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Burgerwars

Capital One sells its Capital One Investing brokerage service to E*TRADE

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Related: Scottrade is now owned by TD Ameritrade but they're still in the process of combining their systems.

 

Robinhood will soon be letting customers buy Bitcoin and Ethereum starting next month in five states. I'm not real enthused about the company and their interface that only can be accessed by a smartphone app, but that may change.

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Looks like another solution for a problem I do not have.

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I'm going to miss the Sharebuilder feature of Capital One Investing

When it started the commission was very small. I think almost nothing.

 

From what I've read when the accounts move to E-Trade, any fractional shares will be sold. So if you owned 10.25 shares of Ford, you will only own 10 and be paid cash for the remainder.

 

If you don't mind buying whole shares, you can use Robinhood. For expensive stocks like Google, it might not be practical, but for an average stock it might be.

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As we prepare for your transition to E*TRADE® later this year, fractional equity shares held in your account must be sold. You can sell your fractional equity shares at no charge between now and August 8, 2018. Fractional equity shares that remain in your account at the close of trading on August 8, 2018 will be sold between August 9–August 23. You will not be charged any fees or commissions for the liquidation during this period. For more information, call us at 1-800-747-2537.

 

Link: https://content.capitaloneinvesting.com/MgdCon/Core/InvestingUpdates/UpdateLetter.pdf

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Information Regarding Changes To Your Fractional Shares mail?url=https%3A%2F%2Fcontent.capitalon
mail?url=https%3A%2F%2Fcontent.capitalon
 
mail?url=https%3A%2F%2Fcontent.capitalon Dear Burgermeister, 

In preparation for your account transition to E*TRADE® later this year, there will be some changes to fractional shares held in your Capital One Investing® account(s). 

Fractional share positions in stocks and ETFs must be sold. 
Because fractional equity shares are not publicly traded, we're unable to directly transfer fractional equity share positions to another broker-dealer. As a result:
  • You may sell your fractional equity shares at no charge any time between now and August 8, 2018.
  • Any fractional equity shares remaining in your account at the close of trading August 8, 2018 will be automatically sold between August 9–August 23, 2018, and the resulting cash will be deposited into your account1.
When your account is moved to E*TRADE2, fractional and whole shares held in mutual funds, securities that you hold in whole shares and uninvested cash will be transferred. 

How this affects you. 
If you do not sell your fractional equity share positions by the close of trading on August 8, 2018, we will automatically sell them. Our intention is to sell all fractional shares in the same security on the same day to ensure that each client receives the same execution price. If you hold fractional share positions in multiple securities, they may be liquidated at different times. You will receive the closing price for the fractional securities sold, which will be reflected in your trade confirmations detailing the sale of your fractional shares. You will not be charged any fees or commissions for the liquidation. 

It's important to note that the sale of fractional shares held outside of an individual retirement account (IRA) may result in tax consequences. Please consult your tax advisor regarding your personal situation. 

Understand your rights. 
If you do not want your fractional share holdings (excluding mutual fund fractional shares) automatically liquidated in the manner described in this letter, you must liquidate your fractional shares holdings on your own direction, close your account or transfer your account to another broker-dealer by no later than 4 p.m. ET on August 8, 2018. The process of transferring your account to another broker-dealer can take some time, so you should initiate that process in advance of August 8, 2018. Please note that any fractional equity shares held in your account at the close of trading August 8, 2018, will be automatically sold and the resulting cash will be deposited in your account. 

If you want to transfer your account to another broker-dealer, please review the information available on the account transfer process from FINRA at finra.org/investors/understanding-brokerage-account-transfer-processYou will need to work with the broker-dealer firm that will be receiving your account ("receiving firm") to complete a Transfer Initiation Form (TIF). Once the receiving firm receives the TIF, it will communicate with Capital One Investing via the Automated Customer Account Transfer Service (ACATS) to process the account transfer. You will not be charged any fees or commissions if you decide to transfer your account to another broker-dealer. We note that transferring an account that holds fractional equity shares creates certain special considerations:
  • To transfer your account, Capital One Investing will move your whole shares into a transfer account and liquidate your fractional share components for each security with a fractional position at the closing price for that security as of the day that the whole shares are moved.
  • Again, because fractional equity shares are not publicly traded, it is not possible to directly transfer fractional share positions, other than those held in mutual funds, to another broker-dealer. Regardless of where your account may be moved—to E*TRADE, or to another broker-dealer of your choice—the fractional share component MUST be liquidated.
  • We note that the receiving firm may or may not be able to accommodate the re-establishment of your fractional share positions depending on its own system capabilities. You should verify with the receiving firm whether or not it will permit you to hold fractional shares, if that is important to your investment needs.
  • Capital One Investing will deliver your account's whole share position(s), the cash received for the fractional share liquidation, and fractional and whole shares of mutual funds to the receiving firm.
Please review your client agreement. 
For your reference, a copy of your account agreement is available at capitaloneinvesting.com/newagreement. Section 19B provides details on the liquidation of fractional shares as described in this letter. 

