So, you're looking to move your investments from Morgan Stanley to Robinhood? Perhaps you're drawn to Robinhood's commission-free trading, user-friendly interface, or just want to consolidate your holdings. Whatever your reason, transferring stocks between brokerages is a common process, and with the right steps, it can be quite straightforward.
Let's dive into exactly how you can make this happen!
The Grand Migration: Transferring Stocks from Morgan Stanley to Robinhood
Transferring stocks typically happens through a system called the Automated Customer Account Transfer Service (ACATS). This standardized system streamlines the process between brokerage firms. It's designed to be efficient, but it does require your attention to detail.
Step 1: Prepare for Your Epic Transfer!
Alright, before we embark on this exciting journey of moving your assets, let's make sure you're fully prepared. Think of this as gathering your provisions and packing your bags for a smooth transition.
Sub-heading 1.1: Open and Fund Your Robinhood Account (If You Haven't Already!)
This is your crucial first step! If you don't already have an active Robinhood account, you'll need to open one. Make sure the account type you open at Robinhood matches your Morgan Stanley account. For example, if you have a taxable brokerage account at Morgan Stanley, open a taxable brokerage account at Robinhood. If it's an IRA, open an IRA. Mismatched account types will cause delays or rejections.
Once your Robinhood account is open, it's generally a good idea to partially fund it with a small amount of cash. While not always strictly necessary for an ACATS transfer, having some cash on hand can help cover any potential transfer fees from Morgan Stanley (more on that later!) or allow for immediate trading once your assets arrive.
Sub-heading 1.2: Gather Your Morgan Stanley Account Information
You'll need specific details from your Morgan Stanley account to initiate the transfer. Have these readily available:
- Your Morgan Stanley account number(s).
- The exact account title(s) as they appear on your Morgan Stanley statements (e.g., your full name, or the names of all account holders for a joint account).
- Your Social Security Number (SSN) or Taxpayer Identification Number (TIN). This needs to precisely match the SSN/TIN on your Robinhood account. Any discrepancy can lead to transfer rejections.
Sub-heading 1.3: Review Your Morgan Stanley Holdings
Before initiating the transfer, take a thorough look at your Morgan Stanley portfolio.
- Identify what you want to transfer. Are you transferring your entire account (a full ACATS transfer) or just specific stocks (a partial ACATS transfer)?
- Check for ineligible assets. Not all assets can be transferred via ACATS. Common exclusions include:
- Fractional shares: Robinhood supports fractional shares, but Morgan Stanley might liquidate them during a transfer. It's best to sell any fractional shares in Morgan Stanley before initiating the transfer to avoid forced liquidation.
- Proprietary mutual funds or investments: Some brokerages have their own unique investment products that cannot be transferred to other firms.
- Certain alternative investments: Complex assets like private equity or hedge fund investments typically can't be transferred via ACATS.
- Options contracts expiring within 7 days: Robinhood generally won't accept options contracts with very near expiration dates.
- Address any outstanding issues. This includes:
- Margin calls: Clear any outstanding margin balances at Morgan Stanley.
- Pending trades: Ensure all trades have settled before initiating the transfer.
- Unsettled funds: Wait for any recent deposits or withdrawals to fully clear.
Sub-heading 1.4: Understand Potential Fees
Forewarned is forearmed! Morgan Stanley charges a fee for outgoing ACATS transfers. As of my last update, Morgan Stanley charges $95 for an ACATS transfer. Robinhood does not charge a fee for incoming ACATS transfers. However, be aware that Robinhood does charge a $100 fee for outgoing ACATS transfers should you decide to move assets out of Robinhood in the future.
Step 2: Initiate the Transfer from Robinhood's Side
This is where the actual transfer process begins. Unlike some other transfers, you initiate an ACATS transfer from the receiving brokerage (Robinhood in this case).
Sub-heading 2.1: Log into Your Robinhood Account
Open your Robinhood app or log in to their website.
Sub-heading 2.2: Navigate to the Account Transfer Section
Look for a section related to "Transfers" or "Account Transfer" within your Robinhood account. This is usually found under your profile or account settings. The exact path might vary slightly with app updates, but it's typically straightforward to locate.
Sub-heading 2.3: Select "Transfer Stocks into Robinhood" or Similar
You'll be prompted to indicate that you want to transfer assets into your Robinhood account from an external brokerage.
Sub-heading 2.4: Fill Out the ACATS Transfer Form
This is the core of the initiation process. You'll need to accurately provide the information you gathered in Step 1.2:
- Select Morgan Stanley as the "old" or "delivering" brokerage.
- Enter your Morgan Stanley account number.
- Enter the exact account title as it appears on your Morgan Stanley statement.
- Specify the transfer type:
- Choose "Full Account Transfer" if you want to move everything.
- Choose "Partial Account Transfer" if you only want to move specific securities. If opting for a partial transfer, you'll likely need to list the exact stock symbols and quantities you wish to transfer. Double-check for accuracy!
- Confirm your personal information (SSN/TIN, name, address) matches both accounts.
Sub-heading 2.5: Electronically Sign and Submit
Once you've filled out all the required fields, you'll typically be asked to electronically sign the transfer form. Review all the information carefully before submitting. An error here can lead to rejections and delays.
Step 3: The Waiting Game (and What Happens Behind the Scenes)
Once you submit your request, Robinhood will take over the heavy lifting, initiating the ACATS transfer with Morgan Stanley.
