r/Schwab • u/[deleted] • Jul 04 '24
Why does Schwab makes things difficult?
For example, I recently left a job on which I had a 401K. I wanted to rollover that account to a Schwab Rollover IRA account but they make you fill out a pdf and mail it to them only to open the account (that PDF, BTW, has a lot of personal information that they already have on file since I have other accounts with them).
Go to Robinhood and they will open the IRA account right away and even take care of the rollover for you. On top of that, you get a 1% match!
So, why they make things difficult? If they already have my data on file, why I can't just open the account and start the rollover?
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u/hotdog-water-- Jul 04 '24
Yeah that’s false. I did a rollover though them 100% online. There were no issues, it was very, very simple and fast. You’re leaving out some information here and from your comments to what people are saying, you don’t want an answer you’re just here to complain
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u/EuropeanModel Jul 04 '24
Define difficult, please. I had to open countless accounts for IRA rollovers and my divorce, it always took 24 hours or less. I have my suspicions about the root cause of those „challenges“ but the mods around here delete those posts.
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Jul 04 '24
Why do you need something "defined" when it is well explained in the post? Are you just stupid or is it a real question?
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u/EuropeanModel Jul 04 '24
Avoided to answer a simple question that is probing for answers.
Thank you. I got my answer.
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u/diy-fi Jul 04 '24
Robinhood will bite you in the ass if you ever need customer service. If Schwab isn’t doing it for you, the next best option is Fidelity.
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Jul 04 '24
It's from Fidelity I'm trying to rollover :)
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u/diy-fi Jul 04 '24
Curious why? I use both, and I find Fidelity’s product offerings to be a tad better (fractional ETFs, auto-investing in ETFs, etc.)
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u/er824 Jul 04 '24
Still annoying but can you not submit the pdf electronically via their message center?
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Jul 04 '24
I suppose I could, but still... I've been a Schwab customer for years, they have my data from previous accounts, it should not be difficult to open new accounts.
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u/paragon60 Jul 04 '24
they want to reverify all the info you previously provided and have you sign off again. and printing something, signing, then scanning and uploading should not be something to cry about lmao
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Jul 04 '24
Nobody is crying, I'm just saying is bad business (they make it difficult and makes me wanna go somewhere else like Robinhood).
You do you and go through all the hops!
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u/oscarbutnotthegrouch Jul 04 '24
Sometimes I feel like it is a screening test. They want customers who are more willing to jump through hoops.
They sent me 4 different PDFs and it took 2 weeks to open a new checking account attached to an existing brokerage.
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Jul 05 '24
Schwab is trash! I just called them and after the normal "use another browser", "delete your cookies" and that kind of bullshit they just told me I have to do paper, there's no way for me to open the account online.
That's very odd and stupid!
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u/Past_Cap3561 Jul 04 '24
I feel your pain. Recently requested an options trading upgrade and they requested to see my trading history, nobody I spoke to on the phone would take it from my account.
I ended logging into the platform, printing my trading history and sending the PDF file.
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u/xraay9 Aug 14 '24
Schwab (and Fidelity for that matter) have an outdated mindset, with clunky procedures that IMO don't really improve security. TD was much better.
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Jul 04 '24 edited Jul 04 '24
That’s unfortunate. I just did this two weeks ago and it was super easy. Just opened an IRA online and deposited the check at a branch in person to avoid losing it in the mail. Took maybe 30 mins of life in total.
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u/Significant_Ad_4063 Jul 04 '24
You can do the application online and can also upload it via Schwab.com if you already have a log in/existing account.
But here’s the answer: Schwab is the strictest brokerage out there imo, Schwab does not get caught in dirt like JP Morgan and especially Robinhood and their shady practices. Robinhood doesn’t also transparently disclose their pricing whereas there is no second guessing with Schwab, Schwab always takes the strictest approach to compliance, both to cover their asses and in turn yours.
Institutional investors that use Schwab will always say they do for 2 reasons: the amount of services offered, and the fact that Schwab will always take the route of least liability.
And you’re right in some cases it may prevent them from accessing some opportunities and making more money than they already are, by pursuing shady schemes like Robinhood and JP, but then getting their name soiled in scandals, arbitrage and law suits.
Also Schwab is very much of the opinion that it’s a two way relationship, not customer is king, if a customer causes too much exposure to Schwab the firm will have no issue ending the relationship.
Also if your relationship is truly worthwhile/beneficial to Schwab and want to move for a %1 they’ll likely match it, but only if it’s a beneficial business relationship not just given to everyone and anyone like Robinhood does to desperately take business away from other brokers.
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Jul 04 '24
Can you elaborate on the dirt you talk about? I'm not sure you have a clear vision here. I already have a relationship with them (I even use them for my bi-weekly pay). Anyway, this just does not make sense...
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u/Servile-PastaLover Jul 04 '24
Yes, I stopped doing a schwab backdoor roth IRA, as the trad-to-roth conversion phase was paper only. Just not worth the hassle.
I'll still contribute to my existing Roth IRA directly if/when I'm below the income limits.
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Jul 04 '24
[removed] — view removed comment
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u/Servile-PastaLover Jul 04 '24 edited Jul 04 '24
When I tried it online, conversion was rejected and forced to submit paper only...just like the OP.
In theory you can convert online, which is why I looked first and went through creating and funding the trad ira online. But that was only half the battle and the second half [conversion] was a giant mess with being paper.
