A Comprehensive Guide to Transferring Stocks from E*TRADE to Charles Schwab
Transferring your brokerage account typically involves a process called an Automated Customer Account Transfer Service (ACATS). This system allows you to move your investments in-kind, meaning you transfer the actual stocks, ETFs, or mutual funds you own, rather than selling them and transferring the cash. This is generally the preferred method as it helps avoid potential tax consequences from selling assets and then repurchasing them.
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| How To Transfer Stocks From Etrade To Schwab |
Step 1: Prepare for Your Transfer – Engage and Organize!
Before you even think about initiating the transfer, a little preparation goes a long way. This is where you, the savvy investor, can make the entire process much smoother.
Sub-heading: Gather Your Account Information
You'll need specific details from both your E*TRADE account and your new Charles Schwab account.
Your ETRADE Account Details:
Account Number(s): Make sure you have the exact account numbers for all E*TRADE accounts you wish to transfer (e.g., individual brokerage, joint, IRA, Roth IRA, etc.).
Account Type: Confirm the exact type of each ETRADE account. This is crucial because you generally need to transfer like-for-like accounts (e.g., an ETRADE Traditional IRA to a Schwab Traditional IRA).
Recent Account Statement: Have a recent E*TRADE statement (within the last 90 days) handy. This will contain all the necessary information about your holdings, account balance, and account number.
Securities Information (for Partial Transfers): If you're only transferring some of your holdings, make a detailed list of the stock symbols and the exact number of shares for each.
*Your Charles Schwab Account Details:
Schwab Account Number(s): Ensure you have the account number(s) for the Schwab account(s) you intend to transfer assets into.
Account Type: Verify that the Schwab account type matches the ETRADE account type you're transferring from. If you don't have a Schwab account yet, this is the time to open one, ensuring the account type aligns with your ETRADE accounts.
Sub-heading: Understand Transfer Fees
It's important to be aware of any potential fees involved.
ETRADE's Outgoing Transfer Fees: E*TRADE generally charges a fee for outgoing transfers. As of recent information, this can be around $75 for a full account transfer and $25 for a partial transfer.
Charles Schwab's Incoming Transfer Fees: Charles Schwab typically does not charge for incoming ACATS transfers. In fact, some brokerages might even offer to reimburse your outgoing transfer fees from ETRADE if your transfer meets certain criteria (e.g., a minimum transfer amount). It's always a good idea to inquire about this with Charles Schwab's customer service.
Sub-heading: Review Your Holdings
Before initiating the transfer, take a moment to review the investments you hold in your E*TRADE account.
*Supported Investments at Schwab: While most common stocks, ETFs, and mutual funds are transferable via ACATS, some less common or proprietary investments might not be supported by Charles Schwab. For example, fractional shares are often liquidated during an ACATS transfer, and the cash proceeds are transferred instead. Schwab does offer fractional shares for S&P 500 stocks, but this might not apply to existing fractional shares transferred in.
Watch for Fractional Shares: If you have fractional shares in your ETRADE account, understand that these will likely be sold and the cash value transferred.
*Options and Other Complex Holdings: If you have options contracts, bonds, or other complex investments, it's wise to confirm with Schwab if they can be transferred in-kind or if any special considerations apply.
Sub-heading: Settle Any Outstanding Issues
QuickTip: Highlight useful points as you read.
Margin Balances or Loans: If you have any margin loans or outstanding balances in your E*TRADE account, these will need to be settled before a smooth transfer can occur.
Pending Trades: Avoid initiating any new trades in your E*TRADE account once you begin the transfer process, as this can delay or complicate the transfer.
Step 2: Initiate the Transfer with Charles Schwab – The Receiving Brokerage Takes the Lead!
This is the most crucial step, and it's important to remember that the receiving brokerage (Charles Schwab in this case) initiates the ACATS transfer.
Sub-heading: Log In to Your Schwab Account
Go to Charles Schwab's official website and log in to your existing account. If you haven't opened one yet, do so now, ensuring the account type matches your E*TRADE account.
Sub-heading: Navigate to the Account Transfer Section
Once logged in, look for a section related to "Move Money," "Transfers & Payments," or "Account Transfers." This is usually found in the main navigation menu or under your account summary.
Select the option for "Transfer an External Account" or similar.
Sub-heading: Complete the ACATS Transfer Form
Charles Schwab will provide an online or printable ACATS transfer form. You will need to accurately fill out this form with information from both your E*TRADE and Schwab accounts.
E*TRADE Account Information: This includes the full name on the ETRADE account, the ETRADE account number, and the type of account (e.g., Individual Brokerage, Traditional IRA).
Charles Schwab Account Information: Your Schwab account number where the assets will be transferred.
Transfer Type: You'll typically have the option for a full transfer (all assets and cash) or a partial transfer (specific assets and/or cash). Choose wisely based on your needs. For a partial transfer, you'll need to specify the exact securities and quantities.
Signature: You will likely need to electronically sign the form or print, sign, and mail it.
Sub-heading: Attach Required Documents
Most often, Schwab will require a recent statement from your E*TRADE account (dated within 90 days). This helps Schwab verify the holdings and account details.
If the names on your E*TRADE and Schwab accounts don't match exactly (e.g., due to a name change or a trust discrepancy), you may need to provide additional documentation like a marriage certificate, divorce decree, or trust documents. Schwab's form will typically specify what's needed.
Sub-heading: Submit the Request
Once you've filled out the form completely and attached all necessary documents, submit your transfer request to Charles Schwab.
Step 3: Wait for the Transfer to Complete – Patience is a Virtue!
QuickTip: Pause after each section to reflect.
After you've submitted your request to Schwab, the ACATS process takes over. This involves communication and coordination between Schwab and E*TRADE.
