Ready to make the leap from E*TRADE to Interactive Brokers (IBKR)? This comprehensive guide will walk you through every step of transferring your shares, ensuring a smooth transition for your investments.
Transferring Shares from E*TRADE to Interactive Brokers: Your Ultimate Guide
So, you've decided to consolidate your investments or simply find a new home for your shares. Excellent choice! Transferring shares between brokerage accounts can seem daunting, but with a clear, step-by-step approach, it's far more manageable than you might think. This guide focuses on an ACATS (Automated Customer Account Transfer Service) transfer, which is the most common and efficient way to move your securities "in-kind" (meaning you transfer the actual shares, not sell them and transfer cash).
Step 1: Prepare for Your Transfer – Let's Get Organized!
Before you initiate any transfer, a little preparation goes a long way. Think of it as setting the stage for a seamless move.
Sub-heading 1.1: Verify Account Information
First things first, let's make sure your details are spot on! Any discrepancy, even a minor one, can cause significant delays.
Matching Account Types: Ensure the account type at ETRADE precisely matches the account type you've opened or plan to open at IBKR. For example, if you have an Individual Brokerage account at ETRADE, you'll need an Individual Brokerage account at IBKR. The same applies to IRAs (Traditional, Roth, SEP), Joint accounts, Trust accounts, etc. A mismatch will halt the transfer.
Exact Account Registration: The name(s) on your E*TRADE account must exactly match the name(s) on your IBKR account. This includes middle initials, suffixes (Jr., Sr.), and even the spelling of your name. For joint accounts, both names must match perfectly. For trust or corporate accounts, the entity's full legal name and Tax ID (EIN) must be identical.
Gather Your Account Numbers: You'll need both your E*TRADE account number and your IBKR account number readily available.
Sub-heading 1.2: Assess Your Holdings and Eligibility
Not all assets are created equal, especially when it comes to transfers.
Eligible Securities: Most common securities like stocks, ETFs, and options are generally transferable via ACATS.
Non-Eligible Securities:
Fractional Shares: Important Note: Interactive Brokers, while offering fractional share trading, generally does not accept incoming transfers of fractional shares. If you hold fractional shares at E*TRADE, these will likely be liquidated (sold) and the cash proceeds will be transferred. You'll then need to repurchase the fractional shares at IBKR if desired. Be prepared for potential tax implications from this sale.
Proprietary Mutual Funds: Some mutual funds are proprietary to a specific brokerage (like ETRADE's own mutual funds) and might not be transferable to IBKR. You might need to sell these before initiating the transfer or leave them at ETRADE.
Alternative Investments/Cryptocurrency: These typically cannot be transferred via ACATS. If you hold these, you'll need to explore alternative transfer methods or liquidate them. While IBKR offers crypto trading, you'd likely need to sell your crypto at E*TRADE and then fund your IBKR account to buy crypto there.
Margin Balances/Options Spreads: If you have a margin debit or complex options strategies (like multi-leg spreads) at ETRADE, discuss these with both ETRADE and IBKR to understand how they will be handled during the transfer. Sometimes, a margin balance might need to be settled, or options positions might need to be closed or adjusted.
Sub-heading 1.3: Check for Transfer Fees
It's always good to be aware of any potential costs.
ETRADE Outgoing ACATS Fee:* ETRADE may charge an outgoing ACATS transfer fee. This fee can range, but is commonly around $75. It's crucial to check ETRADE's current fee schedule or contact their customer service to confirm.
IBKR Incoming ACATS Fee: Interactive Brokers does not charge a fee for incoming ACATS transfers.
Fee Reimbursement: Some receiving brokers (though typically not IBKR for ACATS in) might offer to reimburse transfer fees, especially for larger accounts. It doesn't hurt to ask IBKR if they have any such programs, although it's less common for incoming ACATS.
