So, you're ready to make the move from Robinhood to Charles Schwab! That's a significant step in your investing journey. Whether you're looking for a wider range of investment products, more robust research tools, or simply a different brokerage experience, transferring your stocks can seem daunting. But don't worry, it's a common process, and I'm here to walk you through it, step-by-step.
The Big Leap: Moving Your Investments from Robinhood to Charles Schwab
Transferring your investments is often a wise decision as your financial goals and needs evolve. While Robinhood gained popularity for its commission-free trading and user-friendly interface, many investors eventually seek out a more established brokerage like Charles Schwab for their comprehensive offerings, extensive research, and broader support for complex investment strategies. The good news is that the Automated Customer Account Transfer Service (ACATS) system makes this process relatively smooth.
Let's dive into the details!
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| How To Transfer Stocks From Robinhood To Charles Schwab |
Step 1: Are You Ready to Make the Move? Prepare Your Robinhood Account
Before you even think about opening a Schwab account, you need to ensure your Robinhood account is in tip-top shape for a transfer. This initial preparation is crucial to avoid delays and potential headaches down the line.
Sub-heading: Check Your Robinhood Account Status
- No Negative Balances: Ensure you don't have any negative cash balances in your Robinhood account. If you do, deposit funds to cover them. A negative balance will halt your transfer.
- Account Restrictions: Are there any restrictions on your Robinhood account? This could be anything from a recent address change to an unverified identity. Resolve any such issues before initiating the transfer.
- Pending Trades: All trades in your Robinhood account must be settled. This typically takes 2 business days after a trade is executed (T+2). Don't initiate a transfer if you have pending buy or sell orders.
- Know Your Account Number and DTC Number: You'll need these crucial pieces of information for Schwab to initiate the transfer.
- Robinhood Account Number: You can typically find this in the Robinhood app by going to your "Account" section and then "Investing." It's usually near the top.
- Robinhood's DTC Number: This is 6769. This is a standard identification number for Robinhood Securities (RHS) within the ACATS system.
Sub-heading: Understand What Can and Cannot Be Transferred
Not everything in your Robinhood account might make the journey to Charles Schwab seamlessly.
- Whole Shares Only: Robinhood allows fractional shares, but generally, only whole shares of securities can be transferred via ACATS. If you have fractional shares in Robinhood, they will typically be liquidated (sold) during a full ACATS transfer, and the cash proceeds will be transferred to Schwab. For partial transfers, fractional shares will remain in your Robinhood account.
- Options Contracts: Options contracts can often be transferred, but there might be specific conditions, such as the contract not expiring within a very short timeframe (e.g., 7 days). Schwab will also need to approve you for options trading at the same or higher level as your Robinhood account.
- Cryptocurrency: Crucially, cryptocurrency cannot be transferred from Robinhood to Charles Schwab via ACATS. Charles Schwab does not currently support direct spot cryptocurrency trading. If you hold crypto in Robinhood, it will be liquidated during a full ACATS transfer, and the cash proceeds will be sent to Schwab. If you wish to keep your crypto, you'll need to transfer it to a crypto-specific wallet or exchange first, or initiate a partial transfer and leave your crypto in Robinhood.
- Margin Balances: If you have a margin account with Robinhood, your margin balance can be transferred, but your Schwab account will also need to be margin-enabled and support the transferred balance to avoid margin calls.
- Unsupported Assets: If you hold any obscure or illiquid assets in Robinhood that Schwab doesn't support (e.g., certain OTC equities), those assets may be liquidated or rejected.
Sub-heading: Be Aware of Robinhood's Transfer Fee
Robinhood charges a $100 fee for both full and partial ACATS transfers out of their platform. This fee will be debited from your Robinhood account's available cash balance. It's a good idea to have at least $100 in cash in your Robinhood account to cover this fee.
Step 2: Welcome Aboard! Open Your Charles Schwab Account
This is where you set up your new home for your investments.
QuickTip: Stop scrolling if you find value.
Sub-heading: Choose the Right Account Type
Charles Schwab offers a wide range of account types. Make sure you open the corresponding account type to your Robinhood account for a smooth transfer. For example, if you have an Individual Brokerage Account at Robinhood, open an Individual Brokerage Account at Schwab. Similarly for IRAs (Traditional, Roth, Rollover, etc.).
- Individual Brokerage Account: Most common for taxable investments.
