Last week I had published an article about my move from Robinhood over to TD Ameritrade. There’s a lesson to be learned here. Because I am still new to investing and working with these investing platforms, one of the things that I didn’t know was that there is a transfer fee for when you move your whole account from one platform to another. I just thought it was the same as with transferring an account from one bank to another.
Robinhood charges a one-time transfer fee of $75.00. Well, in of itself I didn’t have a major issue with this except for the fact that I didn’t have enough funds in my cash portion to cover that fee. I wrote to Robinhood to ask how that would be handled. Would the transfer be held up until I deposited enough funds in my Robinhood account? The answer to this was no. As soon as Robinhood received the transfer request from TD Ameritrade (the receiving platform initiates the transfer & the sending platform completes it) they restricted my Robinhood account. This meant that I couldn’t deposit, buy, sell, or withdraw from Robinhood. OK, fine I can wait. But how was the $75 fee going to be covered? Robinhood stated that if there wasn’t enough funds in my account they would transfer the account as a margin account. In other words they would charge TD Ameritrade. They also suggested I contact TD Ameritrade to find out if they would accept a margin account as a transfer.
I did contact TD Ameritrade and asked them if they would accept a margin account with the transfer. I explained the situation and how the margin account came into being. A very helpful asset transfer representative replied back. Their specific reply was:
Yes, we are going to accept the transfer for you, and if you will please notify us once the transfer is completed, we will be glad to reimburse that fee back to you! You may simply reply to this message to let us know that the transfer has been completed,and to move forward with the reimbursement.
Great! Seems the problem was solved. Even if TD Ameritrade didn’t reimburse me for the fee, I was happy that they would accept the transfer. Otherwise, the transfer would have failed and I’d have to start all over again.