Step 2: Initiate the Transfer from the Receiving Broker (IBKR)
This is a critical point: you initiate the ACATS transfer from your new broker, Interactive Brokers, not ETRADE*. IBKR will then send the request to E*TRADE.
Sub-heading 2.1: Log in to Your Interactive Brokers Account
Go to the Interactive Brokers website and log in to your Client Portal.
Sub-heading 2.2: Navigate to the Account Transfer Section
Once logged in, look for a section related to "Transfer & Pay," "Fund Your Account," or "Transfer Positions." The exact navigation might vary slightly, but it's typically found under a "Menu" or "Transfer" tab.
Within this section, select the option to "Transfer Positions" or "Transfer an Account."
Sub-heading 2.3: Choose the ACATS Transfer Method
You will likely be presented with various transfer methods. Select "ACATS" (Automated Customer Account Transfer Service) as the transfer method.
Indicate that this is an "Incoming" transfer.
Select "United States" as the country.
Sub-heading 2.4: Provide E*TRADE Account Details
You'll be prompted to provide information about your E*TRADE account.
Broker Name: Select "E*TRADE" from the dropdown list.
E*TRADE Account Number: Enter your complete E*TRADE account number.
E*TRADE Account Title: Ensure this exactly matches the registration on your E*TRADE account.
Account Type: Confirm the account type (e.g., Individual, Joint, Traditional IRA, Roth IRA).
Tax ID Number: Enter your Social Security Number (SSN) for individual/joint accounts or Employer Identification Number (EIN) for trust/corporate accounts.
Sub-heading 2.5: Select Full or Partial Transfer
Here's where you decide what you want to move:
Full ACATS Transfer: If you want to transfer all eligible assets from your E*TRADE account to IBKR, select the "Full ACATS Transfer" option. This is generally the simplest and quickest method.
Partial ACATS Transfer: If you only want to transfer specific securities, select "Partial ACATS Transfer." You will then need to manually enter the symbol and quantity for each security you wish to transfer. Double-check these details very carefully!
Important Consideration for Partial Transfers: If you are planning a partial transfer, remember that any fractional shares will likely be liquidated. Also, ensure you have sufficient cash in your ETRADE account to cover any outgoing ACATS fees, or the transfer might be delayed or rejected if ETRADE needs to sell a security to cover the fee.
Sub-heading 2.6: Review and Authorize
Carefully review all the information you've entered. Any errors here can lead to significant delays or rejection of the transfer.
Digitally sign the transfer request as prompted. You might also need to provide additional verification, such as a confirmation number sent to your email or a connection via Plaid.
Sub-heading 2.7: Submit the Request
Once you're confident all details are correct, submit your transfer request. You'll typically receive a confirmation number or email from IBKR.
Step 3: Monitor the Transfer Process
After you've submitted the request to IBKR, the ball is largely in their court and E*TRADE's.
Sub-heading 3.1: Expected Timeline
ACATS transfers typically take 5 to 7 business days to complete, assuming no issues or discrepancies. Some sources suggest it could take up to 2-3 weeks in certain cases.
During this period, your assets will be "in transit" and you generally won't be able to trade them. Avoid placing any new trades or withdrawals in your ETRADE account once the transfer is initiated*, as this can complicate or delay the process.
Sub-heading 3.2: Check Status in IBKR Client Portal
Interactive Brokers' Client Portal usually provides a status tracker for your transfers. You can log in periodically to check the progress.
If the transfer seems to be taking longer than expected (beyond 7-10 business days) or if you see a "rejected" status, reach out to IBKR customer service. They will typically be able to provide more insight into any delays.
Sub-heading 3.3: Cost Basis Transfer
While the shares themselves transfer relatively quickly, the cost basis information (your original purchase price and date) might take an additional 2-4 weeks to propagate from E*TRADE to IBKR. This information is crucial for accurate tax reporting.
Do not be alarmed if your cost basis isn't immediately visible in your IBKR account after the shares arrive. It's a separate data transfer process. Keep your E*TRADE statements for your records until you confirm the cost basis has been accurately transferred.
