Have you been contemplating moving your investments from Morgan Stanley to E*TRADE? Perhaps you're looking for a platform that better suits your individual trading style, offers different research tools, or has a fee structure that aligns more with your financial goals. Whatever your reasons, transferring your stocks can seem like a daunting process. But fear not! This comprehensive guide will walk you through every step of the way, making the transition as smooth as possible.
Let's dive in and get those assets where you want them to be!
Understanding the Landscape: Morgan Stanley and E*TRADE
Before we begin the transfer process, it's important to note the relationship between Morgan Stanley and ETRADE. ETRADE is now a part of Morgan Stanley. While they operate as distinct entities for many services, this affiliation can sometimes simplify internal transfers or mean certain processes are more streamlined. However, the general principles of an Automated Customer Account Transfer (ACATS) still apply.
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| Can I Transfer My Stocks From Morgan Stanley To Etrade |
Step 1: Prepare for the Move – Gather Your Information!
This is where you, the user, come in! The first and most crucial step is to gather all the necessary information from your existing Morgan Stanley account. Think of it as preparing your financial passport for the journey ahead.
QuickTip: Skim the intro, then dive deeper.
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1.1 Access Your Morgan Stanley Account Statements:
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You'll need your most recent Morgan Stanley account statement. This document is a treasure trove of information that E*TRADE will require.
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Specifically, look for: your full account number, the exact account type (e.g., individual brokerage, joint, IRA, Roth IRA), and a clear listing of all your holdings (stocks, ETFs, mutual funds, bonds, cash, etc.).
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Pro Tip: Download a digital copy of several recent statements if available. This provides a good historical record and can be useful for tax purposes later on, especially for cost basis information.
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1.2 Confirm Your Personal Information:
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Ensure your personal details (name, address, Social Security Number/Tax ID) are up-to-date and consistent across both Morgan Stanley and how you plan to open your E*TRADE account. Discrepancies can cause significant delays.
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1.3 Identify Your Holdings:
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Make a list of all the securities you hold in your Morgan Stanley account. This includes ticker symbols, CUSIP numbers (if available), and the exact number of shares/units for each.
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Be aware that some less common or proprietary investments held at Morgan Stanley might not be transferable in-kind to E*TRADE. These might need to be liquidated (sold) before the transfer, and the cash proceeds transferred instead. It's rare, but good to be prepared.
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Step 2: Open Your New E*TRADE Account
Now that you're armed with all your Morgan Stanley details, it's time to set up your new home for your investments at E*TRADE.
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2.1 Choose the Right Account Type:
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It is paramount that the account type you open at ETRADE precisely matches the account type at Morgan Stanley. For instance, if you're transferring a Traditional IRA, you must open a Traditional IRA at ETRADE. A taxable brokerage account must transfer to a taxable brokerage account.
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Mismatched account types will lead to rejection of your transfer request.
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2.2 Initiate the Online Application:
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Visit the E*TRADE website (etrade.com) and navigate to their "Open an Account" section.
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The application process is typically straightforward and can be completed online in about 15-20 minutes.
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You'll need to provide your personal information, employment details, financial situation, and investment objectives.
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2.3 Have Identification Ready:
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Be prepared to provide your Social Security Number, driver's license number, and possibly other identifying documents if requested.
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Step 3: Initiate the Transfer (ACATS Process)
This is the core of the transfer, utilizing the Automated Customer Account Transfer Service (ACATS). The receiving firm, ETRADE, is responsible for initiating this process.* You don't directly tell Morgan Stanley you're leaving; E*TRADE does it on your behalf.
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3.1 Access E*TRADE's Transfer Section:
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Once your E*TRADE account is open and accessible, log in and look for a section related to "Transfers," "Move Money," or "Transfer an Account."
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You'll typically find an option for "Transfer an External Account" or "Transfer an Account from Another Firm."
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3.2 Provide Morgan Stanley Account Details:
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E*TRADE will prompt you to enter the details of your Morgan Stanley account that you gathered in Step 1.
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This will include:
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Morgan Stanley's full name (e.g., Morgan Stanley Smith Barney LLC).
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Your Morgan Stanley account number.
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The account type (e.g., Individual Brokerage, Joint, IRA).
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Your Social Security Number/Tax ID.
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3.3 Choose Full or Partial Transfer:
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You'll have the option to perform either a full transfer or a partial transfer.
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Full Transfer: This moves all assets and closes your Morgan Stanley account. This is often the simplest option.
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Partial Transfer: This allows you to select specific securities and/or cash to transfer, leaving the rest in your Morgan Stanley account. If you choose a partial transfer, you'll need to meticulously list each asset (ticker symbol, number of shares) you wish to move.
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Consider your needs carefully. If you intend to fully consolidate, a full transfer is generally recommended.
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3.4 Authorize the Transfer:
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You will be asked to electronically sign (or sometimes print and physically sign) an Account Transfer Authorization form (ACATS form). This gives E*TRADE permission to request your assets from Morgan Stanley.
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Read this form carefully to ensure all details are correct.
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QuickTip: Scan the start and end of paragraphs.
Step 4: Monitoring the Transfer and Addressing Potential Issues
Once you've submitted the transfer request, the waiting game begins. E*TRADE will communicate with Morgan Stanley to facilitate the asset movement.
