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Transfer Stocks Out of Your Robinhood Account

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Re: Transfer Stocks Out of Your Robinhood Account

#31

Post by imustbeevil »

toast0 wrote: post #25
ditonal wrote: post #13

The RH apologists are going on long winded explanations about clearing houses (and to some extent there’s elements of “it’s too complex for your little brain”). But even to the extent it’s true, if I put in 5k from my checkings into RH and buy stock, why does Rh need all this liquidity to get orders filled? I understand turning margin accounts off, but that’s it . Past that, at best robinhoods business model is highl…

My understanding from other threads is that RH accounts default to being a margin account, and that most people don't opt-out of margin. I would never apologize for RH, I thank them for pushing mainstream retail commissions to $0, but I don't do business with them (and never have) because they don't seem to have focused on the important parts of being a brokerage.

> Access to margin is not automatic to everyone, and requires you to upgrade to Gold.

https://robinhood.com/us/en/support/articles/margin-overview...

Re: Transfer Stocks Out of Your Robinhood Account

#32

Post by samtheprogram »

snypher wrote: post #23
ditonal wrote: post #13

The RH apologists are going on long winded explanations about clearing houses (and to some extent there’s elements of “it’s too complex for your little brain”). But even to the extent it’s true, if I put in 5k from my checkings into RH and buy stock, why does Rh need all this liquidity to get orders filled? I understand turning margin accounts off, but that’s it . Past that, at best robinhoods business model is highl…

I think with Robinhood Instant you can by stock before the bank transfer has cleared, so they need cash on hand to fill the orders. The rising demand x rising order amount means they probably blew out their liquidity allowance. With new accounts starting with Instant capability, they are all on margin until the transfer clears.

That would make sense, except they allowed sells instead of buys. Right?

Re: Transfer Stocks Out of Your Robinhood Account

#33

Post by [deleted] »

ditonal wrote: post #13

The RH apologists are going on long winded explanations about clearing houses (and to some extent there’s elements of “it’s too complex for your little brain”). But even to the extent it’s true, if I put in 5k from my checkings into RH and buy stock, why does Rh need all this liquidity to get orders filled? I understand turning margin accounts off, but that’s it . Past that, at best robinhoods business model is highl…

[deleted]

Re: Transfer Stocks Out of Your Robinhood Account

#34

Post by mattnewton »

adventurer wrote: post #18
ogre_codes wrote: post #10

It's been a while since I did this, but last time I transferred shares from one brokerage to another, it took several days. It seems to me that if you are holding GME, the last possible thing you want is being stuck in a position for a while. For this particular case, it might be a better choice is to liquidate your position, cash out and just open another brokerage account. I know this is the total opposite of what…

I've transferred to and from multiple financial and brokerage firms including crypto and have never been charged a fee. Not one dollar. Robinhood is charging $75. *As others have mentioned, this is an ACAT not just ACH transfers. ACATS usually have fees. I also have done an ACAT but it was by chance that it was with one of the three companies listed in the link with $0 fees.

Etrade charges the same $75 fee for total account closure, but i think the fee for ACATs without closing the account is lower. It's not entirely uncommon to screw customers already severing ties with their brokerage, but the receiving brokerage is usually happy to cover it or throw you some other bone to incentivize you.

Re: Transfer Stocks Out of Your Robinhood Account

#35

Post by aneemzic »

adventurer wrote: post #18
ogre_codes wrote: post #10

It's been a while since I did this, but last time I transferred shares from one brokerage to another, it took several days. It seems to me that if you are holding GME, the last possible thing you want is being stuck in a position for a while. For this particular case, it might be a better choice is to liquidate your position, cash out and just open another brokerage account. I know this is the total opposite of what…

I've transferred to and from multiple financial and brokerage firms including crypto and have never been charged a fee. Not one dollar. Robinhood is charging $75. *As others have mentioned, this is an ACAT not just ACH transfers. ACATS usually have fees. I also have done an ACAT but it was by chance that it was with one of the three companies listed in the link with $0 fees.

Almost all brokerages charge a ACAT fee. Stop trying to make this in to something it isn't.

Re: Transfer Stocks Out of Your Robinhood Account

#36

Post by neximo64 »

ditonal wrote: post #13

The RH apologists are going on long winded explanations about clearing houses (and to some extent there’s elements of “it’s too complex for your little brain”). But even to the extent it’s true, if I put in 5k from my checkings into RH and buy stock, why does Rh need all this liquidity to get orders filled? I understand turning margin accounts off, but that’s it . Past that, at best robinhoods business model is highl…

- If you bought with $5k, $5k of stock - no leverage

- If you waited 3 business days for your deposit to clear

- If you waited for stock settlement before buying other stock.

Basically no margin, no 'instant' deposits, and needing 25k+. You wouldn't even bother using robinhood.

Re: Transfer Stocks Out of Your Robinhood Account

#37

Post by adrr »

janmo wrote: post #22

Just open an account on some real broker website like DEGIRO that does not engage in to pay for order flow like RobinHood and Trade Republic do. I can still buy GME if I want to there, although I am not doing it.

How do they make money? And why does it matter who executes your transaction as a retail investor.

Re: Transfer Stocks Out of Your Robinhood Account

#38

Post by colechristensen »

ditonal wrote: post #13

The RH apologists are going on long winded explanations about clearing houses (and to some extent there’s elements of “it’s too complex for your little brain”). But even to the extent it’s true, if I put in 5k from my checkings into RH and buy stock, why does Rh need all this liquidity to get orders filled? I understand turning margin accounts off, but that’s it . Past that, at best robinhoods business model is highl…

A whole lot goes on behind the scenes with securities trading, your interface to it as a retail trader buying and selling is only the tip of the iceberg.

Most of the people talking about various conspiracy theories about brokerages have clearly very little idea of how brokerages work on the back end (and not very many people do know this) or what regulatory duties brokerages have and hwo that might inform decisions they make.

If you are a bit of a masochist, you can read all about it in After the Trade is Made https://www.amazon.com/After-Trade-Made-Processing-Transacti...

Re: Transfer Stocks Out of Your Robinhood Account

#39

Post by kibwen »

imustbeevil wrote: post #31
toast0 wrote: post #25

Earlier quoted context omitted.

My understanding from other threads is that RH accounts default to being a margin account, and that most people don't opt-out of margin. I would never apologize for RH, I thank them for pushing mainstream retail commissions to $0, but I don't do business with them (and never have) because they don't seem to have focused on the important parts of being a brokerage.

> Access to margin is not automatic to everyone, and requires you to upgrade to Gold. https://robinhood.com/us/en/support/articles/margin-overview...

"When you sign up for a new account, you’ll automatically start with a Robinhood Instant account, which is a margin account."

https://robinhood.com/us/en/support/articles/robinhood-accou...

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