Ready to unlock the value of your investments? Whether you're looking to rebalance your portfolio, generate cash, or simply move on from a particular asset, selling your investments on Fidelity is a straightforward process. This comprehensive guide will walk you through each step, ensuring you feel confident and informed throughout the transaction.
Your Journey to Selling Investments on Fidelity: A Step-by-Step Guide
Let's begin, shall we? Take a deep breath and prepare to empower yourself with financial knowledge!
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| How Do I Sell My Investments On Fidelity |
Step 1: Log In and Navigate to Your Portfolio
The first and most crucial step is to access your Fidelity account.
A. Accessing Your Account
Website: Open your preferred web browser and go to the official Fidelity website (
www.fidelity.com Mobile App: If you prefer mobile convenience, open the Fidelity Mobile® App on your smartphone or tablet. Input your credentials.
B. Locating Your Investments
Once logged in, you'll typically land on your Portfolio Summary page. This is your command center, showing an overview of all your accounts and holdings.
Look for a section or tab labeled "Accounts & Trade," then select "Portfolio" or "Positions." This will display a detailed list of all the investments you currently hold within your Fidelity accounts.
Step 2: Identify the Investment You Wish to Sell
Now that you're in your portfolio, it's time to pinpoint the specific investment you want to sell.
A. Finding Your Specific Holding
Scroll or Search: Browse through your list of holdings. If you have many investments, you might find a search bar or filter options to quickly locate the specific stock, ETF, mutual fund, or bond you intend to sell.
Click on the Asset: Once you've found it, click on the name or symbol of the investment. This action will usually take you to a dedicated page for that specific security, providing more details and trading options.
Step 3: Initiate the Sell Order
This is where the magic happens! You'll now tell Fidelity what you want to sell.
QuickTip: Stop and think when you learn something new.
A. Selecting the "Sell" Option
On the individual investment's page, you should see clear options like "Buy" and "Sell." Click on the "Sell" button.
B. Choosing the Account
If you have multiple Fidelity accounts (e.g., a taxable brokerage account and an IRA), you'll be prompted to select the specific account from which you want to sell the investment. Choose carefully, as tax implications can vary significantly between account types.
Step 4: Define Your Sell Order Details
This is a critical step where you specify exactly how you want your sale to be executed.
A. Quantity to Sell
Shares or Dollars: You'll typically have the option to sell a specific number of shares or a dollar amount worth of the investment. For example, you can choose to sell "100 shares" or "$5,000 worth" of a particular stock.
Sell All: If you wish to liquidate your entire position in that investment, there's usually a "Sell All Shares" or similar option.
B. Order Type: Market vs. Limit
This is a crucial decision that impacts the price at which your sale will be executed.
Market Order: This tells Fidelity to sell your investment immediately at the best available current market price. Market orders prioritize speed of execution but do not guarantee a specific price. This is generally suitable for highly liquid assets where minor price fluctuations aren't a major concern.
Limit Order: This allows you to set a specific minimum price at which you are willing to sell your investment. Your order will only be executed if the market price reaches or exceeds your specified limit price. Limit orders prioritize price but do not guarantee execution. This is ideal if you have a target price in mind and are willing to wait for it.
C. Time in Force (for Limit Orders)
If you choose a limit order, you'll need to specify how long you want the order to remain active.
Day Order: Your order will remain active only until the end of the current trading day. If it's not executed, it will expire.
Good 'til Canceled (GTC): Your order will remain active for a longer period (typically 180 calendar days on Fidelity) until it's either executed or you manually cancel it. Be mindful of GTC orders as market conditions can change over time.
D. Specific Shares (Cost Basis - Important for Taxes!)
If you own shares of the same investment that you acquired at different times and prices (known as tax lots), Fidelity allows you to choose which specific shares you want to sell. This is extremely important for tax planning, as it can influence your capital gains or losses.
Default (FIFO): By default, Fidelity often uses the "First In, First Out" (FIFO) method, meaning the oldest shares you acquired are sold first.
Other Methods: You can often choose other methods like:
High-Cost: Sells shares with the highest cost basis first, which can help minimize taxable gains.
Low-Cost: Sells shares with the lowest cost basis first, which can maximize taxable gains (useful for tax-loss harvesting).
Tax-Sensitive: Aims to minimize gains or maximize losses.
Consult a Tax Advisor: It's highly recommended to consult with a tax advisor before choosing a specific share method, especially for large sales, as it can have significant tax implications.
Tip: Take your time with each sentence.
Step 5: Review and Place Your Order
You're almost there! This is your chance to double-check everything before submitting.
A. Preview Order
After entering all your details, click the "Preview Order" button.
A summary screen will appear, displaying all the information you've entered: the investment, the quantity, the order type, the price (if it's a limit order), the estimated proceeds, and any applicable fees.
B. Verify Details
Carefully review every detail on the preview screen. Ensure the correct investment, quantity, order type, and account are selected. A mistake here could lead to an unintended trade.
