Question about funding online brokerage accounts

[eLiu]

Hi all,
Could someone explain exactly how I would put money into an Etrade/Ameritrade-type online brokerage/trading account?

1) Do I have to transfer money from my bank to the brokerage? Is this an option available to me?

2) Can the brokerage get money from my bank directly? If so, are there restrictions on this? What if my bank is a state or federal credit union?

3) What kind(s) of accounts can the brokerage get/receive money from? (the 3 types I'm concerned about are savings, money market, and checking)

Thanks,
-Eric

 

[sandmanwake]

Depends on the brokerage. Usually you have the option of sending in a check before being able to use your account. You could also do various forms of electronic transfers.

 

[eLiu]

But a lot of these online brokerages advertise features like electronic transfer/linking to your current bank accounts. I was wondering if anyone knows exactly how that works & what kinds of banks/accounts I can use.

 

[simms]

You use an EFT (electronic funds transfer). Usually free. takes about 3-5 days for the money to go from your bank account.

You give your brokerage the information from your bank account's cheque. Things like routing numbers, account numbers, etc, and they pull the money.

 

[Capt Caveman]

I'm guessing it varies by the brokerage. With Etrade, I have both checking and savings accounts linked.

 

[Billb2]

The online trading firms are set up to get your money from any account you want to send it from any way you want to send it.
Though something like $250K in cash (in a suitcase) may be problematic..........