It's an excellent decision to consider transferring your brokerage account, especially if you're looking for different features, lower costs, or a more robust trading platform. ETRADE and Interactive Brokers (IBKR) both offer unique advantages, and moving from one to the other is a common goal for many investors. Let's dive into a comprehensive, step-by-step guide on how to transfer your assets from ETRADE to IBKR.
The Grand Migration: A Step-by-Step Guide to Transferring from E*TRADE to IBKR
Hey there, savvy investor! Are you ready to optimize your trading experience and potentially unlock new opportunities? Moving your assets from E*TRADE to Interactive Brokers can be a significant step, offering access to a wider range of global markets, advanced trading tools, and often, highly competitive commission structures. This guide will walk you through every single detail to ensure a smooth and successful transition. So, let's get started!
Step 1: Are You Ready for the Big Move? Pre-Transfer Checklist & Considerations
Before you even think about initiating the transfer, a little preparation goes a long way. This isn't just about clicking a button; it's about setting yourself up for success and avoiding potential headaches.
Sub-heading 1.1: Why are you moving?
Think about your motivations. Are you seeking lower commissions, access to international markets, more sophisticated charting tools, or a broader selection of investment products? Understanding your "why" will help you confirm that IBKR is the right fit for your needs.
Sub-heading 1.2: Account Type Match
This is crucial. The account type at E*TRADE must match the account type at Interactive Brokers for an Automated Customer Account Transfer Service (ACATS) transfer to be successful.
Individual Brokerage Account (Taxable): This is the most common and usually the simplest to transfer.
IRA (Individual Retirement Account): This includes Traditional, Roth, SEP, and Simple IRAs. Make sure you open the exact corresponding IRA type at IBKR.
Joint Account: If you have a joint account at E*TRADE, you'll need a joint account at IBKR.
Trust/Custodial Accounts: These can be more complex and may require additional documentation. Ensure the trust name and trustee details match precisely.
Action Item: Log in to your ETRADE account and confirm your exact account type(s).* Then, if you haven't already, open an IBKR account of the identical type.
Sub-heading 1.3: Clean Up Your E*TRADE Account
Think of this as decluttering before moving.
Resolve Outstanding Issues: Make sure there are no pending trades, unsettled funds, margin calls, or other outstanding issues with your E*TRADE account. Any of these can delay or even reject your transfer.
Check for Unsupported Assets: While both E*TRADE and IBKR offer a wide range of securities, there might be specific, less common assets (e.g., certain mutual funds not offered by IBKR, micro-cap stocks with restrictions, or obscure penny stocks) that IBKR does not support or has restrictions on. Verify that all your holdings are transferable to IBKR.
Fractional Shares: If you hold fractional shares at E*TRADE, be aware that they might not transfer. Some brokers will liquidate fractional shares into cash before the transfer. Confirm IBKR's policy on this.
Options with Expiration: If you have options positions, avoid transferring during the expiration week, as this can cause delays or rejections.
Fees: ETRADE does charge a fee for outgoing full ACATS transfers. As of our last check, this is typically around $75 for full transfers. While IBKR does not charge for incoming ACATS transfers, be prepared for ETRADE's outgoing fee. Sometimes, the receiving brokerage (IBKR in this case) might reimburse these fees for larger transfers, so it's worth inquiring with IBKR's customer service about their reimbursement policy.
Sub-heading 1.4: Gather Necessary Information
You'll need specific details from both your E*TRADE and IBKR accounts.
Your ETRADE Account Number(s)*
Your ETRADE Account Title (Name on the account)*
Your IBKR Account Number(s)
Your IBKR Account Title (Name on the account)
Your Social Security Number (SSN) or Tax ID Number (TIN) (This must match across both accounts)
For Partial Transfers: A detailed list of the exact symbols and quantities of the assets you wish to transfer.
