Feeling like it's time for a change in your investment journey? Perhaps you're seeking new tools, a different fee structure, or simply a fresh perspective on your portfolio management. If you're currently with Morgan Stanley and considering a move to E*TRADE, you're in the right place! This comprehensive guide will walk you through every step of the process, ensuring a smooth and successful transfer of your valuable assets.
Understanding the Relationship: Morgan Stanley and E*TRADE
Before we dive into the "how-to," it's important to acknowledge the unique relationship between Morgan Stanley and ETRADE. Morgan Stanley acquired ETRADE in 2020, and as a result, there have been significant integrations and changes. For many ETRADE users, their accounts have already been or are in the process of being transitioned under Morgan Stanley's custody and clearing services. This can actually simplify some aspects of transferring between the two platforms, especially if your ETRADE account is already linked or in the process of being linked to your Morgan Stanley at Work Stock Plan account. However, if you have a traditional Morgan Stanley brokerage account (not a stock plan account) and want to move it to a new E*TRADE brokerage account, the standard account transfer process applies. This guide focuses on the latter scenario.
Let's begin!
Step 1: Prepare for Your Transfer – The Crucial First Moves!
Alright, before we initiate any official paperwork, let's get you prepared. This is where you can make the entire process much smoother! Think of this as decluttering your investment closet before moving everything to a new home.
Sub-heading 1.1: Why are you transferring?
Take a moment to reflect on why you're making this move. Is it for lower fees, better trading tools, specific investment options, or perhaps a more user-friendly interface? Knowing your motivations will help you assess if E*TRADE meets your needs and ensure you're making the right decision.
Sub-heading 1.2: Gather Your Current Account Information from Morgan Stanley
You'll need essential details from your Morgan Stanley account. Dig out your most recent statements – digital or physical, whatever you have readily available.
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Your Morgan Stanley account number(s): This is paramount.
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Account registration (ownership): Is it an individual account, joint account, IRA, trust, etc.? The account types must match when you transfer. An individual brokerage account can only transfer to an individual brokerage account at E*TRADE, an IRA to an IRA, and so on.
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Type of assets you hold: Make a list of your holdings. This includes stocks, ETFs, mutual funds, bonds, options, etc. While you won't typically need to list specific quantities for a full transfer, it's good to have for your own records and for verification later.
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Any outstanding fees or debits: Settle any negative balances or fees with Morgan Stanley beforehand. Outstanding issues can significantly delay your transfer.
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Proprietary investments: Be aware that some proprietary mutual funds or alternative investments held at Morgan Stanley may not be transferable "in kind" to E*TRADE. These might need to be liquidated before the transfer, which could have tax implications. Consult with a tax advisor if this applies to you.
Sub-heading 1.3: Open Your New E*TRADE Account (If You Haven't Already)
This is a prerequisite! You can't transfer assets to an account that doesn't exist.
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Visit the E*TRADE website (etrade.com) and start the account opening process.
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Choose the same type of account you have at Morgan Stanley (e.g., individual brokerage, traditional IRA, Roth IRA, joint account).
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During the application, E*TRADE often provides an option to initiate a transfer from another firm. You can use this feature or complete the account opening first and then initiate the transfer.
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Ensure all your personal information (name, address, Social Security Number, etc.) exactly matches what Morgan Stanley has on file. Even a small discrepancy can cause delays.
Sub-heading 1.4: Check for Potential Fees
While E*TRADE generally doesn't charge for incoming transfers, Morgan Stanley might charge an outgoing account transfer fee.
Tip: Read in a quiet space for focus.
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Morgan Stanley Outgoing Transfer Fees: Contact Morgan Stanley's customer service or check their fee schedule. This fee can vary but is often around $75 for a full account transfer.
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ETRADE Reimbursement:* Some brokerages, including ETRADE, may offer to reimburse outgoing transfer fees from your old brokerage, especially for larger transfers. Check ETRADE's current promotions or contact their customer service to see if you qualify.
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| How To Transfer From Morgan Stanley To Etrade |
Step 2: Initiating the Transfer – The ACATS Process
Most brokerage account transfers in the U.S. happen via the Automated Customer Account Transfer Service (ACATS), a system designed to streamline and automate the movement of assets between financial institutions. This is generally initiated by the receiving firm (E*TRADE in this case).
