Ready to make a smart move with your investments? Transferring your brokerage account from Charles Schwab to E*TRADE might seem like a daunting task, but with a clear, step-by-step guide, it's a straightforward process. This comprehensive post will walk you through everything you need to know to ensure a smooth transition.
Let's get started, shall we?
Understanding the Transfer Process: ACATS at Your Service
The primary method for transferring investment accounts between brokerage firms in the U.S. is the Automated Customer Account Transfer Service (ACATS). This system allows you to move your assets "in-kind," meaning your stocks, ETFs, mutual funds, and other eligible investments are transferred as they are, without needing to be sold and repurchased. This is crucial for avoiding potential tax implications that could arise from selling your holdings.
There are two main types of ACATS transfers:
- Full Transfer: This moves all assets and cash from your Charles Schwab account to your E*TRADE account, effectively closing your Schwab account.
- Partial Transfer: This allows you to select specific securities or cash to move, leaving the rest of your assets at Charles Schwab.
For most individuals, a full transfer is the most common and often the simplest approach for consolidating accounts.
 |
| How To Transfer From Charles Schwab To Etrade |
Step 1: Are You Ready for a Change? What to Consider First
Before you even think about hitting the "transfer" button, let's take a moment to consider why you're making this move and what to expect.
A. Define Your Reasons for Transferring
- Better Features/Tools: Is E*TRADE offering a platform that aligns better with your trading style or investment goals? Do they have research tools, charting capabilities, or mobile app features that appeal more to you?
- Lower Fees: While both Charles Schwab and E*TRADE generally offer commission-free trading for stocks and ETFs, there might be differences in fees for mutual funds, options contracts, or account maintenance.
- Account Consolidation: Do you have multiple accounts scattered across different institutions and want to simplify your financial life by bringing them all under one roof at E*TRADE?
- Customer Service: Have you had a less-than-ideal experience with Charles Schwab's customer service and are hoping for a more responsive or helpful experience with E*TRADE?
- Specific Investment Offerings: Does E*TRADE offer specific investment products or types of accounts that Charles Schwab does not, or at a more favorable rate?
B. Understand Potential Implications
- Transfer Fees: Charles Schwab typically charges a fee for a full account transfer (often around $50-$75). ETRADE may offer to reimburse this fee, especially for larger transfers. Always confirm this with ETRADE before initiating the transfer.
- Untransferable Assets: Not all assets are transferable in-kind. This can include:
- Fractional Shares: These are usually sold by the originating broker, and the cash proceeds are transferred.
- Proprietary Mutual Funds: If Schwab offers mutual funds that are exclusive to their platform, E*TRADE might not support them. You'll likely need to sell these before transferring or leave them at Schwab.
- Certain Options Contracts: Options nearing expiration or complex strategies might not be transferable.
- Alternative Investments: Less liquid or niche investments might not be supported by E*TRADE.
- Trading Freeze: During the transfer process, your Charles Schwab account will typically be frozen, meaning you cannot place any trades. Plan accordingly, especially if you actively trade.
- Timeline: An ACATS transfer usually takes 3 to 10 business days to complete, though it can sometimes take longer depending on the complexity of your account and the responsiveness of both firms.
Step 2: Preparing for the Transfer – Gather Your Essentials
This is where organization is key. Having all your ducks in a row before you start will significantly speed up the process and reduce potential hiccups.
QuickTip: Keep going — the next point may connect.
A. Gather Charles Schwab Account Information
You'll need specific details from your Charles Schwab account. Have these readily available:
- Full Account Number: Double-check this for accuracy.
- Account Type: Is it a brokerage account, Traditional IRA, Roth IRA, Joint account, Trust account, etc.? Ensure the account type at E*TRADE will match the account type you're transferring from Schwab. Transfers between like account types (e.g., Traditional IRA to Traditional IRA) are generally the smoothest.
- Account Statement: Have a recent statement (dated within the last 90 days) handy. This provides a clear snapshot of your holdings and account details, and E*TRADE may request a copy.
- Login Credentials: You'll need access to your Schwab account to verify information and possibly download statements.
B. Open Your E*TRADE Account (If You Haven't Already)
If you don't already have an E*TRADE account, this is your next crucial step.
