Are you ready to make a smart move with your investments? Transferring your stocks from Robinhood to Merrill Edge can be a fantastic decision for many investors, offering a more robust platform, diverse investment options, and the backing of a major financial institution. This comprehensive guide will walk you through every step of the process, ensuring a smooth transition for your valuable assets. Let's get started!
A Detailed Guide: How to Transfer Stocks from Robinhood to Merrill Edge
Transferring your investments might seem like a daunting task, but with proper preparation and understanding, it's a straightforward process. The Automated Customer Account Transfer Service (ACATS) makes this incredibly efficient.
Step 1: Prepare for Your Smooth Transition - Let's Get Organized!
Before you even touch a transfer form, a little groundwork can save you a lot of headaches later. This is where you, the user, play a crucial role in ensuring everything goes off without a hitch.
Sub-heading 1.1: Confirm Account Types and Ownership
Crucial Matching: Ensure the type of account you have at Robinhood exactly matches the account type you're opening or already have at Merrill Edge. For instance, a taxable brokerage account from Robinhood must transfer to a taxable brokerage account at Merrill Edge. Similarly, a Robinhood Roth IRA must transfer to a Merrill Edge Roth IRA. Mismatched account types will cause your transfer to be rejected.
Ownership Details: Verify that the ownership details (e.g., individual, joint, trust) are identical on both accounts. The names, addresses, and Social Security numbers (or Tax ID numbers) must match perfectly. Even a slight discrepancy can lead to delays.
Sub-heading 1.2: Settle Up and Clear Out
Outstanding Balances: Check your Robinhood account for any outstanding balances, such as margin debits or unsettled trades. All debits must be paid off before you initiate a transfer.
Pending Orders: Cancel any pending buy or sell orders in your Robinhood account. These can interfere with the transfer process.
Fractional Shares: Robinhood allows you to own fractional shares. However, ACATS generally only transfers full shares. Any fractional shares in your Robinhood account will typically be liquidated (sold) and the cash proceeds transferred to Merrill Edge. Be aware of this and consider if you want to sell them yourself beforehand or let Robinhood handle it during the transfer.
Cryptocurrency: It's critical to understand that cryptocurrency held on Robinhood cannot be directly transferred to Merrill Edge via ACATS. Merrill Edge does not currently support direct cryptocurrency holdings. If you have crypto on Robinhood, you will need to sell it and transfer the cash, or transfer it to a crypto-specific wallet/exchange if you wish to retain it as crypto.
Options Contracts: Ensure any options contracts are settled or closed. Complex options strategies might not transfer seamlessly or may require special handling. It's best to consult with Merrill Edge regarding specific options positions.
Securities Lending Programs: If you're enrolled in Robinhood's Securities Lending program, you must opt out before initiating the transfer. It can take a few business days for this change to process.
Sub-heading 1.3: Note Down Key Information
Robinhood Account Number: You'll need your Robinhood account number. You can usually find this by logging into your Robinhood account and navigating to your account settings or statements.
Merrill Edge Account Number: Have your new or existing Merrill Edge account number readily available.
List of Holdings (Optional but Recommended): While a full account transfer won't require you to list every stock, it's a good practice to have a personal record of all your holdings (stock symbols, number of shares) in your Robinhood account. This will help you verify everything once the transfer is complete.
Sub-heading 1.4: Check for Fees
Robinhood's Outgoing Transfer Fee: Be aware that Robinhood typically charges a fee for outgoing ACATS transfers. As of my last update, this fee is $100 for a full account transfer. This fee will be deducted from your cash balance in Robinhood. If you don't have sufficient cash, fractional shares or even full shares may be sold to cover the fee.
Merrill Edge Reimbursement: Merrill Edge sometimes offers transfer bonuses or reimbursements for transfer fees, especially for larger account transfers. It's highly recommended to contact Merrill Edge's customer service or your Merrill Edge financial advisor before initiating the transfer to inquire about any potential transfer fee reimbursements or promotional offers. This could save you a significant amount!
