Can I transfer stocks between brokers?

Can I transfer stocks between brokers?

Yes — and this article explains how. If you’re asking “can i transfer stocks between brokers,” this guide shows when and how you can move stock and other securities from one brokerage account to another without selling them, what systems and rules apply (most commonly the Automated Customer Account Transfer Service, ACAT), typical timelines, potential fees, account-matching requirements, and practical tips to avoid delays or unexpected tax/reporting issues. Read on to learn the step‑by‑step process, special cases (margin loans, fractional shares, restricted securities), and an after‑transfer checklist so you can transfer with confidence.

Overview

Investors choose to move accounts for many reasons: lower commissions or platform fees, enhanced trading tools, better customer service, consolidation of multiple accounts, or changing financial advisors. The main benefit of an in‑kind transfer when you ask “can i transfer stocks between brokers” is preserving positions without triggering a sale — that means no immediate capital gains tax event, maintenance of each lot’s cost basis and acquisition date, and uninterrupted time‑in‑market that can matter for long‑term returns.

In most U.S. brokerage situations, you can transfer stocks between brokers using an automated clearing network. Transfers are subject to asset eligibility, matching account types and owner information, broker policies, and regulatory timelines. Understanding the common systems (ACAT and DRS), potential exceptions, and preparation steps reduces the chance of delays or surprises.

Key systems and terminology

ACATS / ACAT (Automated Customer Account Transfer Service)

ACAT (sometimes called ACATS) is the standard automated clearing service used by broker‑dealers and clearing firms in the U.S. to transfer customer accounts — including stocks, most ETFs, many mutual funds, bonds and options — from a delivering (old) broker to a receiving (new) broker. Managed by the National Securities Clearing Corporation (NSCC), ACAT streamlines the transfer process: the receiving firm initiates the request, the delivering firm validates the holdings and either agrees, raises exceptions, or rejects items that are ineligible.

Typical ACAT features:

• Receiving broker initiates the transfer on behalf of the investor.
• Delivering broker must validate, accept, or provide exceptions within prescribed windows (industry practice often involves a short validation period followed by movement if approved).
• When straightforward, ACAT transfers commonly complete in about six business days, though exceptions or complex assets extend timelines.

DRS (Direct Registration System) and transfer agents

DRS is an alternative method that registers shares in your name on the books of a company through its transfer agent. Instead of moving shares between brokerages via ACAT, you can have shares registered directly in your name (book‑entry) and then have the receiving broker take them into a new brokerage account, or you can hold them directly with the transfer agent.

DRS is useful when:

• A specific broker does not support an asset for an in‑kind ACAT transfer.
• You want direct ownership on the issuer’s register.
• You’re transferring shares from certificate form or from a broker that does not participate fully in ACAT for certain securities.

DRS steps typically involve contacting the transfer agent or your current broker to register the shares and then arranging the receiving broker to take in the DRS‑registered shares.

In‑kind transfer vs. cash transfer vs. sale‑and‑move

• In‑kind transfer: You move the actual securities (stocks, ETFs, many bonds) as they are. Pros: preserves cost basis, avoids taxable events, retains lot information. Cons: some assets may be ineligible.
• Cash transfer (sell‑and‑move): Sell holdings at the delivering broker, transfer the settled cash, and repurchase at the new broker. Pros: simple when assets are ineligible for in‑kind transfer. Cons: may trigger capital gains taxes and market timing risk.
• Sale during transfer (forced sale or partial liquidation): Sometimes unavoidable if assets are restricted, proprietary, or otherwise blocked for transfer; typically results in a taxable event and possibly extra fees.

Eligible and ineligible assets

Most brokers support ACAT transfers of many common asset types, but there are frequent exceptions. Typical transferable assets include:

• Individual U.S. exchange‑listed stocks and most U.S.-listed ETFs.
• Most corporate and municipal bonds and Treasury securities.
• Many mutual funds, although some proprietary or platform‑only mutual funds may not transfer in‑kind.
• Options positions in some cases, subject to exercise rules and margin/clearing considerations.

