So, you've decided to make the move from Robinhood to ETRADE? That's a great step for many investors, as ETRADE often offers a more robust platform with a wider range of investment options and research tools. While Robinhood is known for its simplicity and commission-free trading, E*TRADE provides a more comprehensive brokerage experience. This guide will walk you through the process step-by-step, ensuring a smooth transition for your investments.
Ready to take control of your investing journey with E*TRADE? Let's get started!
Step 1: Prepare Your Robinhood Account
Before you initiate any transfer, it's crucial to ensure your Robinhood account is in order to avoid delays or complications. This preparation phase is vital for a smooth transition.
Sub-heading 1.1: Settled Shares and Fractional Holdings
Understand Settled Shares: Only whole, settled shares can be transferred via the Automated Customer Account Transfer Service (ACATS). If you've recently bought or sold stocks, make sure the trades have fully settled. This typically takes a few business days (T+2).
Handle Fractional Shares: Robinhood is known for fractional share investing. Unfortunately, fractional shares cannot be directly transferred to another brokerage. You have two main options:
Sell them: Liquidate your fractional shares into cash. This cash will then be transferred as part of the ACATS process or as a residual sweep.
Leave them: If you're doing a partial transfer, you can simply leave the fractional shares in your Robinhood account. However, for a full transfer, they will likely be automatically sold by Robinhood, and the proceeds transferred.
Sub-heading 1.2: Address Non-Transferable Assets
Cryptocurrency: Robinhood Crypto accounts are separate from your Robinhood Financial account. Cryptocurrency cannot be transferred via ACATS. You will need to sell your crypto holdings on Robinhood Crypto and the resulting cash will be transferred.
Options with Short Expiration: Options contracts expiring within 7 business days generally cannot be transferred. Consider closing these positions if you don't want them to expire in your Robinhood account.
Futures: Futures positions held in Robinhood Derivatives accounts are not transferable. You'll need to liquidate these before initiating a full account transfer to avoid delays.
Account Balance and Restrictions:
Ensure you have no negative cash balances.
Resolve any account restrictions or holds on your Robinhood account.
If you're enrolled in Robinhood's Securities Lending program, opt out of it and wait 2-3 business days for the change to process before initiating the transfer.
Sub-heading 1.3: Note Down Essential Information
Robinhood Account Number: You will need this to initiate the transfer at E*TRADE. Make sure you have the correct account number for your Robinhood Securities (RHS) account.
Account Type: Confirm whether your Robinhood account is an individual brokerage account, Roth IRA, Traditional IRA, etc., as you'll need to open a matching account type at E*TRADE.
Cost Basis Information: While E*TRADE will generally request cost basis from Robinhood, it's a good idea to keep your own records. This will be crucial for tax purposes.
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| How To Move Stocks From Robinhood To Etrade |
Step 2: Open Your E*TRADE Account
This is where you'll set up the destination for your investments.
Sub-heading 2.1: Choose the Right Account Type
Go to the E*TRADE website (us.etrade.com) and navigate to their account opening section.
Select the exact same type of account at E*TRADE as you have at Robinhood (e.g., individual brokerage to individual brokerage, Roth IRA to Roth IRA). This is critical for a smooth ACATS transfer. If the account types don't match, the transfer may be rejected.
Sub-heading 2.2: Complete the Application
QuickTip: Slow scrolling helps comprehension.
The application process is typically online and straightforward. You'll need to provide personal information, financial details, and likely your Social Security Number.
Fund your new ETRADE account* if you plan to make new investments immediately. While not strictly necessary for the transfer itself, it's good to have it ready.
Step 3: Initiate the ACATS Transfer from E*TRADE's Side
This is the most important step! The Automated Customer Account Transfer Service (ACATS) is the standard system used to transfer assets between brokerage firms.
Sub-heading 3.1: Find the Transfer Section on ETRADE*
Once your E*TRADE account is open and active, log in.