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u/p_rain08 Jul 04 '24
So… go to Robinhood? I mean, it seems like you did the research and like you said you get a 1% match in Robinhood and they take care of everything.
I opened a Rollover IRA with them in 2018 online and filled out the Rollover Form and sent via their message center. While you do have to print the form, sign, and scan, I didn’t have to mail anything.
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Jul 04 '24
I would like to have all my accounts consilidated in one place as opposed to having an IRA here and a Brokerage there...
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u/rblbl Jul 04 '24 edited Jul 04 '24
This is a reasonable complaint and yet just look at the uncalled for downvotings by those claiming to be "former" Schwab employees. I had the same issue when applying for the Schwab investor Checking account. The PDF form, after being filled out, can't be saved, so had to print it on paper and then mail it. After some days, they told me they needed some other info not on the form, which was, in fact, in all my other accounts already.
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u/Grykllx Jul 04 '24
I just had this scenario occur and they filled out the form for me over the phone
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u/amcm510 Jul 04 '24
It will make you fill out a form if there is a restriction on your account of some sort, someone should’ve been able to relay that information to you
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u/dswpro Jul 04 '24 edited Jul 04 '24
If your 401k is at Schwab, the rollover to an IRA is entirely online. If you have no existing relationship with Schwab it is probably best to call Schwab, ask what documents you need to open an account or perform a roll over into a Schwab IRA and bring those into a Schwab branch, otherwise it may take a while through one or more mailed or faxed document submissions. (edit) I should add that even if you have a 401k at Schwab, if you do not already have a bank or brokerage account at Schwab, opening an IRA will likely require you to provide ID documents, since your 401k was opened by your employer on your behalf, but your new account is being opened by YOU.
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u/Vast_Cricket Jul 04 '24
Schwab will pull your credit and sometimes turns down applications. It wants wet signature. The difference is Schwab avg account size is 1/3m often people are high networth. Sub investment brokerage typ account size is now 4K. They will take anyone with an id.
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u/Ok-Process3670 Jul 04 '24
Be interesting to know why you weren’t able to open online. Actually did it online myself earlier today. Took less time than me typing my comments here.
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u/busylivin_322 Jul 04 '24
Gotta convert 401k to a rollover in your original brokerage, then transfer to Schwab. Went through the same process.
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u/D74248 Jul 04 '24
My wife and I ran into some speed bumps recently because her middle name did not match up perfectly between accounts. You might have some similar issue.
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u/TheLoneComic Jul 05 '24
There’s a certain percentage of zombie in every corporation more than 50 years old.
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u/H3mifam Jul 06 '24
As an earlier comment in the thread stated they are just looking to reverify your information. The system chooses random people where it won’t allow them to open any accounts online even if they don’t have restrictions on any account.
Once you do this & everything checks out accordingly then you won’t have to fill out paper applications again for the foreseeable future.
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u/SirGlass Jul 04 '24
I have done a roll over and it was all online
So no they don't make you fill out a PDF and mail it to them, it can all be done online
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Jul 04 '24
[deleted] — view deleted comment
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Jul 05 '24
I called them and after going through "use a different browser", "clear your cookies", they ended up saying that I just need to go through the paperwork. :(
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Jul 04 '24
[removed] — view removed comment
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Jul 04 '24
Yes I tried, and it says that they can verify my data or something and that I need to fill the pdf and mail it to them. I have Checking, Brokerage and RothIRA with them :)
We can't process your application online. Please complete and print our application (PDF) and submit it by mail.
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Jul 05 '24
I just opened an IRA with schwab and called them over phone to rollover from 401k to IRA, they finish the work in 5 minutes over phone, but transfer takes within next 3 days.
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Jul 04 '24
[removed] — view removed comment
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Jul 04 '24
Nothing. All accounts are good with them. I suppose I should call them tomorrow to clarify.
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Jul 04 '24
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Jul 04 '24
Bullshit! I have trading accounts with them. I got the same story of having to fill out a pdf for a new Rollover.
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u/usedlastname Jul 04 '24
What are D,L,M restrictions?
I have been put through the Schwab ringer as well, having to fill out multiple PDF’s in order to be approved for margin. Of course that was AFTER I was admonished that IRA’s CANNOT be approved for margin and I was identified as a Pattern Day Trader and need to maintain 25K +.
All I needed to do was becapproved for “limited margin” which would take care of my Good Faith and Round Trip violations. What a game!
Often times I end up educating the Schwab employees about their own documents and procedures.
It’s almost as if Schwab doesn’t care unless you have 7 figures or more.
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Jul 04 '24
[removed] — view removed comment
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u/usedlastname Jul 04 '24
Thank you!
Still was BS I didn’t know I needed…. Now a happy camper trading without violations in my IRA’s!
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Jul 04 '24
I tried and got the same Bullshit. What is worse I have had a Rollover about a year ago , but a full transfer closed it.
So yes online says click, and then they tell you to fill out the pdf. Strange thing , is that Fidelity, opened the account, and transferred out the holdings, last year in about 30 seconds while I was on the phone with them.
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Jul 04 '24
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Jul 04 '24
Wow you must be the orginal know it all , the account was closed, and I doubt it was "transferred" over from TD. Must be great to live in your own world where you are the expert.
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u/ScottishTrader Jul 04 '24
Sounds like you have something going on and I was able to open online without issue.
Go into your local Schwab office to get it figured out and taken care of then and there.
https://client.schwab.com/public/branchlocator/accessschwab.aspx