I had a fund with Fidelity (targeted, retirement) for many years. Lately, I sold all of it and bought a Vanguard fund. Shortly after my bank sent me a letter saying that Fidelity contacted them and said, as I understand it, that I was selling too frequently. Why would this happen?

  • 15
    Is that literally what the letter said? What is the exact wording of the letter? I suspect your interpretation is incorrect. Was the original fund in an IRA? Is the Vanguard fund in an IRA also?
    – D Stanley
    Aug 3 '17 at 17:04
  • 4
    Did you inadvertently trigger a good faith violation? fidelity.com/trading/faqs-trading-restrictions
    – chili555
    Aug 3 '17 at 19:55
  • 2
    Read this to understand some of the complicated trading rules you may have violated. It should not be a big deal, just explain that the violation was accidental and won't happen again. There are typically no penalties for a single violation anyway. Aug 4 '17 at 4:52
  • Why would Fidelity send a letter to your bank and not to you directly?
    – stannius
    Aug 8 '17 at 18:02

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