Moving your investments can feel like a big undertaking, but transferring stocks from Webull to Schwab is a common and relatively straightforward process known as an ACATS (Automated Customer Account Transfer Service) transfer. This guide will walk you through every step, ensuring a smooth transition for your portfolio.
Are you ready to take control of your investments and consolidate them with a trusted name like Schwab? If so, let's dive into the details of transferring your stocks from Webull!
Understanding the ACATS Transfer Process
Before we get into the step-by-step guide, it's crucial to understand what an ACATS transfer entails. This is the industry-standard system used to transfer brokerage accounts electronically between different financial institutions. It allows you to move your assets "in-kind," meaning your stocks, ETFs, and other eligible securities will transfer without being sold. This is important because it helps you avoid potential tax implications from selling and then re-buying your positions.
There are two main types of ACATS transfers:
Full ACATS Transfer: This involves transferring all eligible assets and cash from your Webull account to your Schwab account, effectively closing your Webull account.
Partial ACATS Transfer: This allows you to select specific assets or a portion of your cash to transfer, leaving the rest in your Webull account. This is useful if you want to keep some assets with Webull or if certain assets aren't transferable to Schwab.
Important Note: While most publicly traded stocks and ETFs can be transferred in-kind, some assets like fractional shares, certain penny stocks, or illiquid securities might not be transferable and may need to be liquidated (sold) before the transfer. It's always best to verify with Schwab and Webull if you have any unusual holdings.
Step 1: Prepare Your Webull Account
This initial preparation is crucial for a smooth transfer. Don't skip these steps!
Sub-heading 1.1: Gather Necessary Information
Before you initiate anything, collect the following details from your Webull account:
Your Webull Account Number: This is essential for Schwab to identify your account. You can typically find this in your account statements or by logging into your Webull account online or through the app.
Account Type: Confirm the exact type of account you have with Webull (e.g., Individual Brokerage, Roth IRA, Traditional IRA, Joint Account).
Account Title/Registration: Ensure the name(s) on your Webull account exactly match the name(s) on your Schwab account. Any discrepancies can significantly delay the transfer. If there are differences (e.g., a name change due to marriage, or a slightly different middle initial), you might need to provide additional documentation later.
Most Recent Webull Account Statement: Schwab will likely require a copy of your most recent Webull account statement (usually dated within the last 90 days). This statement provides a snapshot of your holdings and account information.
Sub-heading 1.2: Address Any Potential Issues
Take a moment to review your Webull account for anything that could hinder the transfer:
Negative Balance: Ensure there's no negative cash balance in your Webull account. If there is, you'll need to deposit funds to cover it.
Unsettled Trades: Make sure all recent trades have settled. Stock trades typically settle in T+1 (trade date plus one business day).
Pending Deposits or Withdrawals: Cancel or wait for any pending deposits or withdrawals to clear.
Fractional Shares: Webull supports fractional shares, but Schwab might not accept them in-kind. These will often be liquidated (sold) by Webull during a full transfer, and the cash proceeds will be transferred. For a partial transfer, you can choose to leave them in your Webull account.
Cryptocurrency Holdings: Webull offers crypto trading. Cryptocurrencies are not transferable via ACATS. If you have crypto in Webull, you'll need to sell it before the transfer or leave it in your Webull account if you're performing a partial transfer.
Securities Lending Program: If you're enrolled in Webull's securities lending program, you might need to opt out and wait a few business days for this change to process before initiating the ACATS transfer.
Account Restrictions: Resolve any existing restrictions or alerts on your Webull account.
Transfer Fees: Be aware that Webull typically charges a fee for outgoing ACATS transfers, which can range from $50 to $100. It's a good idea to have sufficient cash in your Webull account to cover this fee, otherwise, it might be deducted from your asset sales. Schwab often offers to reimburse these transfer fees, which we'll discuss later.
Step 2: Open a Schwab Account (If You Don't Have One)
If you don't already have a Charles Schwab account, this is your next crucial step.
Sub-heading 2.1: Choose the Right Account Type
When opening a Schwab account, ensure the account type matches your Webull account as closely as possible. For example, if you're transferring from a Webull Individual Brokerage account, open an Individual Brokerage account at Schwab. If it's a Roth IRA, open a Roth IRA at Schwab. This helps avoid complications and delays.
