How to Transfer Funds from E-Trade to Robinhood: A Comprehensive Guide

For many investors, managing multiple accounts can be a straightforward process. However, when it comes to transferring funds from one non-retirement account to another, such as moving funds from E-Trade to Robinhood, the process can be confusing and requires careful consideration. In this guide, we will explore the best methods for transferring funds and clarify the differences between withdrawal and rollover procedures.

Direct Transfer Not Available

Unfortunately, direct transfers from E-Trade to Robinhood are not supported within the platforms. This is because most online brokerage firms do not offer inter-account transfers due to regulatory and security reasons. Instead, users must withdraw funds from E-Trade and then deposit them into their Robinhood account.

Withdraw and Link Account Method

The simplest and most efficient way to move funds from E-Trade to Robinhood is to withdraw your funds from E-Trade and then link them to your new Robinhood account. Here’s how you can do it:

Login to your E-Trade account. Select the option to withdraw or transfer funds. Choose the amount you want to transfer and select the bank account you would like to deposit it into. Follow the instructions to complete the withdrawal. It typically takes 1-5 business days to complete the transfer. Once the withdrawal is complete, log into your Robinhood account and link your new bank account. This process usually involves linking your bank via a third-party service like Alacriti or F1 Alacriti.

Withdraw and Open a New Account

Another option is to withdraw the money from E-Trade and then open a new Robinhood account. While this method is faster than the paperwork and processes required for a transfer, here are the steps to follow:

Withdraw the funds from your E-Trade account as described above. Open a new Robinhood account if you don’t already have one. Deposit the withdrawn funds into the new Robinhood account.

Using a Check for Transfer

Another method is to request a check from E-Trade and then write an additional check to Robinhood. This method is less paperwork-intensive and can be quicker. However, here’s how it works:

Request a check to be sent to your address by following the usual procedures for withdrawing funds from E-Trade. Write a check to Robinhood using the check you just received.

Rollover Procedure for IRA Accounts

If the funds in question are part of an IRA (Individual Retirement Account), the process is slightly different. In this case, a rollover is required rather than a simple transfer. Here’s what you need to do:

Contact E-Trade and request an IRA rollover. They will provide you with the necessary forms and information. Supply them with the information for your new Robinhood IRA account. E-Trade will then send a check directly to your new IRA account at Robinhood.

60-Day Rollover Distribution

Another option is to request a direct rollover distribution from E-Trade to you, as the individual. If you choose this method, follow these steps:

Contact E-Trade and ask for a direct rollover distribution to be made to you. This distribution must be deposited into another IRA within 60 days. Upon receipt of the check, take it to your new IRA within 60 days. Failure to do so may result in taxes and penalties.

Conclusion

Transferring funds from E-Trade to Robinhood can be complex, but with the right steps and strategies, it can also be straightforward. Whether you choose to withdraw and link your accounts, use a check, or handle the IRA rollover, the key is to follow the steps carefully and ensure all paperwork is in order. By pursuing the most suitable method, you can successfully move your investments from one platform to another with minimal hassle.