The Final, Definitive Thread on Brokerage Transfer Bonuses

[FrugalProfessor]

Also, does anyone have experience with the Wells Fargo transfer bonus? A few questions:

- Did you run into any unexpected fees?
-- Purchase fees for ETFs?
-- Account termination fees at previous brokerage?
-- Checking account fees?

- How long did the transfer take? How long was your money "out of the market"?

Also, I realized that the $2500 bonus is taxable so that quickly becomes an $1800 bonus.

Thanks
RandomGuy

The way to do any of these bonuses is transfer assets via "transfer in kind", meaning that your investments are never out of the market and since you're not buying/selling there are no cap gains taxes to deal with. What makes this interesting is that you'd simply transfer "in-kind" from broker A to B to C to D and collect bonuses along each stop.

I can't speak to this specific WF deal, but I'm planning on doing it myself (and spouse) for $5k - taxes as you note.

But transferring "in-kind" would avoid almost all of the problems you're concerned about.

[RandomGuyOnInternet]

Also, does anyone have experience with the Wells Fargo transfer bonus? A few questions:

- Did you run into any unexpected fees?
-- Purchase fees for ETFs?
-- Account termination fees at previous brokerage?
-- Checking account fees?

- How long did the transfer take? How long was your money "out of the market"?

Also, I realized that the $2500 bonus is taxable so that quickly becomes an $1800 bonus.

Thanks
RandomGuy

The way to do any of these bonuses is transfer assets via "transfer in kind", meaning that your investments are never out of the market and since you're not buying/selling there are no cap gains taxes to deal with. What makes this interesting is that you'd simply transfer "in-kind" from broker A to B to C to D and collect bonuses along each stop.

I can't speak to this specific WF deal, but I'm planning on doing it myself (and spouse) for $5k - taxes as you note.

But transferring "in-kind" would avoid almost all of the problems you're concerned about.

Good point on the transfer in kind. I hold Vanguard Admiral shares so I may need to convert to the ETFs to do a transfer in kind.

RandomGuy

[tj]

Also, does anyone have experience with the Wells Fargo transfer bonus? A few questions:

- Did you run into any unexpected fees?
-- Purchase fees for ETFs?
-- Account termination fees at previous brokerage?
-- Checking account fees?

- How long did the transfer take? How long was your money "out of the market"?

Also, I realized that the $2500 bonus is taxable so that quickly becomes an $1800 bonus.

Thanks
RandomGuy

The way to do any of these bonuses is transfer assets via "transfer in kind", meaning that your investments are never out of the market and since you're not buying/selling there are no cap gains taxes to deal with. What makes this interesting is that you'd simply transfer "in-kind" from broker A to B to C to D and collect bonuses along each stop.

I can't speak to this specific WF deal, but I'm planning on doing it myself (and spouse) for $5k - taxes as you note.

But transferring "in-kind" would avoid almost all of the problems you're concerned about.

Good point on the transfer in kind. I hold Vanguard Admiral shares so I may need to convert to the ETFs to do a transfer in kind.

RandomGuy

You presumably could transfer the mutual funds, but ETF's are certainly more portable and more likely to be able to be traded for free wherever you end up.

[UncleLeo]

Just got a heads-up from a bud about WeBull 3x IRA referral bonus from last Nov-Dec 2023 (1-year hold):

For any folks who may have participated in this WeBull bonus from last-year, was told the Rewards posted today morning (Aug 30th, 2024).
(Ref: https://www.webull.com/ko-yield/1699416114037-5d012f)

Go Claim those rewards (from their Mobile app, MyRewards section), and you will get those monies deposited into Brokerage account (if you haven't opened one yet - do open brokerage first, prior to Clicking the rewards) in 5-7 business days. Those should show "in-transit" tab of "My Rewards" section.

iirc - those Rewards must be Claimed within 30-days -- otherwise, they may get lost

Thx

I claimed the bonus on Webull app yesterday and the bonus was paid out this am. It was a very juicy bonus. I don't know how Webull is not losing money on this kind of bonuses.

Note that the bonus received in the taxable account must remain for 90 days.

A few questions on this, please:
1) Can we transfer out the IRA funds before this 90 day period (there is a transfer out fee, but hopefully Fidelity will reimburse)?
2) Although the bonus received in the taxable account must remain for 90 days, can it be invested during this time (buy SGOV now, and sell after the 90 day period)?

[hmw]

Just got a heads-up from a bud about WeBull 3x IRA referral bonus from last Nov-Dec 2023 (1-year hold):

For any folks who may have participated in this WeBull bonus from last-year, was told the Rewards posted today morning (Aug 30th, 2024).
(Ref: https://www.webull.com/ko-yield/1699416114037-5d012f)

Go Claim those rewards (from their Mobile app, MyRewards section), and you will get those monies deposited into Brokerage account (if you haven't opened one yet - do open brokerage first, prior to Clicking the rewards) in 5-7 business days. Those should show "in-transit" tab of "My Rewards" section.

iirc - those Rewards must be Claimed within 30-days -- otherwise, they may get lost

Thx

I claimed the bonus on Webull app yesterday and the bonus was paid out this am. It was a very juicy bonus. I don't know how Webull is not losing money on this kind of bonuses.

Note that the bonus received in the taxable account must remain for 90 days.

A few questions on this, please:
1) Can we transfer out the IRA funds before this 90 day period (there is a transfer out fee, but hopefully Fidelity will reimburse)?
2) Although the bonus received in the taxable account must remain for 90 days, can it be invested during this time (buy SGOV now, and sell after the 90 day period)?

1. I think I can transfer out the IRA account after the bonus payment. I didn't see any language prohibiting it in the T&C. You can read the link above.

2. I think so. I bought more ETF with the 9k cash I received.

[feehater]

Also, does anyone have experience with the Wells Fargo transfer bonus? A few questions:

- Did you run into any unexpected fees?
-- Purchase fees for ETFs?
-- Account termination fees at previous brokerage?
-- Checking account fees?

- How long did the transfer take? How long was your money "out of the market"?

Also, I realized that the $2500 bonus is taxable so that quickly becomes an $1800 bonus.

Thanks
RandomGuy

The way to do any of these bonuses is transfer assets via "transfer in kind", meaning that your investments are never out of the market and since you're not buying/selling there are no cap gains taxes to deal with. What makes this interesting is that you'd simply transfer "in-kind" from broker A to B to C to D and collect bonuses along each stop.

I can't speak to this specific WF deal, but I'm planning on doing it myself (and spouse) for $5k - taxes as you note.

But transferring "in-kind" would avoid almost all of the problems you're concerned about.

I am 60 days into my 90 day period. I transferred in kind and did not run into any problems. However, later I bought more ETFs and MFs as part of my monthly investment purchases. I forget whether I transferred the money from my outside bank account there first or did it as part of the ETF purchase transaction, but whatever I did I ended up being charged a $17 "Debit Charge" for something that I have done a million times for free at places like Fido and Vanguard. I guess it's for the money they floated me for the two days between when the purchases happened and the ACH finally settled? Even though it had said the funds were available to trade?

[Leesbro63]

Back to the Webull basis issue. I opened my Webull account during August and transferred in some ETF shares from Vanguard. "Covered" shares, for tax purposes. I was hoping to see the basis of the shares on the statement that arrived today, but it's not to be. Do I need to do anything here? What happens in 2 years if and when I transfer out of Webull? I did screenshot the basis from Vanguard before the shares departed. Does Webull actually have this info for future reference or not? It's not clear to me if I need to take an action step now or not.