How to Move a TradeZero Account to Schwab
If you’re not happy with TradeZero, you can switch to Schwab with just a little effort. Both firms use the Automated Customer Account Transfer Service (ACATS), which makes it easy to transfer an account electronically.
Transfer from TradeZero to Schwab
There are a few steps to complete before the assets from the TradeZero account show up at Schwab. Follow this simple guide:
First Step: Since you’re transferring the holdings, not the account itself, the first task is to open a new brokerage account at Schwab to receive the assets. Make sure it’s a brokerage account, as a bank account won’t work here. An existing brokerage account can be used if it has the same name as the TradeZero account and is the same type (like joint or individual).
You can also transfer assets into an advisory account at Schwab, including a robo account. However, an automated account can only accept cash, so this option would change some of the transfer steps below.
Second Step: After the Schwab account is open and ready, it must be set up correctly. Typically, this involves adding options and margin privileges. If either will be transferred from TradeZero, make sure to add the correct options level to the Schwab account.
Third Step: The same setup needs to be done at TradeZero. It should be properly prepared for the transfer. Any holdings that Schwab won’t accept must be managed. For example, options that expire in under a week shouldn’t be moved. Schwab also doesn’t accept cryptocurrency positions. Although Schwab offers trading in OTC stocks, some positions may not be transferable. Check with Schwab before trying to move any over-the-counter securities to ensure they can be transferred.
Any holdings that can’t be transferred should be sold, moved to a second TradeZero account, or left behind in a partial transfer. If you’re moving to a Schwab robo account, everything in the TradeZero account will need to be sold.
Fourth Step: Now it’s time for the actual ACATS request. Submit this request with the incoming brokerage, which is Schwab in this case. Schwab’s website, not its mobile app, has a digital ACATS form.
To find the ACATS form, click on the ‘Move Money’ tab at the top of the website. In the drop-down menu, select ‘Transfer Account.’ The first page of the ACATS form will appear. The first field to fill in is the outgoing brokerage firm. More specifically, you need to enter the clearing firm of TradeZero. TradeZero uses Apex Clearing Corporation. Type in Apex Clearing Corporation and select the link that appears. Then, fill in the other details, including the Schwab account that will receive the transfer (make sure the account types match).
Schwab’s ACATS form allows either a full or partial transfer. For a partial transfer, up to 70 positions can be listed. Any cash balance in the TradeZero account can be moved, either fully or partially.
Once you’ve completed the form, submit the transfer request. Schwab will notify TradeZero, and the two firms will handle the process.
Fifth Step: Keep an eye on the status of the request. Under the ‘Move Money’ tab, Schwab has a ‘Recent Transfer Activity’ link. Click on this to see a list of submitted transfer requests, which will be available for 90 days.
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Cost of Migrating
TradeZero charges $125 for a full or partial ACATS transfer. Schwab does not list an ACATS fee refund policy, but it’s worth asking. Schwab currently has a refer-a-friend promotion, offering up to $1,000. To qualify, the transfer must be at least $25,000, and the new Schwab account must be opened through the referral link.
How Long Does an ACATS Transfer Take?
Schwab estimates a processing time of about 1 to 3 weeks for an ACATS transfer. However, in most cases, transfers are completed in less than 2 weeks, assuming there are no mistakes in the paperwork.
Updated on 9/18/2024.
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