Moving Investment Accounts Between Schwab and TastyTrade
If you have an account at Schwab and want to switch to TastyTrade, or if you’re in the opposite situation, you can easily move the account using the Automated Customer Account Transfer Service (ACATS). Both firms use this electronic transfer system, and it’s simple to use.
Transfer from Schwab to TastyTrade
In a brokerage account transfer, assets in one account are moved to another at a different firm. Since assets, not the actual account, are transferred, both accounts must be ready to send and receive assets. Follow these steps carefully:
First, open a new TastyTrade account if you don’t have one yet. The Schwab account itself won’t be moved, so you need an open TastyTrade account. If you have a tasty account already, make sure it is the same type (individual, joint, IRA, etc.) and has the same name as the Schwab account. If not, the transfer will be rejected.
Second, prepare the Schwab account for the transfer. TastyTrade doesn’t offer trading in mutual funds, bonds, annuities, or foreign stocks, so these need to be closed (for a full transfer) or left behind (for a partial transfer).
OTC stocks and penny stocks can’t be moved to a TastyTrade account. TastyTrade does offer futures trading, but futures contracts cannot be moved through the ACATS system. You can transfer a robo account through ACATS, but Schwab will only send cash.
Option contracts can be moved through the ACATS network, but they shouldn’t be moved during their expiration week.
Third, the TastyTrade account needs to be prepared too. If you have a margin balance coming over or option positions needing margin, add margin capability to the account. Options can only be moved to an account approved for margin trading. Make sure you have the minimum option level required for spreads.
Fourth, submit the request. This is done with the incoming brokerage. On TastyTrade's website, hover over the My Money tab and select Deposits. Click on the "By ACAT" tab and fill in the information.
While this form is easy to use, it only works for individual accounts and IRAs. Other account types must use TastyTrade’s paper ACATS form.
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Transfer from TastyTrade to Schwab
To move an account the other way, follow the same steps.
First, open a Schwab account if you don’t already have one. Schwab offers many account types that TastyTrade doesn’t, like estate accounts and trusts, which cannot accept a transfer from TastyTrade.
Second, get the TastyTrade account ready. This includes closing option contracts expiring during the week of the transfer or leaving them behind in a partial transfer. Cryptocurrencies and futures contracts cannot be moved, so they must be left behind.
Third, prepare the Schwab account. Add margin and option privileges to accept related positions from TastyTrade. You can transfer to an automated account at Schwab, but Schwab will only accept cash in this type.
Fourth, submit the request. Find the Account Transfer link under the Move Money tab on Schwab’s website.
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Cost of a Transfer
Neither Schwab nor TastyTrade charges for an incoming ACATS transfer. However, Schwab charges $50
for a full transfer and $25 for a partial transfer out. TastyTrade clients pay $75 for both full and
partial ACATS transfers. Other transfers at TastyTrade not covered here have different fees.
ACATS Transfer Timing
An ACATS transfer usually takes less than 2 weeks. This timeframe assumes there are no errors in the transfer request. Any issues can cause delays. Cash from the sale of fractional shares typically arrives a few days after the securities do.
Updated on 9/18/2024.
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