With the GameStop Fiasco and with Robinhood significantly restricting the number of shares of different companies which can be purchased by traders, Robinhood has effectively hobbled trading in those securities as volume was significantly restricted causing share prices to plummet or stay low despite higher than usual volume.
Hence I wrote this article to look at the different options available to traders. Please note this is not a comprehensive list and you are best recommended to look at the actual product website to learn more about the features
Things to remember you move from robinhood
When you decide to move from robinhood, there are a few important things to be mindful of
- If you have open option contracts, close them before you start the process
- Some brokers dont support cryptocurrency or fractional shares, you might need to liquidate those shares before you move and sell off the crypto currency as well
- Be aware that when you initiate a transfer, your robinhood account will be frozen and you cannot make or sell shares. The amount of time it will be frozen will depend on how your shares take to transfer and can range from 5 days to 14 days or more. So be mindful of the time it might take and the downtime for it
- You will have to pay a $75 fee to transfer your account out of robinhood (most brokers will reimburse that fee if you submit a request as long as the initial investment amount is over a certain amount)
- One thing about robinhood is that they have a really good user experience which makes it super easy to understand and use. If you are moving to another broker, ensure you use the time to learn how to use the new product and optimize your trading style to it.
How do I move ?
- Go the broker that best suits your requirements and setup an account. Remember, this can take upto 3-5 days for validation though most setups and approvals happen really fast
- Fund the account with some initial money if you want. This is purely optional but gives you the choice of trading while you wait for your shares to move
- Login into robinhood and go to Account and then settings (this on the web)
- Copy down your account number
- Go the broker you just setup an account with find their account transfer page