The Final, Definitive Thread on Brokerage Transfer Bonuses

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sycamore
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Re: The Final, Definitive Thread on Brokerage Transfer Bonuses

Post by sycamore »

deltaneutral83 wrote: Sat Apr 30, 2022 7:42 am
Nummerkins wrote: Fri Apr 29, 2022 8:15 pm I've got two bonus in play right now. Merrill Edge (3rd time) and for the first time, Schwab. I left my accounts open at Fidelity so I can return funds to them if I choose.
I know they 1099 for Taxable accounts, how about Roth and Trad for bonuses ?
Some data points:
I did not get a 1099 for bonuses in my Roth and Trad IRAs. That was for Merrill Edge, Schwab, and ETrade.
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jeffyscott
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Re: The Final, Definitive Thread on Brokerage Transfer Bonuses

Post by jeffyscott »

sycamore wrote: Sat Apr 30, 2022 9:21 am
deltaneutral83 wrote: Sat Apr 30, 2022 7:42 am
Nummerkins wrote: Fri Apr 29, 2022 8:15 pm I've got two bonus in play right now. Merrill Edge (3rd time) and for the first time, Schwab. I left my accounts open at Fidelity so I can return funds to them if I choose.
I know they 1099 for Taxable accounts, how about Roth and Trad for bonuses ?
Some data points:
I did not get a 1099 for bonuses in my Roth and Trad IRAs. That was for Merrill Edge, Schwab, and ETrade.
Those are paid to the account, so they are earnings in the Roth or TIRA (at least for Schwab, E-trade, and Fidelity, no experience with ME).
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Nummerkins
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Re: The Final, Definitive Thread on Brokerage Transfer Bonuses

Post by Nummerkins »

I have never gotten a 1099 for bonuses from any brokerage (ME, Chase, others I can't remember) regardless of account type. I did get bonuses from Tasyworks and M1 Finance at the beginning of this year so we'll see if that holds.
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Luckywon
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Re: The Final, Definitive Thread on Brokerage Transfer Bonuses

Post by Luckywon »

Nummerkins wrote: Sat Apr 30, 2022 10:49 am I have never gotten a 1099 for bonuses from any brokerage (ME, Chase, others I can't remember) regardless of account type. I did get bonuses from Tasyworks and M1 Finance at the beginning of this year so we'll see if that holds.
I have in taxable accounts at Schwab, Fidelity, Ameritrade, Etrade. The amounts were included in the consolidated 1099 form, categorized variably depending on the brokerage.
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Re: The Final, Definitive Thread on Brokerage Transfer Bonuses

Post by deltaneutral83 »

Nummerkins wrote: Sat Apr 30, 2022 10:49 am I have never gotten a 1099 for bonuses from any brokerage (ME, Chase, others I can't remember) regardless of account type. I did get bonuses from Tasyworks and M1 Finance at the beginning of this year so we'll see if that holds.
You have most definitely gotten 1099's for taxable accounts. Check your consolidated 1099 and look under 1099-MISC on each year you got a bonus in your taxable from said brokerage(s).
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jeffyscott
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Re: The Final, Definitive Thread on Brokerage Transfer Bonuses

Post by jeffyscott »

deltaneutral83 wrote: Sat Apr 30, 2022 4:17 pm
Nummerkins wrote: Sat Apr 30, 2022 10:49 am I have never gotten a 1099 for bonuses from any brokerage (ME, Chase, others I can't remember) regardless of account type. I did get bonuses from Tasyworks and M1 Finance at the beginning of this year so we'll see if that holds.
You have most definitely gotten 1099's for taxable accounts. Check your consolidated 1099 and look under 1099-MISC on each year you got a bonus in your taxable from said brokerage(s).
It could be 1099 was not required (under $600).

I know Fidelity doesn't issue them for taxable accounts, if the bonus is less than $600.
The two greatest enemies of the equity fund investor are expenses and emotions. ― John C. Bogle
deltaneutral83
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Re: The Final, Definitive Thread on Brokerage Transfer Bonuses

Post by deltaneutral83 »

jeffyscott wrote: Sat Apr 30, 2022 4:28 pm
deltaneutral83 wrote: Sat Apr 30, 2022 4:17 pm
Nummerkins wrote: Sat Apr 30, 2022 10:49 am I have never gotten a 1099 for bonuses from any brokerage (ME, Chase, others I can't remember) regardless of account type. I did get bonuses from Tasyworks and M1 Finance at the beginning of this year so we'll see if that holds.
You have most definitely gotten 1099's for taxable accounts. Check your consolidated 1099 and look under 1099-MISC on each year you got a bonus in your taxable from said brokerage(s).
It could be 1099 was not required (under $600).

