Thinking about moving your investments? It's a common desire for many investors, whether you're consolidating accounts, seeking new features, or simply want a change of scenery. Transferring stocks out of Charles Schwab, or any brokerage for that matter, can seem like a daunting task, but it's generally a straightforward process thanks to systems like ACATS (Automated Customer Account Transfer Service).
This comprehensive guide will walk you through everything you need to know to transfer your stocks from Charles Schwab to another brokerage, or even between Schwab accounts. Let's get started!
Step 1: Are You Ready to Make the Move? — Determine Your Transfer Type and Destination
Before you do anything, take a moment to consider why you're transferring your stocks and where they're going. This initial thought process will significantly streamline the rest of the steps.
Sub-heading: Transferring to Another Brokerage (ACATS Transfer)
This is the most common scenario. If you're moving your investments to a different financial institution (like Fidelity, Vanguard, or another online broker), you'll primarily be dealing with an ACATS transfer. This system is designed to make the process as seamless as possible, allowing you to move your securities in-kind (meaning you don't have to sell them and then repurchase them).
- Considerations:
- New Brokerage Account: Do you already have an account set up at your new brokerage? If not, that's your very first step! Ensure the account type (e.g., individual, joint, Roth IRA) at the new brokerage exactly matches the account type at Charles Schwab. Mismatched account registrations can cause significant delays.
- Fees: While Schwab generally doesn't charge for receiving transfers, they do typically charge a fee for outgoing ACATS transfers (often around $50 for a full transfer). Check with your new brokerage to see if they offer to reimburse this fee, as many do to attract new clients.
- Partial vs. Full Transfer: Do you want to move all your assets, or just a select few stocks? This will impact the forms you fill out.
- Non-Transferable Assets: Be aware that not all assets are transferable. Proprietary mutual funds, penny stocks, and restricted securities might not be supported by the receiving firm and may need to be liquidated at Schwab before the transfer can proceed.
Sub-heading: Transferring Between Schwab Accounts
Perhaps you're consolidating multiple Schwab accounts, moving assets from a joint account to an individual one, or vice-versa. Charles Schwab offers online tools to facilitate these internal transfers.
- Considerations:
- Account Ownership: As with external transfers, ensure the ownership details of the sending and receiving Schwab accounts align. If you're changing the registration (e.g., from joint to individual), you might need additional documentation or separate steps.
- Online vs. Form: Smaller, simpler transfers between your own Schwab accounts can often be done online. For more complex scenarios, especially those involving third-party transfers (gifting assets), you'll likely need to fill out specific forms.
Step 2: Gather Your Intel — Collect Necessary Information
Once you know your destination, it's time to gather all the important details you'll need. Having this information readily available will make the transfer process much smoother and prevent delays.
Sub-heading: Information for External Transfers (ACATS)
This information is typically requested by your new brokerage to initiate the ACATS transfer.
- Your Charles Schwab Account Information:
- Your full Charles Schwab account number(s)
- The exact name on your Charles Schwab account(s)
- Charles Schwab's DTC Number: This is a crucial identifier for inter-brokerage transfers. Charles Schwab's DTC number is 0164.
- Your New Brokerage Account Information:
- Your new brokerage account number(s)
- The exact name on your new brokerage account(s)
- Most Recent Schwab Statement: Have a copy of your most recent Charles Schwab account statement (dated within 90 days). This often contains all the necessary account details and holdings information that your new brokerage will require.
- List of Specific Assets (for partial transfers): If you're not transferring the entire account, make a clear list of the specific stocks, ETFs, mutual funds, and their exact share quantities that you wish to transfer.
Sub-heading: Information for Internal Schwab Transfers
If you're moving assets between Schwab accounts, you'll need:
- Both Schwab Account Numbers: The account you're transferring from and the account you're transferring to.
- Specific Assets or "All Assets": Clearly define whether you want to move all cash and assets or specific positions and amounts.
Step 3: Initiate the Launch — Start the Transfer Process
This is where the actual transfer request begins. For ACATS transfers, the general rule of thumb is to initiate the transfer from the receiving firm's side.
Sub-heading: For Transfers To Another Brokerage (ACATS)
- Contact Your New Brokerage: The most common and often easiest way to initiate an ACATS transfer is through your new brokerage.
- Online Transfer Portal: Many brokerages have an online transfer portal where you can input your Charles Schwab account details and initiate the transfer electronically.
- Transfer of Assets (TOA) Form: Your new brokerage will likely provide you with a "Transfer of Assets" (TOA) form. This form authorizes them to request the transfer from Charles Schwab on your behalf. Fill this out accurately and completely.
- Customer Service: Don't hesitate to call their customer service. They can often guide you through the process, answer specific questions, and even help you fill out the forms.
- Provide Required Documentation: You will typically need to provide:
- The completed TOA form.
- A copy of your most recent Charles Schwab account statement.
- Any additional identification or verification documents requested by your new brokerage.
- Wait for the Magic (ACATS): Once your new brokerage receives your request and documentation, they will submit the ACATS transfer request to Charles Schwab. The ACATS system automates the transfer of securities. This process typically takes 3-5 business days for most standard assets, though it can sometimes take longer for more complex holdings or if there are discrepancies.
Sub-heading: For Transfers Between Charles Schwab Accounts
- Log in to Schwab.com: Go to the Charles Schwab website and log in to your account.