Sub-heading 2.2: The Application Process
Opening a Schwab account is generally a straightforward online process. You'll typically need to provide:
Personal Information: Name, address, date of birth, Social Security Number (or Tax ID).
Employment Information: Employer name, occupation.
Financial Information: Income, net worth (estimates).
Investment Experience: Questions about your trading experience and risk tolerance.
Make sure all information you provide exactly matches the details on your Webull account to prevent transfer issues.
Step 3: Initiate the Transfer from Schwab's Side
This is the most important step! The ACATS transfer process is initiated by the receiving firm, which in this case is Charles Schwab. You do not initiate the transfer from Webull.
Sub-heading 3.1: Navigate to Schwab's Transfer Section
Log in to your Charles Schwab account (or create one if you haven't already). Look for a section related to "Move Money," "Transfers," or "Transfer an External Account." This is usually found in the main navigation menu or under your account summary.
Sub-heading 3.2: Start the Account Transfer Request
Once you're in the transfer section, you'll typically follow these steps:
Select "Transfer an Account to Schwab" or similar: This option is specifically for bringing assets from another brokerage.
Search for "Webull": You'll be prompted to search for the financial institution you're transferring from. Type in "Webull Financial LLC" or simply "Webull."
Enter Your Webull Account Information: This is where you'll input the Webull account number, account type, and account title you gathered in Step 1.
Select Your Schwab Receiving Account: Choose the Schwab account where you want your assets to be transferred. Again, ensure the account types and names match.
Choose Full or Partial Transfer:
For a Full Transfer, simply select the option to transfer the entire account.
For a Partial Transfer, you'll be prompted to specify which securities and/or cash amounts you wish to transfer. Be very precise with security symbols and quantities.
Upload Your Webull Statement: You'll typically be required to upload a copy of your most recent Webull account statement. This helps Schwab verify your holdings and expedite the process.
Review and Consent: Carefully review all the information you've entered. You'll likely need to agree to terms and conditions, including authorization for Schwab to initiate the ACATS transfer on your behalf.
Submit the Request: Once everything looks correct, submit your transfer request.
Step 4: Monitor the Transfer Progress
After submitting your request, the waiting game begins. ACATS transfers typically take 5 to 10 business days to complete, though they can sometimes take longer depending on the complexity of the transfer or if any issues arise.
Sub-heading 4.1: Schwab's Transfer Tracker
Schwab usually provides an online transfer tracker or status page where you can monitor the progress of your transfer. Log in to your Schwab account and look for this feature.
Sub-heading 4.2: Webull Notifications
Webull will also receive a notification from their clearing firm (Apex Clearing) about the incoming transfer request from Schwab. You may receive an email or in-app notification from Webull confirming the request.
Sub-heading 4.3: What to Expect During the Transfer
Temporary Trading Restrictions: Your Webull account may become temporarily restricted for trading during the transfer process to prevent any changes that could disrupt the transfer. You typically won't be able to buy or sell securities, or deposit/withdraw funds.
No Access to Funds/Securities: During the transfer, your assets will be "in transit" and you won't be able to access them from either broker.
Residual Sweeps: After the initial transfer, there might be "residual sweeps" where any remaining cash, dividends, or other small asset amounts are transferred to Schwab. This can happen a few days or weeks after the main transfer is complete.
Step 5: Address Any Potential Issues and Fee Reimbursement
Sometimes, transfers don't go perfectly. Be prepared to troubleshoot.
Sub-heading 5.1: Common Reasons for Delays or Rejections
Account Name/Registration Mismatch: This is the most frequent cause of delays. Ensure names on both accounts are identical.
Missing or Incorrect Account Number: Double-check your Webull account number when initiating the transfer.
Unsettled Trades or Negative Balance: As mentioned earlier, clear these before initiating.
Non-Transferable Assets: If you included assets that can't be transferred in-kind, this could cause a rejection or require liquidation.
Account Restrictions at Webull: Any disciplinary or other restrictions on your Webull account can halt the transfer.
Outstanding Margin Loans: If you have an outstanding margin loan with Webull, this may need to be addressed before the transfer can complete.
