Indian investors holding US stocks on Robinhood often find that their Robinhood account has been frozen upon their return to India, as Robinhood only supports US residents.
Once the account is positions only, Robinhood only allows you to sell your holdings.
Many Indians wrongly assume that selling everything, paying capital gains tax, and starting over with another broker is the only way forward.
However, you can easily transfer your holdings to another broker without selling, avoiding tax liabilities and preserving your cost basis.
This guide explains how to move your Robinhood holdings to another broker in-kind, what assets can transfer, what cannot, and what the process looks like for an Indian investor.
Table of contents
- How can I move my Robinhood holdings without selling?
- Why this matters for Indian investors specifically
- How the transfer works
- What can and cannot transfer from Robinhood
- What does it cost?
- How long does it take?
- Will I owe Indian capital gains tax on the transfer?
- Transferring your Robinhood holdings to Paasa
- Common questions
- About Paasa
How can I move my Robinhood holdings without selling?
Robinhood supports outgoing transfers through ACATS (Automated Customer Account Transfer Service), the standardised US system for moving brokerage assets between firms. Your shares move from Robinhood to the new broker as-is, without being sold, with your purchase price and holding period intact.
Selling everything to switch is not necessary. Selling triggers a capital gains event in India on every appreciated position, and resets your holding period. An in-kind transfer avoids this.
Why this matters for Indian investors specifically
Robinhood does not support non-US residents.
If you've returned to India and your address has changed, Robinhood will eventually ask for proof of US residency (typically a recent utility bill). If you cannot provide one, your account will be restricted to "position-closing only", meaning you can sell but cannot buy. Eventually, the account will be closed.
At that point, your options are:
- Sell everything before the deadline and remit cash to India under inward remittance, paying Indian capital gains tax (long term or short term depending on holding period) on every appreciated position.
- Transfer your holdings in-kind to a broker that supports Indian residents, with no capital gains event.
How the transfer works
The transfer is initiated by your new broker, not by Robinhood. Here is the standard process:
- You open an account at the new broker.
- You provide the new broker with your Robinhood account details, statements, and identification documents.
- The new broker submits the transfer request through ACATS, which notifies Robinhood.
- Robinhood validates the request within 1 business day and delivers the assets within 3 business days.
- Your shares appear in the new account, with cost basis and purchase date preserved.
You don't need to call Robinhood or notify them in advance. They are legally required to cooperate once the transfer request is submitted. Robinhood specifically requires the transfer to go through ACATS. It does not support DTC transfers or transfer-agent transfers as alternatives.
What can and cannot transfer from Robinhood
These assets transfer in-kind:
- Whole shares of US-listed stocks
- Whole shares of US-listed ETFs
- Settled cash
These cannot transfer in-kind from Robinhood:
- Fractional shares (Robinhood automatically liquidates these and transfers the cash proceeds)
- Cryptocurrencies (held in Robinhood Crypto, not transferable via ACATS)
- Unsettled trades
- Margin positions
- Options contracts
If you hold any of these, the rest of your portfolio can still transfer. Fractional shares will be sold automatically, which creates a small taxable event on those specific positions. Crypto holdings will need to be sold and withdrawn separately, or moved to a crypto wallet.
What does it cost?
Robinhood charges a flat $100 outgoing ACATS fee for both full and partial transfers. The receiving broker does not charge anything for an incoming transfer.
How long does it take?
An ACATS transfer of US stocks and ETFs from Robinhood typically completes in 5 to 10 business days end-to-end.
This includes:
- 1 business day for validation
- 3 business days for delivery
- Additional time for residual transfers (pending dividends, fractional share liquidation proceeds), which can take up to 30 days after the main transfer settles.
Note: your Robinhood account is frozen during the transfer. You cannot place trades, modify positions, or withdraw cash until settlement completes.
Will I owe Indian capital gains tax on the transfer?
No.
Under Section 5 of the Income Tax Act, 2025, Indian capital gains tax applies when you sell a capital asset. Moving shares between two brokers is a custody change, not a sale. There is no realised gain, so there is nothing to tax. Your original purchase date and purchase price carry over to the new broker.
The only exception is fractional shares that get liquidated during transfer. These create a small taxable event on the fractional portion only.
Transferring your Robinhood holdings to Paasa
Paasa is a global investing platform built for Indian residents and HNIs. It runs on Interactive Brokers infrastructure, which is an NSCC member, so Robinhood holdings can transfer directly to Paasa via ACATS.
Step-by-step transfer instructions for Robinhood is available in the Paasa app. Simply download the app, complete your sign-up, and follow the in-app guide to initiate your in-kind transfer.
The Paasa team can also help with the ACATS transfer if needed. To get started, you'll need to provide:
- Your most recent Robinhood account statement (PDF), found under Accounts → Reports and Statements → Individual → Latest report.
- A photo of your SSN card, required by the receiving broker to verify the Robinhood account belongs to you.
Once you upload these, Paasa initiates the transfer. ACATS transfers are always initiated by the receiving broker, so you don't need to contact Robinhood directly.
Important: Paasa supports full transfers, not partial transfers, from Robinhood. Any non-transferable positions (fractional shares, crypto, unsettled trades) need to be sold and the proceeds withdrawn before initiating.
Common questions
Will the transfer affect my LRS limit for the year?
No. ACATS moves assets that are already held in the US. There is no INR-to-USD conversion and no fresh remittance involved. Your $250,000 annual LRS limit is untouched.
Do I need to report the transfer in my ITR?
No separate disclosure is required for a custody change between brokers. There is no capital gain to report because nothing has been sold. Your Schedule FA disclosure (if you are an ROR filer) reports holdings as of 31 December of the financial year, regardless of which broker holds them on that date.
What happens if my Robinhood account is already restricted to "position-closing only"?
You can still initiate an ACATS transfer out, even if your account is restricted. The restriction prevents new buys and certain other activity, but does not block outgoing transfers.
What about my fractional shares?
Robinhood will liquidate them automatically and transfer the cash proceeds in a residual transfer (typically within 30 days of the main transfer). The liquidation creates a small taxable event on the fractional portion only.
About Paasa
Paasa is a global investing platform built for Indian HNIs, family offices, and institutions. We provide direct access to markets across the US, UK, Europe, Switzerland, and Asia, with an India-facing compliance layer built in from the ground up. This includes FEMA and LRS compliance, tax reporting calibrated for Indian investors, and end-to-end support for Schedule FA disclosure.
