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Written by Cari Scribner on August 23, 2021
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How To Transfer From Robinhood To Vanguard

Robinhood is one of the simplest online investing apps out there today, so it makes sense that their process to transfer funds is not complicated.

Here are all the details you need to know to transfer your account from Robinhood to Vanguard.

vanguard owner

How Does An Account Transfer Work?

You can transfer stocks and cash to Vanguard or other brokerages through an ACATS (Automated Customer Account Transfer Service) transfer. If you want to keep your Robinhood account, you can initiate a partial transfer. Otherwise, you can initiate a full transfer, and Robinhood will close your account once the process is completed.

Are There Any Fees To Transfer My Funds Out Of Robinhood?

If you’re transferring stocks or cash from Robinhood to Vanguard or another outside brokerage, there is a $75 fee, which will be debited from your Robinhood account’s available cash balance. If your Robinhood cash balance is insufficient to cover this fee, it will instead be debited from your new Vanguard brokerage account.

How Do I Start The Transfer?

You will need to resolve any account restrictions or negative balances in your account prior to requesting a transfer. If you skip this step, your transfer from Robinhood to Vanguard may be delayed.

Who Initiates The Transfer?

In order to begin the process, you'll need to contact Vanguard and have them initiate the transfer. They’ll submit the transfer instructions to Robinhood’s clearing partner to transfer over your assets and funds.

Make sure you initiate an ACATS (Automated Customer Account Transfer Service) transfer. Do not request stock delivery using any method other than ACATS, including DTC and transfer agent transfers.

You might need to give Vanguard your Robinhood Securities (RHS) account number. You can find this information in your mobile app:

  1. Tap the Account icon in the bottom right corner.
  2. Tap Investing.
  3. Your account number will be at the top of your screen.

You may need to reference a DTC number for your transfer. Robinhood’s DTC number is 6769.

vanguard account types

What Happens To My Assets When I Request A Transfer?

Stocks and ETFs

Any full, settled shares should be transferred to Vanguard. If you have any fractional shares during a full account transfer, they will be sold, and the resulting funds will be transferred to Vanguard as cash during a residual sweep. A residual sweep is the process of transferring any securities that may have remained in an account after you complete the initial ACAT transfer.

Options

Any options contracts you have should be transferred to Vanguard. Options that expire within 5 business days, however, will not transfer.

Crypto

Your cryptocurrencies are held separately in your Robinhood Crypto account, and are not able to be transferred to other brokerages.

In order to ensure your transfer request is not delayed, you will need to liquidate any cryptocurrencies you own before initiating a full account transfer request with Vanguard. If you fail to do this, it could delay your transfer request.

If you do not liquidate the crypto positions, Robinhood’s financial company, Robinhood Crypto, can liquidate these positions on your behalf.

In either case, the resulting funds will be transferred to Vanguard as cash, either with the initial transfer or during the residual transfer period. Thereafter, both your Robinhood Financial and your Robinhood Crypto accounts will be closed.

What If I’m Using Margin?

You should contact Vanguard if you plan on transferring your Robinhood account while you have borrowed funds. Some brokerages may accept leveraged accounts. Or, you may need to pay off your margin account before the transfer to Vanguard.

vanguard savings goals

What Happens After I Initiate a Full Transfer?

After you initiate a full transfer to Vanguard, your account will be restricted to help ensure the process runs smoothly and in a timely manner.

Your Robinhood account will be locked from buying or selling new positions, and you will no longer be able to deposit or withdraw cash, because these actions can delay the transfer.

What’s more, you won't be able to make any trades on the assets being requested, including options in the underlying asset, while the transfer is in process. But keep in mind that you'll still own the securities or positions during this time, and they'll update in the app to reflect their current market value.

You may receive some assets during subsequent, residual sweep distributions.

Residual sweeps are common when you have unsettled trades or dividend payments at the time the ACATS transfer request is received. This process usually occurs on a weekly basis after the initial transfer is completed. You do not need to take any action on Robinhood to initiate these residual sweeps.

Your Cash Management account and/or Robinhood Gold will be downgraded as a part of the full ACATS transfer process.

If you decide to use Robinhood at a future date, you will be able to subscribe to Robinhood Gold and upgrade to Cash Management again. Cash Management is offered as an additional feature to your Robinhood Financial LLC brokerage account. Neither Robinhood Financial LLC nor any of these affiliates are banks. Robinhood Gold is offered through Robinhood Financial LLC.

What Happens After I Initiate A Partial Transfer?

After you initiate a partial transfer from Robinhood to Vanguard, your account assets being transferred will be restricted to ensure the transfer is processed efficiently.

You won't be able to make any trades on the assets being requested, including options in the underlying asset, while the transfer to Vanguard is in process.

However, keep in mind that you'll still own the securities or positions during this time, and they'll update in the app to reflect their current market value.

Once the partial transfer is complete, any remaining assets in your Robinhood account will be unrestricted and you'll be able to resume trading using those funds.

Robinhood makes the transfer process easy and efficient, and offers further assistance from customer service if you have any other questions.

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Article written by Cari Scribner
Cari Scribner is a career journalist with 20 year’s experience writing for newspapers and magazines. Now a freelance writer, she is also a published fiction writer with more than 15 short stories in literary mags. She recently completed a novel that is on the desk for consideration at two publishing houses. She lives with her two small dogs, Miloh and Lucy, in Upstate NY.

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