Common exceptions and ineligible assets:

• Proprietary mutual funds and certain no‑load/no‑transaction‑fee funds that are exclusive to one broker.
• Annuities, life insurance products, and some managed account products.
• Certain restricted, unregistered, or highly illiquid securities (private placements, penny stocks not eligible for clearing).
• Fractional shares — many brokers do not support transferring fractional holdings in‑kind; fractions are often cashed out at the delivering broker.
• International or foreign‑listed securities where the receiving broker does not support the market or custody.

Always verify the receiving broker’s eligible assets list before initiating a transfer to avoid forced sales or surprises.

Account‑type and legal prerequisites

The basic legal rules when you ask “can i transfer stocks between brokers” are straightforward but important:

• Account types generally must match. Example: individual-to-individual, IRA-to-IRA, joint-to-joint. You normally cannot ACAT an individual account directly into an IRA (that requires a rollover with tax rules).
• The account owner name and tax ID/SSN must match exactly across both accounts. Middle names, suffixes (Jr./Sr.), or different formatting can cause validation delays.
• Special account types: trusts, custodial accounts (UGMA/UTMA), and retirement accounts require supporting documentation and sometimes additional forms. Transfers involving a trust may require copies of trust documents and trustee signatures.
• Power of attorney, guardianship, or other legal arrangements require proper documentation and notarization where applicable.

If account details or legal status differ, notify both brokers early and be prepared to provide documentation.

Step‑by‑step transfer process

Below is a practical flow for answering “can i transfer stocks between brokers” and actually completing the move.

Preparation

1. Open the receiving account first. Do not close the old account — transfers need an active delivering account.
2. Verify the receiving account type matches the delivering account (individual vs. IRA vs. trust, etc.).
3. Confirm that your name, address, and tax ID/SSN match exactly. Minor mismatches can cause rejections.
4. Gather account numbers, recent statements (including positions), and a list of holdings. Ask the receiving broker for an eligibility check or a transfer‑in questionnaire.
5. Ask the receiving broker for fee reimbursement offers; many brokers will reimburse transfer‑out fees charged by the old broker as a promotion.

Initiation

• The receiving broker typically initiates the ACAT transfer on your behalf (many brokers provide an online “Transfer account” button). When initiating, you will choose either a full transfer (move all assets and close the delivering account) or a partial transfer (move only specific holdings).
• Specify whether you want an in‑kind transfer (preferred) or a cash transfer (selling at the delivering broker and moving the cash). If you request in‑kind and some assets are ineligible, the delivering broker may sell those and transfer cash for those portions, depending on their policy.

Validation, exceptions, and completion

• After initiation, the delivering broker reviews the transfer request. Industry timelines commonly allow for a short validation window (often a few business days) and completion within a target window (commonly about six business days under ACAT in uncomplicated cases).
• The delivering broker may:
  • Accept the transfer and deliver the holdings.
  • Raise exceptions (e.g., ineligible securities, margin or loan issues, name mismatch).
  • Reject the transfer (rare if paperwork is accurate).
• Known causes of delay: outstanding margin loans, pledged securities, open short positions, unsettled trades, account holds, or mismatched documentation.

Post‑transfer verification

When the receiving broker confirms completion:

• Verify all positions and lot attributions arrived.
• Check cost basis carryover and acquisition dates; reconcile differences using pre‑ and post‑transfer statements.
• Confirm settled cash amounts, pending dividends, and whether automatic investments or dividend reinvestment (DRIP) settings moved as intended.
• Recreate open orders if they did not transfer.

Contact both brokers promptly if you see missing positions, incorrect cost basis, or other discrepancies. Keep transfer confirmations and pre/post statements for tax and recordkeeping.

Timelines and regulatory rules

Typical timelines for ACAT transfers (when no exceptions exist):

• Validation: delivering firm must respond to transfer initiation and provide validation or exceptions (often within about three business days in practice).
• Completion: many straightforward ACAT transfers finalize in around six business days from initiation.

Factors that can extend the timeline:

• Ineligible or restricted securities requiring special handling.
• Margin loans or pledged collateral that must be paid off or moved under special arrangements.
• Name mismatches, missing paperwork, or account holds.
• Partial transfers that require identification of specific lots or complex lot carryovers.

Regulatory obligations for broker‑dealers (e.g., NSCC/FINRA rules) set standards for timely responses and clear communication; however, real‑world timelines vary by firm and asset complexity.

