How To Transfer From Robinhood To E*TRADE

Robinhood manages over $150 billion in customer assets as one of the most popular investing platforms today.

E*TRADE from Morgan Stanley is one of the most well-known full-service brokerages, now operating under the Morgan Stanley umbrella following their 2020 acquisition.

If you're looking to transfer your assets from Robinhood over to E*TRADE from Morgan Stanley, here are step-by-step instructions on how to do so.

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

Transfer Fee Information

When transferring assets from Robinhood to E*TRADE, Robinhood charges a $100 fee for both complete and partial account transfers.

This fee will be debited from your Robinhood account's available cash balance.

Before You Transfer: Critical Checklist

Before initiating your transfer, complete these essential steps:

1. Resolve any account restrictions on Robinhood (check for restriction banners)
2. Ensure no negative balances or margin debt
3. Turn off automatic dividend reinvestment
4. Allow all recent trades to settle (T+1 for stocks/options)
5. Review which assets are non-transferable (mutual funds, bonds, T-bills)
6. Check that your Robinhood account type matches your E*TRADE account type (IRA to IRA, individual to individual)

Robinhood Crypto & Futures Considerations

Robinhood Financial (RHF) and Robinhood Crypto (RHC) are separate entities, as are Robinhood Derivatives (RHD) accounts for futures trading.

RHF facilitates equities and options trading, while RHC supports cryptocurrency trading and RHD supports futures. Securities held in your RHF account can be transferred to other brokerages through ACATS, but crypto and futures cannot be transferred to other brokerages.

Understand that:

• Crypto holdings with Robinhood Crypto cannot be transferred to E*TRADE (or any brokerage)
• Futures positions with Robinhood Derivatives cannot be transferred
• If you initiate a full ACATS transfer, any crypto or futures holdings will be automatically liquidated
• The cash proceeds from these liquidations will be transferred to E*TRADE as part of your residual sweep

Recommendation: Consider transferring crypto to an external wallet or selling your positions before initiating the transfer. New York residents cannot transfer crypto holdings out of Robinhood.

Fractional Shares Issue & Tax Implications

Fractional shares cannot be transferred via ACATS and will be automatically sold during the transfer process.

Example: If you own 1.5 shares of AAPL, the 0.5 fractional share will be sold, creating a taxable event, and the proceeds will transfer as cash to E*TRADE.

This creates important tax considerations:

• For tax-advantaged accounts (IRAs), selling fractional shares creates no immediate tax consequences
• For taxable accounts, selling fractional shares creates a taxable event that must be reported on your tax return
• Consider timing your transfer near year-end to manage tax implications
• Consult with a tax professional before transferring large positions with significant fractional shares

Options Transfer Restrictions

Options contracts have specific transfer limitations:

• Options expiring within 7 business days cannot be transferred
• Options can only transfer to individual investing accounts (not joint or IRA accounts initially)
• Consider contacting Robinhood support if you have expiring options you want to transfer
• For IRA transfers, options may need to be liquidated first depending on E*TRADE's IRA options approval

Transfer Timeline & Process Details

After initiating your transfer:

• Initial transfer: 5-7 business days for ACATS transfers
• Residual sweeps: Additional assets may transfer in weekly "residual sweeps" for up to 90 days after initial transfer (for unsettled dividends, pending deposits)
• Cost basis information: Transfers with assets but may take 15-30 days to appear in your E*TRADE account
• Account status: Your Robinhood account will be restricted during full transfer (no buying/selling, but still owns securities)

For partial transfers, only the specific securities being moved are restricted, allowing you to maintain some activity in your Robinhood account.

1. Gather Robinhood Account Info

There is some information needed from Robinhood. The most crucial is your account number at Robinhood.

You can find this information in your Robinhood 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

Or on the Robinhood web platform:

1. Log in to robinhood.com
2. Click on your name/profile icon in the top right
3. Select Account Summary
4. Your account number appears under "Account Number"

Important: If you have multiple Robinhood accounts (e.g., taxable, Roth IRA, Traditional IRA), ensure you provide the correct account number for the specific account you want to transfer.

2. Initiate The Transfer

If you don't already have one, open an E*TRADE account (ensure account type matches your Robinhood account type).

Then, log on with your user ID and password and:

1. Go to the "Transfer" tab in your E*TRADE account
2. Select "Transfer an Account"
3. Choose "From another firm"
4. Complete the Transfer Initiation Form (TIF) with:
   • Your exact name (as appears on Robinhood account)
   • Social Security Number
   • Robinhood account number
   • Selection of full or partial transfer
   • If partial, specify which securities and quantities
5. Submit the request electronically
6. Track your transfer status under "Transfer Activity" or "History"

Mobile app instructions: In the E*TRADE mobile app, tap the menu icon (hamburger), select "Transfer" > "Transfer accounts" > "Transfer in assets" > "From another firm".

Common Transfer Problems & Troubleshooting

ACATS transfers have a 30-50% rejection rate initially. Common issues include:

• Account name mismatch: Must match exactly (including middle names/initials)
• Account number errors: Double-check your Robinhood account number
• Unsupported assets: Including crypto, futures, or fractional shares in your request
• Unsettled transactions: Recent trades not yet settled (T+1 for stocks/options)
• Account type mismatch: Transferring IRA to taxable account or vice versa

If your transfer is rejected, contact E*TRADE customer service at 800-387-2331 or Robinhood support via in-app chat to resolve the issue.

Frequently Asked Questions

How long does the transfer process take?

Complete transfers typically take 5-7 business days for the initial ACATS transfer. Residual sweeps for additional assets may continue for up to 90 days afterward.

Will I lose my cost basis information?

No, cost basis information transfers with your assets, though it may take 15-30 days to appear in your E*TRADE account. For cost-basis questions, contact Robinhood directly.

Can I trade during the transfer process?

No, your Robinhood account will be restricted during a full transfer process. For partial transfers, only the specific securities being moved are restricted.

What happens if my transfer is rejected?

Common reasons include name mismatches or account number errors. You'll need to correct the information and resubmit the transfer request.

Can I cancel a transfer in progress?

Yes, but you must act quickly - contact E*TRADE customer service as soon as possible to stop the transfer process.

Should I cancel Robinhood Gold before transferring?

Robinhood Gold subscribers lose features like the high yield on uninvested cash and enhanced IRA matching. Consider timing your cancellation carefully. If you have an IRA, note that Gold subscribers receive 3% match (vs 1% without Gold) which requires maintaining Gold membership for 5 years to withdraw penalty-free.