- Choose the Right Account Type: Make sure the ETRADE account you open matches the type of account you're transferring from Charles Schwab. For instance, if you're moving a Traditional IRA from Schwab, open a Traditional IRA at ETRADE.
- Complete the Application: Be prepared to provide personal information such as your Social Security Number, address, employment details, and financial information.
- Fund the Account (Optional for Transfer): While you're initiating a transfer, you don't necessarily need to fund the ETRADE account with new money right away, as the transfer itself will bring your assets over. However, ETRADE might have minimum deposit requirements to activate certain features or account types.
C. Review Your Charles Schwab Holdings
Take a detailed look at the investments you hold at Charles Schwab.
- Identify Untransferable Assets: As mentioned above, identify any fractional shares, proprietary mutual funds, or other assets that might not transfer. Decide whether you want to sell these before initiating the transfer and have the cash transferred, or leave them in your Schwab account.
- Cost Basis Information: While ACATS typically transfers cost basis information, it's always a good idea to download and save your cost basis records from Charles Schwab for your own tax purposes, just in case there are any discrepancies or delays in the transfer of this data.
Step 3: Initiating the Transfer – Let E*TRADE Do the Work!
This is the most critical step, and thankfully, ETRADE makes it relatively straightforward. You will initiate the transfer from the receiving brokerage (ETRADE), not from Charles Schwab.
A. Log In to Your E*TRADE Account
Once your E*TRADE account is open and active, log in to their platform.
B. Navigate to the Transfer Section
Look for a section typically labeled "Transfer Money," "Move Assets," or "Account Transfers."
QuickTip: Look for lists — they simplify complex points.
C. Select "Transfer from Another Brokerage"
You'll usually see an option to transfer an account from another financial institution. Select this option.
D. Provide Charles Schwab Account Details
E*TRADE will guide you through a series of prompts where you'll need to input the Charles Schwab account information you gathered in Step 2. This will include:
- Charles Schwab's Name: Select "Charles Schwab" from their list of institutions.
- Your Schwab Account Number: Carefully enter this.
- Account Type: Confirm it matches your new E*TRADE account.
- Type of Transfer: Indicate whether it's a full or partial transfer. If partial, you'll usually be prompted to specify which assets you want to move.
- Authorized Signature: You'll likely need to electronically sign or provide a physical signature on a transfer initiation form (ACAT form). Ensure your signature matches the one on file with Charles Schwab.
E. Upload Supporting Documents (If Required)
E*TRADE may request a copy of your most recent Charles Schwab account statement. Have it ready to upload if prompted.
 |
F. Review and Submit
Carefully review all the information you've entered before submitting the transfer request. Any errors can cause significant delays.
Step 4: The Waiting Game – Monitoring Your Transfer
Once you've submitted the request, the ball is in the court of both Charles Schwab and E*TRADE.
A. Avoid Trading in Your Charles Schwab Account
- Important Note: Once the transfer is initiated, do not place any trades in your Charles Schwab account. Doing so can cause the transfer to be rejected or significantly delayed. If you've opted for a full transfer, your Schwab account will likely be frozen for trading.
B. Track Your Transfer Status
- ETRADE's Tracking Tools:* E*TRADE typically provides online tools or a "Transfer Tracker" where you can monitor the progress of your transfer. Check this regularly.
- Communication from ETRADE:* You may receive email updates from E*TRADE as your transfer progresses. They will inform you when the assets have arrived.
- Contact Customer Service (If Needed): If you notice an unusually long delay (beyond the estimated 3-10 business days) or if you have questions, don't hesitate to contact E*TRADE's customer service for an update. They are the ones who initiated the pull, so they are your primary point of contact.
Step 5: Post-Transfer Verification and Setup
Congratulations! Your assets have (hopefully) arrived at E*TRADE. Now it's time for some crucial final steps.
Tip: Take mental snapshots of important details.
A. Verify Transferred Assets and Cost Basis
- Cross-Reference: Compare the assets and quantities in your new E*TRADE account with your final Charles Schwab statement. Ensure everything transferred correctly.
