Transfer from Betterment to Robinhood (and Vice Versa) in 2024
How to Transfer a Robinhood Account to Betterment
Do you have a Robinhood account but want to try robo advisory at Betterment? No worries—you can easily move your Robinhood assets into a Betterment account using electronic transfer services from both companies. We’ll also guide you on how to move a Betterment account to Robinhood.
Transfer From Robinhood to Betterment
The first thing to know when transferring a brokerage account from Robinhood to Betterment is that you’ll be switching from self-directed trading to automated investing. Although Betterment only provides robo-investing, it can still accept transfers of self-directed accounts. Just keep in mind that any asset Betterment’s algorithm does not support will be sold, and the funds will be used to buy low-cost ETFs.
If you’re ready to give automated investing a shot, follow these steps to make the move:
First, understand the requirements of completing an ACATS transfer. Robinhood will charge your account $100. If you
transfer your Robinhood account to Webull, Webull will reimburse the $100 transfer fee.
Open Webull Account
Open Webull Account
Moreover, Betterment has a $6,000 account minimum requirement to accept an incoming transfer. If your Robinhood account is below this amount, Betterment will reject the transfer.
Second, prepare your Robinhood account for an ACATS transfer by closing any open orders and finishing trading. This is especially necessary if you plan to transfer everything. Betterment also accepts partial transfers.
Third, open a Betterment account. Make sure that the account names match and both accounts are the same type.
Since Robinhood only offers individual and Traditional/ROTH IRA accounts, you’ll need to open an individual or Traditional/ROTH IRA account at Betterment.
Fourth, connect your old account to your new account. If you want to make an electronic ACATS transfer, this step is required by Betterment. Log into the Betterment website (the mobile app won’t work for this) and scroll down to the Connected Accounts section.
In this section, you’ll see a button that says "Connect new." Click on this and you’ll be able to link your Robinhood account using your Robinhood login or other details such as account type, broker, and account number.
Once your Robinhood account is linked to your new Betterment account, it’s time to make an ACATS request. Go to the Transfers section in the left-hand menu on Betterment’s site. If the link was successful, you should see your Robinhood account listed under "Transfer a connected account." A paperless transfer usually takes 5-6 business days according to Betterment, which is shorter than most brokers promise.
If you can’t link your Robinhood account for any reason, you can always do a traditional transfer. This will take longer. To get started, send an email to transfers@betterment.com.
Transfer from Betterment to Robinhood
Transferring in the other direction follows a similar process, though not identical.
First, be aware that Betterment does not charge for outgoing ACATS transfers, and Robinhood doesn’t charge to accept them. Also, since Robinhood only offers self-directed trading, the ETFs that are moved into Robinhood will no longer be managed by Betterment.
Second, prepare everything on the Betterment side. Cryptocurrencies cannot be transferred out of Betterment, so you’ll need to keep these in a separate account not involved in the transfer.
Third, open a brokerage account at Robinhood. Make sure the account names and tax structures match as described above.
Fourth, submit an ACATS transfer request. There is no need to connect the outgoing account to the incoming one this time. Instead, open the Robinhood mobile app and tap on the person icon in the bottom menu. Next, tap on the three horizontal bars in the upper-left corner and select Transfers. On the next page, choose the option to transfer accounts into Robinhood.
This will pull up the ACATS form. Search for Betterment and select the Betterment logo. Provide the requested details, such as your account number, and submit the transfer. The same transfer form can be found on the website (under the Account tab, look for the Transfers link).
The total time for an ACATS migration is about a week and a half. Fractional shares of ETFs that are converted to cash may take a few extra business days to arrive.
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Updated on 9/30/2024.
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