Robinhood is a great broker for many. Of course, there are valid reasons for someone to make the switch to a more well-established competitor like TD Ameritrade. But if you do so, does this mean that you will have to liquidate all of your positions first and just transfer the cash afterwards? Or can you transfer stocks from Robinhood to TD Ameritrade?
Yes, you can transfer stocks from Robinhood to TD Ameritrade through an ACAT transfer. But you will be charged a $75 fee by Robinhood for doing so. Fortunately, TD Ameritrade won’t charge you anything for inbound transfers.
In this article, I will also answer a few other important questions like:
- What If I Don’t Want to Pay the Transfer Fee?
- How Long Does It Take to Transfer Stocks from Robinhood to TD Ameritrade?
- Is It a Good Idea to Transfer Stocks from Robinhood to TD Ameritrade?
Sounds good? Let’s get into it right away then!
What If I Don’t Want to Pay the Transfer Fee?
Unfortunately, Robinhood doesn’t offer any other way to transfer securities, apart from the ACAT. So, if you don’t want to pay the $75 fee, you may have to liquidate your positions and transfer cash instead.
Alternatively, you could pay the fee and then ask TD Ameritrade if they will reimburse it. Your best bet is after you open an account with them, though.
There have been reports that they have done it for new customers before, but they probably don’t do it for all. That is, your account may have to be worth a lot as a condition. But, of course, they won’t share that information.
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How Long Does It Take to Transfer Stocks from Robinhood to TD Ameritrade?
After you open an account over at TD Ameritrade and initiate the transfer, you will probably have to wait around one week for it to be completed.
It will definitely take less than two weeks, but giving you an exact period that such a transfer will take is a bit difficult.
Since there may be various factors that will affect the period you will need to wait for the transfer to be completed, it’s not a bad idea to contact Robinhood and ask them.
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Is It a Good Idea to Transfer Stocks from Robinhood to TD Ameritrade?
There are some benefits if you trade with Robinhood, no doubt. But it seems like TD Ameritrade is the better option for nearly everyone.
Let’s see how they compare in various areas and then you can decide if you should change from Robinhood to TD Ameritrade for yourself.
Mobile User Experience
When it comes to their mobile apps, we have a tie.
Robinhood is great for those who want a very simple interface when trading. It’s especially good for you if you’re a total beginner.
On the other hand, TD Ameritrade offers two different apps; the standard and the thinkorswim app. The first is for the regular traders and the latter for more experienced ones who appreciate a little more detail.
Desktop User Experience
The winner here is TD Ameritrade.
Robinhood does have an easy-to-navigate interface, but I think that this is a drawback here. Many customization options are missing and you can’t stage orders.
However, at TD Ameritrade you can customize nearly everything; from the order type to the quantity and size. Plus, you get Level II quotes for free if you’re a non-professional; an offer that’s hard to beat.
When it comes to the range of securities that each broker offers, it largely depends on what you’re after. No clear winner here.
For example, Robinhood offers plenty of cryptocurrencies while TD Ameritrade only allows you to trade Bitcoin futures.
If, on the other hand, you need access to a variety of securities like bonds, futures/commodities, future options, Forex, and stocks on international exchanges, TD Ameritrade offers all of them while Robinhood doesn’t.
If we compare the two brokers based on research tools, TD Ameritrade is the obvious choice here.
While Robinhood doesn’t offer a screener, an idea generator, a calculator, and professional research reports, TD Ameritrade offers all of that and more.
TD Ameritrade wins in this area too.
Robinhood offers down-to-earth articles for the lay investor and unsophisticated trader, but you will have a hard time finding what you’re looking for. This is because all of their articles are chronologically ordered and there’s no search box. Beyond their articles, they have a podcast with useful tips but that’s as far as their educational content goes.
TD Ameritrade has a huge library of articles, glossaries, webinars, and videos to help you educate yourself. So, it’s very convenient that you have everything you need in one place.
While Robinhood offers access to crypto and their mobile app is extremely easy to use, going over to TD Ameritrade has all sorts of other benefits.
So, it basically comes down to what you value more. If you need tons of educational material, appreciate a more sophisticated trading platform, and want access to a great variety of securities, TD Ameritrade is a no-brainer.
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As I said, you can transfer stocks from Robinhood to TD Ameritrade without any issues. The most important thing you should keep in mind, however, is that you will have to pay $75 to Robinhood for the transfer. Of course, you can always ask TD Ameritrade if they will cover this cost after the transfer is complete.
It might not always be a great idea to move from Robinhood to TD Ameritrade, but it seems like most of the time it is. The trading app is definitely more friendly with Robinhood, but there are so many other benefits with going the TD Ameritrade way.
I hope this article answered your question and I’m looking forward to any other questions you might have down in the comments. If you found it useful, please share it on social media!
Thanks for reading and I’ll talk to you next time!
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