[CoachKandSportsguy]

Also can't transfer money between fidelity accounts internally. Must unlock accounts to do that as well. But it probably saved my butt today from making a bad trade. Its a good idea, in general, though the title is a bit misleading.

[jrref]

Originally Posted by retiredguy123

I called Fidelity about this point, and the representative did confirm that you are correct. You cannot transfer cash to a linked checking account without first unlocking the transfer lock, which only takes a few seconds to do. However, you can make Fidelity credit card payments, complete scheduled automatic debits, and use the Fidelity billpay features without unlocking the transfer lock. Go figure.

If you want extra security, use an Authenticator App to login to your accounts. Even if the thief has you login and passwords, they still need the authentication code that's physically on your phone. Even if they cloned your phone, the authentication code is only on the physical phone you posess so it's very hard to circumvent this security.

[bragones]

Here's an interesting update. I locked my Fidelity accounts with ease. I wanted to be sure unlocking them was as easy and it was. Next, I locked my Vanguard account with ease. I then tried unlocking them and there was no option to unlock my account for external ACATs transfers. Online documentation was no help. I called support and went through a bit of a lengthy process to authenticate my voice. I finally got a rep and she had to get help in unlocking my account. After putting me on a hold she said unlocking an account requires a letter from me. I explained that I can do it with ease withing Fidelity. I am still on hold with Vanguard while the rep checks to see if she can make an exception to unlock my account. No thank you to locking my Vanguard account. I do check it daily so hopefully I will catch any suspicious activity. As an aside, I did confirm that ACATS fraud is on the rise and this has caught the attention of top government securities agencies.

[retiredguy123]

Originally Posted by CoachKandSportsguy

Also can't transfer money between fidelity accounts internally. Must unlock accounts to do that as well. But it probably saved my butt today from making a bad trade. Its a good idea, in general, though the title is a bit misleading.

That is true if you have multiple Fidelity accounts. But, if you just have various mutual funds or other investments within the same Fidelity account, you do not need to unlock the transfer setting. I only have one Fidelity account with multiple mutual funds residing in that account. No need to unlock the transfer lock to move money from one mutual fund to another.

[retiredguy123]

Originally Posted by bragones

Here's an interesting update. I locked my Fidelity accounts with ease. I wanted to be sure unlocking them was as easy and it was. Next, I locked my Vanguard account with ease. I then tried unlocking them and there was no option to unlock my account for external ACATs transfers. Online documentation was no help. I called support and went through a bit of a lengthy process to authenticate my voice. I finally got a rep and she had to get help in unlocking my account. After putting me on a hold she said unlocking an account requires a letter from me. I explained that I can do it with ease withing Fidelity. I am still on hold with Vanguard while the rep checks to see if she can make an exception to unlock my account. No thank you to locking my Vanguard account. I do check it daily so hopefully I will catch any suspicious activity. As an aside, I did confirm that ACATS fraud is on the rise and this has caught the attention of top government securities agencies.

From the Vanguard website:

"How do I unlock my accounts?
It’s simple! Select Unlock on a locked account to restore access. You can unlock your account at any time, but we recommend only doing so if you plan to transfer your assets outside of Vanguard."

I think you may have received some wrong or outdated information from Vanguard. I called Vanguard today, and they told me that you do not need to send them a letter.

Here is how you can unlock the outgoing transfers in a few seconds:

Select profile
Select security profile
Scroll down to "outgoing transfer lock" and click on "manage"
You will see your locked accounts and you can just click on "unlock" next to the account.

The Vanguard representative said that you "may" need to enter a texted code to complete the transaction. But, the account should then be unlocked immediately.

Note that the online locking and unlocking of transfers is a relatively new feature on the Vanguard website. Also, you do not need to unlock the transfers to transfer money from Vanguard to a linked checking account, like you do with Fidelity.

[bragones]

Originally Posted by retiredguy123

From the Vanguard website:

"How do I unlock my accounts?
It’s simple! Select Unlock on a locked account to restore access. You can unlock your account at any time, but we recommend only doing so if you plan to transfer your assets outside of Vanguard."

I think you may have received some wrong or outdated information from Vanguard. I called Vanguard today, and they told me that you do not need to send them a letter.

Here is how you can unlock the outgoing transfers in a few seconds:

Select profile
Select security profile
Scroll down to "outgoing transfer lock" and click on "manage"
You will see your locked accounts and you can just click on "unlock" next to the account.

The Vanguard representative said that you "may" need to enter a texted code to complete the transaction. But, the account should then be unlocked immediately.

Note that the online locking and unlocking of transfers is a relatively new feature on the Vanguard website. Also, you do not need to unlock the transfers to transfer money from Vanguard to a linked checking account, like you do with Fidelity.

I appreciate your follow up and heads up to lock accounts. I just tried again and got the same result as last night.
I follow the steps to lock with no problem ;
Select profile
Select security profile
Scroll down to "outgoing transfer lock" and I lock my account. I then logout, go back in and there is no longer any option for "outgoing transfer lock" or any ability to select "manage". I will need to call them again. It must be a problem with my account or maybe a bug with there new feature.

