Transfer E*TRADE to Tastytrade and The Other Way in 2024
There are multiple reasons to transfer an ETRADE account to Tastytrade or vice versa. Some popular
reasons include having better options trading tools, lower commissions, access to exciting investment
vehicles, and improved trading software, as reported by some users.
Transfer from ETRADE to Tastytrade
When switching from ETRADE to Tastytrade, you have two options to transfer your account: manual preparation and transfer or an automated system (ACATS). Both methods have pros and cons, so consider your options before deciding how to transfer your brokerage account.
Manual vs. Automated Transfers
Manual transfers often take longer and have tax-related disadvantages. However, they provide more control and a fresh start for portfolio rebuilding. They are also beneficial for changing account types or transferring internationally.
Automated transfers simplify the process, allowing the transfer of entire brokerage accounts within ten days. ACATS enables the opening of new brokerage accounts without triggering capital gains tax requirements.
Here are the details on each transfer type.
Manual Transfer Process
Transferring your brokerage account manually involves selling your investments, withdrawing your cash, and optionally closing your account. The entire process can take up to two weeks, although it may be faster depending on the handling.
Settlement
After liquidating your assets, you must wait for your trades to settle. For most securities, settlement occurs 1 day after the trade date (T+1). That means you can transfer your funds to your bank three days after selling.
Money Transfers
Once all your funds have been fully settled, you can use one of ETRADE's transfer methods to move your money to your bank. ACH transfers are free but may take up to five days to settle in your bank account, while wire transfers take about two days and incur a $25 fee.
Funding Tastytrade Account
Funding your Tastytrade account typically takes about five days. However, if you have a margin account, you can establish an ACH relationship between the broker and your bank to activate instant buying power and avoid the wait.
Automated Transfer Process
When it comes to automated brokerage account transfers, it's good to know that they are initiated from the receiving broker. When transferring your ETRADE account to Tastytrade, you must request the transfer from your Tastytrade account.
To set up an ACATS transfer in Tastytrade, follow these steps:
Open a new Tastytrade account.
Log in to your Tastytrade account.
Navigate to the "Deposits" section of the website. You can find it within the “My Money” menu on the “My Account” page.
Select the "By ACAT" option and follow the onscreen instructions.
Provide the necessary information for the transfer and link your brokerage account before selecting the assets to transfer.
Next, upload an ETRADE brokerage statement and review your request. Once everything meets your expectations, all that's left is to submit your request.
Preparing Your Account for the Transfer
There are some things to be aware of to avoid an ACATS reversal.
To ensure compatibility, note that your Tastytrade account type should match the type of your ETRADE account. Fortunately, ETRADE and Tastyworks offer similar account types, making finding a corresponding option for your ETRADE account at Tastytrade easy.
You should also ensure that Tastytrade supports the securities you are transferring. The transfer can be reversed if you try to move a security that Tastytrade does not accept.
Finally, sending and receiving accounts must be owned by the same person or people. For example, if you have a joint account at ETRADE, your Tastytrade account should have the same designation.
Fees & Reimbursements
ETRADE charges a $75 fee for full ACAT transfers and a $25 fee for partial transfers.
Tastytrade offers reimbursement for ACAT transfer fees, up to a maximum of $75. However, the broker will
only reimburse the fee if the value of the transferred account is at least $2,000.
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Transfer a Tastytrade Account to ETRADE
If you want to transfer your Tastytrade account to ETRADE, here is how to do it.
You have the same two methods for transferring your account as you do going from ETRADE to Tastytrade, and the manual method works in the same way. You must liquidate your positions, wait for settlement, and then transfer your funds to a bank account.
The automated system is also similar, and you will use your ETRADE account to request the transfer from Tastytrade. Tastytrade charges a fee of $75 per ACAT transfer, and ETRADE does not provide reimbursement for this fee.
To set up an ACATS transfer in ETRADE, follow these steps:
From your new ETRADE account, go to the money tab (located next to the bell icon) and click "Transfer Account."
Next, select "Transfer" and "Account" to access the brokerage selection screen.
If you do not see Tastytrade listed in the available brokers section, you may need to add it manually. Type "Tastytrade" into the search bar and look for the link that says "Manually add Tastytrade."
After creating the brokerage connection, you can apply for the automated account transfer.
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