Please note: If you have an OpenInvest login, this FAQ applies to you. If you invest with a financial advisor, please reach out to them for next steps.

You opened your account with OpenInvest because you share our belief that values-based investing should be available to everyone. We’re excited and proud to announce the next step in our mission: OpenInvest will soon become part of J.P. Morgan. As a result of this acquisition, OpenInvest will be winding down our existing business to prepare for the transition. Please see the information below for taking the appropriate next steps regarding your OpenInvest account.

Resources

Next Steps

Your Account

Taxes

Contact Information

Resources

Next Steps

What are my options?

You have two options for your account, listed below. For more details, please see the step-by-step guide.

  1. Transfer your investments via ACAT:  You can directly transfer your investments to the same account type at different firms. This is called an ACAT.
  2. Cash out your investments: You can cash out, meaning liquidate your account. Please reach out to Apex at bdwacct@apexclearing.com.

What is an ACAT?

ACATS stands for “Automated Customer Account Transfer Service”. An ACAT is the process of transferring your investments from one account to another account of the same type. An ACAT transfer doesn’t liquidate your investments, but transfers them as they are (this is sometimes called an “in-kind” transfer). Please note: Fractional shares will be sold for cash (liquidated) as most other custodians do not accept fractional shares – read more here.

How do ACATs work? Who initiates them?

ACATs are initiated by the new custodian to which you are transferring your investments. So in this case, if you would like to transfer your OpenInvest investments to a new account with Charles Schwab, you would ask Charles Schwab to initiate your ACAT. ACATs have typically been done with a paper form, but some firms are now facilitating electronic transfers. Whether you use a paper form or an electronic form, make sure to provide Apex’s information, not OpenInvest’s. If your new account holder does ACATs electronically, you may need to set up your Apex Clearing login to facilitate the ACAT.

Where should I send my ACAT transfer document?

Your new account owner will send the document directly to Apex Clearing, the custodian who holds your OpenInvest account. You can give them following information:

  • Apex Address:
    The Apex Clearing Corporation
    c/o Banking
    350 N St Paul Street, Ste 1300
    Dallas, TX 75201
  • Apex Clearing Number: 0158

I want to do an ACAT. Where can I transfer my investments?

Most major custodians will accept ACATs from OpenInvest and our custodian, Apex Clearing. Keep in mind that the name of your investing service may not match the name of your custodian, such as with OpenInvest and Apex. For example, Ellevest, a robo-advising service, uses Folio as its custodian.Some custodians, such as Betterment, offer "manual transfers", which are initiated the same way as ACATs but start by liquidating your investments to transfer the funds in cash. Like any liquidation, this may generate taxable gains for taxable accounts.


What if I have an IRA?

You have a few different options for your IRA, listed below. For more details, please see the step-by-step guide.

  1. Transfer your investments via ACAT: You can directly transfer your investments to the same account type at a new custodian.
  2. IRA transfer: In an IRA transfer, Apex will sell your investments (liquidate) and then send the cash to your new IRA.
  3. Cash out your investments (rollover): Apex can cash out your IRA. You will be responsible for re-depositing that cash into a new IRA within 60 days, otherwise you will incur tax penalties.

What is an IRA rollover?

A rollover is cashing out your IRA in order to move the funds to a different firm at a later date (as opposed to directly transferring the assets via ACAT.) Keep in mind that if you choose this option, you must re-deposit the funds within 60 days, otherwise you will incur tax penalties. Learn more here.

Will I be taxed?

Taxes depend on your account type. Please see the Taxes section for more details.

What does it mean to transfer “in kind,” aka ACAT?

Transferring in kind means that the investment will stay the same from one account to the next. Your OpenInvest account is made up of individual equities (shares in companies like Apple or GE) and sometimes bond funds (BND). Your account will also have some cash in it. You can transfer whole shares of equities, bonds, and any cash in kind. One thing to note is that OpenInvest allows you to own fractional shares - that means you could own .5 shares of AAPL, or 1.5, etc. Unfortunately, most custodians do not accept fractional shares, so all of your fractional shares will be liquidated and transferred as cash.

Can I use OpenInvest through J.P. Morgan Chase?

OpenInvest doesn’t exist as a solution through J.P. Morgan’s online investing at this time. As a result, we recommend that you find an investing solution that would work for you in the long-term.

Will OpenInvest move my account to J.P. Morgan Chase on my behalf?

No. If you wish to transition to a J.P. Morgan investment account, you must initiate that process.

Will I incur any fees as a result of the above actions?