Look for a section related to "Transfer an Account," "Transfer Assets," or similar. This is usually found under "Accounts & Portfolios" or "Services."
E*TRADE has an online tool for initiating these transfers, often called an "External Asset Transfer."
Sub-heading 3.2: Provide Transfer Details
Select "Transfer an External Account to E*TRADE."
You'll be prompted to search for your current brokerage. Type "Robinhood" and select it.
Enter your Robinhood account number accurately.
Choose whether you want a Full Transfer (all eligible assets and cash) or a Partial Transfer (specific securities).
Full transfers are generally quicker as Robinhood will close your account after the transfer.
Partial transfers allow you to keep your Robinhood account open, but may take slightly longer and could incur the same fee.
You might be asked to upload a recent Robinhood statement. It's a good idea to have this readily available.
Sub-heading 3.3: Review and Submit
Carefully review all the information you've entered. Even a small typo in the account number can cause significant delays.
Electronically sign the necessary forms.
Submit your transfer request.
Step 4: Monitor the Transfer Process
Once you've submitted the request, the waiting game begins.
Sub-heading 4.1: Understanding the Timeline
ACATS transfers typically take 5-7 business days to complete, though some sources indicate it can take up to 21 days in some cases. The timeframe can vary depending on both Robinhood and E*TRADE's processing times, and any issues that might arise.
During a full transfer, your Robinhood account will likely be restricted from buying or selling to ensure a smooth asset transfer. You'll still own the securities, and their market value will update in the app, but you won't be able to trade them.
Sub-heading 4.2: Check for Status Updates
E*TRADE's Transfer Tracker: E*TRADE usually provides an online transfer tracker where you can monitor the status of your ACATS request. Check this regularly.
Robinhood Notifications: Robinhood will also likely send you notifications about the transfer's progress.
Residual Sweeps: After the initial transfer, you might receive "residual sweeps" from Robinhood. These are often small amounts of cash from dividends, fractional share sales, or other minor proceeds that arrive at Robinhood after the main transfer. These can continue for up to 6 months.
Tip: Take a sip of water, then continue fresh.
Step 5: Address Potential Issues and Fees
Sometimes, transfers hit a snag. Being prepared can help you resolve them quickly.
Sub-heading 5.1: Transfer Fees
Robinhood's Fee: Robinhood charges a $100 fee for both full and partial outgoing ACATS transfers. This fee will be debited from your Robinhood account's available cash balance. If you don't have enough cash, fractional shares might be sold to cover it, or the transfer could be delayed/canceled.
E*TRADE's Reimbursement: E*TRADE may offer to reimburse transfer fees from your old broker, especially for larger transfer amounts. Check their current promotions or contact their customer service to inquire about this. If they do, they typically reimburse fees up to $75 for transfers of $2,000 or more.
Sub-heading 5.2: Common Reasons for Delays or Rejections
Mismatching Account Information: Names, account types, or Social Security numbers not matching exactly between Robinhood and E*TRADE.
Non-Transferable Assets: Attempting to transfer assets like crypto or options with very short expiration dates.
Account Restrictions/Negative Balance: An active restriction or a negative cash balance on your Robinhood account.
Unsettled Trades: Not waiting for recently executed trades to fully settle.
Margin Balances: If you have a margin balance, your ETRADE account must support margin to accept it. Ensure your ETRADE account is approved for margin if you plan to transfer a margin balance.
Sub-heading 5.3: Contacting Customer Support
If you encounter any delays or rejections, first check the status tracker on E*TRADE.
If the issue isn't clear, contact E*TRADE's customer service. Since they initiated the transfer, they are usually the best point of contact to investigate the issue with Robinhood. Provide them with your transfer request details and any error messages you've received.
Only contact Robinhood directly if E*TRADE advises you to, or if you suspect an issue specifically on Robinhood's side (e.g., an account restriction you weren't aware of).