Sub-heading: Understanding the Timeline
Typical ACATS Transfer Time: Most ACATS transfers, especially full transfers of standard securities, are completed within 5 to 10 business days. Some sources indicate 5-7 business days.
Factors Affecting Timeline:
Complexity of Holdings: If you have illiquid assets, limited partnerships, or other less common investments, the transfer could take longer.
Account Discrepancies: Any mismatches in account names or types can cause delays.
Outstanding Issues: Unsettled fees or pending trades can halt the process.
Market Holidays: Transfers do not process on market holidays.
Sub-heading: Monitoring Your Transfer Status
Schwab's Online Tracker: Charles Schwab often provides an online tool or status tracker within your account where you can monitor the progress of your transfer.
Communication from Schwab: You may receive updates from Schwab via email or through your online message center as the transfer progresses.
Avoid Trading: During the transfer process, it's generally best to avoid making any trades in either your E*TRADE account or the receiving Schwab account that's undergoing the transfer. Your assets will be temporarily "out of reach" while the transfer is being processed.
Step 4: Verify Your Assets Transferred Correctly – The Grand Finale!
Once the transfer is marked as complete, your work isn't quite done. A thorough verification ensures everything is in its rightful place.
Sub-heading: Check Your Schwab Account
Login and Review: Log into your Charles Schwab account and carefully review your portfolio.
Compare Holdings: Cross-reference the transferred holdings with the list you made from your E*TRADE statement.
Are all your stocks, ETFs, and mutual funds there?
Do the quantities of each security match what you expected?
Is the cash balance accurate, especially if fractional shares were liquidated?
Cost Basis: Verify that the cost basis of your transferred securities has been accurately reflected in your Schwab account. This is crucial for future tax reporting. While ACATS transfers generally carry over the original cost basis, it's important to confirm. If it's incorrect, contact Schwab to rectify it.
Sub-heading: Confirm E*TRADE Account Status
If you initiated a full transfer, your E*TRADE account should now show a zero balance or be closed.
If it was a partial transfer, ensure only the specified assets were moved.
Sub-heading: Address Any Discrepancies Promptly
If you notice anything missing, incorrect, or unusual, do not hesitate to contact Charles Schwab customer service immediately. Provide them with all relevant details and documentation to help them resolve the issue.
Tip: Look for small cues in wording.
Important Considerations:
Tax Implications: In-kind transfers typically do not trigger a taxable event, as you are not selling assets. However, if any fractional shares are liquidated, the sale of those shares would be a taxable event. Always consult with a tax professional for personalized advice, especially if you have complex tax situations.
Account Types: Ensure the account types match precisely (e.g., Traditional IRA to Traditional IRA, Roth IRA to Roth IRA, taxable brokerage to taxable brokerage). Transferring between different account types can lead to significant tax penalties.
Corporate Actions: If any corporate actions (like stock splits, mergers, or dividend distributions) occur during the transfer period, they might cause slight delays or require additional reconciliation.
10 Related FAQ Questions
How to transfer a Traditional IRA from E*TRADE to Schwab?
To transfer a Traditional IRA, open a Traditional IRA account at Charles Schwab (if you don't have one) and then initiate an ACATS full transfer from your Schwab account. Ensure the account types precisely match.
How to transfer a Roth IRA from E*TRADE to Schwab?
Similar to a Traditional IRA, open a Roth IRA account at Charles Schwab and then initiate a full ACATS transfer from your Schwab account, specifying your E*TRADE Roth IRA as the source.
How to transfer only specific stocks from E*TRADE to Schwab (partial transfer)?
Log into your Charles Schwab account, navigate to the account transfer section, and select the option for a "partial transfer." You'll then be prompted to specify the exact stock symbols and quantities you wish to move.
How to find my E*TRADE account number for transfer?
Your ETRADE account number can be found on your account statements (paper or electronic), by logging into your ETRADE online account, or by contacting E*TRADE customer service.
Tip: Read aloud to improve understanding.
How to check the status of my stock transfer from E*TRADE to Schwab?
Once you initiate the transfer with Charles Schwab, you can typically track its progress through their online account portal in the "Account Transfer" or "Move Money" section. You may also receive email updates.
How to deal with fractional shares when transferring from E*TRADE to Schwab?
Fractional shares are generally not transferable via ACATS. They will typically be liquidated (sold) by E*TRADE, and the cash proceeds will be transferred to your Schwab account along with your whole shares.
How to avoid fees when transferring stocks from E*TRADE to Schwab?
While ETRADE charges outgoing transfer fees, Charles Schwab typically does not charge for incoming transfers. You can inquire with Schwab if they offer a reimbursement for ETRADE's outgoing transfer fees, as some brokerages do for larger transfers.
How to ensure my cost basis is correct after transferring to Schwab?
After the transfer is complete, log into your Schwab account and review the cost basis for each transferred security. If you find any discrepancies, contact Schwab customer service immediately with your E*TRADE statements as proof of original cost basis.
How to handle an E*TRADE account with a margin loan during transfer?
Any outstanding margin loans or balances with ETRADE must typically be paid off or addressed before initiating the transfer, as they can prevent or significantly delay the ACATS process. Contact ETRADE to settle these first.
How to transfer an inherited IRA from E*TRADE to Schwab?
Transferring an inherited IRA requires careful attention. You'll need to open an inherited IRA account (also known as a Beneficiary IRA) at Charles Schwab with the exact same beneficiary registration as your E*TRADE account. Then, initiate an ACATS transfer through Schwab, ensuring all beneficiary details are accurate to avoid unintended tax consequences. Consulting with a financial advisor and both custodians is highly recommended for inherited accounts.
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