As of 2026-01-21, according to NSCC and FINRA guidance and standard broker FAQs, the above timelines reflect commonly observed practice for ACAT transfers of typical retail accounts.

Fees, reimbursements, and incentives

• Outgoing transfer fees: Many brokers charge a transfer‑out or ACAT fee (a one‑time flat fee) when you move to another broker. The amount varies by firm.
• Incoming fee reimbursements: Competitor brokers often advertise reimbursement of transfer fees (up to a cap) as an incentive to attract customers. Ask the receiving broker about reimbursement terms and whether they require copies of receipts.
• Account‑closure and inactivity fees: Some firms may charge account maintenance or closure fees; verify before initiating a full transfer.

Ask both firms about fees upfront and request written confirmation of any promised reimbursements.

Tax, cost basis, and reporting implications

One of the biggest advantages when you ask “can i transfer stocks between brokers” is that an in‑kind transfer generally preserves the tax lot information, acquisition dates, and cost basis — avoiding an immediate taxable event that would occur if you sold positions to move them.

Key points:

• In‑kind transfers preserve cost basis and acquisition dates for reporting capital gains eventually when you sell the positions.
• Delivering broker typically transmits cost‑basis information to the receiving broker, but differences and errors occur; always verify.
• If the delivering broker sells positions as part of the transfer (e.g., for ineligible assets), that sale is a taxable event and requires proper reporting.
• For retirement accounts (IRAs), transfers between like accounts (IRA to IRA) are generally non‑taxable, but follow plan and custodian rules.

After transfer, ensure you obtain year‑end tax documents and reconciled cost‑basis records. Keep pre‑transfer statements in case of discrepancies.

Special cases and complications

Margin accounts, short positions, and pledged securities

Margin loans, existing short positions, and securities pledged as collateral complicate transfers. Common issues:

• Margin loans tied to the delivering broker must usually be repaid or transferred under a margin transfer arrangement; not all brokers permit transferring margin debt.
• Open short positions are not transferable in the usual ACAT process and require closure before a full transfer.
• Securities used as collateral for loans or in securities‑lending programs may be blocked for transfer until the pledge is released.

Resolve margin or lending arrangements before initiating a transfer when possible, or work with both brokers to coordinate a special transfer plan.

Proprietary funds, restricted securities, and employer stock plans

• Proprietary mutual funds or in‑house managed products often cannot be moved in‑kind. Brokers may require liquidation prior to transfer.
• Employer stock plans (ESPP, restricted stock units) and restricted securities may have vesting, blackout, or transfer restrictions; you may need plan‑administrator assistance and special handling.

Fractional shares and odd‑lot holdings

Fractional shares are a frequent complication. Many brokers offer fractional shares for trading and investing plans but do not support transferring fractional shares in‑kind. Options include:

• The delivering broker redeeming fractional shares for cash prior to transfer.
• Converting fractions to whole shares by purchasing additional shares or selling portions before transfer.

Discuss fractional handling with both brokers to avoid unexpected liquidation.

Name mismatches, missing documentation, and account holds

Administrative mismatches (different name formats or outdated personal information) are a common reason for delays. Ensure details match exactly and provide required documentation early.

Broker‑specific procedures and examples

Most brokers provide online transfer initiation tools that trigger ACAT. Workflows differ slightly by firm:

• Many brokers offer an online transfer form where you specify account numbers, list holdings to transfer, and indicate full vs. partial transfer.
• Some brokers provide a transfer checklist or eligibility tool to pre‑screen holdings.
• For accounts within the same broker family (internal transfer), moving assets can be faster and may not use ACAT at all.

Example notes drawn from major broker help guidance:

• Charles Schwab: offers an online account transfer tool and guidance on eligible assets and typical timelines; internal transfers between Schwab accounts are usually faster than ACAT to another firm.
• Other brokers may provide phone support and concierge transfer services for complex situations (IRAs, trusts, foreign securities).

If you need granular firm‑specific instructions, contact both firms’ transfer desks. If you are evaluating a receiving broker, ask about their transfer support, reimbursement policies, and whether they offer guided transfer assistance.

