ShareBuilder to Zecco: The Surprises
Just as I was about to abandon the idea of transferring my ShareBuilder account to Zecco* (Zecco asked me to resubmit the account transfer form, which I didn’t do), the process made a dramatic turn yesterday and now it seems that things are pressing ahead as they should be.
A trade confirmation email from ShareBuilder reached my mailbox yesterday and I was quite surprised because I have stopped the investing plan last month. So I logged into my account to check what exactly it is.
Did you see what I see?
Yes, the commission for liquidating the 0.6586 share is $0! Previously, I thought they would charge me $15.95 for selling the partial shares, which can’t be transferred, in real-time trading, making the total cost at $65.95. However, this confirmation told me I was wrong in making that assumption. Further, in an accompanying note, ShareBuilder details on what’s going to happen next:
Additional information about your message.
Your transfer has been approved and is now in process. For a detailed listing of the steps taking place and a time frame, please see below:
Your transfer request has been approved and is currently in process. Please be aware that the ShareBuilder transfer process is a manual one and as such, your transfer will take approximately 30 days.
Following is a list of the steps that you are likely to see in your account. This list can vary depending on individual positions that your account holds.
- Today All partial shares liquidated
- Transfer fee of $50 is taken from account
- Account is frozen to allow an accurate transfer to take place 15-30 days
- Transfer of whole securities to receiving brokerage is completed 30 days
- A check is issued and sent to receiving brokerage with remaining cash balance (if applicable)
Note: The check is sent via regular US mail and may take a few days to reach the receiving brokerage.
As there are many steps ShareBuilder must take to ensure a complete and accurate transfer, we do not have a way to speed up or give priority to an individual transfer. Please allow the full 30 days for the transfer to process. If you have not seen the steps take place within 30 days, contact Customer Care.
There’s no mention of the Medallion Signature Guarantee at all. I wonder what happened to the previous message, which says the transfer can’t be completed because I didn’t provide the required document.
Since it doesn’t require any action from me now, I will just let it proceed.
Update: ShareBuilder’s website has more information on account transfer out on their Help page (Help -> Help Topic -> Transfer Account Asset -> How do I transfer assets out of my ShareBuilder account), which indeed says an Medallion Signature Guarantee is needed for manual processing. Regarding the fee, it also says:
There is a fee of $50 for a full account transfer to another brokerage. This includes the transfer of all whole shares of securities held in your ShareBuilder Account, the liquidation of any partial shares (as needed), and the transfer of the money market cash balance.
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