Have you ever found yourself considering moving your investment account from ETRADE to another brokerage, or perhaps bringing an account into ETRADE, but felt overwhelmed by the potential costs and complexities? You're not alone! Understanding how much E*TRADE charges to transfer an account is crucial for making informed financial decisions. This lengthy guide will break down all the fees, the process, and what you need to know to make your account transfer as smooth as possible.
Understanding Account Transfers: The Basics
Before diving into the specifics of E*TRADE's charges, it's essential to understand the two main types of account transfers:
ACATS (Automated Customer Account Transfer Service) Transfer: This is the most common method for transferring an entire brokerage account (or a partial account) from one financial institution to another. It involves moving your existing securities (stocks, ETFs, mutual funds, etc.) directly, without liquidating them into cash. This is generally preferred as it avoids potential tax implications of selling assets.
Cash Transfer: This involves selling all your investments in your current account, converting them to cash, and then transferring that cash to your new brokerage. While seemingly simpler, this method can trigger capital gains or losses, and you'll need to reinvest the cash once it arrives at the new institution.
Now, let's get into the nitty-gritty of E*TRADE's transfer fees.
Step 1: Are You Moving Out or Moving In? – Identify Your Transfer Direction
The first and most important step is to determine whether you are transferring an account out of ETRADE or into ETRADE. The fees and processes can differ significantly.
Sub-heading: Transferring an Account Out of E*TRADE
If you're considering moving your investments from ETRADE to another brokerage, ETRADE does charge fees for outgoing transfers. These are standard fees in the brokerage industry, meant to cover the administrative costs of processing the transfer.
Full Account Transfer (ACATS): For a full transfer of your entire account out of E*TRADE, you will typically be charged a fee of $75. This covers the transfer of all your securities and cash holdings.
Partial Account Transfer (ACATS): If you only want to transfer a portion of your holdings, perhaps just a few specific stocks or ETFs, E*TRADE charges a fee of $25 for a partial transfer.
It's important to note that these fees are subject to change, so always verify the latest fee schedule on ETRADE's official website or by contacting their customer service directly.*
Sub-heading: Transferring an Account Into E*TRADE
Good news! When you transfer an account into ETRADE from another brokerage, ETRADE does not typically charge any incoming transfer fees. In fact, many brokers, including E*TRADE, may even offer incentives or reimbursement for transfer fees charged by your previous broker.
Reimbursement Offers: While ETRADE doesn't charge for incoming transfers, your old brokerage might charge you an outgoing transfer fee. If this happens, it's worth checking with ETRADE if they have any promotions or programs to reimburse these fees. Some brokers, for example, might reimburse fees up to $75 or $100 for transfers above a certain asset value. Always inquire about these possibilities when initiating an incoming transfer.
Step 2: Preparing for Your Account Transfer – What You Need to Do
Regardless of whether you're moving money in or out, preparation is key to a smooth transfer.
Sub-heading: Gather Essential Information
Before you initiate any transfer, make sure you have all the necessary details at hand. This includes:
Account Numbers: Both your E*TRADE account number and the account number at the receiving/sending institution.
Account Type: Confirm the exact type of account you're transferring (e.g., individual brokerage, joint, Traditional IRA, Roth IRA, SEP IRA). It's crucial that the account types match between the old and new brokerages for ACATS transfers. For instance, a Traditional IRA at E*TRADE can only be transferred to a Traditional IRA at the new brokerage.
New Brokerage Details (for outgoing transfers): You'll need the full name of the receiving brokerage, their DTC (Depository Trust Company) number (this is a unique identification number for brokerage firms), and the receiving account number. Your new brokerage will usually provide this information.
Statement from Your Current Brokerage (for incoming transfers): The receiving brokerage (E*TRADE, in this case) will likely ask for a recent statement from your old brokerage to verify holdings and account details.
Sub-heading: Consider Your Holdings and Their Eligibility
Not all assets are transferable via ACATS.
Eligible Securities: Generally, publicly traded stocks, ETFs, mutual funds (especially those with no-load and no-transaction fees), and options are transferable.