Step 2: Initiating the Transfer at Interactive Brokers (The Receiving Broker)
The golden rule of brokerage transfers is to always initiate the transfer from the receiving broker's side. This allows IBKR to pull the assets from E*TRADE, streamlining the process.
Sub-heading 2.1: Log In to Your IBKR Client Portal
Navigate to the Interactive Brokers website (
www.ibkr.com
Sub-heading 2.2: Find the "Transfer Positions" Section
Once logged in, look for "Transfer & Pay" in the main menu.
Under "Transfer & Pay," select "Transfer Positions."
Sub-heading 2.3: Select "Incoming" ACATS Transfer
You'll be prompted to choose the direction of the transfer. Select "Incoming" as you are bringing assets into your IBKR account.
Choose "United States" as the country from the dropdown list.
For the transfer method, select "ACATS" (Automated Customer Account Transfer Service). This is the standard, electronic method for transferring securities between U.S. brokers.
Sub-heading 2.4: Provide Delivering Broker Information
You will be asked to identify the delivering broker (ETRADE). Select "ETRADE" from the dropdown list of brokers.
Enter your E*TRADE account number, the exact account title as it appears on your E*TRADE statement, and your Tax ID number (SSN/TIN). Double-check for any typos! A mismatch here is a common reason for transfer rejections.
You will also need to specify the account type at E*TRADE (e.g., Individual, Joint, IRA).
Sub-heading 2.5: Choose Full or Partial Transfer
Full ACATS Transfer: If you want to transfer all assets and close your E*TRADE account, select "Yes" when asked if you want to transfer all assets. This is generally the most straightforward option.
Partial ACATS Transfer: If you only want to move specific securities or a portion of your cash, select "No." You will then be prompted to "Add Asset" or "Upload CSV."
For each asset you wish to transfer, you'll need to provide:
Asset Type (e.g., Stock, ETF, Mutual Fund)
Symbol (e.g., AAPL, SPY)
Quantity
Long or Short position
Be meticulous when entering these details. Any discrepancy can lead to delays.
Sub-heading 2.6: Review and Sign
Carefully review all the information you've entered. Ensure that account numbers, account titles, and asset details are 100% accurate.
Electronically sign the transfer request. IBKR will likely require you to verify your identity, possibly through an email confirmation or by linking another brokerage account via Plaid.
Click "Continue" to submit your request.
Step 3: The Waiting Game (and What to Do During It)
Once you've submitted your transfer request to IBKR, the process typically takes 5 to 8 business days, though it can sometimes be longer if there are issues. During this time, your assets will be "in transit," meaning they might not be accessible for trading at either broker.
Sub-heading 3.1: Monitor Transfer Status
You can track the status of your transfer within your IBKR Client Portal under "Transfer & Pay" > "Transaction Status & History."
IBKR will usually notify you of any issues or if the transfer is complete.
Sub-heading 3.2: Be Prepared for Potential Delays
Common reasons for delays or rejections include:
Account title mismatch: The names on the accounts at E*TRADE and IBKR must be identical.
Account type mismatch: An IRA to a regular brokerage account, for example, will be rejected.
Unsettled trades or funds at ETRADE.*
Unsupported securities or fractional shares.
Margin debits or negative cash balances.
Incorrect account numbers or other details.
If your transfer is rejected or delayed, IBKR will typically provide a reason. Address the issue promptly with either E*TRADE or IBKR customer service.
Sub-heading 3.3: Cost Basis Information
While ACATS transfers are designed to move cost basis information automatically, it's highly recommended to download your historical statements from E*TRADE before the transfer. This way, you have your own record of your purchase dates and costs, which is crucial for tax reporting.
After the transfer is complete, verify that the cost basis information for your transferred securities is accurate in your IBKR account. If it's missing or incorrect, you'll need to provide IBKR with the necessary documentation.
Step 4: Post-Transfer Verification and Next Steps
Congratulations! Your assets have landed at Interactive Brokers. But the job isn't quite done yet.
