Have you decided it's time to move your investments from E*TRADE to a new brokerage? Perhaps you've found a platform that better suits your trading style, offers lower fees, or provides specific research tools you crave. Whatever your reason, transferring shares can seem daunting, but it's a relatively straightforward process when you know the steps. This comprehensive guide will walk you through everything you need to know to ensure a smooth transition.
The Automated Customer Account Transfer Service (ACATS): Your Best Friend for Transfers
Before we dive into the steps, it's important to understand the primary mechanism for transferring securities between brokerages in the US: the Automated Customer Account Transfer Service (ACATS). This system, developed by the National Securities Clearing Corporation (NSCC), automates and standardizes the transfer of various assets, including stocks, bonds, ETFs, mutual funds, and options, significantly reducing the time and cost compared to manual methods. Most full brokerage transfers are done via ACATS.
Step 1: Initiate the Transfer at Your New Brokerage
Believe it or not, the first and most crucial step isn't with E*TRADE! It's with the receiving brokerage firm (your new broker).
Sub-heading: Why the New Brokerage First?
The receiving brokerage has a vested interest in bringing your assets over. They will initiate the ACATS transfer request on your behalf, making the process much smoother for you. Do not try to initiate the transfer from ETRADE first, as this is typically not how the ACATS system works.*
Sub-heading: Gathering Necessary Information
Before you contact your new broker, make sure you have the following information readily available for your E*TRADE account:
Your E*TRADE Account Number(s): This is essential for the transfer.
Account Type: Is it a taxable brokerage account, an IRA (Individual Retirement Account), a trust account, etc.? Be precise.
Account Registration: Ensure the name(s) on your E*TRADE account exactly match the name(s) on your new brokerage account. Even a slight difference, like a middle initial being present on one and not the other, can cause delays or rejections.
List of Securities: While not strictly necessary for an ACATS transfer (as the system aims to transfer all eligible assets), it's good to have a general idea of your holdings.
Any Pending Trades or Activity: It's highly recommended to avoid any trading activity (buying, selling, transfers, deposits, withdrawals) in your E*TRADE account once you initiate the transfer until it's complete. This can disrupt the process.
Sub-heading: Contacting Your New Brokerage
Reach out to the customer service or account transfer department of your chosen new brokerage. They will provide you with their specific account transfer form (often referred to as a Transfer Initiation Form or TIF). Many brokers now offer this form online, allowing for electronic submission.
Step 2: Complete and Submit the Transfer Form to Your New Broker
Once you have the transfer form from your new brokerage, fill it out accurately and completely.
Sub-heading: Key Details to Double-Check
E*TRADE Account Number: Re-verify this number.
Type of Transfer: You'll typically choose between a "full transfer" (transferring all eligible assets and closing your ETRADE account) or a "partial transfer" (transferring specific assets and keeping your ETRADE account open). Be aware that ETRADE may charge different fees for full versus partial transfers.*
Specific Securities (for Partial Transfers): If doing a partial transfer, clearly list the security name, ticker symbol, and the exact number of shares you wish to transfer.
Signatures: Ensure all required signatures are present and match those on file with both brokerages.
Supporting Documents: Your new brokerage might require a recent statement from your E*TRADE account to verify holdings and account details. Be prepared to provide this.
Sub-heading: Submitting the Form
Submit the completed form and any supporting documents to your new brokerage. Many firms allow electronic submission, which can expedite the process. If mailing, consider using a trackable service.
Step 3: The ACATS System Takes Over
Once your new brokerage receives your transfer request, they will submit it through the ACATS system.
Sub-heading: Communication Between Brokerages
Request Sent: Your new broker sends the transfer request to E*TRADE via ACATS.
E*TRADE's Review: E*TRADE will review the request. They have a limited time (typically one business day) to respond, either by confirming the assets to be transferred or by rejecting the request if there are discrepancies (e.g., mismatched account names, pending activity, ineligible securities).
Review Period: After E*TRADE confirms the assets, there's a review period (typically two business days) where both firms can confirm the details of the transfer.
Sub-heading: Common Reasons for Delays or Rejection
Mismatched Account Registrations: This is one of the most frequent causes of delays. The names and account types must be identical at both firms.
Ineligible Securities: Some assets, like certain proprietary mutual funds or alternative investments, may not be transferable via ACATS. These may need to be liquidated in your E*TRADE account before the transfer or may not be transferable at all.
Pending Activity: As mentioned, any open orders or recent transactions can cause a hold on the transfer.
Negative Cash Balance or Margin Debt: Ensure your E*TRADE account has a zero or positive cash balance and no outstanding margin debt. These issues must be resolved before a transfer can proceed.
Missing Information: Incomplete forms or missing signatures.
Step 4: Monitor the Transfer Progress
While the ACATS system handles the heavy lifting, it's prudent to monitor the progress of your transfer.
Sub-heading: Checking Status with Your New Broker
Your new brokerage should provide you with a way to track the transfer's status, either through their online portal or by contacting their support. They will be your primary point of contact during this period.