C. Confirm and Place Order
If everything looks correct, click "Place Order" or "Submit Order."
You'll typically receive an order confirmation number. Keep this for your records.
Step 6: Monitor Your Order and Settlement
Once your order is placed, you'll want to keep an eye on its status.
A. Order Status
You can typically check the status of your order in a "Order Status" or "Trade History" section of your Fidelity account.
Pending: Your order is waiting to be executed.
Executed: Your order has been filled.
Canceled: Your order was canceled (either by you or because its "Time in Force" expired without execution).
B. Trade Settlement
What is Settlement? The settlement date is when the trade is officially completed, and the ownership of the security and the cash proceeds are exchanged.
Settlement Period: For most stocks, ETFs, and options, the settlement period is T+1, meaning the trade settles one business day after the trade date. For mutual funds, settlement can vary but is often also T+1 or sometimes T+2.
Accessing Funds: You cannot withdraw the proceeds of your sale until the trade has settled. Once settled, the cash will appear in your account's core cash position and be available for withdrawal or reinvestment.
Step 7: Consider Withdrawal or Reinvestment Options
Once the funds are settled in your Fidelity account, you have choices.
Tip: Break it down — section by section.
A. Withdrawal Options
Electronic Funds Transfer (EFT): Transfer the funds directly to a linked bank account. This is typically the fastest and most common method.
Check: Request a physical check to be mailed to your address.
Wire Transfer: For larger sums, a wire transfer can be an option, though it may incur fees.
B. Reinvestment
You can also use the proceeds to purchase other investments within your Fidelity account. Simply follow the "Buy" process for the new investment.
Important Considerations When Selling Investments
Beyond the steps, there are a few crucial aspects to keep in mind:
Tax Implications: Selling investments, especially in a taxable brokerage account, can trigger capital gains or losses. These will need to be reported on your tax return. Fidelity provides tax forms (like Form 1099-B) to help you with this. Consider tax-loss harvesting as a strategy to offset gains.
Fees and Commissions: While Fidelity offers $0 commission for online US stock, ETF, and options trades, other investments like certain mutual funds or broker-assisted trades might have fees. Always review the fee schedule.
Market Volatility: Be aware of market conditions. Selling during periods of high volatility can impact the price you receive, especially with market orders.
Short-Term Redemption Fees (for Mutual Funds): Some mutual funds may impose "short-term redemption fees" if you sell shares within a certain period (e.g., 30 or 60 days) of purchase. Check the fund's prospectus.
Account Type Restrictions: Withdrawals from retirement accounts (like IRAs or 401(k)s) may have age restrictions and tax penalties for early withdrawals. Always understand the rules for your specific account type.
10 Related FAQ Questions
How to check my available balance after selling?
You can check your available cash balance in your Fidelity account's "Portfolio Summary" or "Cash Management" section after the trade has settled.
How to cancel a pending sell order on Fidelity?
Navigate to your "Order Status" or "Trade History" section within your Fidelity account. If the order is still "Pending" and not yet executed, you should see an option to cancel it.
How to sell mutual funds on Fidelity?
Go to "Accounts & Trade" > "Trade," then select "Trade Mutual Funds." Choose "Sell a mutual fund," select the fund from your holdings, enter the quantity, and proceed to preview and place the order.
How to sell specific tax lots on Fidelity?
Tip: Keep the flow, don’t jump randomly.
During the sell order process, after entering the quantity, look for an option like "Choose Specific Shares" or "Specify Shares." This will allow you to select which tax lots (based on acquisition date and cost) you want to sell.
How to transfer money out of Fidelity after selling?
Once your sale has settled and the cash is in your core account, go to "Move Money" or "Transfers." You can then set up an Electronic Funds Transfer (EFT) to a linked bank account, request a check, or initiate a wire transfer.
How to avoid capital gains tax when selling investments?
You can't entirely avoid capital gains tax on profits in taxable accounts, but you can minimize it by holding investments for over a year to qualify for lower long-term capital gains rates, utilizing tax-loss harvesting, or investing in tax-advantaged accounts like IRAs or 401(k)s.
How to understand the different order types (Market, Limit, Stop)?
Market: Executes immediately at the best available price (priority: execution speed).
Limit: Executes only at a specified price or better (priority: price).
Stop (or Stop-Loss): An order that becomes a market order once a specified "stop price" is reached. Used to limit potential losses.
How to sell bonds on Fidelity?
Selling bonds typically involves navigating to the "Trade Fixed Income" section. You might need to enter the bond's CUSIP. For some less liquid bonds or municipal bonds, you may need to contact a Fidelity representative.
How to check the fees associated with selling on Fidelity?
Fidelity's website provides a comprehensive "Brokerage Commissions and Fee Schedule" document. You'll also see an estimated fee amount on the "Preview Order" screen before placing your trade.
How to get help from Fidelity customer service for selling investments?
You can contact Fidelity customer service 24/7 via phone (800-343-3548), live chat through their website, or by visiting a local investor center. They can assist with any questions or issues you encounter during the selling process.
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