- Navigate to Transfers & Payments:
- Look for a "Move Money" or "Transfers & Payments" section.
- Select "Online Transfers" or a similar option.
- Choose Your Transfer Type: You'll typically have options for transferring cash only, positions only, or both. Select the appropriate one.
- Select "From" and "To" Accounts: Carefully choose the Schwab account you want to transfer from and the Schwab account you want to transfer to.
- Specify Assets and Amounts: If you're doing a partial transfer, you'll enter the specific securities and the number of shares. If it's a full transfer, you might simply select "all assets."
- Review and Submit: Carefully review all the details of your transfer request. Once confirmed, submit it.
- Follow Up (if necessary): For more complex internal transfers, or if you're gifting assets to another Schwab client, you might need to fill out a "Move Assets from My Schwab Brokerage Account" form and return it to Schwab via their online message center, fax, or mail.
Step 4: Monitor and Troubleshoot — Keep an Eye on Your Transfer
The transfer process isn't always instant. It's important to monitor its progress and be prepared to address any issues that may arise.
- Check Status with Receiving Brokerage: Your new brokerage should provide updates on the status of your ACATS transfer. You can often check this online or by calling their customer service.
- Check Your Schwab Account: Keep an eye on your Charles Schwab account. You'll see the assets disappear as they are transferred out.
- Be Aware of Potential Delays:
- Mismatched Account Information: This is the most common cause of delays. Ensure names, account types, and registrations match exactly.
- Non-Transferable Assets: As mentioned, some assets may not be transferable in-kind.
- Partial Shares: Often, fractional shares are liquidated to cash before being transferred.
- Cost Basis Information: While brokers are generally required to transfer cost basis information for covered shares (acquired after January 1, 2011), it can sometimes take additional time for this data to appear at your new brokerage. For uncovered shares (pre-2011), you might need to provide this manually.
- Options Contracts: Transferring options can be more complex, especially if they are close to expiration. Ensure your new account is approved for the appropriate option trading level.
- Communicate: If you notice any issues or significant delays, don't hesitate to contact the customer service of both Charles Schwab and your new brokerage. They can often help identify and resolve the problem.
Step 5: Confirm and Celebrate — Verify Completion
Once the transfer is complete, take the time to verify that everything has moved as expected.
- Verify Holdings: Log in to your new brokerage account and confirm that all the transferred stocks and other assets are present and accounted for.
- Check Cost Basis: Verify that the cost basis information for your transferred securities is accurate at your new brokerage. This is crucial for tax purposes. If anything is missing or incorrect, contact your new brokerage's support.
- Review for Fees: Check your statements from both Schwab and your new brokerage for any unexpected fees. If your new brokerage offered a reimbursement, follow up on that as well.
- Close Schwab Account (Optional): If you performed a full transfer and no longer wish to maintain your Charles Schwab account, you can contact them to formally close it. Ensure there are no lingering debits or credits before doing so.
Frequently Asked Questions about Transferring Stocks Out of Charles Schwab
Here are 10 common "How to" questions related to transferring stocks out of Charles Schwab, along with quick answers:
How to transfer specific stocks from Charles Schwab? You initiate a partial ACATS transfer through your receiving brokerage, specifying the exact securities and share quantities you want to move.
How to transfer an entire brokerage account out of Charles Schwab? You initiate a full ACATS transfer through your receiving brokerage, indicating that you want to transfer the entire account.
How to find my Charles Schwab account number for a transfer? Your Charles Schwab account number can be found on your account statements, by logging into your Schwab.com account, or by contacting Schwab customer service.
How to transfer a Roth IRA from Charles Schwab to another broker? This is typically done via an ACATS transfer, initiated by the receiving brokerage. Ensure the Roth IRA account type matches exactly at both institutions to avoid tax implications.
How to transfer a 401(k) from Charles Schwab? If your 401(k) is held at Schwab, it's likely a Rollover IRA or a different qualified plan. You would typically initiate a rollover to a new IRA or a new employer's 401(k) at the receiving institution. Consult a Schwab Rollover Consultant for specific guidance.
How to avoid fees when transferring stocks out of Charles Schwab? While Schwab charges an outgoing ACATS fee (often $50 for a full transfer), many receiving brokerages offer to reimburse this fee as an incentive for you to move your assets to them. Always ask your new broker about their fee reimbursement policy.
How to transfer inherited stocks from Charles Schwab? Transferring inherited stocks involves specific steps often including providing death certificates and letters of testamentary. It's best to contact Schwab's specialized inherited accounts department or a financial advisor for guidance on this complex process.
How to check the status of a stock transfer from Charles Schwab? You can typically check the status of an ACATS transfer through the online portal or by contacting the customer service of the receiving brokerage. You can also monitor your Schwab account to see when the assets depart.
How to transfer stock certificates from Charles Schwab? If you hold physical stock certificates through Schwab, the process can be more involved. You'll likely need to work directly with Schwab's transfer department and possibly the stock's transfer agent to facilitate the movement of these physical certificates or to have them converted to book-entry form.
How to transfer stocks between two Charles Schwab accounts? Log in to Schwab.com, navigate to "Move Money" and "Online Transfers." Select the "from" and "to" Schwab accounts, choose whether to transfer cash, positions, or both, and specify the amounts or assets.
