How to Move a TradeZero Account to Schwab
If you’re not happy with your experience at TradeZero, you can switch to Schwab with just a little e
ffort. Both brokerages use the Automated Customer Account Transfer Service (ACATS), making it easy
to move your account electronically.
Transfer from TradeZero to Schwab
There are a few tasks to complete before your TradeZero assets appear in your Schwab account. 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. A bank account won’t work for this. An existing Schwab brokerage account will work if it has the same name as the TradeZero account and is the same type (e.g., joint or individual).
You can also transfer assets into an advisory or robo account at Schwab, but a robo account can only accept cash, which may change some steps below.
Second Step: After the Schwab account is open, it needs to be set up properly. This usually means adding options and margin privileges if these will be coming over from TradeZero. Make sure to select the correct options level as well.
Third Step: The TradeZero account must also be prepared. Some holdings may need special attention. For example, options that expire in under a week shouldn’t be moved. Schwab also doesn’t accept cryptocurrency positions. While Schwab allows trading in OTC stocks, some positions may not be transferable. It’s best to check with Schwab about over-the-counter securities before trying to transfer them.
Any holdings that can’t be moved should be sold, moved to a second TradeZero account, or left behind in a partial transfer. If you’re transferring to a robo account at Schwab, all assets in the TradeZero account must be sold.
Fourth Step: Now it’s time to request the actual transfer. This is done with the receiving brokerage, which in this case is Schwab. Schwab’s website (but not its mobile app) has a digital ACATS form, and this is where you start.
To find the ACATS form, click the ‘Move Money’ tab at the top of the Schwab website. From the drop-down menu, select ‘Transfer Account.’ The ACATS form will appear. The first field you need to fill in is the name of the clearing firm for the outgoing brokerage. TradeZero uses KOONCE SECURITIES. Enter KOONCE SECURITIES and select the link that appears. Then, fill in the other required details, including your Schwab account information (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 in the TradeZero account can be moved either fully or partially.
Once the form is complete, submit the transfer request. Schwab will notify TradeZero, and the two firms will handle the process.
Fifth Step: Keep track of the request status. Under the ‘Move Money’ tab in the top menu, you can find a ‘Recent Transfer Activity’ link. Click on it to view submitted transfer requests. These will remain visible for 90 days.
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Cost of Migrating
TradeZero charges $125 for a full or partial ACATS transfer. Schwab doesn’t publish an ACATS fee refund policy, but it’s worth asking. Schwab also has a refer-a-friend program that offers up to $1,000. To qualify, you must transfer at least $25,000, and the new Schwab account must be opened using the referral link.
How Long Does an ACATS Transfer Take?
Schwab estimates that an ACATS transfer takes 1 to 3 weeks to complete, though most transfers are done in less than 2 weeks. This assumes there are no errors in the paperwork.
Updated on 9/13/2024.
Chad Morris is a financial writer with more than 20 years experience
as both an English teacher and an avid trader. When he isn’t writing
expert content for Brokerage-Review.com, Chad can usually be found
managing his portfolio or building a new home computer.
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