[JRcorvette]

Originally Posted by bragones

Here's an interesting update. I locked my Fidelity accounts with ease. I wanted to be sure unlocking them was as easy and it was. Next, I locked my Vanguard account with ease. I then tried unlocking them and there was no option to unlock my account for external ACATs transfers. Online documentation was no help. I called support and went through a bit of a lengthy process to authenticate my voice. I finally got a rep and she had to get help in unlocking my account. After putting me on a hold she said unlocking an account requires a letter from me. I explained that I can do it with ease withing Fidelity. I am still on hold with Vanguard while the rep checks to see if she can make an exception to unlock my account. No thank you to locking my Vanguard account. I do check it daily so hopefully I will catch any suspicious activity. As an aside, I did confirm that ACATS fraud is on the rise and this has caught the attention of top government securities agencies.

Just a thought why not transfer your Vanguard funds into your Fidelity account. ?

[retiredguy123]

Originally Posted by bragones

I appreciate your follow up and heads up to lock accounts. I just tried again and got the same result as last night.
I follow the steps to lock with no problem ;
Select profile
Select security profile
Scroll down to "outgoing transfer lock" and I lock my account. I then logout, go back in and there is no longer any option for "outgoing transfer lock" or any ability to select "manage". I will need to call them again. It must be a problem with my account or maybe a bug with there new feature.

Interesting. I just logged in to Vanguard, selected profile, selected security profile, and it took me to a page where there is a "completed list", and under that, one of the items is "outgoing transfer lock" and there is a selection to the right for "manage". When you click on manage, it takes you to a page where I can unlock the account or accounts. I am using a Windows 11 desktop computer.

Are you sure you are selecting to the "security profile" option and not the "profile and account settings" option"?

[Caymus]

Originally Posted by retiredguy123

Yes, I think it is needed. I don't have a Schwab account, but apparently they do not an online security option. You may be able to do it manually by calling Schwab.

Clark Howard discussed that on a recent podcast. They currently don't offer the option.

[bragones]

Originally Posted by retiredguy123

Interesting. I just logged in to Vanguard, selected profile, selected security profile, and it took me to a page where there is a "completed list", and under that, one of the items is "outgoing transfer lock" and there is a selection to the right for "manage". When you click on manage, it takes you to a page where I can unlock the account or accounts. I am using a Windows 11 desktop computer.

Are you sure you are selecting to the "security profile" option and not the "profile and account settings" option"?

Problem solved! After locking my account and not having the ability to unlock it, I called Vanguard again. They were unfamiliar with why I couldn't see an unlock option but they sent me a code and manually unlocked it. I asked why I couldn't do it but others could. They dug deeper and sure enough, we were not looking under the "completed" list for an option to unlock. Now that we know where to find the "unlock" option, the problem is solved and it is indeed simple. Thanks again for your help.

[BuyckCabin]

Thanks for the tip. Locked mine.

[wwwson]

by locking this does it prevent "Fidelity" from managing and trading your managed accounts?

[Ellwoodrick]

Thanks great advice. Just locked our Vangard account.

[rsmurano]

I’ll bet all brokerages have this type of security that you can set to protect you. I have other brokerage accounts and you can set this up by calling a rep and have them apply this setting.

But, there is a lot more you can do to protect your money in brokerage accounts, bank accounts, etc.. For many years, I have identity programs like LifeLock/Aura that notify me if a transaction has been made over a certain $$$ limit which you set. These transactions can be:
* dividend payment
* a sale of a stock/fund
* transfer of money
* interest
These programs do much more than this, like: alerting you if somebody is taking a loan out in your name, credit check alerts, title fraud, dark web alerts (this is big) and more.

For decades, everytime we vacation out of the country, I call my brokerage house(s) and lock my accounts where no transactions can be placed until i call back and have them unlock them. Any stop losses or automatic transfers that I have set up will still go thru, but things are so locked down and can’t even log in to see a days activity.

[retiredguy123]

Originally Posted by wwwson

by locking this does it prevent "Fidelity" from managing and trading your managed accounts?

Only if you have multiple Fidelity "accounts". I have several investments with Fidelity, but they are all located within one Fidelity brokerage account, so there is no problem managing Fidelity investments as long as they are all located in a single Fidelity account. There are only a few situations where you would need to have more than one Fidelity brokerage accounts.

Also, if you transfer money from Fidelity into a linked checking account, you will need to turn off the transfer lock temporarily to make the transfer. This is easy to do online. It is not an issue with Vanguard as long as the outside checking account is linked to your Vanguard brokerage account.

The main purpose for using the outside transfer lock is to prevent a scammer from stealing your identity and ordering a transfer of funds to an outside investment company. ACATS was created to prevent investment companies from "dragging their feet" when a client asks them to transfer funds to another company.