In this paper, cold expansion process on aluminum alloy 2A12TA was simulated using ABAQUS finite element package and the effect of different mandrel speeds upon residual stress distribution around cold expanded hole was considered. The results gained by simulation show major difference between the diagrams of residual stress distribution corresponding different mandrel speeds. The results of FE simulation in slowly loaded process was verified by experimental data. As can be seen, when mandrel speed increases the residual stress around cold expanded hole increases as well and this is caused the fatigue life improvement of fasten holes.