I know Fidelity doesn't issue them for taxable accounts, if the bonus is less than $600.
Man you guys are lucky then, I remember when TDA was giving Apple gift cards right when Ipods came out and I got one for $400 and they darn sure 1099'd me under MISC. Years ago though.
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Re: The Final, Definitive Thread on Brokerage Transfer Bonuses

Post by drk »

deltaneutral83 wrote: Sat Apr 30, 2022 4:34 pm Man you guys are lucky then, I remember when TDA was giving Apple gift cards right when Ipods came out and I got one for $400 and they darn sure 1099'd me under MISC. Years ago though.
Lucky how? You're obligated to report the income on your return regardless of the 1099.
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Re: The Final, Definitive Thread on Brokerage Transfer Bonuses

Post by deltaneutral83 »

drk wrote: Sat Apr 30, 2022 6:12 pm
deltaneutral83 wrote: Sat Apr 30, 2022 4:34 pm Man you guys are lucky then, I remember when TDA was giving Apple gift cards right when Ipods came out and I got one for $400 and they darn sure 1099'd me under MISC. Years ago though.
Lucky how? You're obligated to report the income on your return regardless of the 1099.
Cash yes, but I always wondered about the store gift cards.
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Re: The Final, Definitive Thread on Brokerage Transfer Bonuses

Post by aragorn1 »

When does Fidelity deposit the bonus ? It's been a week since I opened my account :?
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GeraniumLover
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Re: The Final, Definitive Thread on Brokerage Transfer Bonuses

Post by GeraniumLover »

aragorn1 wrote: Sun Apr 24, 2022 3:25 pm I am thinking of utilizing the Fidelity $100 offer - https://www.fidelity.com/go/starter-pack

I already have an individual and joint brokerage account with Fidelity. Is it advisable to open a second individual account just for the offer ? :greedy Can I close the account later ? I read on Reddit that the $100 bonus needs to be kept in the account for 90 days.
Is this the same offer Fidelity had a few months back or a new one, i.e., if you did the one a few month's back, can you also do this one?
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Re: The Final, Definitive Thread on Brokerage Transfer Bonuses

Post by tj »

deltaneutral83 wrote: Sun May 01, 2022 7:11 am
drk wrote: Sat Apr 30, 2022 6:12 pm
deltaneutral83 wrote: Sat Apr 30, 2022 4:34 pm Man you guys are lucky then, I remember when TDA was giving Apple gift cards right when Ipods came out and I got one for $400 and they darn sure 1099'd me under MISC. Years ago though.
Lucky how? You're obligated to report the income on your return regardless of the 1099.
Cash yes, but I always wondered about the store gift cards.
There's nothing special about gift cards that make them nontaxable.
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Re: The Final, Definitive Thread on Brokerage Transfer Bonuses

Post by plutoblackhole »

GeraniumLover wrote: Sun May 01, 2022 11:12 am
aragorn1 wrote: Sun Apr 24, 2022 3:25 pm I am thinking of utilizing the Fidelity $100 offer - https://www.fidelity.com/go/starter-pack

I already have an individual and joint brokerage account with Fidelity. Is it advisable to open a second individual account just for the offer ? :greedy Can I close the account later ? I read on Reddit that the $100 bonus needs to be kept in the account for 90 days.
Is this the same offer Fidelity had a few months back or a new one, i.e., if you did the one a few month's back, can you also do this one?
It's a different offer, but if you did the one a few months back you're ineligible for this one.
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Re: The Final, Definitive Thread on Brokerage Transfer Bonuses

Post by placeholder »

aragorn1 wrote: Sun May 01, 2022 10:38 am When does Fidelity deposit the bonus ? It's been a week since I opened my account :?
It depends with some it's at the close of the initial period so they know how much total you will be transferring and sometimes at the end of the total hold period.
SlowMovingInvestor
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Re: The Final, Definitive Thread on Brokerage Transfer Bonuses

Post by SlowMovingInvestor »

aragorn1 wrote: Sun Apr 24, 2022 3:25 pm I am thinking of utilizing the Fidelity $100 offer - https://www.fidelity.com/go/starter-pack

I already have an individual and joint brokerage account with Fidelity. Is it advisable to open a second individual account just for the offer ? :greedy Can I close the account later ? I read on Reddit that the $100 bonus needs to be kept in the account for 90 days.
It looks like this is valid for Roth IRAs as well. Has anyone used this for a Roth?

