Transferring a Brokerage Account from Ally Invest to Wealthfront (and from Wealthfront to Ally Invest)
Moving a brokerage account from Ally Invest to Wealthfront, and from Wealthfront to Ally Invest, is a fairly straightforward procedure nowadays thanks to the fully electronic ACATS transfer network. To get an account from one broker to the other, just follow this simple guide:
Going from Wealthfront to Ally Invest
It’s possible to move a Wealthfront robo account (the broker doesn’t offer self-directed accounts) into an Ally Invest self-directed or robo account. If you want to push it into a robo account at Ally, you’ll first have to sell everything and move just cash. That is the only asset an Ally Invest automated account can accept.
If you push into a self-directed account, you can move cash, ETFs, or both. If you want to transfer your ETF positions, you’ll have to perform a full transfer because Wealthfront won’t move fund holdings in a partial transfer (only cash).
If these rules are acceptable to you, it’s time to start the transfer. The first step of course is to get the Ally Invest account you want open and ready to accept a deposit. Wealthfront won’t perform a transfer unless the addresses on both accounts are the same, so be sure to use the same address when opening your Ally Invest account. The accounts must also be of the same type (such as IRA or joint).
With your Ally Invest account open, it’s time to prep your Wealthfront account. Because the broker only offers robo accounts, this will be very simple. You can either leave the account as is or convert everything to cash.
To submit an ACATS transfer request, log into your Ally Invest account and head over to the My Accounts tab in the upper-left. Select Transfer an Account. You’ll next see Ally Invest’s ACATS form. Specify Wealthfront as your current broker and enter your Wealthfront account number. Once submitted, there’s nothing left to do except wait.
Open Ally Invest Account
Open Ally Invest Account
Going from Ally Invest to Wealthfront
Sending an account in the other direction requires much more work if you happen to have a self-directed account. Wealthfront only offers robo accounts, so many of the assets available at Ally Invest cannot be pushed into a Wealthfront account. These include bonds, penny stocks, some mutual funds, and forex positions.
Although some mutual funds and stocks can be moved, Wealthfront will eventually sell such holdings anyway to generate cash to buy ETFs in its program. ETFs can be transferred, although if they don’t align with Wealthfront’s investment algorithm, they too will be sold.
To make an ACATS transfer into Wealthfront, obviously you need a Wealthfront account. This is easy enough to open on the broker’s website. Once opened, log into your account and click on the Transfer money link at the top of the site. On the next page, select the Bring over investments link.
You’ll need to add your Ally login credentials. If you don’t want to do this, or you can’t find your Ally Invest account in the linking system, the alternative is to move cash through the ACH network. This involves connecting a checking or savings account to your Ally Invest account, selling assets, moving the cash to the linked bank account, and from there pulling the money into Wealthfront. Because of Wealthfront’s robo-only model, this seems like a reasonable route to take.
To move cash into Wealthfront via the ACH system, you simply need to go through the Transfer money link mentioned above and choose Deposit instead of Bring over investments.
How Long Does a Transfer Take?
The ACATS system requires about 2 weeks to get a brokerage account moved from one firm to another. ACH transfers generally depend on the withdrawal schedule of the intermediary bank and the hold time of the receiving broker. This route could take roughly 2 weeks as well.
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