Robinhood now limiting stocks from companies that the investors could buy has opted many to switch or transfer their stocks from Robinhood to a different broker. Due to a short squeeze by a Reddit forum, Robinhood and some other brokers have temporarily restricted trading stocks of AMC Entertainment and Gamestop recently. Moreover, retail investors like Koss Corp., Bed Bath and Beyond, Nokia, American Airlines, etc. have also been restricted. Therefore, a lot of investors remain speechless while they cannot purchase stocks that showed a surge in share prices. Now, is selling all your Robinhood stocks the solution to this tragedy? Of course not. Luckily, Robinhood allows full account transfer except for cryptocurrency investments.
And even the process is not all that difficult. In this article, we’re going to describe the process through which you can transfer Stocks from Robinhood to a different broker.
The Procedure To Transfer Stocks From Robinhood To A Different Broker
- $75 is the cost of all outbound transfers.
- If you transfer all your stocks from Robinhood, then Robinhood will automatically close your account.
- Robinhood supports and allows both partial and full outbound transfers.
- You can risk your transfer getting delayed if you have any account restrictions or negative balances before the transfer request.
Now, as the pricing and conditions are clear, let’s talk about the procedure of the transfer. First, you have to contact your other broker if you want to transfer all your stocks out of Robinhood. Following Robinhood’s support page, it says that first, you have to initiate an ACATS (automated customer account transfer service). Therefore, you cannot use any other methods of stock delivery like check transfers, transfer agent transfers, or DTC. Your Broker might ask for your RHS or Robinhood Securities account number which you can find by pressing your account icon which is in the lower right corner of the app. And after that press Investing. Your RHS number will show up on the screen. You might also need Robinhood’s DTC number for your transfer which is 6769. This will conclude the procedure of how to transfer stocks from Robinhood to a different broker.
Some additional points to remember is your account will be restricted while initiating a transfer for ensuring that it is processed without an issue. Any form of trades will be restricted until the transfer process is completed. While transferring a part of your overall stocks, only the amount that is being transferred will not be allowed for trading. Also, trading on margin will require you to ask other brokers about their policies relating to margin transfers. This also applies to borrowing money for investing.
Will All Your Stocks Be Transferred Successfully?
Settled shares of stocks and ETFs will be transferred without a problem to other brokers according to Robinhood’s website. In terms of fractional shares, Robinhood sells the shares and transfers the cash to the other broker. However, good news to the regular options trader. They don’t have to worry about any of their options contracts not being transferred. But, transferring cryptocurrency is an issue. This is what Robinhood says –