Ineligible Securities: Assets like proprietary mutual funds from your current brokerage, annuities, limited partnerships, some alternative investments, and fractional shares (though some brokers now support these) may not be transferable via ACATS. You might need to sell these assets before transferring, which could have tax implications.
Margin Balances: If you have a margin account with an outstanding debit balance, you'll need to address this before transferring. Either pay it off or ensure your new brokerage can support the margin balance.
Sub-heading: Settle Any Outstanding Issues
Before initiating a transfer, ensure there are no pending issues with your E*TRADE account (if transferring out) or your old account (if transferring in). This includes:
Unsettled Trades: All trades should be settled.
Outstanding Fees: Any unpaid fees on the account.
Account Restrictions: Check for any holds or restrictions on the account that could delay the transfer.
Step 3: Initiating the Transfer – The Process Explained
The process of initiating a transfer is usually managed by the receiving brokerage.
Sub-heading: How to Initiate an Outgoing Transfer from E*TRADE (initiated by your new broker)
When you want to move your account out of E*TRADE, you'll typically start the process with your new brokerage.
Open an Account with the New Broker: First, open an account with the brokerage you want to move your assets to. Make sure the account type matches your E*TRADE account.
Initiate the ACATS Transfer: Once your new account is open, log in and look for an "Account Transfer" or "Move Money" section. You'll usually be prompted to fill out an ACATS transfer form electronically. This form will ask for your E*TRADE account details (account number, type of account, and whether it's a full or partial transfer) and the details of your new account.
Provide Documentation: The new brokerage might request a recent statement from your E*TRADE account to verify holdings.
Review and Submit: Carefully review all the information before submitting the transfer request. Errors can cause significant delays.
ETRADE's Role:* Once the receiving brokerage initiates the ACATS transfer, E*TRADE will receive the request and process it internally. They will apply the applicable outgoing transfer fee ($75 for full, $25 for partial).
Sub-heading: How to Initiate an Incoming Transfer to E*TRADE
If you're bringing an account into ETRADE, you'll initiate the process directly with ETRADE.
Open an ETRADE Account:* If you don't already have one, open the appropriate account type with E*TRADE.
Navigate to "Transfer Account": Log into your E*TRADE account and find the section for transferring an existing brokerage account.
Provide Old Brokerage Information: You'll need to provide details of your old brokerage account, including the account number, account type, and whether it's a full or partial transfer.
Upload Statement: E*TRADE may ask you to upload a recent statement from your current brokerage.
Sign Electronically (or Print/Mail): You'll typically be able to sign the transfer authorization form electronically. In some cases, or for certain account types, you might need to print, sign, and mail the form.
ETRADE Handles the Rest:* Once submitted, E*TRADE will communicate with your old brokerage to facilitate the transfer.
Step 4: Understanding the Transfer Timeline and Monitoring Progress
Account transfers, especially ACATS, aren't instantaneous.
Typical Timeline: ACATS transfers generally take 5 to 10 business days to complete. However, this can vary depending on the responsiveness of both brokerages and the complexity of your holdings.
Monitoring: Both E*TRADE (if you're transferring in) and your new brokerage (if you're transferring out) usually offer tools to track the status of your transfer online. You might see statuses like "Pending," "In Progress," or "Completed."
Potential Delays: Common reasons for delays include:
Mismatched Information: Discrepancies in names, account numbers, or account types.
Ineligible Securities: Holdings that cannot be transferred via ACATS.
Outstanding Issues: Unsettled trades, margin calls, or fees.
Physical Certificates: If you hold any physical stock certificates, these will need special handling and can significantly prolong the transfer.
Step 5: Verification After Transfer Completion
Once the transfer is marked as complete, it's crucial to verify everything.
Check Holdings: Carefully compare the assets and their quantities in your new account with your records from the old account. Ensure everything transferred as expected.
Verify Cost Basis: For taxable accounts, ensure your cost basis information (the original price you paid for an investment) has transferred correctly. This is vital for accurate tax reporting. If it's missing, contact your new brokerage immediately.
