Transferring stocks in and out of Robinhood should be a fairly simple process. However, Robinhood has made this more complicated than it needs to be. Perhaps you need to transfer stocks from another broker to Robinhood or vice versa.
So, can you transfer stocks from Robinhood? You can transfer stocks from Robinhood to any other broker supporting the Automated Customer Account Transfer Service (ACATS). This includes TD Ameritrade, Fidelity, Vanguard, and M1 Finance. The fee associated with this transfer is $75.
In this post, I will go over what a Robinhood stock transfer is and how to actually transfer stocks from Robinhood. I’ll also address the question of how long a stock transfer from Robinhood takes.
In the second part of the article, we will look at how to transfer to Robinhood from another broker. I’ll also discuss whether you can transfer stocks from TD Ameritrade to Robinhood.
So let’s get started!
What is Robinhood’s stock transfer?
Robinhood offers stock transfers through the Automated Customer Account Transfer Service (ACATS). This service will transfer all of your holdings from Robinhood to another broker of your choosing.
Robinhood also accepts the ACATS method to transfer stocks to Robinhood.
Usually, ACATS will transfer your entire brokerage account but it is also possible to transfer only individual security holdings. Robinhood supports full and partial outbound transfers so if this is possible will depend on your receiving broker.
How to transfer stocks from Robinhood
Transferring stocks from Robinhood to another broker can be done in 3 steps:
1. Resolve account restrictions and negative balances in Robinhood
Before starting your Robinhood stock transfer make sure to have any account restrictions removed by either providing the proper documentation or contacting customer support.
In case of a day trading restriction or bank transfer restriction always make sure to contact Robinhood’s customer support first before initiating the ACATS transfer. Failing to do so can cause significant delays in the transfer process.
If you are currently making use Robinhood’s margin account via a leveraged position make sure that your receiving broker also supports margin accounts and leveraged positions.
2. Initiate the transfer with the receiving broker
It’s counterintuitive but you actually need to contact your receiving broker (the broker you want to transfer stocks to) in order to initiate the stock transfer.
In this example, I will use M1 Finance as my receiving broker since I have personally used them and have been very happy with the process (click here to read my full review).
Before you can initiate the stock transfer from Robinhood you need to have the right account open with M1 Finance. This means you need to make sure that the account that you are planning to transfer matches the receiving account (joint account, Roth IRA, etc.).
Next, you will need to download a recent statement from Robinhood. You can do this by going to your account and then under ‘Documents’ you will find your most recent account statement.
You will need an account statement with most receiving brokers so they can correctly identify your brokerage account in the ACATS system.
Once you have everything set up and ready to go you can fill out the corresponding form with your receiving broker and they will initiate the transfer for you. Here’s an overview of convenient links to the ACATS transfer initiation forms for the most popular brokers:
Currently, M1 Finance also has a promotion running rewarding incoming account transfers with up to $2,500 in cash – depending on your portfolio value. Unfortunately, my own account balance was to low at the time to qualify for this promotion but perhaps you’ll be in a better position to take advantage of this:
3. Pay the transfer fee and wait
The last step to complete the stock transfer from Robinhood is to pay the transfer fee and then patiently wait. Unlike other brokers, Robinhood charges a fairly high stock transfer fee of $75. This fee is the same whether you only transfer individual stocks or your entire account.
This fee will usually be deducted automatically from your current account assets. However, if you do not have sufficient cash holdings in your Robinhood account you will need to initiate a bank transfer to cover the $75 fee.
Also, note that if you have decided to transfer your entire account to another broker (and with it all your assets) your Robinhood will be automatically closed. So, if you plan on using Robinhood again in the future it perhaps makes sense not to transfer everything out.
After you’ve completed steps 1 to 3 there is nothing else you can do. Now, just wait. But how long?
How long does it take to transfer stocks from Robinhood?
It typically takes 7-10 business days to transfer stocks from Robinhood to another broker. However, this is just a rule of thumb. Depending on the receiving broker and Robinhood’s account management team it may take up to 20 days for the entire process to be completed.
I’ve created an overview here of the average transfer time as given by each broker:
|TD Ameritrade||3-5 days|
|M1 Finance||7-10 days|
When I opened my M1 Finance account it actually went a lot faster. I had my account up and running in less than a week. Note that the above time frames are just estimates and transfers may take longer due to certain peculiarities with your accounts.
The ACATS is simply not the fastest system out there since every transaction is still processed manually.
How to transfer stocks to Robinhood
Transferring stocks to Robinhood is also possible and follows a similar process as the one I have outlined above. Instead of initiating the transfer at your current broker, you will need to contact Robinhood.
However, Robinhood has temporarily suspended income stock transfers. This includes all transfers made with ACATS due to maintenance work:
This means that currently it is not possible to transfer stock to Robinhood.
Customer support says the system will be up and running soon but as of late 2020, it is still not up. But in the meantime, you can already open a Robinhood account (link to Robinhood) and start investing.
Once the inbound stock transfer becomes available again I will make sure to update this page to let you know.
Can you transfer stocks from TD Ameritrade to Robinhood?
Currently, you cannot transfer stocks from TD Ameritrade to Robinhood since all inbound stock transfers have been suspended by Robinhood.
Once the system is back online you will be able to transfer stock from TD Ameritrade to Robinhood via ACATS. This process typically takes 7-10 days and essentially follows the same process I have outlined above.
The process needs to be initiated with Robinhood (once possible). TD Ameritrade charges a $75 fee for full account transfers regardless of the receiving broker.
Stock transfers via the ACATS system are quite slow and cumbersome but they are possible. Transferring your stocks from Robinhood to another broker will typically take 7-15 business days and will cost you $75.
Make sure to pick a broker you like and trust to be with for the long term. My personal recommendation is M1 Finance. I have been using them for the past year and a half and have been very happy with their platform so far!
Over the past years, I have discovered several tools and products that have helped me tremendously on my path to financial freedom:
P.S.: The links below are affiliate links, which means I receive a small commission at no extra cost to you when you sign up for one of the services. Thank you for your support!
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