In this article, I'll be walking you through the process of transferring from Charles Schwab to Robinhood step-by-step. If you want more information about either platform before starting the transfer process, check out our full reviews, linked above.
Regardless of your reason for transferring your investments, we are here to guide you through the process to assure a secure transition of your assets.
Since Robinhood does not currently allow direct transfers, there are a few more steps that need to be taken. If direct transfers become available in the future, we will be updating our articles to ensure our information is accurate.
Given the fact that you cannot directly transfer, you will have to sell your stocks in order to transfer them. This will likely result in tax consequences. Whenever you sell stocks for a gain, the IRS wants their share. On the other hand, when you sell for a loss you may be able to write off some or all of that loss on your taxes. For this reason, it may be worthwhile to talk to a tax professional before initiating a transfer.
The first step to withdrawing any funds from a brokerage is to sell your assets. Below we have listed the steps to do so form your Schwab account:
There are a variety of options to deposit funds into the app, but when it comes to transferring out, we suggest Wire Transfers or Online Transfers. These will generally be the fastest and least expensive options.
There are minimal fees applied to depositing funds into the brokerage, although that is not the case for transferring funds back out. Online transfers have no charge connected to them. Wire transfers from your Schwab account to an outside account are $15 - $25 per transfer.
Most bank deposits should be completed and settled within three trading days of the transaction.
You can skip to the Connecting your Bank Account section if you already have an account set up with Robinhood. If you are starting with a blank slate, here are some steps to get your account set up.
There are no fees linked to signing up or depositing funds into your Robinhood account.
Depending on your account activity, the time between requesting your funds’ transfer and it being available for use in the app is approximately five days. It is important to maintain the deposit amount in your bank account on those days until the transfer is complete.
The most you can transfer into your Robinhood account in a single business day is $50,000.
If the proper comparison has been done between these two brokerages, hopefully, this article can guide you through a safe and secure process of extending or starting fresh with Robinhood. As always, investing is an exciting journey and we wish you the best. Just remember that it doesn’t need to be complicated; let us help make it simple.