Sub-heading 4.1: Verify Your Holdings
Immediately after the transfer is complete, log in to your IBKR account and meticulously check that all the expected securities and cash have arrived and that the quantities are correct.
Compare your IBKR holdings with your final E*TRADE statement.
Sub-heading 4.2: Confirm Cost Basis
As mentioned in Step 3, verify that the cost basis for all transferred securities is accurately reflected in your IBKR account. This is essential for proper tax reporting when you eventually sell these assets.
Sub-heading 4.3: Close Your E*TRADE Account (If Full Transfer)
If you performed a full ACATS transfer, E*TRADE should automatically close your account after the transfer is complete and all assets (including any residual cash) have been moved.
However, it's a good practice to contact ETRADE customer service* a few days after the transfer is complete to confirm that your account has been closed and that there are no remaining balances or lingering issues. This prevents any unexpected fees or statements.
Sub-heading 4.4: Explore IBKR's Platform
Take time to familiarize yourself with the Interactive Brokers Client Portal and Trader Workstation (TWS). IBKR is a powerful platform, and exploring its features will help you maximize your trading and investing experience.
Set up any desired market data subscriptions.
Frequently Asked Questions (FAQs)
Here are 10 common questions related to transferring from E*TRADE to Interactive Brokers:
How to Initiate the Transfer Process?
The transfer process is initiated from your Interactive Brokers (the receiving broker) account. You will log into your IBKR Client Portal and navigate to the "Transfer & Pay" section to start an "Incoming" ACATS transfer.
How to Ensure Account Names Match for Transfer?
The account title (the name of the account holder(s)) on your E*TRADE account and your Interactive Brokers account must be identical for a smooth ACATS transfer. Any discrepancy will lead to rejection.
How to Handle Fractional Shares During Transfer?
Fractional shares are often not transferable via ACATS. E*TRADE may liquidate these into cash, which will then be transferred as part of the cash balance. It's best to confirm IBKR's policy on receiving fractional shares.
How to Check for Outgoing Transfer Fees from E*TRADE?
E*TRADE typically charges a fee for outgoing full ACATS transfers, which is usually around $75. You can find their exact fee schedule on their website under "Pricing and Rates" or by contacting their customer service.
How to Track the Status of My Transfer?
You can monitor the status of your ACATS transfer directly within your Interactive Brokers Client Portal under "Transfer & Pay" > "Transaction Status & History."
How to Deal with Rejected Transfers?
If your transfer is rejected, IBKR will usually provide a reason. Common reasons include mismatched account names/types, unsettled trades, or unsupported assets. You will need to address the specific issue with either E*TRADE or IBKR customer service and then re-initiate the transfer if necessary.
How to Ensure Cost Basis Information is Transferred Correctly?
While ACATS aims to transfer cost basis automatically, it's wise to download your account statements from ETRADE before the transfer. After the transfer is complete, verify the cost basis in your IBKR account. If it's missing or incorrect, you'll need to manually provide the information to IBKR, often by uploading your ETRADE statements.
How to Transfer Only Specific Securities (Partial Transfer)?
During the ACATS transfer initiation at Interactive Brokers, when prompted to choose between a full or partial transfer, select "No" for a full transfer. You will then be able to specify the exact symbols and quantities of the assets you wish to transfer.
How to Close My E*TRADE Account After Transfer?
If you performed a full ACATS transfer, ETRADE should automatically close your account once all assets have been moved. However, it's recommended to contact ETRADE customer service a few days after the transfer is complete to confirm the account closure and ensure there are no lingering balances or issues.
How to Get Support if I Encounter Issues During Transfer?
For issues related to the initiation or receipt of the transfer, contact Interactive Brokers' customer service. For issues related to outgoing assets or problems with your ETRADE account, contact ETRADE's customer service. Be prepared to provide your account numbers and details of the issue.
