So, you're ready to make the switch and transfer your investments from E*TRADE to Robinhood? Maybe you're drawn to Robinhood's commission-free trading, its sleek mobile app, or simply want to consolidate your holdings. Whatever your reason, transferring stocks between brokerages is a common practice, and while it might seem a little daunting at first, it's a straightforward process when you know the steps.
Let's dive right in and get your assets moved!
Step 1: Get Ready for the Grand Transfer! (Engage User)
Alright, before we even think about clicking any buttons, let's make sure we're fully prepared. Think of this as gathering your supplies for an important journey. Have you ever tried to cook a complex meal without all your ingredients ready? It's a recipe for disaster! The same goes for transferring your stocks.
First things first, what's your "why"? Are you moving everything (a "full transfer") or just a select few stocks (a "partial transfer")? Knowing this from the start will guide your decisions.
Sub-heading: Gather Your Intel: Essential Information You'll Need
To ensure a smooth transfer, you'll need to have some key information at your fingertips. Go grab a pen and paper, or open a digital note, and jot these down:
Your E*TRADE Account Number: This is your primary identifier at E*TRADE. Make sure it's accurate!
Your Robinhood Account Number: You'll find this within your Robinhood app or on their website. It's usually 8 numeric digits for E*TRADE, and for Robinhood, it's near the top of the Investing section under your account. Robinhood's DTC number, if requested, is 6769.
Account Type Match: This is crucial. The account type you're transferring from ETRADE must match the account type at Robinhood. For example, a Traditional IRA from ETRADE can only be transferred to a Traditional IRA at Robinhood. A joint brokerage account transfers to a joint account, and so on. Failure to match account types is a common reason for transfer rejections.
Full Name and Address: Ensure your registered name and address are identical on both your E*TRADE and Robinhood accounts. Even a small discrepancy can cause delays.
Specific Stock Details (for Partial Transfers): If you're only transferring certain stocks, you'll need the exact stock symbols (tickers) and the precise number of shares for each.
Understand Transfer Fees:
E*TRADE's Outgoing Fees: E*TRADE charges a fee for outgoing ACATS transfers. As of recent information, this is typically $25 for partial transfers and $75 for full transfers.
Robinhood's Incoming Fees: Robinhood charges a $100 fee for both partial and full ACATS transfers out of Robinhood. However, since you are transferring into Robinhood, Robinhood will generally not charge you a fee for incoming ACATS transfers. It's a good practice to confirm the latest fee schedules on both platforms' websites as these can change.
Fee Reimbursement: Sometimes, the receiving brokerage (Robinhood in this case) might reimburse a transfer fee if your transfer meets certain criteria (e.g., a minimum transfer value). It's worth checking Robinhood's support pages or contacting their customer service to see if you qualify for any fee reimbursement.
Sub-heading: Tidying Up Your ETRADE Account*
Before you initiate the transfer, it's a good idea to ensure your E*TRADE account is in good standing:
Settle any outstanding fees or negative balances: Unpaid fees can significantly delay or even halt your transfer.
Address any account restrictions: If your E*TRADE account has any holds or restrictions, resolve them first.
Unsettled Trades: Make sure all your trades have settled. This usually takes a couple of business days. Trying to transfer unsettled shares can lead to delays.
Fractional Shares: Be aware that ACATS (Automated Customer Account Transfer Service) typically doesn't support fractional shares. If you have fractional shares in E*TRADE, they will likely be liquidated (sold) and the cash proceeds will be transferred to Robinhood.
Options Contracts Expiring Soon: Options contracts expiring within 7 days are generally not transferable.
Step 2: Initiating the Transfer - Robinhood Takes the Lead!
This might seem counter-intuitive, but the receiving brokerage (Robinhood) is usually the one that initiates the ACATS transfer. You won't start this process directly from your E*TRADE account.
Sub-heading: The Robinhood App/Website - Your Starting Point
Log in to your Robinhood Account: Open the Robinhood app on your mobile device or log in to their website.
Navigate to Transfers: Look for an "Account Transfer," "Transfer Assets," or similar option within the account or settings section. This is typically where you'll find the option to move funds or investments from an external brokerage.
Select "Transfer Stocks & ETFs" or "Transfer an External Account": Robinhood makes it relatively easy to find this option.
Choose E*TRADE as the Transferring Institution: You'll likely see a list of popular brokerages. Select E*TRADE from this list.
Enter Your E*TRADE Account Details: This is where those account numbers and personal details you jotted down in Step 1 come in handy. You'll be prompted to enter your E*TRADE account number and confirm the type of account (e.g., individual, joint, IRA).
Select Transfer Type (Full vs. Partial):
Full Transfer: If you're moving your entire ETRADE account, select "Full Transfer." This will transfer all eligible securities and cash. Keep in mind that a full transfer will place your ETRADE account on hold, preventing any further trading or deposits there.
Partial Transfer: If you only want to move specific stocks or a portion of your cash, select "Partial Transfer." You'll then be asked to specify which assets you want to transfer by entering their stock symbols and quantities.
