Hello there! Thinking of making the switch from Robinhood to Vanguard? That's a great step in your financial journey. Moving your investments from one brokerage to another can seem like a daunting task, but with a clear plan, it's a smooth and straightforward process. Let's get you started on the right foot.
Step 1: Get Your Ducks in a Row (and Engage!)
Before we dive into the nitty-gritty, let's make sure you're ready. Think of this as prepping for a big trip. What do you need to pack?
First, do you know why you're making this switch? Is it for Vanguard's low-cost index funds, their long-term investment philosophy, or something else entirely? Having a clear goal will help you stay focused throughout the transfer.
Now, let's gather your essential documents. This is like your passport and tickets. You'll need:
Your Robinhood account number. You can find this in the app under Account -> Investing.
A recent Robinhood account statement (dated within the last 90 days). This is a crucial document for Vanguard to verify your holdings.
Your Social Security number and other personal information.
A clear understanding of what you want to transfer: everything (a "full transfer") or just some of your holdings (a "partial transfer").
Got all that? Excellent. You're ready to start the journey.
Step 2: Open Your New Vanguard Account
The receiving brokerage, which is Vanguard in this case, will initiate the transfer. So, your first active step is to set up a new account with them.
Choose the Right Account Type:
If you're transferring a Robinhood Individual Taxable account, you'll need to open a Vanguard Individual Brokerage account.
If you have a Robinhood IRA, you'll need to open a corresponding IRA (Traditional or Roth) at Vanguard. It's crucial that the account types match. Transferring a taxable account to an IRA, or vice-versa, can have significant tax implications.
The Online Application: Visit the Vanguard website and select "Open an Account." You'll be guided through a simple online process. You can choose to open a new account and initiate the transfer within the same application.
Fund the Account (Temporarily): While you don't need to add a lot of money to the Vanguard account to start the transfer, you'll need to have enough cash to cover any potential transfer fees. Robinhood charges a $100 fee for a full ACATS transfer. It's a good idea to have at least that much in your Robinhood account's cash balance. We'll talk more about this fee later.
Step 3: Initiate the Transfer (The Automated Way)
This is where the magic of the Automated Customer Account Transfer Service (ACATS) comes in. ACATS is the industry-standard system that facilitates the seamless transfer of securities and cash between brokerage firms.
Find the Transfer Form: On Vanguard's website, after you've opened your account, look for the "Transfer an account" or "Transfer assets" section. You'll be asked to provide information about your Robinhood account.
The Crucial Details: You'll need to enter your Robinhood account number, select "Robinhood" as the delivering firm, and specify whether you want a full or partial transfer. Be precise with your information. Any mismatch in names, addresses, or account numbers can delay or even reject the transfer.
Submit and Authorize: Once you've filled out the form, you'll review and electronically sign it. By doing so, you're authorizing Vanguard to act on your behalf and contact Robinhood to initiate the transfer.
Step 4: The Waiting Game (and What to Expect)
After you submit the transfer request, it's time to be patient.
The ACATS Process: Vanguard will submit your request to Robinhood through the ACATS system. Robinhood will then review the request.
Holds and Restrictions: During a full ACATS transfer, Robinhood will place a temporary hold on your account. You won't be able to trade, deposit, or withdraw funds. This is normal and prevents any changes to your portfolio while it's being transferred.
Transfer Timeline: A standard ACATS transfer typically takes 5 to 7 business days to complete. However, it can take longer, especially if there are any discrepancies in your information or if your account has non-transferable assets.
Tracking Your Transfer: Vanguard will keep you updated on the progress of your transfer. You can often track the status online through your new Vanguard account.
Step 5: Handle the Non-Transferable Assets
This is a critical step that requires your attention. Not all assets are created equal, and some things in your Robinhood account simply won't transfer "in kind" to Vanguard.
Fractional Shares: Robinhood allows you to buy fractional shares of stocks and ETFs. Vanguard, like many other brokerages, does not accept fractional shares through an ACATS transfer. During a full transfer, Robinhood will automatically sell any fractional shares you hold, and the resulting cash will be transferred to your Vanguard account. This is a key difference and something to be aware of.
Cryptocurrency: Your cryptocurrency holdings on Robinhood are held in a separate account and cannot be transferred to Vanguard. You'll need to either sell your crypto holdings and transfer the cash, or keep your Robinhood Crypto account open to manage them.
Options and Futures: Options contracts with less than 7 business days to expiration won't transfer. Futures positions cannot be transferred at all and must be liquidated.
The Robinhood Fee: Robinhood will charge you a $100 transfer fee for a full ACATS transfer. This fee will be debited from your Robinhood account's available cash balance. If you don't have enough cash, the transfer could be delayed. Some brokerage firms, including Vanguard, may offer to reimburse this fee, so be sure to check with them after the transfer is complete and provide proof of the charge.
Step 6: Confirm and Reinvest
Once the transfer is complete, it's time to check your new Vanguard account.
Verify Your Holdings: Compare the list of transferred securities and their quantities in your Vanguard account against your final Robinhood statement.
Check Cost Basis: Robinhood is supposed to send the cost basis information to Vanguard. This is crucial for tax purposes. It can take up to 15 calendar days for Vanguard to receive and update this information. If you notice it's missing, you may need to contact Vanguard or Robinhood to ensure it's sent.
Reinvest the Cash: Any cash from the sale of fractional shares or other non-transferable assets will be in your Vanguard account. Now is the perfect time to use that cash to buy Vanguard's low-cost ETFs or mutual funds, aligning your portfolio with your new brokerage's offerings.
10 Related FAQs
How to transfer an IRA from Robinhood to Vanguard?
To transfer an IRA, you need to open a corresponding IRA account (Traditional or Roth) at Vanguard and initiate an ACATS transfer. The account types must match to avoid tax penalties.
How to transfer partial shares from Robinhood?
You cannot transfer partial shares from Robinhood via an ACATS transfer. Robinhood will liquidate (sell) your fractional shares, and the cash will be transferred to your Vanguard account.
How to avoid the Robinhood transfer fee?
Robinhood charges a $100 fee for a full account transfer. While you can't avoid the fee from Robinhood, Vanguard may offer to reimburse it if you meet certain criteria. Check with Vanguard's customer support for their fee reimbursement policy.
How to track the transfer from Robinhood to Vanguard?
After initiating the transfer with Vanguard, you can usually track its progress online through your Vanguard account's transfer status page.
How to handle cryptocurrency in my Robinhood account?
Cryptocurrency is not transferable through ACATS. You will need to sell your crypto holdings in Robinhood and transfer the resulting cash, or keep your Robinhood Crypto account open.
How to transfer my cost basis information?
Robinhood is required to provide your cost basis information to Vanguard. This typically happens automatically after the transfer is complete, but it can take up to 15 days. If it's missing, contact Vanguard.
How to transfer only some of my stocks (partial transfer)?
During the Vanguard transfer initiation process, you can select the "partial transfer" option and specify which securities you want to move.
How long does it take to transfer from Robinhood to Vanguard?
A full ACATS transfer typically takes 5 to 7 business days. However, it can be delayed if there are issues with your information or non-transferable assets.
How to transfer options contracts?
Options contracts that are not expiring within 7 business days can be transferred. If they are close to expiration, they will be liquidated.
How to make sure my information is correct for the transfer?
Double-check that the name, address, and Social Security number on your new Vanguard account exactly match the information on your Robinhood account. This is the most common reason for transfer delays.