Sub-heading 3.1: Robinhood Contacts Morgan Stanley
Robinhood's clearing firm (Robinhood Securities) will send the ACATS transfer request to Morgan Stanley.
Sub-heading 3.2: Morgan Stanley Verifies and Processes
Morgan Stanley will then verify the information on the transfer request against their records. This includes:
- Matching account details: Ensuring your name, SSN/TIN, and account number at Morgan Stanley match the request from Robinhood.
- Checking for ineligible assets: They will identify any assets that cannot be transferred via ACATS and may liquidate them or leave them behind.
- Assessing fees: They will check for any outstanding fees and apply their outgoing ACATS transfer fee.
Sub-heading 3.3: The Transfer Period
ACATS transfers typically take 5-7 business days to complete from the time Robinhood receives the request. During this period:
- Your assets will be temporarily inaccessible for trading at both Morgan Stanley and Robinhood.
- Morgan Stanley will likely "freeze" your account or the assets being transferred to prevent any new trading activity that could complicate the transfer.
Sub-heading 3.4: Cost Basis Information
After the assets have settled in your Robinhood account, Morgan Stanley has up to 15 calendar days to send the cost basis information for your transferred securities. Until Robinhood receives this, your average cost and total return values for those holdings will temporarily not appear in your Robinhood account. Don't worry, they will update once the data is received.
Step 4: Verify Your New Robinhood Portfolio
Once you receive notification that the transfer is complete, it's time for some diligent checking!
Sub-heading 4.1: Confirm All Assets Have Arrived
Log into your Robinhood account and meticulously compare your new holdings against the records of what you intended to transfer from Morgan Stanley.
- Check stock symbols and quantities.
- Verify cash balances.
- Look for any missing assets.
Sub-heading 4.2: Address Any Discrepancies
If anything looks amiss, don't hesitate to act!
- Contact Robinhood's customer support immediately. Provide them with all the details of the discrepancy.
- They will investigate and communicate with Morgan Stanley to resolve any issues.
Sub-heading 4.3: Residual Transfers
Sometimes, after the main transfer is complete, small amounts of cash from dividends or other distributions might arrive at Morgan Stanley too late for the initial transfer. These "residual transfers" or "sweeps" can continue to come into your Robinhood account for up to six months after the initial transfer. Keep an eye out for these!
10 Related FAQ Questions
Here are some common questions you might have about transferring stocks from Morgan Stanley to Robinhood:
How to check the status of my stock transfer?
You can typically check the status of your ACATS transfer directly within your Robinhood account under the "Transfers" or "History" section. Robinhood will also usually send email notifications as the transfer progresses. If you have any concerns, contact Robinhood's customer support.
How to transfer only specific stocks from Morgan Stanley to Robinhood?
When initiating the ACATS transfer on Robinhood's platform, you will have the option to select a "Partial Account Transfer." This will allow you to specify which stocks and the exact quantities you wish to move.
How to deal with fractional shares during the transfer?
Robinhood generally does not accept fractional shares during an ACATS transfer. It's highly recommended to sell any fractional shares in your Morgan Stanley account before initiating the transfer. The cash proceeds will then either be transferred with your other assets or you can withdraw them separately.
How to transfer an IRA or other retirement account?
The process is similar to a taxable account transfer, but you must ensure you open an IRA (e.g., Traditional IRA, Roth IRA) at Robinhood that matches the IRA type at Morgan Stanley. Mismatched account types will cause the transfer to be rejected. This is considered a direct rollover and is generally not a taxable event.
How to contact Robinhood customer service for transfer issues?
You can contact Robinhood customer support through their in-app chat, email, or by visiting their support center on their website. Look for "Help" or "Support" within the app or on the Robinhood website.
How to avoid transfer fees from Morgan Stanley?
Unfortunately, Morgan Stanley generally charges a $95 fee for outgoing ACATS transfers, and this fee is typically unavoidable if you are initiating a transfer out of their platform. Some receiving brokers might offer reimbursement for transfer fees if your account meets certain criteria (e.g., a minimum transfer amount), but Robinhood does not currently offer this for incoming transfers.
How to ensure my cost basis transfers correctly?
While Robinhood requests cost basis information from Morgan Stanley automatically, it can take up to 15 calendar days after the assets settle for this data to appear in your Robinhood account. Keep your old Morgan Stanley statements as a personal record to verify accuracy. If the cost basis doesn't appear after a reasonable time, contact Robinhood support.
How long does a stock transfer from Morgan Stanley to Robinhood take?
An ACATS transfer from Morgan Stanley to Robinhood typically takes 5-7 business days once Robinhood has submitted the request to Morgan Stanley. This timeframe can be longer if there are discrepancies or issues with the account information.
How to transfer options contracts from Morgan Stanley to Robinhood?
You can generally transfer options contracts, but you need to be approved for the applicable level of options trading on Robinhood before initiating the transfer. Robinhood typically does not accept options contracts expiring within 7 days.
How to transfer restricted stock units (RSUs) from Morgan Stanley StockPlan Connect?
Transferring RSUs often requires an initial step of moving them from your Morgan Stanley StockPlan Connect account to a regular Morgan Stanley brokerage account. Once they are in a standard brokerage account, you can then initiate the ACATS transfer to Robinhood as described above. It's best to consult with Morgan Stanley regarding specific RSU transfer procedures, as they can sometimes have unique rules or vesting schedules.
