If you’re reading this, chances are you’re one of the many individuals who have been left wondering what happened to their Capital One Investing account. In 2018, Capital One announced its plans to exit the investment brokerage business, leaving its customers in the dark about the future of their accounts. In this article, we will delve into the details of what happened, why it happened, and what options you have moving forward.
The Rise and Fall of Capital One Investing
Capital One Investing, formerly known as ShareBuilder, was a popular online brokerage firm that offered a range of investment products and services to its customers. Founded in 1996, ShareBuilder was acquired by Capital One in 2007 and rebranded as Capital One Investing in 2010. At its peak, Capital One Investing had over 1 million customer accounts, making it one of the largest online brokerages in the United States.
However, in February 2018, Capital One announced its decision to exit the investment brokerage business, citing increased competition and regulatory pressures as the main reasons. The move came as a shock to many of its customers, who were left wondering what would happen to their accounts and investments.
The Fallout: What Happened to Customer Accounts?
Following the announcement, Capital One began the process of transferring its customer accounts to E*TRADE Financial Corporation, a well-established online brokerage firm. The transfer process was completed in October 2018, with E*TRADE assuming responsibility for the management of the transferred accounts.
However, the transition was not without its hiccups. Many customers reported difficulties accessing their accounts, and some even claimed to have experienced losses due to the transfer process. Furthermore, some customers were unhappy with the fees and services offered by E*TRADE, which differed significantly from those of Capital One Investing.
What Options Do I Have Now?
If you’re a former Capital One Investing customer, you have a few options to consider:
Stay with E*TRADE: If you’re comfortable with the fees and services offered by E*TRADE, you can choose to stay with them. E*TRADE offers a range of investment products, including stocks, options, ETFs, and mutual funds, as well as a variety of research tools and resources.
Transfer to a Different Brokerage: If you’re not satisfied with E*TRADE, you can transfer your account to a different brokerage firm. This may involve some paperwork and potential transfer fees, but it could be worth it if you find a brokerage that better fits your investment needs.
Close Your Account: If you’re no longer interested in investing through a brokerage firm, you can choose to close your account and withdraw your funds. Keep in mind that you may be subject to certain fees or penalties for early withdrawal.
Why Did Capital One Exit the Investment Brokerage Business?
So, why did Capital One decide to exit the investment brokerage business? There are a few reasons:
Increased Competition: The online brokerage industry has become increasingly crowded in recent years, with new entrants and established players offering competitive pricing and services. Capital One likely found it difficult to compete with the likes of Fidelity, Charles Schwab, and Robinhood.
Regulatory Pressures: The financial industry is heavily regulated, and compliance can be costly and time-consuming. Capital One may have decided that the regulatory burden was too great, especially in light of the increasing competition.
Focus on Core Business: Capital One’s core business is banking and credit cards, and the company may have decided to focus its resources on these areas rather than trying to compete in the investment brokerage space.
Lessons Learned
The Capital One Investing debacle serves as a reminder that the financial industry is constantly evolving, and changes can happen quickly. Here are a few lessons to take away:
Be Prepared for Change: As a customer, it’s essential to stay informed and be prepared for changes to your accounts and services.
Do Your Research: Before investing with any brokerage firm, do your research and understand the fees, services, and risks involved.
Diversify Your Investments: Don’t put all your eggs in one basket. Diversify your investments across different asset classes and brokerage firms to minimize risk.
Conclusion
The vanishing act of Capital One Investing serves as a reminder that the financial industry is constantly changing, and customers must be prepared to adapt. While the transition may have been difficult for some, it’s essential to focus on the positive and take advantage of the opportunities available.
If you’re a former Capital One Investing customer, take the time to assess your options and make an informed decision about what to do with your account. Remember to stay informed, do your research, and diversify your investments to minimize risk.
And as for Capital One, it’s back to focusing on its core business of banking and credit cards. Only time will tell what the future holds for this financial giant.
What happened to my Capital One Investing account?
In February 2021, Capital One announced that it would be discontinuing its Capital One Investing platform, which provided self-directed brokerage services to customers. As part of this change, Capital One transferred its brokerage accounts to E*TRADE, another online brokerage firm.
This transfer affected all Capital One Investing accounts, including individual and joint accounts, as well as IRAs, Roth IRAs, and rollover IRAs. If you’re a former Capital One Investing customer, you should have received communication from Capital One and E*TRADE about the transfer process.
Why did Capital One discontinue its investing platform?
Capital One decided to discontinue its investing platform to focus on its core banking and credit card businesses. The company announced that it would be exiting the brokerage business to concentrate on its primary financial services offerings.
This decision was likely driven by a number of factors, including the increasing competition in the online brokerage space and the rising costs associated with maintaining a brokerage platform. By exiting the brokerage business, Capital One can redirect its resources to areas where it can better compete and grow.
What happened to my account balance and assets?
As part of the transfer process, your account balance and assets were transferred from Capital One Investing to E*TRADE. You should have received a notification from E*TRADE with information about your new account, including your account number and login credentials.
If you have not received this information or have questions about your account balance or assets, you should contact E*TRADE customer service directly. They can provide you with more information about your account and help you resolve any issues.
Can I still access my old Capital One Investing account?
No, you can no longer access your old Capital One Investing account. The account has been closed, and all account information, including transaction history and statements, has been transferred to E*TRADE.
You can access your new account at E*TRADE to view your account information, transaction history, and statements. You can also contact E*TRADE customer service if you have any questions or concerns about your account.
What about my account fees and commissions?
As part of the transfer, E*TRADE has assumed responsibility for your account fees and commissions. You should review your new account agreement and fee schedule to understand any changes to your pricing.
It’s possible that your fees and commissions may have changed as a result of the transfer. If you have questions or concerns about your pricing, you should contact E*TRADE customer service directly.
Can I transfer my account back to Capital One?
No, it is not possible to transfer your account back to Capital One. Capital One has discontinued its investing platform and has transferred all brokerage accounts to E*TRADE.
If you’re not satisfied with E*TRADE, you can consider transferring your account to another brokerage firm. However, you’ll need to initiate this transfer yourself and may be subject to certain fees or requirements.
What if I have questions or concerns about my new E\*TRADE account?
If you have questions or concerns about your new E*TRADE account, you should contact E*TRADE customer service directly. They can provide you with information about your account, answer questions, and help you resolve any issues.
E*TRADE offers a range of customer support options, including phone, email, and online chat. You can also visit an E*TRADE branch in person or use their online resources to find answers to common questions.