Step 6: Confirm and Verify Assets in E*TRADE
Once the transfer is complete, it's essential to verify everything.
Sub-heading 6.1: Verify Holdings
Log in to your E*TRADE account and confirm that all your transferred stocks and cash are correctly reflected in your portfolio.
Check the number of shares and the type of securities to ensure accuracy.
Sub-heading 6.2: Check Cost Basis
It can take some time for the cost basis information to transfer from Robinhood to E*TRADE. This is crucial for accurate tax reporting.
Keep an eye on your ETRADE statements and the online platform for this information. If it doesn't appear within a few weeks, contact ETRADE customer service.
Sub-heading 6.3: Explore ETRADE's Features*
Tip: Skim once, study twice.
Take some time to familiarize yourself with E*TRADE's platform, research tools, and trading options. They offer a much broader suite of features than Robinhood, which can enhance your investing experience.
Congratulations! You've successfully moved your stocks from Robinhood to E*TRADE. This move can provide you with more advanced tools and a wider range of investment opportunities as you continue to grow your portfolio.
Frequently Asked Questions (FAQs)
How to Initiate the Transfer from Robinhood to E*TRADE?
You don't initiate it directly from Robinhood. The process is started by ETRADE. You'll log into your ETRADE account and find their "Transfer an Account" or "External Asset Transfer" section to begin the process.
How to Find My Robinhood Account Number for Transfer?
You can typically find your Robinhood account number within the app or on your account statements. Look under your profile or account settings for "Account Number" or "Brokerage Account Number." It's often labeled as your Robinhood Securities (RHS) account number.
How to Handle Fractional Shares When Transferring from Robinhood?
Fractional shares are not transferable via ACATS. For a full transfer, Robinhood will usually liquidate them into cash, which will then be transferred. For a partial transfer, you can choose to sell them yourself or leave them in your Robinhood account.
How to Transfer Cryptocurrency from Robinhood to E*TRADE?
You cannot directly transfer cryptocurrency via ACATS. You will need to sell your cryptocurrency holdings within Robinhood Crypto, and the resulting cash will be part of your transfer.
How to Avoid Transfer Fees When Moving Stocks from Robinhood?
QuickTip: Compare this post with what you already know.
Robinhood charges a $100 fee for outgoing ACATS transfers. While you cannot avoid Robinhood's fee, ETRADE may reimburse transfer fees, especially for larger transfers. Check ETRADE's current promotions or contact their customer service to see if you qualify for a reimbursement.
How to Check the Status of My Stock Transfer to E*TRADE?
After initiating the transfer, you can typically check its status through E*TRADE's online platform, often in a dedicated "Transfer Tracker" or "Account Transfers" section. Robinhood may also send you email notifications regarding the transfer's progress.
How to Transfer an IRA from Robinhood to E*TRADE?
The process is similar to a regular brokerage account transfer. You must open an IRA of the same type (e.g., Roth IRA to Roth IRA) at ETRADE, then initiate an ACATS transfer from ETRADE's side, specifying it as an IRA transfer.
How to Transfer Stocks if My Name is Different on Robinhood and E*TRADE?
The names on both accounts must match exactly for a successful ACATS transfer. If there's a discrepancy (e.g., a maiden name vs. married name, or a slight spelling difference), you'll need to contact both Robinhood and E*TRADE customer service to rectify the issue before initiating the transfer. This often requires providing supporting documentation.
How to Handle Options Contracts During the Transfer?
Options contracts that expire within 7 business days are generally not transferable and may be rejected. Longer-dated options can be transferred. Consider closing short-dated options before initiating a full transfer.
How to Get My Cost Basis Information After the Transfer to E*TRADE?
ETRADE will generally request cost basis information from Robinhood as part of the ACATS transfer. This information should appear in your ETRADE account statements and online platform. It may take some time after the assets arrive for the cost basis to populate correctly. If it doesn't appear within a reasonable timeframe (a few weeks), contact E*TRADE customer service.
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