I'll open a Roth IRA, but I'll have to move money from outside in that case since I can't contribute to a Roth.
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mangorunner
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Re: The Final, Definitive Thread on Brokerage Transfer Bonuses

Post by mangorunner »

SlowMovingInvestor wrote: Mon May 02, 2022 11:02 am Has anyone used this for a Roth?
Yes, I have opened a Roth IRA with this bonus.
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Re: The Final, Definitive Thread on Brokerage Transfer Bonuses

Post by placeholder »

SlowMovingInvestor wrote: Mon May 02, 2022 11:02 am It looks like this is valid for Roth IRAs as well. Has anyone used this for a Roth?
On the page it says:
Open an eligible account

Use promo code FIDELITY100 when opening the Fidelity Starter PackSM, The Fidelity Account®, a Fidelity® Cash Management Account, Roth IRA, or traditional IRA.
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Re: The Final, Definitive Thread on Brokerage Transfer Bonuses

Post by veggivet »

Anyone else receive an offer from eTrade for up to $3500 for 1 mil? This was via an email, and I had one small account there a couple of years ago.
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Re: The Final, Definitive Thread on Brokerage Transfer Bonuses

Post by student »

veggivet wrote: Tue May 03, 2022 6:45 am Anyone else receive an offer from eTrade for up to $3500 for 1 mil? This was via an email, and I had one small account there a couple of years ago.
I did. $100 for $5k also.
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Re: The Final, Definitive Thread on Brokerage Transfer Bonuses

Post by Stubbie »

veggivet wrote: Tue May 03, 2022 6:45 am Anyone else receive an offer from eTrade for up to $3500 for 1 mil? This was via an email, and I had one small account there a couple of years ago.
I did. It appears to be a targeted email to former customers. Touting the Morgan Stanley connection.
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Re: The Final, Definitive Thread on Brokerage Transfer Bonuses

Post by student »

Stubbie wrote: Tue May 03, 2022 2:12 pm
veggivet wrote: Tue May 03, 2022 6:45 am Anyone else receive an offer from eTrade for up to $3500 for 1 mil? This was via an email, and I had one small account there a couple of years ago.
I did. It appears to be a targeted email to former customers. Touting the Morgan Stanley connection.
Too bad etrade account does not count as relationship brokerage account as the first step to get the "free" AMEX Platinum card. (Several hurdles to get this for "free" and one is likely to have to pay tax on it.)
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Re: The Final, Definitive Thread on Brokerage Transfer Bonuses

Post by Kenneth Almquist »

veggivet wrote: Tue May 03, 2022 6:45 am Anyone else receive an offer from eTrade for up to $3500 for 1 mil? This was via an email, and I had one small account there a couple of years ago.
E*Trade currently has two offers: one for retirement accounts and one for non-retirement accounts. The former ranges from $100 for $5000 up to $3500 for $1 million, and requires you to keep the assets in the account for at least six months. The latter ranges from $50 for $5000 up to $3500 for $1.5 million, and requires you to keep the assets in the account for at least twelve months. E*Trade charges $75 to transfer out, so you should subtract that from the bonus amount.
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Re: The Final, Definitive Thread on Brokerage Transfer Bonuses

Post by veggivet »

Thanks for the responses and additional info, everybody...👍
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Re: The Final, Definitive Thread on Brokerage Transfer Bonuses

Post by ras4250 »

Merill Edge is doing $1,000 for $250,000 for opening an IRA or Brokerage account for new or existing customers. I called their line and they say existing customers are eligible if you open a new account and transfer in new funds. The rep told me that as long as you did not get a bonus in the last 12 months you are eligible. It only has a 90-day hold period.