Step 4: Verify Your Transferred Assets
Once you receive confirmation that your transfer is complete, it's time for a thorough check.
Sub-heading 4.1: Reconcile Your Holdings
Compare Holdings: Log in to your IBKR account and meticulously compare the list of transferred securities and their quantities against your records from E*TRADE. Ensure everything that was supposed to transfer has arrived.
Check Cash Balances: Verify that any cash balances, including proceeds from fractional share liquidations or any remaining cash from E*TRADE, have been transferred correctly.
Confirm Cost Basis: After the additional waiting period (2-4 weeks), verify that the cost basis information for all your transferred securities is accurately displayed in your IBKR account. If anything looks incorrect, contact IBKR support immediately.
Sub-heading 4.2: Address Any Discrepancies
If you find any discrepancies – missing shares, incorrect quantities, or incorrect cost basis – contact Interactive Brokers' customer service immediately. Provide them with your transfer details and any supporting documentation (E*TRADE statements) to help them resolve the issue.
10 Related FAQ Questions: "How to..."
Here are some quick answers to common questions about transferring shares:
How to check for E*TRADE's outgoing ACATS transfer fee?
You can find E*TRADE's current fee schedule on their website, usually in a "Pricing" or "Commissions & Fees" section. Alternatively, call their customer service line and ask specifically about ACATS outgoing transfer fees.
How to ensure my E*TRADE and IBKR accounts match for the transfer?
Carefully compare the account registration (name, middle initial, suffix) and account type (e.g., Individual, Joint, Traditional IRA) on statements or account dashboards from both ETRADE and IBKR. If there's any mismatch, contact either ETRADE or IBKR to resolve it before initiating the transfer.
How to handle fractional shares during the transfer?
Fractional shares generally cannot be transferred via ACATS to Interactive Brokers. E*TRADE will typically liquidate (sell) your fractional shares, and the cash proceeds will be transferred along with your whole shares.
How to transfer options contracts from E*TRADE to IBKR?
Most standard options contracts (long calls/puts, covered calls) are transferable via ACATS. Complex options strategies or options with specific restrictions might require a review by both brokers. It's best to confirm with IBKR if you have unusual options positions.
How to transfer mutual funds from E*TRADE to IBKR?
Many mutual funds are transferable via ACATS. However, proprietary mutual funds (those exclusive to ETRADE) may not be. You might need to sell these funds at ETRADE before the transfer or leave them in your E*TRADE account.
How to transfer cryptocurrency from E*TRADE to IBKR?
Cryptocurrency is typically not transferable via ACATS. You would need to sell your cryptocurrency holdings at E*TRADE and then transfer the cash proceeds to IBKR, where you can then repurchase cryptocurrency if desired (assuming you have crypto trading permissions enabled at IBKR).
How to track the progress of my ACATS transfer?
You can usually track the status of your ACATS transfer directly within your Interactive Brokers Client Portal under the "Transfer & Pay" or "Transfer Positions" section.
How to expedite the transfer if it's taking too long?
If your transfer exceeds the typical 5-7 business days, the first step is to contact Interactive Brokers' customer service. They can inquire with E*TRADE on your behalf through the ACATS system to identify any roadblocks.
How to ensure my cost basis transfers correctly?
While the shares transfer quickly, the cost basis information may take an additional 2-4 weeks. Keep your ETRADE statements as a record, and if after this period the cost basis is missing or incorrect at IBKR, contact IBKR support with your ETRADE statements for verification.
How to contact E*TRADE or Interactive Brokers for transfer assistance?
For E*TRADE, you can typically find their customer service contact information (phone number, chat options) on their website under a "Contact Us" or "Support" section. For Interactive Brokers, their support contact details are also available on their website, often within the "Support" or "Contact Us" section of the Client Portal, with dedicated lines for institutional clients and general inquiries.