What happens when you switch your Roth IRA from one brokerage house to another?

Question

I currently have a roth IRA with Fidelity. However, I want to switch my current portfolio to Vanguard (and use Vanguard from this point on as my only brokerage house) for cost reasons. At Fidelity I am in a mutual fund (FDGRX) and I also have shares of BAC.

When I make the switch, will I still have my same holdings (FDGRX and BAC)? Or will those be liquidated at Fidelity, and then transfered over to Vanguard as a lump sum of cash? I would prefer to keep my investment holdings as they are, I just want them handled by a different company.

Also, does anyone know what Fidelity charges for closing an account? I have heard $50...

Thanks!

Answer 1

You can always "roll over" your Roth IRA to Charles Schwab.  That way you can invest in both Vanguard and Fidelity (as well as a host of others).  Neither Vanguard or Fidelity are "brokerage houses".They are mutual fund families (companies) and, as such, you can only invest in Fidelity funds at Fidelity and Vanguard funds at Vanguard.