Step 2: Initiating the Transfer - Merrill Edge Takes the Lead!
The Automated Customer Account Transfer Service (ACATS) is designed to be initiated by the receiving brokerage (Merrill Edge in this case). This streamlines the process and ensures all necessary paperwork is handled correctly.
Sub-heading 2.1: Log in to Merrill Edge and Find the Transfer Section
Online Portal: Go to the Merrill Edge website and log in to your account.
Navigate to Transfers: Look for a section related to "Transfers," "Move Assets," "Fund Account," or "Account Management." This is usually found in the main navigation menu or within your account dashboard.
Sub-heading 2.2: Select "Transfer an Account from Another Institution"
Initiate ACATS: You'll typically find an option to "Transfer an account from another financial institution" or something similar. Select this option.
Choose Robinhood: You will then be prompted to select the institution you are transferring from. Find and select "Robinhood."
Sub-heading 2.3: Complete the Online Transfer Form (ACATS Form)
Electronic Form: Merrill Edge will provide an electronic ACATS form for you to fill out.
Input Robinhood Account Details: Carefully enter your Robinhood account number. Double-check for accuracy!
Select Transfer Type: You'll generally have two options:
Full Transfer: This is the most common and generally recommended option, where all your eligible assets (full shares, cash) are transferred. Fractional shares will be liquidated.
Partial Transfer: This allows you to select specific securities to transfer. If you choose this, you'll need to specify the stock symbols and quantities you wish to move. Be aware that partial transfers can sometimes take longer and may incur the same fee as a full transfer from Robinhood.
Account Verification: You may be asked to upload a recent statement from your Robinhood account to help Merrill Edge verify your holdings and account information. Having this ready from Step 1 is a huge advantage!
Review and Authorize: Carefully review all the information you've entered. Any errors can cause delays or rejections. Once satisfied, electronically sign and submit the transfer request.
Sub-heading 2.4: What Happens Behind the Scenes
Merrill Edge Contacts Robinhood: Once you submit the form, Merrill Edge will initiate the ACATS request with Robinhood.
Robinhood's Role: Robinhood will review the request, deduct any applicable fees, liquidate fractional shares, and prepare your eligible assets for transfer.
Step 3: The Waiting Game - Patience is a Virtue!
Once you've submitted your transfer request, it's a matter of waiting for the ACATS system to do its work.
Sub-heading 3.1: Monitor the Transfer Status
Merrill Edge Tracking: Merrill Edge usually provides an online tool or section where you can track the status of your transfer. Log in regularly to check for updates.
Email Notifications: You may also receive email notifications from Merrill Edge regarding the progress of your transfer.
Communication is Key: If you notice any unusual delays or if the status hasn't changed for a prolonged period (more than a few business days), don't hesitate to contact Merrill Edge's customer service.
Sub-heading 3.2: Typical Transfer Timeframes
ACATS Standard: Full ACATS transfers typically take 5-7 business days to complete. Partial transfers might sometimes be quicker (3-5 business days) but can also face unique delays depending on the complexity.
"In Transit" Period: During this period, your assets will be "in transit" and temporarily unavailable for trading at either Robinhood or Merrill Edge. Do not attempt to trade these securities during this time.
Sub-heading 3.3: Potential Roadblocks and How to Address Them
Mismatched Information: The most common reason for a rejected transfer is mismatched account information. If your transfer is rejected, Merrill Edge will usually inform you of the reason. Carefully correct any discrepancies and re-submit the request.
Unsettled Activity: Make sure all trades have settled and there are no pending transactions in your Robinhood account.
Insufficient Funds for Fees: If Robinhood attempts to deduct the transfer fee and your cash balance is insufficient, it can delay or reject the transfer. Ensure you have enough cash or are prepared for fractional share liquidation.