You will receive additional information regarding the transition to E*TRADE. 
Please be aware that this letter only addresses the liquidation of your fractional shares. In the upcoming months, you'll be receiving additional details regarding the conversion to E*TRADE, including communications regarding your rights with respect to the proposed transfer of your account(s). 

If you have questions, please call the Capital One Investing Investor Solutions team at 1‑800‑747‑2537, option 5, Monday–Friday, 8 a.m.–9 p.m. ET. To learn more about E*TRADE, visit etrade.com/capitalone or call 1‑800‑387‑2331 (select "Capital One" when prompted). 

We appreciate your patience as we work to transition your account smoothly to E*TRADE. It's been our honor to serve you in your journey toward financial freedom. 

Sincerely, 

The Capital One Investing Team
mail?url=https%3A%2F%2Fcontent.capitalon
mail?url=https%3A%2F%2Fcontent.capitalon
mail?url=https%3A%2F%2Fcontent.capitalon
mail?url=https%3A%2F%2Fcontent.capitalon

Please do not reply to this message; the mailbox is not monitored. 

1. Confirmation will be available online after your cash has settled. 

2. After the transition to E*TRADE, securities products and services will be offered by E*TRADE Securities LLC, Member FINRA/SIPC

This email was sent to xxxxxxxx and contains information directly related to your account with us, other services to which you have subscribed and/or any application you may have submitted. 

Capital One Investing and its service providers are committed to protecting your privacy and ask you not to send sensitive account information through email. If you are not a Capital One Investing customer, or believe you received this message in error, please notify us at customerservice@capitaloneinvesting.com. Thanks. 

Investment products are offered by Capital One Investing, LLC, a registered broker-dealer and Member FINRA/SIPC. Investment advisory services are provided by Capital One Advisors, LLC, an SEC-registered investment advisor. Insurance products are offered through Capital One Agency LLC. 

All are subsidiaries of Capital One Financial Corporation. 

© 2018 Capital One. Capital One and ShareBuilder are federally registered service marks. All third-party trademarks are the property of their respective owners. 

Capital One Investing, LLC | PO Box 259008 | Plano, TX 75025 | T 1‑800‑248‑3919 | capitaloneinvesting.com 
 
mail?url=https%3A%2F%2Fcontent.capitalon
mail?url=https%3A%2F%2Fcontent.capitalon
mail?url=https%3A%2F%2Fcontent.capitalon
The E*TRADE Financial family of companies provides financial services, including trading, investing, and banking products and services, to retail customers. Securities products and services are offered by E*TRADE Securities LLC, Member FINRA/SIPC.Investment advisory services are offered through E*TRADE Capital Management, LLC, a Registered Investment Adviser. E*TRADE Securities LLC and E*TRADE Capital Management LLC are separate but affiliated companies. 

Neither E*TRADE Financial Corporation nor any of its direct or indirect subsidiaries are affiliated with Capital One Financial Corporation. 
 
mail?url=https%3A%2F%2Fcontent.capitalon
 

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The switchover is two weeks away. I decided to keep my account so I could get an E*Trade debit card.

E*Trade emailed me last week with a notice to login to the E*Trade account they set-up. I did that and changed my username and password to something more easy to remember. The account shows a zero balance with a notice saying things will start working on November 5th, with my balance and stock positions (I only have one) then showing.

Also, when I login I can switch accounts assigned to the same user. I see another account marked as "closed." I don't remember ever having an E*Trade account before, but it's entirely possible I set something up on their website years ago and never funded the account, then forgot about it.

Edited by Burgerwars

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They're switching over this weekend. The Capital One Investing website is now down. Monday morning I should see my account online on E*Trade. I already set-up a logon there, but nothing shows in my account.

 

Next week I plan on requesting an E*Trade debit card. I "need" one of those to add to my collection.

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1 hour ago, Lander said:

Do you believe that E*Trade is a good service?

So far, so good. There's not much difference between E*Trade, TDAmeritrade, Schwab, etc. Actually, where I do most all my brokerage stuff is with Schwab, but since there's no harm in keeping this account open, I'll keep it.

I ordered their debit card. Their website says it was mailed, so it should be coming soon.

My account has quite a history. I opened it when Sharebuilder was a separate company. ING Direct then bought them and my account went there. A few years later ING sold their U.S. operation to Capital One (bank accounts and brokerage accounts), so my account went there. Capital One decides they don't want the brokerage accounts, so they sell them to E*Trade. I wonder where will be my next stop.

 

Edited by Burgerwars

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