How To Transfer From Ally Invest To Robinhood

If you're looking to transfer your assets from Ally Invest to Robinhood, here is our step by step guide.

This is possible through the ACATS transfer service.

Check out my video on how to transfer your brokerage account below, let's dive in!

Before You Transfer: Essential Checklist

Before initiating your transfer, take these important steps to ensure a smooth process:

• Resolve account restrictions - Ensure your Ally account has no negative balances or restrictions
• Verify account types match - Transfer taxable accounts to taxable accounts, IRAs to IRAs (cannot convert account types during transfer)
• Check for non-transferable assets - If you hold mutual funds, bonds, or fractional shares, decide whether to liquidate them or do a partial transfer
• Enable options trading in Robinhood - If transferring options, you must have options trading enabled in Robinhood first
• Document your account - Take screenshots of your Ally account balance and holdings for your records
• Consider tax implications - For IRA transfers, consult with a tax professional about potential implications

If you're transferring assets worth $7,500 or more, you'll qualify for Robinhood's transfer fee reimbursement program. Keep documentation of your Ally Invest transfer fee to claim the reimbursement after completing your transfer.

Transfer Fees

Ally Invest charges a standard $50 fee for all ACATS transfers. This includes both full and partial account transfers.

For IRA accounts, there's an additional fee structure: $50 transfer fee + $25 IRA closure fee = $75 total when closing an IRA account.

Robinhood doesn't charge anything on the receiving side.

Good news for large transfers: Robinhood will reimburse you for up to $75 of the transfer fee when transferring $7,500 or more in equity, options, and cash assets. This means you won't pay any fees for substantial transfers.

You should prepare ahead by having at least $50-$75 available in your Ally Invest cash balance to cover the transfer fees. If you're transferring an IRA, make sure you have $75 available.

Account Type Restrictions

Before initiating your transfer, verify that your account type is eligible for transfer:

• Accepted by Robinhood: Individual accounts, joint accounts, traditional IRAs, and Roth IRAs
• NOT accepted by Robinhood: Trust accounts, business accounts, custodial accounts, or SEP/401(k) accounts
• Important limitation: Robinhood Strategies managed accounts do NOT accept transfers from margin accounts

If you're transferring an IRA, you'll need to maintain the same IRA type (traditional to traditional or Roth to Roth). You cannot convert between IRA types during the transfer process.

Asset Transfer Limitations

Not all assets can be transferred between brokerages. Here's what you need to know:

Assets that CAN be transferred:

• Stocks (individual shares, not fractions)
• ETFs
• Cash
• Options (to individual accounts only - must have options trading enabled in Robinhood first)

Assets that CANNOT be transferred:

• Mutual funds (must be liquidated before transfer)
• Bonds
• T-bills
• Crypto
• Futures
• Fractional shares

For assets that cannot transfer directly:

• Fractional shares will be automatically sold by Ally, with proceeds transferred as cash during a "residual sweep"
• If you hold non-transferable assets like mutual funds or bonds, you'll need to either liquidate them before initiating a full transfer or choose a partial transfer
• Options positions expiring within 7 days typically cannot be transferred

Understanding Cost Basis Transfer

Cost basis information is crucial for accurate tax reporting. Here's what happens during the transfer:

• Ally Invest is required to send your cost basis information to Robinhood within 15 calendar days
• Your average cost and total return calculations won't display accurately in Robinhood until this information arrives
• If cost basis information is missing or incorrect after 15 days, contact Ally directly for assistance
• Robinhood will report the cost basis information provided by Ally on your Form 1099-B

For your tax records, keep copies of your Ally Invest account statements. This is especially important if you're transferring an account that you've held for multiple years with many transactions.

Transfer Timeline Explained

Understanding the transfer timeline will help set proper expectations:

• Days 1-2: Robinhood submits transfer request; Ally receives notice and begins processing
• Days 2-3: Ally verifies account details and checks for restrictions
• Days 3-7: Actual transfer of assets occurs (5-7 business days is standard)
• Days 7-15: Cost basis information arrives (up to 15 calendar days as required)

Starting October 2025, the ACATS system has been enhanced to reduce standard transfer times to 3-4 business days for many transfers. However, IRA transfers may still take up to 10 business days as noted in Ally's documentation.

During the transfer process, your Ally account will be restricted - you cannot buy or sell securities, and you cannot deposit or withdraw cash from the account being transferred.

Common Transfer Issues and Solutions

Here are common problems and how to resolve them:

• Transfer rejected due to non-transferable assets: Choose a partial transfer (leaving non-transferable assets behind) or liquidate them before initiating a full transfer
• Transfer rejected due to account mismatch: Verify your account name matches exactly between Ally and Robinhood (even middle initials matter)
• Transfer rejected due to options: Enable options trading in Robinhood account before initiating transfer
• Missing cost basis: Contact Ally Invest directly; Robinhood cannot provide this information
• Transfer taking longer than 7 business days: Check transfer status in Robinhood app (Account → History) or contact Robinhood support

1. Open A Robinhood Account

The first step you need to take is setting up your new brokerage account with Robinhood.