https://www.merrilledge.com/offers/pr10 ... 278_480_gc

The terms say, when calculating the eligible bonus amount they will "subtracting assets withdrawn or transferred out of the account within the preceding 24 weeks." But if it is a new account not sure how they can go back 24 weeks?
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Re: The Final, Definitive Thread on Brokerage Transfer Bonuses

Post by Cubs Fan »

If the amount transferred in goes down during the holding period does this cancel the bonus?
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Re: The Final, Definitive Thread on Brokerage Transfer Bonuses

Post by bbrock »

Sounds to me like it would be a 24 wk holding period? Seems like a conflict whether a 90 day hold or 24 wk hold. Is the bonus paid after the 24 wk hold?
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Re: The Final, Definitive Thread on Brokerage Transfer Bonuses

Post by RubyTuesday »

Cubs Fan wrote: Wed May 11, 2022 10:22 am If the amount transferred in goes down during the holding period does this cancel the bonus?
Read the terms, but in my experience they don’t count declines from market against you, but would count withdrawals.
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Re: The Final, Definitive Thread on Brokerage Transfer Bonuses

Post by Cubs Fan »

Thanks, Ruby Tuesday. I received a $900.00 bonus for my first transfer to Merrill Edge. Currently I am waiting to receive my second bonus for $1,500.00 from them for transferring $500,000.00. The second bonus is due to be paid to me in July after keeping the money with Merrill for a period of 9 months.
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ras4250
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Re: The Final, Definitive Thread on Brokerage Transfer Bonuses

Post by ras4250 »

bbrock wrote: Wed May 11, 2022 10:28 am Sounds to me like it would be a 24 wk holding period? Seems like a conflict whether a 90 day hold or 24 wk hold. Is the bonus paid after the 24 wk hold?
It says 2 weeks after 90 days: "Your one-time cash reward will be credited to your IRA or CMA within two weeks following the end of the 90 day period."
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Re: The Final, Definitive Thread on Brokerage Transfer Bonuses

Post by Kookaburra »

Today is the end of my 90-day holding period to retain the Tastyworks bonus. I plan to transfer the funds out and close the account. Any advice and/or things to watch out for based on others’ experiences?
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Re: The Final, Definitive Thread on Brokerage Transfer Bonuses

Post by SlowMovingInvestor »

ras4250 wrote: Wed May 11, 2022 10:15 am Merill Edge is doing $1,000 for $250,000 for opening an IRA or Brokerage account for new or existing customers. I called their line and they say existing customers are eligible if you open a new account and transfer in new funds. The rep told me that as long as you did not get a bonus in the last 12 months you are eligible. It only has a 90-day hold period.

https://www.merrilledge.com/offers/pr10 ... 278_480_gc

The terms say, when calculating the eligible bonus amount they will "subtracting assets withdrawn or transferred out of the account within the preceding 24 weeks." But if it is a new account not sure how they can go back 24 weeks?
FWIW, I signed up for a similar bonus in Feb. I just crossed 90 days after xfer, no bonus yet

It was over 250K when transferred, now slightly below. But in any case, there's no bonus (not a smaller bonus), so balance is not the issue.

EDITED: I missed the message earlier saying the bonus should credit in 2 weeks after 90 days. So I'll wait.
Last edited by SlowMovingInvestor on Thu May 12, 2022 1:36 pm, edited 1 time in total.
SlowMovingInvestor
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Re: The Final, Definitive Thread on Brokerage Transfer Bonuses

Post by SlowMovingInvestor »

Kookaburra wrote: Wed May 11, 2022 12:31 pm Today is the end of my 90-day holding period to retain the Tastyworks bonus. I plan to transfer the funds out and close the account. Any advice and/or things to watch out for based on others’ experiences?
I xferred out earlier, but kept a very small amount there until I get the 1099 next year.
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Re: The Final, Definitive Thread on Brokerage Transfer Bonuses

Post by Kookaburra »

I am looking to transfer my brokerage and IRA holdings from Vanguard to either Fidelity or Schwab. Since I have current holdings at Fidelity, I plan to start with them to see if they’ll match the best transfer offer out there. I have a couple questions related to this:

1. What / who has the best transfer deals out there right now, as the point of comparison?

2. Does anyone have recommendations, based on experience, as to how to get Fidelity to match it? What to do or say, or lessons learned on what not to do or say? I’ve read that some folks were able to get Fidelity to match the best offer out there (yay!), while others have commented they could only get the basic offer of 1K per each 1M increment (boo!). I’m trying to figure out how some had success in getting them to offer more generous terms.

