Fidelity Instant Deposit (2024)

Fidelity instant deposit time, options, and limit. Fidelity express funding, uncleared deposits. How long does it take?

Fidelity Express Funding

Fidelity Investments offers a lot of great trading services, although instant deposits for cash accounts isn’t one of them. However, there’s a way around the policy. Fidelity does permit trading with unsettled funds in some situations, and this can effectively be used as instant funding in a cash account.

Trading with Uncleared Funds

Here’s how the process works: simply submit a deposit of cash from an external bank account, and the funds can be used to trade most marginable securities immediately. Fidelity may put a limit on the amount of the deposit that can be used for immediate trading. Large deposits may see only a percent of the total amount available immediately. From our experience, 100% of deposits of $3,000 or less are usually available immediately in a Roth IRA. The policy could vary by account type.

In all cases, only marginable securities will be available for trading right away. These are major stocks and funds that don’t have a big downside risk to the broker. And yes, there is a risk that Fidelity takes on when it allows its clients to trade with money that hasn’t yet cleared. If the money doesn’t come through, the trade has to be exited, which could leave Fidelity with a loss. It’s Fidelity’s money until the deposit actually shows up.

Non-marginable securities at Fidelity or any other broker include:

- OTC stocks
- Recent IPOs
- Option contracts
- Penny stocks
- Any asset deemed high risk by the brokerage firm

Moving Cash into an Account

Fidelity offers several ways to deposit cash into a brokerage account. The surest way to get funds available for immediate trading is to transfer cash from a linked Fidelity account, particularly the Cash Management Account, which, as the name implies, is designed for cash management. Money that is available inside a second Fidelity account can quickly be transferred into the target account for immediate trading.

Another option is to move funds via the Automated Clearing House (ACH) network, which Fidelity calls an electronic funds transfer (EFT). While this service is completely free, it can take a few business days for funds to arrive and be available for withdrawal. The date the funds become available for withdrawal is the date the funds can be used to purchase non-marginable securities. It is the date the funds are actually there.

Wire transfer is a lot faster, although it’s not available on some account types (such as health savings accounts and 529 college savings plans). It’s close to an instant deposit, although it may take a few hours for the funds to arrive in the Fidelity account. In some cases, it may be the following business day.

Fidelity instant deposit

An external bank account must first be linked at Fidelity before a wire or ETF request can be submitted.

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Placing a Trade

Positions that are established with early funds need to be held until the funds are available for withdrawal. Otherwise, it will be a good-faith violation. An account that commits 3 good-faith violations in a 12-month period inside a cash account will be restricted for 90 calendar days. During this time, trades can only be placed with fully-settled funds.

The Ultimate Workaround: Margin Trading

Switching to a margin account eliminates the need to have cash available for trading. Trades can be placed with loans from the brokerage firm using existing positions as collateral. When a transfer of cash is later received, it will eliminate the loan.

To add margin trading to an existing cash account at Fidelity, go to the Account Features page (located under the Accounts & Trade tab on the website) and look for the margin link.

Fidelity Review

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Fidelity Instant Deposit Conclusion

No matter where your assets are currently held, Fidelity has a solution for you to get your money into your account with them. If you have any questions about any of these transfer methods, contact Fidelity’s customer service team for help.

About the Author
Chad Morris is a financial writer with more than 20 years experience as both an English teacher and an avid trader. When he isn’t writing expert content for, Chad can usually be found managing his portfolio or building a new home computer.