If you already have an account with Robinhood, you can move on to the next step.

Use the button above to get a completely free stock when you sign up! Robinhood offers valued at $5-$200 (approximately 99% receive $5). Plus, Robinhood Gold subscribers earn 3.75% APY on uninvested cash balances.

2. Gather Information From Ally Invest

To locate your Ally Invest account number, follow these steps:

1. Log in to your Ally Invest account: Access your account through the online platform using your username and password.
2. Choose the desired account: Once logged in, navigate to the section that allows you to select the specific account you wish to access. This might be your investment portfolio, checking, or savings account.
3. Locate the Account Number: Look for an option labeled "Account Number." It may be displayed prominently on the screen or within an account details section.
4. Unmask the digits: Next to the Account Number, you may find an option like "Show." Select this option to reveal all the digits of your Ally Invest account number. This step is similar to unmasking your bank account number in online banking.

Important additional information you'll need:

• Confirm your exact account name - This must match exactly between Ally and Robinhood (including middle initials)
• Check your asset types - Note any mutual funds, bonds, or fractional shares that may require liquidation before transfer
• For IRA transfers - Note your specific IRA type (traditional or Roth) to ensure you select the correct account type in Robinhood
• Verify available cash - Ensure you have at least $50-$75 available to cover Ally's transfer fees

For partial transfers, you'll need to specify exactly which positions you want to transfer (entering "all" or "total" will make the request void as per Ally's documentation).

3. Initiate The Transfer

Once you have opened a brokerage account with Robinhood, the next step is to initiate the transfer within Robinhood.

This is only possible via the Robinhood app, so you will want to download this onto your phone.

You can execute the transfer with the steps below:

1. Tap the person icon along the bottom navigation menu in the Robinhood app
2. Tap the three lines icon in the top left corner
3. Select "Transfers"
4. Choose "Transfer accounts into Robinhood"
5. Select Ally Invest by typing it in the search bar
6. Enter in your Ally Invest account number
7. Confirm your account name (must match exactly)
8. Answer whether or not your Ally account has mutual funds or bonds
9. Choose full or partial transfer
10. Review the transfer and submit

After submitting, Robinhood will send your transfer request to their clearing firm (Robinhood Securities/RHS), which will then submit it to Ally Invest. You'll receive email confirmation from Robinhood when the transfer is initiated.

Keep in mind that "residual sweeps" may occur after your initial transfer. Any unsettled trades, dividends, or remaining cash will transfer in subsequent sweeps, usually completed within 1-2 weeks.

After Your Transfer Completes

Once your transfer is complete, take these important steps:

1. Verify all assets arrived correctly - Compare your Robinhood holdings with your final Ally statement
2. Check cost basis information - This may take up to 15 days to appear; contact Robinhood support if missing after this period
3. Submit for fee reimbursement - If you transferred $7,500+, contact Robinhood support with proof of your transfer fee to claim reimbursement up to $75
4. Update automatic investments - Redirect any dividend reinvestment or automatic contribution plans to your Robinhood account
5. Close your Ally account (if applicable) - If you're doing a full transfer, you may need to manually close your Ally account after transfer completes

For IRA transfers, remember that Robinhood offers a 3% match on annual IRA contributions if you're a Robinhood Gold subscriber ($5/month). This is in addition to their standard 1% match on IRA transfers and 401(k) rollovers.

Frequently Asked Questions

How long does the transfer from Ally Invest to Robinhood take?

Most standard transfers take 5-7 business days to complete. Starting October 2025, the ACATS system has been enhanced to reduce transfer times to 3-4 business days for many transfers. However, IRA transfers may still take up to 10 business days to complete. Cost basis information can take an additional 15 calendar days to appear in your Robinhood account.

Will I lose my cost basis when transferring?

No, cost basis information is legally required to transfer with your account. Ally Invest must send your cost basis information to Robinhood within 15 calendar days of the transfer. Your average cost calculations may not display accurately in Robinhood until this information arrives.

What happens to my fractional shares during transfer?

Fractional shares cannot transfer directly. Ally Invest will automatically sell them as part of a "residual sweep," and the proceeds will be transferred as cash to your Robinhood account. This typically happens after your initial transfer is complete.

Can I transfer my IRA from Ally Invest to Robinhood?

Yes, but there are additional fees and considerations. Ally charges $75 total for IRA transfers ($50 transfer fee + $25 closure fee). You must maintain the same IRA type (traditional to traditional or Roth to Roth). Robinhood offers a 1% match on IRA transfers and 401(k) rollovers, with a 3% match on annual contributions for Robinhood Gold subscribers.

What if I need to cancel my transfer?

Transfers can sometimes be canceled, but it depends on how far along the process is. Contact Robinhood support immediately if you need to cancel. Note that if Ally has already processed the transfer request, cancellation may not be possible, and you may still be charged the transfer fee.