3. In terms of how to approach Fidelity, for those who had success getting them to match, did you call the local branch, send a secure message through your account online, or other?

Thank you!
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Re: The Final, Definitive Thread on Brokerage Transfer Bonuses

Post by LadyGeek »

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Re: The Final, Definitive Thread on Brokerage Transfer Bonuses

Post by Helium »

Kenneth Almquist wrote: Wed May 04, 2022 1:58 pm
veggivet wrote: Tue May 03, 2022 6:45 am Anyone else receive an offer from eTrade for up to $3500 for 1 mil? This was via an email, and I had one small account there a couple of years ago.
E*Trade currently has two offers: one for retirement accounts and one for non-retirement accounts. The former ranges from $100 for $5000 up to $3500 for $1 million, and requires you to keep the assets in the account for at least six months. The latter ranges from $50 for $5000 up to $3500 for $1.5 million, and requires you to keep the assets in the account for at least twelve months. E*Trade charges $75 to transfer out, so you should subtract that from the bonus amount.
Hi Kenneth,

Could you please link the two offers? I'm looking at Etrade for both IRA and taxable promos. Thank you!
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Re: The Final, Definitive Thread on Brokerage Transfer Bonuses

Post by Kenneth Almquist »

Helium wrote: Fri May 13, 2022 6:07 am Could you please link the two offers? I'm looking at Etrade for both IRA and taxable promos. Thank you!
For all transfers: https://us.etrade.com/what-we-offer/how-it-works/promo
For retirement accounts only: https://us.etrade.com/what-we-offer/how ... ra-cfc3500

The first offer is for new Etrade customers only, but perhaps you could get both bonuses if you transfered a taxable account first and then used the second offer to transfer an IRA.
student
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Re: The Final, Definitive Thread on Brokerage Transfer Bonuses

Post by student »

Kenneth Almquist wrote: Fri May 13, 2022 1:11 pm
Helium wrote: Fri May 13, 2022 6:07 am Could you please link the two offers? I'm looking at Etrade for both IRA and taxable promos. Thank you!
For all transfers: https://us.etrade.com/what-we-offer/how-it-works/promo
For retirement accounts only: https://us.etrade.com/what-we-offer/how ... ra-cfc3500

The first offer is for new Etrade customers only, but perhaps you could get both bonuses if you transfered a taxable account first and then used the second offer to transfer an IRA.
It seems that etrade has lowered the bonus for $5,000 from $100 to $50.
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Re: The Final, Definitive Thread on Brokerage Transfer Bonuses

Post by need403bhelp »

Going to move funds to Schwab using referral bonus. Looks per terms like for retirement accounts only need to keep funds there for 45 days. Out of curiosity - I know they have a complete transfer fee (to transfer out when done) but not a partial transfer fee. Anyone transferred out most of their Roth IRA from Schwab and leave $5 there to avoid the fee? Or do they have a specific minimum that you have to leave ? Thanks!
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Re: The Final, Definitive Thread on Brokerage Transfer Bonuses

Post by mangorunner »

need403bhelp wrote: Sat May 14, 2022 6:19 pm Going to move funds to Schwab using referral bonus. ... Out of curiosity - I know they have a complete transfer fee (to transfer out when done) but not a partial transfer fee.
Looks like a partial account transfer out of Schwab has a Schwab fee of $25.
Scroll down to Account Activity Fees
https://www.schwab.com/legal/schwab-pri ... -investors
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Re: The Final, Definitive Thread on Brokerage Transfer Bonuses

Post by richard.h.gao »

ras4250 wrote: Wed May 11, 2022 10:15 am The terms say, when calculating the eligible bonus amount they will "subtracting assets withdrawn or transferred out of the account within the preceding 24 weeks." But if it is a new account not sure how they can go back 24 weeks?
Maybe they mean from other accounts? If so that means you won't be able to withdraw any funds from Merrill for half a year.
need403bhelp
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Re: The Final, Definitive Thread on Brokerage Transfer Bonuses

