Choosing a brokerage may be more difficult than you thought. Today, there are hundreds of options to choose from all with a unique set of offerings.
E*Trade is a popular option for many investors with its advanced app, zero commissions, and more. However, some investors might find the app too complicated.
Another option is M1 Finance. M1 has created a platform designed to be a one stop shop. With banking, all kinds of loans, and investments, people can manage their finances in one place. The app also makes it easy to choose an expert designed portfolio.
For whatever reason, if you are interested in making the switch, then this is the article for you. Here, we cover all the steps required to transfer from E*Trade to M1 Finance. Let's jump right in!
Transferring assets from E*Trade to M1 Finance is actually pretty easy as both brokerages support ACATS (Automated customer account transfer service).
With an ACATS transfer, you are transferring your stock ownership from one brokerage to another. The key advantage is that you do not have to liquidate your positions and create a taxable event. The alternative process includes selling your assets, which creates a tax liability if you had made a profit.
This process can be completed in just a few minutes, though the assets may take up to 7 business days to appear in your M1 Finance account.
M1 Finance does not charge for this type of transfer, though E*Trade does. Full transfers cost $75 while partial transfers cost $25. This amount will be deducted from your account balance.
In order to transfer from E*Trade 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. You can actually do it all from your phone in a few minutes.
The account you create with M1 Finance needs to be the same account type as your existing E*Trade account. Additionally, you need to ensure you use the same name. This helps the transfer go smoothly.
In order to initiate the ACATS transfer from E*Trade to M1 Finance, you will need to find your account number. Follow the steps below to access your 8-digit account number:
With the account number, you are all set to initiate the transfer.
Before initiating this transfer, you ought to be aware that 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 E*Trade, then you will need to liquidate these positions first. Be aware that selling any asset for a profit will result in capital gains tax.
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.
Because both E*Trade and M1 Finance support ACATS transfers, this process is actually pretty simple.
After locating your E*Trade account number, you will simply follow the steps in the M1 Finance app as highlighted above.
Before initiating this transfer, be sure to double check which assets cannot be supported and liquidate those positions first.
After you complete this transfer, the funds will appear within 7 business days.
If you want to learn more about M1 Finance and their unique set of offerings, be sure to check out our complete review of the platform.