Moving your investments from one brokerage to another can seem like a daunting task, but with a clear understanding of the process, it's actually quite straightforward. If you're looking to transfer your assets from E*TRADE to Robinhood, you're in the right place! This comprehensive guide will walk you through every step, ensuring a smooth transition for your portfolio.
Understanding the Automated Customer Account Transfer Service (ACATS)
Before we dive into the steps, let's briefly touch upon the mechanism that facilitates these transfers. The vast majority of brokerage transfers in the United States are handled by the Automated Customer Account Transfer Service (ACATS). This system, operated by the National Securities Clearing Corporation (NSCC), simplifies and automates the process of moving securities and cash between brokerage firms. It's designed to be efficient and secure, ensuring your assets are accurately transferred.
It's important to note that while we often talk about "transferring money," an ACATS transfer primarily moves assets (stocks, ETFs, mutual funds, options, etc.) and any associated cash balance. If you just want to move cash, a simple electronic fund transfer (EFT) or wire transfer might be more suitable. However, for a complete or partial portfolio transfer, ACATS is the way to go.
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| How To Transfer Money From Etrade To Robinhood |
Your Step-by-Step Guide to Transferring from E*TRADE to Robinhood
Ready to make the move? Let's get started!
Step 1: Prepare Your E*TRADE Account for Transfer
This is a crucial preliminary step to ensure a smooth transfer. Don't skip this!
Sub-heading: Verify Account Information
First and foremost, you need to make sure the personal information on your E*TRADE account precisely matches the information on your Robinhood account. This includes your:
Full Legal Name: Any discrepancies, even a middle initial difference, can cause delays.
Social Security Number (SSN) / Tax Identification Number (TIN): This is paramount for identification.
Residential Address: Ensure both accounts reflect your current, identical address.
If there are any mismatches, you must update the information on one of the accounts before initiating the transfer. Contact E*TRADE customer service to make any necessary changes.
Sub-heading: Consolidate Your Assets
ACATS transfers are generally for whole shares of securities. If you hold any fractional shares in your ETRADE account, these typically cannot be transferred via ACATS. Robinhood generally supports fractional shares, but for an ACATS transfer, ETRADE will usually liquidate any fractional shares and transfer the cash equivalent.
Review your E*TRADE holdings: Identify any fractional shares you might have.
Consider selling or consolidating: You may choose to sell these fractional shares yourself before the transfer, or allow E*TRADE to liquidate them during the process.
Non-transferable assets: Be aware that certain assets might not be transferable. This could include:
Proprietary mutual funds exclusive to E*TRADE.
Certain obscure or illiquid securities not supported by Robinhood.
Cryptocurrencies (E*TRADE does not directly hold crypto, only offers indirect exposure via ETFs/futures. Robinhood does offer direct crypto trading, but you generally cannot ACATS transfer crypto from one platform to another; it requires a blockchain transfer if both platforms support the same coin wallets).
Sub-heading: Clear Any Pending Transactions or Balances
Ensure there are no pending trades, deposits, or withdrawals in your E*TRADE account. Any unsettled transactions can delay or even halt the transfer process. Also, clear any negative cash balances or margin calls.
QuickTip: Read actively, not passively.
Sub-heading: Be Aware of Transfer Fees
While Robinhood generally does not charge a fee for incoming ACATS transfers, ETRADE might charge an "ACATS out" fee for transferring your assets out of their platform. This fee can vary, so it's highly recommended to check ETRADE's fee schedule or contact their customer service directly to inquire about any outgoing transfer fees. You'll need sufficient cash in your E*TRADE account to cover this fee, or it may be deducted from the assets transferred.
Step 2: Open and Prepare Your Robinhood Account
Your receiving account at Robinhood needs to be ready.
Sub-heading: Ensure Your Robinhood Account is Active
If you don't already have one, open a Robinhood brokerage account. The account type (individual cash or margin brokerage account, or traditional/Roth IRA) on Robinhood must match the account type you are transferring from ETRADE. For example, you cannot transfer a taxable brokerage account from ETRADE into a Robinhood IRA.
