Cash App recently launched the capability to invest in stocks and other assets. While this is a great option, the Cash App platform does not have all the bells and whistles as other more established brokerages.
With this in mind, some may want to transfer their assets to a new account.
M1 Finance is a top personal financial solution with cash management, investments, loans, and more.
In this article, we cover the steps to transfer cash AND stocks from Cash App to M1 Finance.
Cash App was created primarily as an option to send cash among friends and family. Since, the platform has expanded into stocks and other assets. With this in mind, this article will cover the steps required to transfer cash from Cash App to M1 Finance as well as the process to transfer stocks from Cash App to M1 Finance.
First, we will review how to transfer cash. Let's jump right in!
In order to transfer cash from Cash App to M1 Finance, you will first need to transfer your funds from Cash App to your bank. Then you will link your bank account to M1 Finance and initiate the transfer from your bank to M1. (If you do not already have a M1 account, the steps to create an account are listed in the next section.)
The first step is to transfer your funds from Cash App to your bank. That process can be completed with the following steps:
With your cash now in the bank, you will just need to link your bank account to M1 Finance and then start a deposit. To add a bank account to M1 Finance, you will follow the steps below:
Once your bank account is connected, transferring the funds is easy. You will repeat steps 1-4 above. After clicking on "Bank Connection," you will tap the "Deposit" option. From there, you will simply enter in the amount you would like to transfer and tap "Transfer."
This transfer typically is completed within 1 business day.
Transferring stocks from Cash App to M1 Finance is a far simpler process as both brokerages support ACATS (Automated customer account transfer service).
With ACATS, you do not have to liquidate your positions and create a taxable event. Instead, you transfer the asset ownership to a new brokerage.
M1 Finance does not charge for incoming ACATS transfers, but Cash App does charge $75 for outgoing full transfers and $25 for partial transfers. This amount will be deducted from your account balance.
In order to transfer from Cash App to M1 Finance, you will need to follow the steps below:
Let's jump into each of these steps in more detail!
The first step to execute this account transfer is to open a brokerage account with M1 Finance.
You will have the option between opening a taxable brokerage account or a retirement account. The minimum to open a taxable account is $100 whereas the minimum is $500 for a retirement account.
The process is relatively straightforward and everything is handled within the app. M1 Finance will ask you for information such as your name, address, employer and social security number.
Keep in mind, you will need to open a taxable brokerage account with M1 Finance to transfer your assets over from Cash App. If you open a retirement account with M1, you cannot transfer in a taxable account.
In order to initiate the ACATS transfer from Cash App to M1 Finance, you will need to find your account number. This number can be found at the top of any trade confirmations or monthly statements.
This transfer will also need a Depository Trust Company, or “DTC” participant number. The DTC number for this ACATS transaction is 3856. While Cash App offers brokerage services, they are not actually a brokerage themselves. Instead, their carrying broker, DriveWealth LLC, offers these services.
With the account number and DTC number, you are all set to initiate the transfer.
Before initiating this transfer, there are a few things you ought to be aware of.
First, M1 Finance does not charge for an incoming ACATS transfer. However, Cash App does charge $75 for an outgoing ACATS transfer. This amount will be deducted from your account balance.
Second, M1 Finance does not support transfers with partial or fractional shares. You also will not be able to transfer any cryptocurrency into M1 Finance. If you have these assets in Cash App, then you will need to liquidate these positions first.
After the transfer is initiated, you will receive an email within 1 business day confirming the transfer. The funds will then be sent, which can take up to 7 business days.
M1 Finance was built to be a complete money-management solution. The platform offers members banking with both a debit and credit card, investments, loans, and more.
Transferring your stocks from another brokerage to M1 is actually a simple process. You will just need to ensure you find your brokerage account number. Additionally, the account type and name on the account should match. Moving cash is a little more complicated as you will need to transfer it in from your bank. This creates an additional step from Cash App as you will first need to deposit your funds in your bank and then move them to M1 Finance.
If M1 Finance sounds like a good match for you, be sure to check out our complete M1 Finance review.