- IRA (Individual Retirement Account): For retirement savings (Traditional, Roth, SEP IRA, etc.).
- Joint Account: For accounts shared with another individual.
- Custodial Account (UGMA/UTMA): For minors.
Sub-heading: Gather Necessary Information for Schwab
When opening your Schwab account, you'll typically need:
- Personal Information: Your Social Security Number (SSN), date of birth, address, employment information.
- Bank Account Information: For initial funding or future cash transfers (though not strictly necessary for the ACATS transfer itself).
- Beneficiary Information: If opening a retirement account.
Sub-heading: Consider Any Schwab Promotions
Charles Schwab often offers bonuses for transferring assets to their platform, especially for larger account sizes. These can range from a cash bonus to free trades or other perks. Check their current promotions on their website or by speaking with a Schwab representative before you initiate the transfer. Sometimes these offers require a specific referral code or a minimum transfer amount.
Step 3: The Request! Initiate the ACATS Transfer at Charles Schwab
This is the most critical step, as Schwab will "pull" your assets from Robinhood using the ACATS system. You do not initiate the transfer from Robinhood's side.
Sub-heading: Online Transfer or Paper Form?
Charles Schwab typically allows you to initiate an ACATS transfer online.
- Online: Log in to your new Charles Schwab account. Look for a section related to "Transfers & Payments" or "Move Money." You'll usually find an option to "Transfer an External Account" or "Transfer My Account to Schwab."
- Paper Form: If you prefer, or if your specific transfer scenario is complex, you can download and fill out the "Transfer Your Account to Schwab" form from their website.
Sub-heading: Provide Robinhood Account Details
When initiating the transfer, you will need to provide:
Tip: Read once for gist, twice for details.
- Robinhood Securities (RHS) as the "Delivering Firm": Select Robinhood from their list of brokerages.
- Your Robinhood Account Number: The one you noted in Step 1.
- Type of Transfer:
- Full Transfer: This moves all eligible assets and closes your Robinhood account. This is usually the simplest option if you intend to fully switch.
- Partial Transfer: This moves only specific securities or a portion of your cash, leaving your Robinhood account open. Remember the limitations on fractional shares and crypto with partial transfers.
- Matching Account Information: Crucially, the name(s) on your Robinhood account must exactly match the name(s) on your new Charles Schwab account. Even a minor discrepancy can cause delays or rejection of the transfer. If names don't match (e.g., due to marriage, divorce, or a typo), you may need to provide additional documentation like a marriage certificate or court order.
- Attach Your Most Recent Robinhood Statement: Schwab will typically require a copy of your most recent Robinhood account statement (dated within 90 days). This helps them verify your holdings and account details.
Sub-heading: Review and Confirm
Carefully review all the information you've entered. A small error can significantly delay the transfer. Once you're confident, submit the transfer request.
Step 4: The Waiting Game... What Happens During the Transfer Process
Once Schwab initiates the ACATS transfer, it becomes a largely automated process behind the scenes.
Sub-heading: Robinhood's Role in the Transfer
- Account Hold: If you requested a full ACATS transfer, Robinhood will place your account on hold. This means you won't be able to buy or sell securities, deposit or withdraw cash, or enter new orders for the assets being transferred. This is to ensure a smooth transfer and prevent activity that could disrupt it.
- Liquidation of Ineligible Assets: As mentioned, fractional shares and crypto (for full transfers) will be liquidated.
- Fee Debit: The $100 ACATS fee will be debited from your Robinhood cash balance. If you don't have sufficient cash, this can delay the transfer.
Sub-heading: Schwab's Role and Communication
- Processing the Request: Schwab will process the request and communicate with Robinhood's clearing firm (Robinhood Securities).
- Status Updates: Schwab will typically provide updates on the transfer status, often accessible through your online account portal. You might also receive emails or notifications.
Sub-heading: Typical Transfer Timeframe
An ACATS transfer from Robinhood to Charles Schwab typically takes 5-10 business days. However, this can vary depending on various factors:
- Accuracy of Information: Any discrepancies in account names or missing documentation can cause significant delays.
- Account Complexity: Transfers with options, margin, or a large number of unique positions might take longer.
- Market Activity: Periods of high market volatility can sometimes lead to slightly longer processing times across the industry.
- Residual Sweeps: After the initial transfer, you might receive "residual sweeps" for any lingering assets like unsettled dividends or cash that arrived late. These can continue for up to 6 months.