Sub-heading: Complete Account Verification
Make sure your Robinhood account is fully verified. This usually involves linking a bank account and providing necessary identification documents. A partially verified account can lead to transfer issues.
Sub-heading: Locate Your Robinhood Account Information
You will need your Robinhood account number to initiate the transfer. This can usually be found within your Robinhood app or on your account statements.
Step 3: Initiate the Transfer from Robinhood
This is the most critical step, as the receiving firm (Robinhood) initiates the ACATS transfer.
Sub-heading: Access the Transfer Feature on Robinhood
Tip: Avoid distractions — stay in the post.
Log in to your Robinhood account: You can do this via the Robinhood app on your mobile device or their website.
Navigate to the "Transfer Assets" or "Transfer an Account" section: This is typically found under the "Account" or "Settings" menu. Look for an option specifically for "Transferring assets into Robinhood" or "Transferring from another brokerage."
Select E*TRADE as the originating broker: Robinhood will provide a list of common brokerage firms. Select E*TRADE from this list.
Sub-heading: Provide E*TRADE Account Details
You will be prompted to enter specific information about your E*TRADE account. This includes:
Your ETRADE account number.*
The type of account (e.g., individual brokerage, Roth IRA, Traditional IRA).
Whether it's a full or partial transfer.
Full Transfer: This means you want to move all eligible securities and cash from your ETRADE account to Robinhood, effectively closing your ETRADE account (though you might still have access for statements).
Partial Transfer: This allows you to select specific securities or a specific amount of cash to transfer, leaving other assets in your E*TRADE account. If you choose a partial transfer, you'll likely need to specify the exact securities (and number of shares) you wish to transfer.
Sub-heading: Authorize the Transfer Electronically
Robinhood will likely present you with a digital form or prompt you to electronically sign an authorization form. This form gives Robinhood permission to request the transfer from E*TRADE. Carefully review all the details before signing.
Some transfers may require you to upload a recent statement from your ETRADE account to help Robinhood verify your holdings and account details.* Have a PDF copy handy if possible.
Step 4: Monitor the Transfer Progress
Once you've initiated the transfer, it's a waiting game, but you can keep an eye on its status.
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Sub-heading: Robinhood's Communication
Robinhood will usually provide updates on the transfer status within their app or via email. They will notify you when the request has been submitted to E*TRADE and when assets begin to arrive.
Sub-heading: ACATS Transfer Timeframe
ACATS transfers typically take 3 to 6 business days to complete, though this can vary. Factors that might cause delays include:
Mismatched account information.
Pending transactions at E*TRADE.
Non-transferable assets.
Public holidays.
Sub-heading: What to Expect During the Transfer
Assets become unavailable: During the transfer process, your assets will be temporarily unavailable for trading at both E*TRADE and Robinhood. This is normal as they move through the ACATS system.
Cost basis information: Robinhood will generally receive the cost basis information for your transferred securities directly from ETRADE. This is crucial for accurate tax reporting. While ACATS is designed to transfer this, it's always a good idea to keep your ETRADE statements for your records, especially those detailing your purchase history and cost basis.
Step 5: Verify Transferred Assets in Robinhood
QuickTip: Skim first, then reread for depth.
Once Robinhood notifies you that the transfer is complete, it's time for a final check.
Sub-heading: Confirm Holdings and Balances
Log in to your Robinhood account: Verify that all the assets you expected to transfer have arrived.
Check the number of shares: Ensure the correct number of shares for each security has been transferred.
Review cash balances: Confirm any cash from E*TRADE (including proceeds from fractional share liquidation) is now in your Robinhood account.
Sub-heading: Verify Cost Basis
Locate cost basis information: In Robinhood, check the cost basis for your newly transferred assets. It might take a few days after the transfer is complete for the cost basis information to fully populate.
If there are any discrepancies or missing cost basis information, contact Robinhood support immediately. They can often request this information again from E*TRADE.