Review and Confirm: Carefully review all the information you've entered. Any errors can cause significant delays or rejections. Once you're confident everything is correct, submit your transfer request.
Step 3: The Waiting Game: What Happens Behind the Scenes
Once you've submitted your request through Robinhood, the Automated Customer Account Transfer Service (ACATS) system takes over. This is largely an automated process, but it does involve communication and verification between the two brokerages.
Sub-heading: Processing Time - Patience is a Virtue
Typical ACATS Transfer Time: ACATS transfers generally take 5 to 7 business days to complete. During this period, your investments will be "in transit" and you won't be able to buy or sell them at either E*TRADE or Robinhood.
Account Restrictions: For a full ACATS transfer, your E*TRADE account will likely be restricted, meaning you won't be able to buy or sell securities, or deposit/withdraw cash, as these actions could disrupt the transfer.
Cost Basis Information: After the initial transfer, it might take up to 15 calendar days for E*TRADE to send the cost basis information to Robinhood. Until Robinhood receives this, your average cost and total return for the transferred holdings might not be accurately displayed. Don't worry, you still own the shares; it's just a reporting delay.
Residual Sweeps: It's common to receive "residual sweeps" for up to 6 months after the main transfer is complete. These are usually for any small amounts of cash, dividends, or other assets that arrived in your E*TRADE account after the initial transfer was processed. Robinhood will automatically sweep these into your account.
Sub-heading: Monitoring Your Transfer Progress
Robinhood's Notifications: Robinhood will usually provide updates on the status of your transfer within the app or via email. Keep an eye on these notifications.
Contacting Support (if needed): If you notice unusual delays or receive a rejection notice, contact Robinhood's customer support first. They initiated the transfer and can best assist you in resolving any issues. Common reasons for rejection include:
Incorrect account number.
Mismatch in account type.
Mismatch in name or address.
Outstanding fees or account restrictions at E*TRADE.
Step 4: Victory Lap! Verifying Your Transferred Assets
Congratulations! Your transfer is complete. But the job isn't quite done yet.
Sub-heading: The All-Important Double-Check
Verify Holdings: Log into your Robinhood account and meticulously compare your holdings against the records you kept (from Step 1). Ensure all the stocks you intended to transfer have arrived, and that the quantities are correct.
Check Cash Balances: Confirm that any cash you intended to transfer has landed in your Robinhood account.
Monitor Cost Basis: As mentioned, cost basis information might take some time to appear. Periodically check your Robinhood account to ensure this data populates correctly. Accurate cost basis is vital for tax purposes.
Confirm Options (if applicable): If you transferred options contracts, ensure they are correctly reflected in your Robinhood account and that your options trading approval level in Robinhood supports them.
If anything is missing or looks off, don't hesitate to contact Robinhood's customer support immediately. They can investigate and rectify any discrepancies.
Frequently Asked Questions (FAQs)
How to: Prepare my E*TRADE account for transfer to Robinhood?
Ensure your E*TRADE account has no outstanding fees or negative balances. Resolve any account restrictions and make sure all trades have settled.
How to: Find my E*TRADE and Robinhood account numbers?
Your ETRADE account number can typically be found on your statements or by logging into your ETRADE account online. For Robinhood, open the app, tap the Account icon, then "Investing," and your account number will be at the top.
How to: Handle fractional shares during the transfer?
ACATS transfers generally do not support fractional shares. E*TRADE will likely liquidate (sell) any fractional shares you hold, and the cash proceeds will be transferred to Robinhood.
How to: Know if my account types match for the transfer?
The account type at E*TRADE (e.g., Individual, Joint, Traditional IRA, Roth IRA) must precisely match the account type at Robinhood. A Traditional IRA can only transfer to a Traditional IRA.
How to: Initiate the stock transfer from E*TRADE to Robinhood?
You initiate the transfer from the receiving brokerage, which is Robinhood. Log into your Robinhood account, navigate to the "Account Transfer" section, select E*TRADE as the originating brokerage, and follow the prompts.
How to: Track the progress of my stock transfer?
Robinhood will typically provide updates on your transfer status within their app or via email notifications. You can also contact Robinhood customer support for updates.
How to: Understand the fees for transferring stocks?
ETRADE charges an outgoing ACATS fee (e.g., $25 for partial, $75 for full). Robinhood does not charge an incoming fee, but it's worth checking if they offer reimbursement for the outgoing fee from ETRADE if your transfer meets certain criteria.
How to: Deal with delays or rejections in the transfer process?
If your transfer is delayed or rejected, first check for common issues like incorrect account numbers or mismatched names. Then, contact Robinhood's customer support for assistance, as they are the initiating firm.
How to: Ensure my cost basis transfers correctly to Robinhood?
While your shares will transfer first, the cost basis information may take an additional 15 calendar days to be sent from E*TRADE to Robinhood. Periodically check your Robinhood account for this update.
How to: Differentiate between a full and partial transfer?
A full transfer moves all eligible securities and cash from your ETRADE account to Robinhood, placing your ETRADE account on hold. A partial transfer allows you to select specific stocks or cash to move, leaving the rest in your E*TRADE account.