Given the circumstances, OpenInvest will not charge you any management fees starting June 2021. Additionally, OpenInvest will cover or reimburse any of Apex’s ACAT (Automated Customer Account Transfer Service), check, wire, and IRA closing fees through July 29, 2021. Please note: If you do not take action on your account before July 29, 2021, you will be responsible for any fees associated with transfers, rollovers and/or cash-outs at Apex or your new custodian.

Your Account

How do I find my OpenInvest account information and/or log in to OpenInvest?

You can find your account information by logging in to your account at Apex.

Can I still invest in my account?

OpenInvest will not accept any additional deposits into your account. As of June 29, 2021, any automatic deposit you may have set up will automatically terminate.

I withdrew all my money; why is there still money in my account?

Several of the stocks you owned through OpenInvest likely paid dividends to shareholders. As a result, you may have remaining dividends in your account. If you initiate an account transfer, Apex will forward any remaining dividend funds to your new account. If you cashed out your OpenInvest account, you will need to request the remaining balance from Apex by emailing bdwacct@apexclearing.com.

Who is Apex?

OpenInvest makes investing decisions for your account, selecting which stocks to purchase and which to sell. Behind our process, we work with a custodian called Apex to actually hold your stocks. Since OpenInvest is closing our direct to consumer business ahead of joining J.P. Morgan, you will be working with both OpenInvest and Apex to transfer or cash out your investments.

How do I create an Apex login?

Please use the following guide to set up an Apex account: Apex Online Account Setup. Please note that if you have multiple accounts with OpenInvest (multiple 8CO- numbers), then Apex requires a distinct login for each OpenInvest account.

Where can I find my custodian account number (8CO-)?

Before July 29, 2021, please log in to your OpenInvest account on a web browser or a mobile application, scroll down to "Your Accounts" and you'll see your 8CO-number. After July 29, 2021, please reach out to support@openinvest.com.

How do I access my account statements and tax documents?

Until July 29, 2021, you can access your statements and documents by logging into your OpenInvest account here: https://www.openinvest.co/app/login/. After July 29, 2021, you can only access your statements and documents through Apex and must create a login. To create an Apex login, please refer here: Apex Online Account Setup. You will continue to have access to your statements and documents through Apex online even after the account is closed.

Where do I find my cost basis (profit and losses)?

You can find your cost basis through Apex and must create a login. To create an Apex login, please refer here: Apex Online Account Setup.

Do I have fractional shares? How many?

Yes, almost all OpenInvest accounts have fractional shares, as this allows us to better diversify your portfolio. Your account will have some proportion of whole to fractional shares. The smaller your account, the higher the proportion of fractional shares is likely to be.

Taxes

What are the tax implications for each option?

Please note that OpenInvest is not licensed to give tax advice. Below is general information only – please consult with a tax professional for your specific situation.

Taxable accounts (Non-retirement):
  • Option 1: Transfer your shares
    In general, there will be some tax consequences, as fractional shares (portions of a whole share of stock) will be sold for cash. Whole shares will, however, be transferred to a new account, and this transfer should generally not have tax consequences.
  • Option 2: Cash out
    In general, this option will have more significant tax consequences, as all securities in the account will be sold for cash.
Individual Retirement Accounts (IRAs):
  • Option 1: Transfer your shares
    In general, there should be no tax consequences to transferring an IRA account directly from Apex to an IRA account at another custodian.
  • Option 2: Transfer your IRA
    In general, there should be no tax consequences to transferring an IRA account directly from Apex to an IRA account at another custodian.
  • Option 3: IRA Rollover
    If you rollover your IRA within 60 days, this should generally be tax-free.
  • Option 4: Cash out
    If you liquidate your IRA, it will generally be taxable as a withdrawal (including the 10% additional tax if you're younger than 59 1/2 years old) unless you roll it over to another IRA.

What about my 2021 taxes?

You will receive your 2021 tax documents in early 2022. Depending on your document delivery set up, which was established when you created your account, Apex will either mail your tax documents or email you an alert to retrieve your tax documents online. To retrieve the documents online or to view your account including your document delivery set up, you must create a login with Apex: Apex Online Account.

How do fractional shares work at Apex if I'm doing an ACAT (transferring shares without cashing out)?

Fractional shares cannot be transferred out of Apex without first being liquidated (sold for cash). If you transfer your OpenInvest account to another custodian, the whole shares will be transferred over without any sales whereas the fractional shares will be sold for cash and this cash will appear as a balance in your custodian account. You may owe taxes on the investment gains resulting from the sale of fractional shares. If a tax form is generated, Apex will either mail the tax documents or email you an alert to retrieve the documents online depending on your delivery method. To retrieve the documents online, you must create a login with Apex: Apex Online Account.

Contact

How do I contact Apex?

You can contact Apex by email at bdwacct@apexclearing.com.