Opening a brokerage account with Fidelity often sets you up with a Margin account by default, even if you didn’t intend it.
While Margin accounts offer potential advantages, they also come with risks. If you’re uncomfortable with the extra leverage, converting to a Cash account might be the right move.
Why Convert to a Cash Account?
A Margin account allows you to borrow money for investments, but it can lead to unexpected charges and increased risks. On the other hand, a Cash account uses only the funds you’ve deposited.
How To Remove Margin From Your Fidelity Account
Step 1: Login to your Fidelity account on the website.
Step 2: Click on Accounts & Trade.
Step 3: Select Account Features.
Step 4: Click on Brokerage & Trading > Margin.
Step 5: Choose Remove.
Pro tip: Use this quick link to locate your Margin account feature.
Alternatively, you can call Fidelity’s customer service at 800-343-3548. Explain that you want to turn off margin on your account.
Things to Remember for Your New Cash Account
The steps above explain how to turn off Margin for your Fidelity account and convert it back to a regular Cash account.
For those new to investing, removing this feature is better to avoid potential overtrading and the associated costs like margin interest and charges.