Alternatives to ACAT transfers

If ACAT is not suitable, alternatives include:

• Selling positions and transferring cash (simple, but taxable if taxable accounts).
• Registering shares via DRS with the transfer agent and then moving them to the new broker.
• Manual or agent‑assisted transfers for unusual securities (private placements, certificates).
• Consolidating accounts under a financial advisor or custodian who can arrange transfers on your behalf.

Each alternative has tradeoffs: taxes, convenience, speed, and paperwork.

Practical tips for a smooth transfer

1. Open the receiving account and verify account type and personal details before initiating a transfer.
2. Request a pre‑transfer eligibility check with the receiving broker for all securities.
3. Ask the receiving broker about transfer fee reimbursement promotions and required proof.
4. Avoid initiating transfers during corporate actions (dividends, mergers, spin‑offs) when possible.
5. Resolve margin loans, pledged securities, and open short positions before starting the transfer.
6. Make copies of pre‑transfer statements showing lot‑level cost basis for reconciliation.
7. Expect to re‑enter any open orders; most brokers do not transfer active orders.
8. Keep both accounts open until the transfer concludes successfully; closing the delivering account before transfer can cause problems.

Quick checklist: open new account, confirm match and eligibility, initiate transfer, monitor validation, verify arrival and cost basis, close old account (if desired).

After‑transfer checklist

• Confirm all positions arrived and reconcile cost basis for each lot.
• Verify cash balances, pending dividends, and accrued interest are correct.
• Recreate any recurring investments, automatic withdrawals, or dividend reinvestment settings.
• Cancel unused accounts where appropriate after confirming the transfer is complete.
• Retain confirmation statements and pre/post transfer records for taxes and audit.

Frequently asked questions (FAQ)

Q: How long does an account transfer take? A: When you ask “can i transfer stocks between brokers,” a straightforward ACAT transfer often completes in about six business days, but validation windows and exceptions can extend that timeline.

Q: Will I be taxed if I transfer stocks between brokers? A: In‑kind transfers preserve cost basis and are not taxable events. Selling holdings to transfer cash will trigger taxable events where applicable.

Q: Can I transfer part of my account? A: Yes. You can request a partial transfer listing specific holdings to move. Be clear about lots you want moved if lot‑level recognition matters.

Q: Will open orders transfer? A: Most brokers do not transfer open orders. Plan to recreate limit or stop orders at the receiving broker after the transfer completes.

Q: What if my broker refuses to transfer? A: Contact the delivering broker for a stated reason (e.g., ineligible assets, margin issues). If you believe the refusal is in error, escalate to the receiving broker’s transfer assistance team or consult regulatory guidance from FINRA/NSCC.

See also / Related topics

• ACAT / ACATS process and NSCC rules
• Direct Registration System (DRS) and transfer agents
• Cost basis reporting and tax forms
• IRA rollover and retirement account transfer rules
• Broker comparison and transfer‑in promotions

References and further reading

Consult primary resources and broker help centers for up‑to‑date procedures and firm policies. Authoritative resources include:

• National Securities Clearing Corporation (NSCC) ACAT guidance
• Financial Industry Regulatory Authority (FINRA) customer protection and transfer rules
• Broker help centers and transfer FAQs (e.g., Charles Schwab, Fidelity, and major retail brokers)
• Financial education resources such as Investopedia, The Motley Fool, Bankrate, and NerdWallet on ACAT/DRS and transfers

As of 2026-01-21, according to NSCC and FINRA guidance, ACAT remains the primary automated method for broker‑to‑broker transfers in the U.S.; consult your brokers for current timelines and eligibility lists.

Notes and practical next steps

If you still wonder “can i transfer stocks between brokers,” the short answer is yes in most cases — but do the preparation work: open and fund the receiving account, confirm asset eligibility, resolve margin/pledge issues, and collect pre‑transfer statements. If you’re migrating both securities and digital assets or want a single custody solution for crypto and traditional assets, explore Bitget’s custody and Bitget Wallet options for managing digital assets alongside your brokerage relationships.

To get started: contact your chosen receiving broker’s transfer desk, ask for a pre‑transfer eligibility review, and request any transfer fee reimbursement details. Keep records and monitor the transfer until you verify arrival and cost basis accuracy.

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