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4.1 Track Your Transfer:
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E*TRADE typically provides an online tracking tool or status updates for your ACATS transfer. Keep an eye on this.
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You may also receive email notifications from E*TRADE regarding the progress of your transfer.
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4.2 Be Prepared for Potential Delays:
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While ACATS transfers are generally efficient, delays can occur. Common reasons include:
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Mismatched information: Even a slight difference in your name or address can cause a hold-up.
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Unsettled trades: If you have recent trades in your Morgan Stanley account that haven't fully settled, the transfer might be paused until they do.
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Non-transferable assets: As mentioned, some specific assets might not be transferable. E*TRADE will notify you if this is the case, and you'll have to decide whether to liquidate them or leave them at Morgan Stanley.
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Restricted stock or complex assets: If you hold restricted stock, employee stock options, or other complex investments, their transfer might require additional paperwork and take significantly longer. These often need special attention and may not go through the standard ACATS process easily.
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4.3 Fees Associated with Transfers:
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Morgan Stanley may charge an outgoing ACATS transfer fee. This fee can vary, but it's typically around $75 to $100 for a full account transfer. ETRADE, as the receiving firm, generally does not charge for incoming transfers, and sometimes they may even offer to reimburse the outgoing transfer fee if you meet certain criteria (e.g., transfer a significant amount of assets). Always check ETRADE's current promotions or fee schedule.
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Step 5: Post-Transfer Checklist
Once your assets appear in your E*TRADE account, there are a few final steps to ensure everything is in order.
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5.1 Verify All Holdings:
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Carefully review your E*TRADE account to ensure that all your expected securities and cash have transferred correctly and that the share quantities are accurate.
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5.2 Confirm Cost Basis Information:
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For taxable brokerage accounts, it's critical that your cost basis information (the original purchase price of your investments) transfers correctly. This is vital for calculating capital gains or losses when you eventually sell.
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While brokers are generally good at transferring this, it's your responsibility to verify. If the cost basis isn't present, you may need to provide E*TRADE with your Morgan Stanley statements to update it.
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5.3 Adjust Account Settings and Features:
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Familiarize yourself with E*TRADE's platform.
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Set up dividend reinvestment preferences (DRIP) if desired.
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Explore their research tools, trading platforms, and other features.
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If you had recurring deposits or withdrawals set up at Morgan Stanley, remember to re-establish them with your new E*TRADE account.
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5.4 Close Your Morgan Stanley Account (If Full Transfer):
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If you performed a full transfer, contact Morgan Stanley to ensure your account is formally closed and there are no residual balances. This prevents any dormant account fees or other issues in the future.
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How long does it typically take?
Reminder: Short breaks can improve focus.
A full ACATS transfer from one brokerage to another generally takes 3 to 6 business days from the time E*TRADE submits the request. However, it can sometimes take up to 10 business days or even longer if there are complications, manual transfers for certain assets, or during peak periods. Partial transfers can sometimes take a bit longer due to the manual selection of assets.
10 Related FAQ Questions
Here are 10 frequently asked questions about transferring stocks, with quick answers:
How to start the stock transfer process from Morgan Stanley to E*TRADE? You initiate the transfer by opening a new ETRADE account and then submitting an ACATS transfer request through ETRADE's platform, providing your Morgan Stanley account details.
How to check the status of my stock transfer to E*TRADE? E*TRADE typically provides an online transfer tracker or status updates within your account, and they may send email notifications as well.
How to transfer only specific stocks from Morgan Stanley to E*TRADE? When initiating the ACATS transfer request with E*TRADE, select the "partial transfer" option and precisely list the ticker symbols and number of shares you wish to move.
QuickTip: The more attention, the more retention.
How to handle non-transferable securities during a brokerage transfer? If E*TRADE cannot accept certain securities, you will be notified. You then have the option to liquidate (sell) those securities at Morgan Stanley and transfer the cash proceeds, or leave them in your Morgan Stanley account.
How to avoid transfer fees when moving stocks? Morgan Stanley may charge an outgoing transfer fee. While you can't always avoid this fee from the originating firm, ETRADE sometimes offers reimbursements for incoming transfer fees, often based on the value of the assets transferred. Check ETRADE's current promotions.
How to ensure my cost basis transfers correctly to E*TRADE? Brokerages are generally required to transfer cost basis information for taxable accounts through the ACATS system. However, it's crucial to verify this once the assets are in your E*TRADE account and provide old statements if necessary to update any missing data.
How to transfer an IRA or retirement account from Morgan Stanley to E*TRADE? The process is similar to a regular brokerage account transfer, but you must open the exact same type of retirement account (e.g., Traditional IRA to Traditional IRA, Roth IRA to Roth IRA) at E*TRADE.
How to deal with fractional shares during a stock transfer? ACATS transfers typically only handle whole shares. Any fractional shares in your Morgan Stanley account will usually be liquidated, and the cash proceeds will be transferred along with your whole shares.
How to transfer restricted stock or employer-sponsored stock? Transferring restricted stock or shares from an employer plan (like RSUs or ESPP) can be more complex and may require additional forms or specific procedures outside of the standard ACATS process. It's best to contact both Morgan Stanley and E*TRADE's specialized departments for guidance.
How to close my Morgan Stanley account after transferring all assets? After confirming all assets have successfully transferred to E*TRADE, contact Morgan Stanley directly to ensure your account is formally closed and there are no lingering balances or open issues.
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