Important Considerations and Tips
Do not close your E*TRADE account prematurely: Wait until the transfer is fully completed and you have verified all assets in Robinhood before considering closing your ETRADE account. Even after a full transfer, you might want to keep the ETRADE account open for a period to access historical statements and tax documents.
Keep records: Maintain copies of all transfer requests, confirmations, and statements from both E*TRADE and Robinhood for your records. This is invaluable for tax purposes and in case of any disputes.
Stay informed about fees: While Robinhood may not charge incoming fees, E*TRADE's outgoing fees can be a factor. Factor this into your decision.
Partial vs. Full Transfer: Carefully consider if you want to do a full or partial transfer. A full transfer is often simpler but commits all eligible assets. A partial transfer gives you more control but might be slightly more complex to manage.
Customer Support: Don't hesitate to reach out to the customer support teams at both E*TRADE and Robinhood if you encounter any issues or have questions during the process.
ETRADE Customer Service: Typically accessible via phone, chat, or secure message through their platform.
Robinhood Customer Service: Primarily through their in-app chat or email support. They also offer phone support by request.
Frequently Asked Questions (FAQs)
Here are 10 common questions related to transferring money and assets between E*TRADE and Robinhood:
How to transfer stocks from E*TRADE to Robinhood?
You initiate an ACATS (Automated Customer Account Transfer Service) transfer from the Robinhood platform. Robinhood will request your E*TRADE account number and account type, then handle the transfer of eligible stocks.
How to transfer cash only from E*TRADE to Robinhood?
For cash-only transfers, it's often simpler to link your ETRADE bank account (if you have one) or your external bank account that is linked to ETRADE to Robinhood via ACH (Automated Clearing House) and then initiate an electronic fund transfer (EFT) from Robinhood. Alternatively, you could initiate a wire transfer from E*TRADE to Robinhood, though wire transfers usually incur fees.
How to find my E*TRADE account number for transfer?
Your ETRADE account number can typically be found on your account statements (physical or digital), or by logging into your ETRADE online account and navigating to your account details or profile section.
Tip: Every word counts — don’t skip too much.
How to check the status of my E*TRADE to Robinhood transfer?
You can check the status of your transfer directly within the Robinhood app or website, usually in the section where you initiated the transfer. Robinhood will also send you email notifications regarding the progress.
How to deal with fractional shares during the transfer?
Fractional shares generally cannot be transferred via ACATS. E*TRADE will typically liquidate any fractional shares in your account, and the cash proceeds will be included in your transfer to Robinhood.
How to transfer an IRA from E*TRADE to Robinhood?
The process is similar to transferring a regular brokerage account. When initiating the ACATS transfer on Robinhood, you will specify that you are transferring an IRA account (e.g., Traditional IRA or Roth IRA). Ensure the IRA account type matches between both brokerages.
How to transfer options from E*TRADE to Robinhood?
Eligible options contracts can generally be transferred via ACATS as part of a full or partial account transfer. However, ensure that Robinhood supports the specific options strategies or contracts you hold, as some complex options might have limitations.
How to transfer cryptocurrency from E*TRADE to Robinhood?
You cannot directly transfer cryptocurrency from ETRADE to Robinhood via ACATS because ETRADE primarily offers indirect exposure to crypto (e.g., through ETFs or futures). To move crypto, you would typically need to sell your crypto-related investments on E*TRADE and then re-purchase cryptocurrency directly on Robinhood, or transfer crypto between dedicated crypto wallets if supported.
How to avoid transfer fees when moving from E*TRADE?
While Robinhood typically doesn't charge for incoming ACATS transfers, ETRADE might charge an outgoing ACATS fee. To potentially avoid this, you could liquidate all your assets in ETRADE, transfer the cash out to your bank account, and then deposit that cash into Robinhood. However, this method involves selling and re-buying, which could trigger capital gains taxes and potentially miss out on market movements. Always compare potential tax implications with the transfer fee.
How to contact Robinhood support for transfer issues?
You can contact Robinhood support through their in-app chat feature or by submitting a request via their help center on their website. They also offer phone support, which can often be initiated through the app by requesting a callback.
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