Following a short squeeze prompted by a Reddit forum known as r/WallStreetBets, Robinhood and other brokerages (including TD Ameritrade and Webull) temporarily restricted trades of Gamestop (GME) and AMC Entertainment (AMC) on Thursday.
Robinhood also blocked retail investors from trading several other hot stocks, including BlackBerry (BB), Nokia (NOK), Bed Bath & Beyond (BBBY), Koss Corp. (KOSS), American Airlines (AAL), Tootsie Roll (TR), Trivago (TRVG), and Naked Brand Group (NAKD).
This left many investors unable to buy new shares of stocks that saw dramatic surges in share prices. Though Robinhood has pledged to reopen Gamestop trading, several users are revolting against the app and threatening to file class-action lawsuits.
If you're thinking of transferring your investments elsewhere, keep reading to see how to begin.
There's a $75 fee to transfer assets out of Robinhood, and this applies to both partial and full transfers. In other words, you'll have to pay $75 even if you don't move all of your assets out. If, however, you do transfer all of your assets, Robinhood will close your account for you.
Before you get started with the transfer, Robinhood asks you to take care of any account restrictions or negative balances, as this will delay the process. To initiate the transfer, you'll need to call your new brokerage and ask them to provide transfer instructions to Robinhood and its clearing partner.
According to Robinhood's support page, you'll also need make sure the transfer you've initiated is an ACATS (automated customer account transfer service) transfer. This means you can't use any other stock delivery methods — such as transfer agent transfers or check transfers — when moving your stocks.
If the brokerage you're transferring to asks for your Robinhood Securities account number, you can find this information by clicking on the account icon in the bottom right corner of your mobile app, clicking Investing, and then copying the number at the top of the screen.
Robinhood says on its website that all full, settled shares of stocks and ETFs should transfer to your other brokerage. When it comes to fractional shares, though, Robinhood sells them and transfers them as cash during the brokerage change. In addition, if you're a regular options trader, you won't have to worry about any of your options contracts not making the cut.
But for cryptocurrencies, Robinhood says the following:
Another thing to note is that if you're trading on margin and borrowing money to invest, you'll need to ask your other brokerage about its policies regarding margin transfers. And if you decide that you'd like to cancel any outgoing transfers, you can do so by contacting your other brokerage.