Moving Investment Accounts Between Schwab and TastyTrade
If you have an investment account at Schwab and want to be at TastyTrade, or if you’re in the opposite situation, you can quite easily move the account to the other brokerage firm using the Automated Customer Account Transfer Service (ACATS). Both firms participate in this electronic transfer system, and it’s really easy to use.
Transfer from Schwab to TastyTrade
In a brokerage account transfer, what actually happens is that assets in one account are moved into another at a second brokerage firm. Because assets are moved instead of the actual account, it’s important that both accounts are fully prepared for assets to leave and arrive. Therefore, it’s imperative to follow these steps exactly:
First, you need to open a new TastyTrade account if you don’t have one already. As we just mentioned, the Schwab account won’t actually be moved, so a TastyTrade account has to be already open. If you have an existing tasty account, it will suffice if it is the same account type as the Schwab account (individual, joint, IRA, etc.) and has the same name on it. If these two conditions aren’t met, the transfer will be rejected.
Second, with the TastyTrade account open, it’s time to begin preparing the Schwab account for the upcoming move. Because TastyTrade doesn’t offer trading in mutual funds, bonds, annuities, or foreign stocks, these instruments will have to be closed out (in the case of a full transfer) or left behind in a partial transfer.
OTC stocks and penny stocks also cannot be moved into a TastyTrade account. Although TastyTrade does offer futures trading, futures contracts cannot be moved through the ACATS system. It’s possible to send a robo account through the ACATS network, although Schwab will only send cash out of it.
Option contracts can be moved through the ACATS network as well. However, contracts should not be moved during their expiration week.
Third, the TastyTrade account will need some prep work, too. If you have a margin balance coming over or have option positions that require margin, you’ll definitely want to add margin capability to the account. Options obviously can only be moved into an account that has been approved for margin trading. Make sure you have the minimum option level required for any spreads.
Fourth, it’s time to make the request. This will be done with the incoming brokerage firm. On the TastyTrade website, hover over the My Money tab and select Deposits. On the next page, click on the “By ACAT” tab and fill in the requested information.
Although this online form is really easy to use, only individual accounts and IRAs can be transferred in this manner. All other account types must use tasty’s paper ACATS form.
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Transfer from TastyTrade to Schwab
To move an investment account in the opposite direction, you should go through the same steps.
First, you’ll need to open a Schwab account if you don’t yet have one. Note that Schwab offers many account types that tasty doesn’t offer, such as estate accounts and trusts. These won’t be able to accept a transfer from TastyTrade.
Second, the TastyTrade account will need to be prepared correctly. This includes closing out option contracts that expire during the week of the move or leaving them behind in a partial transfer. Cryptocurrencies and futures contracts cannot be moved at all, so the same rule applies to them.
Third, the Schwab account must also be fully prepped. Margin and option privileges will need to be added to accept related positions from TastyTrade. It’s possible to transfer into an automated account at Schwab, although Schwab will only accept cash in this account type.
Fourth, make the request. To do this, find the Account Transfer link under the Accounts tab on Schwab’s website.
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Cost of a Transfer
Neither Charles Schwab nor TastyTrade charges anything for an incoming ACATS transfer. However, Schwab
charges $50 for a full transfer and $25 for an outgoing partial transfer. TastyTrade clients
pay $75 for either type of ACATS transfer. Other types of transfers at TastyTrade not covered in this article have different fees.
ACATS Transfer Timing
A transfer through the ACATS network takes less than 2 weeks to complete. This estimate assumes no mistakes are made in the initial transfer request. If there are any snags along the way, you can expect a longer timeframe. Also, cash proceeds generated from the liquidation of fractional shares usually arrive a few days after securities do.
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