Post by need403bhelp »

mangorunner wrote: Sat May 14, 2022 7:37 pm
need403bhelp wrote: Sat May 14, 2022 6:19 pm Going to move funds to Schwab using referral bonus. ... Out of curiosity - I know they have a complete transfer fee (to transfer out when done) but not a partial transfer fee.
Looks like a partial account transfer out of Schwab has a Schwab fee of $25.
Scroll down to Account Activity Fees
https://www.schwab.com/legal/schwab-pri ... -investors
I see, thanks for the link. I guess in that case better to pay $50 full account transfer fee and ask for reimbursement on receiving end. Thanks!
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Re: The Final, Definitive Thread on Brokerage Transfer Bonuses

Post by spammagnet »

richard.h.gao wrote: Sun May 15, 2022 11:28 amMaybe they mean from other accounts? If so that means you won't be able to withdraw any funds from Merrill for half a year.
That means you cannot have withdrawn any funds from Merrill in the past 24 weeks. If you closed an account there 25 weeks ago, you're eligible.

I had an existing account from which I had moved money elsewhere to get a bonus. I had to wait a bit so 24 weeks had lapsed before I moved money back to get the bonus for new money. It need not have gone into a new account.
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Worth converting to ETFs for brokerage bonuses?

Post by UserFace »

[Thread merged into here --admin LadyGeek]

I know there are plenty of threads on mutual funds vs. ETFs and I don't want to rehash those debates. Currently I have two main accounts, a 401K with Fidelity and a Roth + Taxable account at vanguard. The taxable account is about 400K. Overall I have a slight preference for mutual funds to ETFs due to trading mechanics - I tend to do automatic investing and like being able to buy w/a set $ amount and not worry about intraday fluctuations. The cost difference is so negligible that it doesn't matter.

However, the main reason I would consider switching to ETFs is I have major FOMO about these brokerage bonuses I'm missing out on. There is the recent Chase private client offer of $2K, and plenty of others. If I switched to ETFs, I would try to take advantage of as many of these as I could. This seems like easy money I'm leaving on the table, but I haven't "churned" brokerage bonuses before so I'm not sure how easy or lucrative this really is. I'm curious to hear from y'all:
  • Is anyone here a serial brokerage bonus churner? Or tried doing this past?
    Has it been worth your time?
  • Any other feedback/suggestions? Feel free to tell my I'm nuts or give me a dose of reality here.
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retired@50
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Re: Worth converting to ETFs for brokerage bonuses?

Post by retired@50 »

UserFace wrote: Sat May 21, 2022 12:33 pm
  • Is anyone here a serial brokerage bonus churner? Or tried doing this past?
There is a brokerage bonus mega-thread here: viewtopic.php?t=196884

Happy reading.

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quietseas
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Re: Worth converting to ETFs for brokerage bonuses?

Post by quietseas »

You can do both. Convert the $400K taxable account to ETFs, and move them to other brokerages as desired to collect bonuses.

Continue to invest additional money at Vanguard using mutual funds since you prefer that user experience. Convert those purchases to ETFs in the future if you want.
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Re: Worth converting to ETFs for brokerage bonuses?

Post by ResearchMed »

UserFace wrote: Sat May 21, 2022 12:33 pm I know there are plenty of threads on mutual funds vs. ETFs and I don't want to rehash those debates. Currently I have two main accounts, a 401K with Fidelity and a Roth + Taxable account at vanguard. The taxable account is about 400K. Overall I have a slight preference for mutual funds to ETFs due to trading mechanics - I tend to do automatic investing and like being able to buy w/a set $ amount and not worry about intraday fluctuations. The cost difference is so negligible that it doesn't matter.

However, the main reason I would consider switching to ETFs is I have major FOMO about these brokerage bonuses I'm missing out on. There is the recent Chase private client offer of $2K, and plenty of others. If I switched to ETFs, I would try to take advantage of as many of these as I could. This seems like easy money I'm leaving on the table, but I haven't "churned" brokerage bonuses before so I'm not sure how easy or lucrative this really is. I'm curious to hear from y'all:
  • Is anyone here a serial brokerage bonus churner? Or tried doing this past?
    Has it been worth your time?
  • Any other feedback/suggestions? Feel free to tell my I'm nuts or give me a dose of reality here.
Why can't you use mutual funds at the new brokerage firm?
I hadn't heard that Chase allows no mutual funds in the clients' brokerage accounts.