Review Statements: Keep an eye on statements from both the old and new brokerages for a few cycles to ensure all activity has ceased in the old account and is accurately reflected in the new one.
Confirm Fees: Verify that any expected transfer fees (or reimbursements) have been correctly applied.
Additional E*TRADE Fees to Be Aware Of
While account transfer fees are specific to moving assets between institutions, it's worth being aware of other common E*TRADE fees that might arise during your investment journey:
Commissions: E*TRADE generally offers $0 commissions for online U.S.-listed stock, ETF, and mutual fund trades. However, there are still fees for options contracts (typically $0.65 per contract, or $0.50 for active traders), OTC stocks, futures, and bonds.
Wire Transfers: Outgoing domestic wire transfers typically cost $25. Incoming wire transfers are usually free.
IRA Premature Distributions: A $25 fee may apply for premature distributions from IRAs.
Account Maintenance/Inactivity Fees: E*TRADE generally does not charge account maintenance fees or inactivity fees.
Managed Portfolios: If you opt for E*TRADE's managed portfolio services (e.g., Core Portfolios), an advisory fee will apply (e.g., 0.30% annually for Core Portfolios).
Always consult the official ETRADE pricing page for the most up-to-date and comprehensive fee schedule.*
Frequently Asked Questions (FAQs)
Here are 10 related FAQ questions with quick answers to help you navigate account transfers with E*TRADE:
How to transfer an IRA from E*TRADE to another broker?
To transfer an IRA out of ETRADE, you'll initiate the ACATS transfer with your new brokerage, ensuring the account types match (e.g., Roth IRA to Roth IRA). ETRADE will typically charge a $75 full transfer fee or $25 for a partial transfer.
How to transfer a taxable brokerage account from E*TRADE?
You initiate the ACATS transfer with your new brokerage, providing your ETRADE account details. ETRADE will charge a $75 fee for a full transfer or $25 for a partial transfer.
How to avoid E*TRADE account transfer fees?
You generally cannot avoid ETRADE's outgoing transfer fees for ACATS. However, if you are transferring into ETRADE, your previous broker might charge an outgoing fee, and E*TRADE may offer reimbursement programs for these fees if your transfer meets certain criteria. Liquidating your account to cash and then transferring the cash is another way to avoid the ACATS fee, but it comes with potential tax implications.
How to transfer funds into E*TRADE from another bank or brokerage?
You can transfer funds into ETRADE via ACH (electronic funds transfer), wire transfer, or by initiating an ACATS transfer from another brokerage. ACH transfers are usually free, while wire transfers might have fees from the sending institution. ETRADE does not charge for incoming ACATS transfers.
How to find my E*TRADE account number for a transfer?
Your ETRADE account number can typically be found on your account statements, within your online account dashboard after logging in, or by contacting ETRADE customer service.
How to transfer a partial account from E*TRADE?
You initiate a partial ACATS transfer through your new brokerage, specifying which assets you wish to transfer. E*TRADE will charge a $25 fee for partial outgoing transfers.
How to check the status of an E*TRADE account transfer?
If you initiated an incoming transfer to ETRADE, you can usually check its status within your ETRADE online account. If you transferred out of E*TRADE, your new brokerage should provide a way to track the transfer.
How to transfer physical stock certificates from E*TRADE?
Transferring physical stock certificates is more complex and usually involves special handling and additional fees. You will need to contact E*TRADE customer service directly to inquire about the process and associated costs.
How to deal with ineligible securities during an E*TRADE transfer?
For any securities in your ETRADE account that are ineligible for ACATS transfer (e.g., proprietary mutual funds, certain alternative investments), you typically have two options: sell them before the transfer (which may trigger capital gains/losses) or leave them in your ETRADE account if you intend to keep it open.
How to reimburse transfer fees from another broker when moving to E*TRADE?
If your previous broker charged an outgoing transfer fee, contact E*TRADE's customer service or check their website for any current promotions or reimbursement offers for incoming transfers. You may need to provide proof of the fee charged by your previous institution.
