and repeat the process.
Search for “close account” again and select the account you want to close.
This time, Fidelity should allow you to proceed. You’ll receive a final authorization prompt. Confirm the request, and your account will officially be closed.
The actual closing process usually takes only a couple of minutes once everything has been cleared.
Save Your Final Documents
After you close a Fidelity brokerage account, keep an eye on your email.
Fidelity will send:
- A final account statement.
- A Form 1099 the following tax season if there was any reportable activity during the year.
These documents may be important when filing taxes or for future recordkeeping, so save them somewhere secure.
Conclusion
Learning how to close a Fidelity brokerage account is straightforward, but it’s important to make sure your account balance is zero before attempting the final step. If you’re moving to another broker, an ACATS transfer can help you avoid unnecessary taxes and preserve your investments. Once everything is cleared, the virtual assistant can complete the closure process in just a few minutes.