If your transfer is delayed or rejected, you'll typically be notified by Schwab. Contact Schwab customer service first, as they initiated the transfer and can provide guidance on what went wrong and how to fix it. You may also need to contact Webull customer service if the issue originates on their end.
Sub-heading 5.2: Requesting Fee Reimbursement from Schwab
As Webull charges an outgoing ACATS fee, Schwab often offers to reimburse this fee, especially for larger transfers.
Confirm Webull's Fee: Once your transfer is complete, confirm the exact fee Webull charged you. This will usually appear on your final Webull statement or can be obtained by contacting Webull support.
Contact Schwab: Reach out to Schwab's customer service (via phone is often best for this type of request) and inquire about their transfer fee reimbursement policy.
Provide Proof: Schwab will likely ask for proof of the fee charged by Webull, such as a screenshot of the charge on your Webull statement.
Receive Reimbursement: If approved, Schwab will typically credit the reimbursement amount to your new Schwab account.
Step 6: Verify Your Holdings at Schwab
Once the transfer is marked as complete, the final step is to verify that all your assets have arrived safely and accurately in your Schwab account.
Sub-heading 6.1: Cross-Reference Your Portfolio
Log in to your Schwab account and compare the list of securities and their quantities with your final Webull statement.
Check that the cost basis information for your transferred securities is accurate. This is crucial for calculating future capital gains or losses when you eventually sell. While brokers are generally good at transferring cost basis, it's always wise to double-check. If there are discrepancies, you'll need to contact Schwab to have it corrected.
Sub-heading 6.2: Explore Schwab's Platform
Take some time to familiarize yourself with Schwab's trading platform, research tools, and other features. This will help you make the most of your new brokerage experience.
Congratulations!
You've successfully transferred your stocks from Webull to Schwab. This move consolidates your investments and opens up a new array of tools and services offered by Charles Schwab.
Frequently Asked Questions (FAQs)
How to initiate an ACATS transfer from Webull to Schwab?
You initiate the ACATS transfer from the Schwab side. Log into your Schwab account, navigate to their "Transfer Account" or "Move Money" section, and follow the prompts to initiate an incoming transfer from Webull.
How to find my Webull account number for the transfer?
Your Webull account number can typically be found on your monthly or quarterly account statements, or by logging into your Webull app or website and navigating to your account profile or settings.
How to handle fractional shares when transferring from Webull to Schwab?
Fractional shares are often not transferable via ACATS. Webull will typically liquidate (sell) your fractional shares, and the cash proceeds will be transferred to your Schwab account as part of a full transfer. For a partial transfer, you may be able to leave them in your Webull account.
How long does it take to transfer stocks from Webull to Schwab?
An ACATS transfer typically takes 5 to 10 business days to complete from the time Schwab initiates the request until the assets appear in your Schwab account.
How much does it cost to transfer stocks from Webull to Schwab?
Webull typically charges an outgoing ACATS fee, which can range from $50 to $100. Charles Schwab generally does not charge for incoming transfers and often offers to reimburse the outgoing transfer fee from Webull.
How to get my transfer fee reimbursed by Schwab?
After your transfer is complete and Webull has charged its outgoing fee, contact Schwab's customer service. You'll likely need to provide proof of the fee (e.g., a statement showing the charge), and Schwab will typically credit the amount back to your account.
How to transfer an IRA from Webull to Schwab?
The process is the same as transferring a brokerage account. Ensure you open the correct type of IRA (e.g., Roth IRA to Roth IRA, Traditional IRA to Traditional IRA) at Schwab before initiating the transfer from Schwab's platform.
How to check the status of my stock transfer to Schwab?
Log in to your Charles Schwab account and look for a "Transfer Tracker" or "Account Transfer Status" section, usually found under "Move Money" or "Accounts."
How to ensure my cost basis transfers correctly to Schwab?
While brokers are usually good at transferring cost basis automatically, it's vital to cross-reference your Schwab account holdings with your last Webull statement after the transfer. If any discrepancies exist, contact Schwab customer service immediately to have them corrected.
How to transfer only specific stocks instead of my entire Webull account?
When initiating the transfer on the Schwab platform, choose the option for a "Partial ACATS Transfer." You will then be prompted to list the specific stock symbols and quantities you wish to transfer.