Sub-heading: E*TRADE's Role
While you initiated the transfer with your new broker, ETRADE will also be involved in the process. They may send you notifications regarding the transfer or request further information if needed. Keep an eye on your ETRADE communications.
Step 5: Confirmation and Post-Transfer Actions
Once the transfer is complete, your new brokerage will notify you that your assets have arrived.
Sub-heading: Verify Holdings
Immediately check your new account to ensure all transferred securities and their correct cost basis (the original purchase price) have been received accurately. While ACATS aims to transfer cost basis, sometimes it may need to be manually updated by your new broker. This is crucial for tax purposes.
Review Your E*TRADE Account: If you opted for a full transfer, confirm that your E*TRADE account has been closed or is empty of all transferable assets. If it's a partial transfer, ensure only the intended securities remain.
Sub-heading: Addressing Discrepancies
If you notice any discrepancies, contact your new brokerage immediately. They will work with E*TRADE to resolve any issues.
Sub-heading: Dealing with Non-Transferable Assets
If you had assets in ETRADE that couldn't be transferred (e.g., proprietary mutual funds), you will need to decide whether to sell them and transfer the cash, or keep them at ETRADE if that account remains open. Be aware of any potential tax implications for selling securities.
Transfer Fees and Timelines
Sub-heading: Potential Fees from E*TRADE
E*TRADE may charge a fee for transferring assets out of your account. As of current information, this can be:
$75 for a full account transfer.
$25 for a partial account transfer.
It's always a good idea to confirm these fees directly with ETRADE or check their current fee schedule on their website, as they can change.*
Sub-heading: How Long Does it Take?
The ACATS transfer process is generally efficient:
Electronic ACATS transfers typically complete within 3-6 business days, though some sources indicate up to 10 business days for full electronic transfers.
Paper-based requests can take longer, sometimes 3 to 6 weeks, depending on the speed of processing by both financial institutions.
Delays can occur due to any of the reasons mentioned in Step 3 (mismatched information, pending activity, ineligible securities).
Important Considerations
Tax Implications: For transfers between accounts with the same owner and account type (e.g., individual brokerage to individual brokerage, Roth IRA to Roth IRA), there are generally no direct tax implications for the transfer itself. However, if you liquidate assets as part of the process, capital gains or losses may apply. Always consult a tax professional for personalized advice.
Open Positions/Margin: If you have open options or futures positions, or a margin balance, these can complicate transfers. Discuss these with both brokers to understand the specific requirements and potential impacts.
Cash Sweep Programs: Understand how your uninvested cash is held at both E*TRADE and your new brokerage, especially concerning sweep programs and interest rates.
Statement and Tax Documents: Ensure you download and save all historical statements and tax documents from E*TRADE before closing your account, just in case you need them in the future.
10 Related FAQ Questions
How to initiate an ACATS transfer from E*TRADE?
You initiate an ACATS transfer by contacting your new, receiving brokerage and completing their account transfer form (Transfer Initiation Form or TIF). They will then submit the request to E*TRADE.
How to avoid delays when transferring shares from E*TRADE?
Ensure your account registrations (names, account types) at both E*TRADE and the new brokerage exactly match. Resolve any pending trades, outstanding balances (cash or margin), or ineligible securities before initiating the transfer.
How to check the status of my E*TRADE share transfer?
Your new brokerage will typically provide you with a way to track the transfer status, often through their online portal or customer service. They are your primary point of contact for status updates.
How to transfer only specific shares from E*TRADE?
Choose a "partial transfer" option on your new brokerage's transfer form and clearly list the specific securities (name, ticker, quantity) you wish to transfer.
How to transfer an IRA from E*TRADE to another broker?
The process is similar to a regular brokerage account transfer. Specify that it's an IRA transfer on the new brokerage's form, ensuring the IRA type (e.g., Traditional, Roth) is identical at both institutions.
How to find my E*TRADE account number for a transfer?
You can typically find your ETRADE account number by logging into your ETRADE online account, on your account statements, or by contacting E*TRADE customer service.
How to deal with non-transferable assets from E*TRADE?
If ETRADE informs you that certain assets are non-transferable, you will typically need to either liquidate (sell) them within your ETRADE account and transfer the cash, or decide to keep those assets at E*TRADE if you're not closing the account.
How to close my E*TRADE account after transferring shares?
If you completed a full ACATS transfer, your ETRADE account will usually be automatically closed once all eligible assets have been transferred. If you did a partial transfer or need to confirm closure, contact ETRADE directly.
How to get a tax statement after transferring shares from E*TRADE?
E*TRADE will still provide you with tax documents (e.g., 1099-B, 1099-DIV) for the tax year in which the transfer occurred, covering the period your assets were held with them. Your new broker will issue documents for the period they held your assets.
How to avoid transfer fees from E*TRADE?
E*TRADE generally charges fees for outgoing transfers ($75 for full, $25 for partial). Some receiving brokers may offer to reimburse these transfer fees, so it's worth asking your new brokerage if they have such a promotion.