Step 5: Almost There! Verify Your Transferred Assets at Charles Schwab
Once the transfer is complete, it's essential to confirm everything has arrived as expected.
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Sub-heading: Check Your Holdings
- Confirm Securities: Log into your Charles Schwab account and verify that all your whole shares have been transferred correctly.
- Verify Cash Balance: Check that any liquidated fractional shares or crypto, and your remaining cash balance (minus the Robinhood fee), have arrived.
- Cost Basis Information: It can take up to 15 calendar days after the assets settle for the cost basis information to be transferred from Robinhood to Schwab. Until then, your average cost and gain/loss information might appear as "unspecified" or incorrect. Don't panic; this is normal.
Sub-heading: Address Any Discrepancies
If you notice any missing assets, incorrect share counts, or other discrepancies, contact Charles Schwab's customer service immediately. They can investigate and resolve any issues.
Sub-heading: Consider Schwab's Fee Reimbursement (If Applicable)
If Schwab offers a transfer-in bonus or fee reimbursement, ensure you meet the eligibility criteria and follow their instructions to claim it. Many brokerages, including Schwab, will reimburse transfer fees (like Robinhood's $100 fee) if you meet a certain asset threshold. It's worth asking their customer service about this.
QuickTip: Read again with fresh eyes.
Step 6: Final Touches! Close Your Robinhood Account (Optional)
If you've completed a full transfer and confirmed everything is settled at Schwab, you might want to formally close your Robinhood account.
Sub-heading: Ensure Everything is Zeroed Out
Before attempting to close, make sure your Robinhood account has a $0 balance and no open positions. Any residual sweeps will continue even if the account is formally closed.
Sub-heading: Contact Robinhood to Close
While a full ACATS transfer should automatically close your Robinhood account, it's good practice to contact Robinhood customer support to confirm it's officially closed and to avoid any lingering issues.
10 Related FAQ Questions
Here are some common questions you might have about transferring stocks from Robinhood to Charles Schwab, with quick answers:
How to initiate an ACATS transfer to Charles Schwab?
You initiate an ACATS transfer directly from your Charles Schwab account by logging in and navigating to their "Transfer & Payments" or "Move Money" section, then selecting "Transfer an External Account."
How to find my Robinhood account number and DTC number?
Your Robinhood account number is typically found in the Robinhood app under "Account" > "Investing." Robinhood's DTC number for transfers is 6769.
Tip: Read carefully — skimming skips meaning.
How to transfer fractional shares from Robinhood to Charles Schwab?
You cannot directly transfer fractional shares via ACATS. For a full transfer, Robinhood will liquidate (sell) your fractional shares, and the cash proceeds will be transferred to Charles Schwab. For a partial transfer, fractional shares will remain in your Robinhood account.
How to transfer cryptocurrency from Robinhood to Charles Schwab?
You cannot transfer cryptocurrency from Robinhood to Charles Schwab. Schwab does not support direct crypto trading. During a full ACATS transfer, Robinhood will liquidate your crypto holdings, and the cash proceeds will be transferred.
How to avoid the Robinhood transfer fee?
Robinhood charges a $100 ACATS transfer fee. While you can't avoid Robinhood's fee directly, Charles Schwab often offers to reimburse transfer fees for new clients who meet certain asset transfer thresholds. It's best to confirm their current policies.
How to check the status of my transfer to Charles Schwab?
You can usually check the status of your ACATS transfer by logging into your Charles Schwab account online. They often provide a transfer tracking tool or updates in your activity feed.
How to transfer options contracts from Robinhood to Charles Schwab?
Options contracts can generally be transferred via ACATS, provided they are not expiring very soon (e.g., within 7 days) and you have the appropriate options trading approval level at Charles Schwab.
How to ensure my cost basis transfers correctly to Charles Schwab?
The cost basis information for your transferred securities will typically be sent from Robinhood to Charles Schwab within 15 calendar days after the assets arrive. It may not appear immediately in your Schwab account, but it should update automatically.
How to handle unsettled trades during a transfer?
All trades in your Robinhood account must be settled (typically T+2 business days) before you initiate an ACATS transfer. Pending trades will delay or reject the transfer.
How to contact Charles Schwab customer service for transfer assistance?
You can reach Charles Schwab's customer service by calling their general assistance line at 1-800-435-4000 (inside the U.S.) or by using their online chat or secure messaging features on their website. They have dedicated teams for account transfers.
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