Sub-heading 2.1: Log into Your E*TRADE Account and Find the Transfer Section
Once your E*TRADE account is open and active, log in.
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Navigate to the "Transfers" or "Move Money" section. This is usually found in the main menu or account dashboard.
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Look for an option like "Transfer an Account from Another Firm" or "Transfer Assets."
Sub-heading 2.2: Fill Out the Transfer Initiation Form (TIF)
E*TRADE will provide an online form (or sometimes a printable PDF) to initiate the ACATS transfer. This is where you'll input the details you gathered in Step 1.
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Select "Transfer an Entire Account" or "Partial Transfer":
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Full Transfer: If you want to move all assets and close your Morgan Stanley account. This is usually the smoothest option.
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Partial Transfer: If you only want to move specific assets (e.g., certain stocks) and keep other assets or the account open at Morgan Stanley. For a partial transfer, you'll need to specify the exact securities and quantities you wish to transfer. Be aware that fractional shares may not always transfer and might be liquidated.
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Provide Morgan Stanley's Details:
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The full name of your delivering institution (Morgan Stanley).
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Your Morgan Stanley account number(s).
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The type of account (e.g., Individual, Joint, IRA).
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Your E*TRADE account number where you want the assets to be transferred.
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Review and Submit: Double-check all information for accuracy. Even a single incorrect digit in an account number can lead to rejection and significant delays. Once confirmed, submit the form electronically or, if required, print, sign, and mail/fax it.
Sub-heading 2.3: Provide Supporting Documentation (If Requested)
Sometimes, E*TRADE might request additional documentation to verify your identity or the account.
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A recent Morgan Stanley statement.
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A copy of your driver's license or other government-issued ID.
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Other forms depending on the account type (e.g., trust documents for a trust account).
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Respond promptly to any requests for information to avoid delays.
Step 3: The Waiting Game – What Happens Behind the Scenes
Once you've submitted your transfer request, the ACATS system takes over. This isn't an instant process, so patience is key.
Sub-heading 3.1: E*TRADE Contacts Morgan Stanley
E*TRADE, as the receiving firm, will send the ACATS transfer instruction to Morgan Stanley.
QuickTip: Pause at transitions — they signal new ideas.
Sub-heading 3.2: Morgan Stanley's Validation and Processing
Morgan Stanley, as the carrying firm, has a limited time (typically three business days) to:
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Validate the instruction: They confirm that your name, Social Security Number, and account number match their records.
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Take exception or approve: If there are no discrepancies, they approve the transfer. If there are issues (e.g., unmatched information, outstanding fees, non-transferable assets), they will "take exception" and notify E*TRADE of the reason. This will require correction and resubmission.
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Cancel open orders: Morgan Stanley will generally cancel any open buy or sell orders in the account being transferred. It's advisable to cancel any open orders yourself before initiating the transfer to avoid complications.
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Freeze the account: During the transfer period, your account at Morgan Stanley will be "frozen," meaning you won't be able to trade or make changes.
Sub-heading 3.3: Transfer Completion Timeline
ACATS transfers typically take 5 to 7 business days to complete, assuming no issues arise. Some sources suggest it can be as quick as 3 days once approved by the carrying firm. However, complex accounts or issues can extend this timeline.
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Factors that can cause delays:
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Mismatched information (names, addresses, account types).
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Outstanding fees or margin calls.
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Assets that are not ACATS eligible (e.g., certain annuities, alternative investments, physical stock certificates).
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Fractional shares (often liquidated and transferred as cash).
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Mutual funds that are not held at both brokers' clearing firms.
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Sub-heading 3.4: Tracking Your Transfer
E*TRADE usually provides a way to track the status of your transfer online.
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Regularly check your E*TRADE account for updates.
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You may receive email notifications from E*TRADE regarding the transfer's progress.
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If the transfer takes longer than expected or you receive an "exception" notice, contact ETRADE's customer service for assistance.* They can often provide details on the specific reason for the delay.
Step 4: Verification and Post-Transfer Management
Congratulations! Your assets should now be settling into your E*TRADE account. But the process isn't quite over.
Sub-heading 4.1: Verify All Transferred Assets
This is a critical step to ensure everything arrived safely and accurately.
