Investors are making the switch from Acorns to TD Ameritrade for a variety of reasons.
Although Acorns offers a simple trading platform for both beginners and advanced traders, more and more investors are switching to TD Ameritrade for its exceptional trading tools and features.
One of TD Ameritrade’s greatest tools is its thinkorswim trading platform. This desktop and mobile trading tool provides investors a world-class trading experience.
The investing community has awarded TD Ameritrade’s thinkorswim platform the following awards: #1 Platforms & Tools, #1 Desktop Trading Platform, and #1 Active Trading.
Whatever the reason may be for wanting to transfer from Acorns to TD Ameritrade, we will show you how to execute this transfer step-by-step!
The process for transferring your assets from Acorns to TD Ameritrade can be completed through 3 steps.
These steps will be described in detail in the paragraphs below!
The first step in ensuring a successful transfer of assets is to gather all necessary account information from Acorns.
Typically, all required account information can be found on your Acorns account statements. Some of the information that you will need is listed below. Please note you may need additional information during the transfer.
To find the above account information, follow the below instructions on the Acorns mobile app.
To find the above account information on Acorns desktop, follow the below instructions on the web.
After you have gathered the information that you need from Acorns, head to the TD Ameritrade website and follow the step-by-step instructions to create your TD Ameritrade account.
Here you have the ability to select what type of account you want to create. Many of the options are the same between Acorns and TD Ameritrade (Individual Accounts, IRA Accounts, etc.).
It is vital to understand that the name(s)/title on the account being transferred must exactly match the name(s)/title on the new TD Ameritrade account.
To illustrate the above principle, assume you are working to transfer your assets out of your Individual Account within Acorns. The TD Ameritrade account that you create must be an Individual Account with you being the sole owner of the account (just like the Acorns account is).
Once the transfer has been completed you will have the ability to change the titling of the newly opened TD Ameritrade accounts. However, for a successful transfer of assets, name(s)/title must match completely.
The final mandatory step to complete the process is to officially initiate the complete asset transfer from Acorns to TD Ameritrade. Please note that Acorns charges a $50 fee for each ETF transferring out of the brokerage.
The typical brokerage fee is usually just a $75 fee to transfer all assets. The Acorns transfer fee is substantially higher. Click here to see Acorn’s complete transfer pricing sheet.
One way to avoid Acorn’s ridiculous transfer fees is to liquidate all of your assets in Acorns. Once the assets are liquidated you can withdraw your cash funds from Acorns at no fee.
Please note though that the sales of any assets may incur a tax liability. It is in your best interest to understand whether paying the transfer fees or liquidating the assets and paying taxes is better for your particular situation.
If you decide to proceed with the complete transfer of assets, in most cases you will be initiating an in-kind transfer which means you will not be required to sell any assets during the transfer (thus you will not be incurring a tax liability).
However, there are a few cases you will need to liquidate an investment prior to transferring into TD Ameritrade.
First, you will need to liquidate assets in Acorns’ proprietary funds (i.e. funds that are created by Acorns and only sold through the Acorns platform).
Second, if you are holding partial shares of stock in Acorns, the partial shares will need to be liquidated. This is because TD Ameritrade does not allow the transfer of partial shares.
Please remember that the sales of any assets (even as a part of an asset transfer) may incur a tax liability.
To initiate the transfer in TD Ameritrade, follow the below steps.
After initiating the transfer, you can expect to see your assets in TD Ameritrade in about a week.
Typically, transferring assets from one brokerage to another is a pretty straightforward process. However, the transfer of proprietary funds and partial shares can cause a bit of complexity.
As mentioned above, the transfer process may take several days to complete. During the transfer process, you will not have access to your assets and you will not be able to make trades. Please keep that in mind when planning out when to initiate the transfer.
Transferring assets does carry risk, especially if information is entered incorrectly. Investing Simple advises all investors to confirm the above steps with the Acorns and TD Ameritrade official websites. For additional guidance, TD Ameritrade has provided an FAQ section to support in the process.
Remember that you will be paying a $50 fee for each ETF you are transferring out of Acorns. Additionally, if you ever need to transfer all your funds out of TD Ameritrade, expect the fee to be around $75. To see TD Ameritrade’s full pricing sheet click here.
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