Unsupported Securities: While rare for common stocks and ETFs, if you hold very niche or illiquid securities in Robinhood, Merrill Edge might not support them. In such cases, these specific securities might not transfer and could remain in your Robinhood account or be sold.
Step 4: Verification and Confirmation - The Final Check!
Once the transfer status shows as complete, it's time for your final, crucial check.
Sub-heading 4.1: Confirm Your Assets at Merrill Edge
Log in to Merrill Edge: Access your Merrill Edge account.
Verify Holdings: Go to your portfolio or holdings section. Carefully compare the list of transferred securities and their quantities with the personal record you made in Step 1.3.
Check Cash Balance: Ensure any cash from liquidated fractional shares or your existing cash balance from Robinhood has arrived.
Cost Basis: It's important to note that cost basis information might take an additional week or two to transfer after your securities arrive. Until then, your Merrill Edge account might show an "unknown" or $0 cost basis. This is normal, but keep an eye on it to ensure it updates correctly for tax purposes. If it doesn't update within a few weeks, contact Merrill Edge.
Sub-heading 4.2: Close Your Robinhood Account (Optional)
Zero Balance: Once you've confirmed everything has successfully transferred to Merrill Edge, your Robinhood account should ideally have a zero balance.
Contact Robinhood (Optional): If you wish to completely close your Robinhood account, you might need to contact their customer support to formally close it. Otherwise, if it has a zero balance and no activity, it will likely remain open but dormant.
Congratulations! You've successfully transferred your stocks from Robinhood to Merrill Edge. Enjoy the new capabilities and resources that Merrill Edge offers for your investment journey.
Frequently Asked Questions (FAQs)
How to initiate a stock transfer from Robinhood to Merrill Edge?
You initiate the transfer by contacting Merrill Edge (the receiving brokerage) and filling out their online ACATS transfer form, providing your Robinhood account details.
How to check the status of my stock transfer to Merrill Edge?
Merrill Edge typically provides an online status tracker within your account portal. You may also receive email updates regarding the transfer's progress.
How to handle fractional shares when transferring from Robinhood?
Fractional shares generally cannot be directly transferred via ACATS. Robinhood will typically liquidate (sell) your fractional shares, and the cash proceeds will be transferred to Merrill Edge.
How to transfer a Roth IRA from Robinhood to Merrill Edge?
The process is the same as transferring a taxable brokerage account, but you must ensure you are transferring from a Robinhood Roth IRA to a Merrill Edge Roth IRA to maintain its tax-advantaged status.
How to find my Robinhood account number for the transfer?
You can usually find your Robinhood account number by logging into your Robinhood app or website and navigating to your account settings or statements.
How to avoid fees when transferring stocks from Robinhood?
Robinhood typically charges a $100 fee for outgoing ACATS transfers. While you cannot avoid this fee from Robinhood, Merrill Edge may offer to reimburse transfer fees for qualifying transfers. It's crucial to inquire about this with Merrill Edge before initiating the transfer.
How long does it take to transfer stocks from Robinhood to Merrill Edge?
A full ACATS transfer generally takes 5-7 business days to complete, though partial transfers can sometimes be quicker or have varied timelines.
How to transfer cryptocurrency from Robinhood to Merrill Edge?
You cannot directly transfer cryptocurrency from Robinhood to Merrill Edge via ACATS, as Merrill Edge does not support direct crypto holdings. You will need to sell your crypto on Robinhood and transfer the cash, or transfer it to another crypto platform.
How to ensure my cost basis transfers correctly to Merrill Edge?
While your securities will transfer, the cost basis information might take an additional 1-2 weeks to populate in your Merrill Edge account. It's important to keep your Robinhood statements for your records. If the cost basis doesn't appear after a few weeks, contact Merrill Edge customer service.
How to contact Merrill Edge customer service for transfer assistance?
You can typically find Merrill Edge's customer service contact information on their website. For Self-Directed Investing, a common number is 1.877.653.4732.
