If you clicked on this blog, you are probably planning to transfer stocks between brokerages and that is exactly what I will be talking about. I will be sharing with your 4 of the most important information that you will need to know before actually proceeding in transferring your stocks.
The first step to transfer stocks between brokerages is identifying what is your ‘from’ and where is your ‘to’. In this blog, I will be featuring two brokerages: Robinhood and M1 Finance. In my case, if I want to put my Robinhood portfolio into my M1 Finance portfolio without buying and selling, or without triggering tax consequences, just transferring from one brokerage to another, there’s actually a very simple way to do that.
Since my transfer will be coming from Robinhood to M1 Finance, the request shall be made on M1 Finance. The same goes with other brokerages; if you’re going to transfer your stocks from Robinhood to Fidelity, then you should make your request on Fidelity.
How to transfer
Go to your M1 Finance portfolio and go to transfer, click on move money, then account transfer. You will then see three options:
- Transfer brokerage or IRA
- Roll over 401(k)
- Have questions?
Click on Transfer brokerage or IRA, then click Get Started. You will then be redirected to a request form where you will be asked to type in your email address, then select whether you want a partial or full transfer, then extra details. For example, you can type in:
“I want to transfer the following stocks: BABA, MA, TLRY, TSLA.”
Lastly, attach your latest summary. To get this file, go over your Robinhood portfolio, click on accounts, go to documents, and then select your latest account statement. Attach this file to your M1 Finance portfolio, then click submit.
February 12th is when they received my transfer request and I received an email saying, “we will initiate the transfer in the next 24 hours. The transfer should be completed in 7-10 business days.”
Essentially, the initial transfer was made between February 12th and 18th, and I got the funds on February 21st.
The fee is $75. You might think, “if I will be paying this amount, why not just sell and buy on a different brokerage?” Yes, you can absolutely do that as well; it really depends on what taller value you’re talking about and what is your taxable like implication.
Some things that you will need to consider are capital gains and tax. If you find that the taxable implication is higher than the $75 fee, then just proceed with the transfer; otherwise, selling and buying with another brokerage would be the better option.
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One rookie mistake that I made was I did not check my email on time, especially when the market was going down which resulted in me missing the golden buy opportunities with my M1 Finance portfolio because it was paused.
So why was it paused? Because I didn’t see the email on time, I did not respond on time, my account was put to pause. So, here’s a reminder for you: whenever you make the transfer, don’t just assume that just because you brought the stock over, your transfer process is already through. You have to actually create these slices within your MLM finance pie in order for your transfer process to go through.
If all of this is overwhelming and you’d rather let an expert assist you. I’d love to be a part of your journey to wealth building.
I will work with you and set up a SMART (Smart, Measurable, Attainable, Result Oriented, Timely) plan to develop an investing strategy that is aligned with your goals.