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Compare holdings: Use the list you made in Step 1 and your final Morgan Stanley statement to compare with the holdings now reflected in your E*TRADE account.
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Check quantities: Ensure the number of shares or units for each security matches.
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Confirm cash balances: Any cash or liquidated assets should appear in your E*TRADE account.
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Cost basis information: It's crucial for tax purposes that your cost basis (the original purchase price of your investments) transfers correctly. While ACATS is designed to transfer this, always verify it. If it's missing or incorrect, contact E*TRADE to get it rectified. You might need to provide past statements from Morgan Stanley.
Sub-heading 4.2: Address Any Discrepancies Immediately
If anything looks off, don't hesitate.
QuickTip: Reading regularly builds stronger recall.
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Contact ETRADE customer service immediately.* Provide them with specific details of the discrepancy.
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They will work with Morgan Stanley to resolve any issues.
Sub-heading 4.3: Close Your Morgan Stanley Account (If It Was a Full Transfer)
If you initiated a full transfer, your Morgan Stanley account should now be empty or have a zero balance.
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It's a good practice to confirm with Morgan Stanley that the account is officially closed. This prevents any lingering fees or unexpected statements.
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If you left any proprietary investments or non-transferable assets, you'll need to decide what to do with them (liquidate, transfer manually, etc.) before closing the account.
Step 5: Explore Your New E*TRADE Account
Now that your assets are safely at E*TRADE, take some time to familiarize yourself with the platform!
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Explore the trading tools, research options, and educational resources.
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Set up any recurring investments or alerts you had previously.
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Review your account settings, beneficiaries, and communication preferences.
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Download the E*TRADE mobile app for on-the-go access.
10 Related FAQ Questions
Here are some common questions you might have about transferring your account:
How to initiate an account transfer?
You initiate an account transfer by opening an account with the new brokerage (E*TRADE) and then using their online transfer tool or submitting a Transfer Initiation Form (TIF) to them, providing your old account details.
How to track the status of my account transfer?
Most brokerages, including E*TRADE, provide an online portal or a specific section where you can track the real-time status of your account transfer after you've submitted the request.
How to deal with non-transferable assets during a brokerage transfer?
Non-transferable assets (like some proprietary mutual funds or alternative investments) may need to be liquidated before the transfer, or you may need to keep them at your old brokerage. Consult both firms and consider potential tax implications before making a decision.
QuickTip: Scroll back if you lose track.
How to ensure my cost basis transfers correctly?
While ACATS typically transfers cost basis, always verify it after the transfer is complete by comparing it with your old statements. If it's missing or incorrect, contact E*TRADE's customer service with supporting documentation from Morgan Stanley to get it updated for tax reporting.
How to avoid delays when transferring a brokerage account?
To avoid delays, ensure all personal information (name, address, SSN) on your new E*TRADE account exactly matches your Morgan Stanley account. Settle any outstanding fees or margin balances beforehand, and ensure the account types (e.g., IRA to IRA) match.
How to transfer a partial account instead of a full account?
When filling out the Transfer Initiation Form at E*TRADE, select the "Partial Transfer" option. You will then be prompted to specify the exact securities and quantities you wish to move.
How to handle fractional shares during a transfer?
Fractional shares often cannot be transferred "in kind" via ACATS and may be liquidated to cash before the transfer, or you might need to leave them at your old brokerage. Check with both Morgan Stanley and E*TRADE regarding their policy on fractional shares.
How to transfer an IRA from Morgan Stanley to E*TRADE?
The process is similar to a standard brokerage account transfer, but you must ensure you open an IRA of the same type (e.g., Traditional IRA to Traditional IRA, Roth IRA to Roth IRA) at E*TRADE to avoid potential tax penalties.
How to contact customer service for transfer assistance?
For assistance with the transfer, it's generally best to contact E*TRADE's customer service first, as they are initiating the process. You can typically find their contact information (phone numbers, chat support) on their website under "Contact Us" or "Support."
How to confirm my Morgan Stanley account is closed after a full transfer?
Once all assets have successfully transferred to E*TRADE, it's advisable to contact Morgan Stanley's customer service directly to confirm that your account is officially closed and there are no lingering balances or fees.
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