Schwab certainly does, and I've heard they may have some sort of "welcome bonus", but I don't have direct experience. (I do know that they can waive fees on some funds that might otherwise have had transaction fees.)

Then you could even transfer in kind and not worry about time out of market.

RM
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Re: The Final, Definitive Thread on Brokerage Transfer Bonuses

Post by LadyGeek »

I merged UserFace's thread into the ongoing discussion. The combined thread is in the Investing - Theory, News & General forum.

Tip: For those converting Vanguard share classes from mutual funds to ETFs, don't do it when the funds are distributing dividends. The conversion can't be done during this period.
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Re: The Final, Definitive Thread on Brokerage Transfer Bonuses

Post by placeholder »

Early on when I first started etfs were a big help in the bonus game because they were portable and got the low ers while admiral funds often couldn't be held but these days I think it isn't as big of a deal but I still find etfs to be more convenient.
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Re: Worth converting to ETFs for brokerage bonuses?

Post by spammagnet »

ResearchMed wrote: Sat May 21, 2022 12:48 pmWhy can't you use mutual funds at the new brokerage firm?
I hadn't heard that Chase allows no mutual funds in the clients' brokerage accounts.

Schwab certainly does, and I've heard they may have some sort of "welcome bonus", but I don't have direct experience. (I do know that they can waive fees on some funds that might otherwise have had transaction fees.)

Then you could even transfer in kind and not worry about time out of market.
ETFs are 100% portable; not all mutual funds are.
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Re: Worth converting to ETFs for brokerage bonuses?

Post by ResearchMed »

spammagnet wrote: Mon May 23, 2022 12:49 am
ResearchMed wrote: Sat May 21, 2022 12:48 pmWhy can't you use mutual funds at the new brokerage firm?
I hadn't heard that Chase allows no mutual funds in the clients' brokerage accounts.

Schwab certainly does, and I've heard they may have some sort of "welcome bonus", but I don't have direct experience. (I do know that they can waive fees on some funds that might otherwise have had transaction fees.)

Then you could even transfer in kind and not worry about time out of market.
ETFs are 100% portable; not all mutual funds are.
Right.
However, surprisingly, we've found that mutual funds - or entire mutual fund families - that supposedly "can't be purchased" at Brokerage A can, in fact sometimes be transferred in kind to Brokerage A, and then, at least sometimes, more can be purchased there. This was a surprise, especially when several reps at Brokerage A insisted that was "impossible". But one can't count on that.

I found this out accidently, when TIAA stated that funds from mutual fund families A and B could not be transfered in kind when our 403b plan was moved from Vanguard or Fidelity. TIAA said if we didn't liquidate them or move the money to something else, *they* (TIAA) would liquidate them for us. I left some funds intact prior to the transfer, and... they showed up intact in the new 403b account at TIAA. So I tried to purchase more, especially as some of them had no transaction fees, and... the purchases went through immediately.

However, I certainly could not have counted on that.

But UserFace wrote:
UserFace wrote: Sat May 21, 2022 12:33 pm Overall I have a slight preference for mutual funds to ETFs due to trading mechanics - I tend to do automatic investing and like being able to buy w/a set $ amount and not worry about intraday fluctuations. The cost difference is so negligible that it doesn't matter.

However, the main reason I would consider switching to ETFs is I have major FOMO about these brokerage bonuses I'm missing out on.
I was trying to respond to UserFace's concern about it definitely being possible to get "welcome bonuses" from brokerage firms that include "mutual funds"... that using mutual funds does not necessarily preclude getting those bonuses by transfering them to other brokerage firms.
And their goal was to transfer to get those bonuses.

There are certainly *many* mutual funds that are transferable. If a certain $$$ amount is needed for the transfer bonus, use those that can be used, and after some allowable time, transfer back to the firm of choice if desired. Or transfer to a third firm to get yet another bonus. :happy

UserFace specified Chase in particular. Is Chase more restrictive than most firms in which mutual funds it will allow?

RM
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