- Check Cost Basis: It's vital to confirm that your cost basis information (the original price you paid for your investments) has transferred accurately. This is crucial for calculating capital gains or losses when you eventually sell. If there are any discrepancies, contact E*TRADE immediately with your Schwab statements as proof.
B. Set Up Your E*TRADE Account
- Link Bank Accounts: Link your external bank accounts for easy deposits and withdrawals.
- Review Account Settings: Familiarize yourself with E*TRADE's platform, update your communication preferences, and set up any desired alerts.
- Explore Tools and Features: Take the time to explore E*TRADE's trading platforms, research tools, and other features to maximize your new account.
- Close Charles Schwab Account (Optional): If you performed a full transfer, your Charles Schwab account should automatically close once all assets and any residual cash are transferred. However, it's a good practice to confirm with Charles Schwab that the account is indeed closed and there are no lingering issues.
Final Thoughts
Transferring brokerage accounts doesn't have to be a headache. By following these steps, being organized, and communicating with E*TRADE, you can ensure a smooth transition of your investments. Remember, patience is a virtue during this process, and a little preparation goes a long way!
10 Related FAQ Questions:
How to check the status of my transfer from Charles Schwab to E*TRADE?
You can typically check the status of your transfer by logging into your ETRADE account and navigating to a "Transfer Tracker" or "Account Activity" section. ETRADE will often provide real-time updates there, and you might also receive email notifications.
How to transfer an IRA from Charles Schwab to E*TRADE?
Transferring an IRA (Traditional, Roth, etc.) from Charles Schwab to ETRADE follows the same ACATS process. Ensure you open the exact same type of IRA account at ETRADE to avoid any potential tax implications.
How to transfer fractional shares from Charles Schwab to E*TRADE?
Fractional shares generally cannot be transferred in-kind via ACATS. Charles Schwab will typically sell your fractional shares, and the cash proceeds from that sale will be transferred to your E*TRADE account along with your other assets.
How to avoid transfer fees when moving from Charles Schwab to E*TRADE?
Charles Schwab usually charges a fee for a full account transfer. To potentially avoid this, inquire with E*TRADE if they offer a transfer fee reimbursement program. Many brokers will cover these fees, especially for larger account transfers, as an incentive to attract new clients.
How to transfer specific stocks from Charles Schwab to E*TRADE (partial transfer)?
To transfer specific stocks (a partial transfer), you will select the "partial transfer" option when initiating the ACATS request at E*TRADE. You'll then be prompted to specify which securities and/or cash amounts you wish to transfer.
Tip: Reading in chunks improves focus.
How to ensure my cost basis transfers correctly from Charles Schwab to E*TRADE?
While ACATS is designed to transfer cost basis information, it's always wise to download and save your transaction history and cost basis records from Charles Schwab before initiating the transfer. After the transfer is complete, meticulously check that the cost basis for all your transferred securities is accurately reflected in your ETRADE account. If not, contact ETRADE customer service with your Schwab statements.
How to handle untransferable assets when moving from Charles Schwab to E*TRADE?
For untransferable assets (like proprietary mutual funds or very illiquid securities), you have two main options: (1) Sell them before initiating the transfer and have the cash proceeds moved, or (2) Leave them in your Charles Schwab account if you intend to maintain a relationship there.
How to close my Charles Schwab account after transferring to E*TRADE?
If you perform a full ACATS transfer, your Charles Schwab account should automatically close once all assets and any residual cash have been moved. However, it's a good practice to contact Charles Schwab a few days after the transfer is complete to confirm that the account has been fully closed and there's no remaining balance or lingering administrative issues.
How long does a Charles Schwab to E*TRADE transfer typically take?
An ACATS transfer from Charles Schwab to ETRADE typically takes 3 to 10 business days from the time ETRADE initiates the request. The exact timeline can vary depending on the complexity of your account and the volume of transfers being processed by both firms.
How to manage my investments during the transfer period from Charles Schwab to E*TRADE?
During the transfer period, your Charles Schwab account will generally be frozen for trading. It's crucial to avoid placing any trades in the Schwab account once the transfer is initiated. Plan your investment activity accordingly, as you won't be able to buy or sell securities in that account until the transfer is complete and your assets are visible in your E*TRADE account.
 |
