can you transfer stocks between brokerages

This article answers “can you transfer stocks between brokerages” in clear, practical steps. Learn transfer methods (ACATS, in‑kind vs cash), what moves, timelines, fees, tax and cost‑basis issues,...

2026-01-11 09:38:00

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Transferring Stocks Between Brokerages

can you transfer stocks between brokerages? This guide explains exactly what that question means, how transfers work in practice, and what you need to do to move equity holdings from one brokerage account to another. By the end you’ll understand the main transfer methods (in‑kind vs cash), the role of ACATS, what types of assets move easily, timelines, fees, tax and cost‑basis considerations, common problems and how to avoid them.

As of 2024-06-01, according to Investor.gov and SEC guidance, brokerage transfers remain governed by established systems such as ACATS (operated by the NSCC/DTCC) and by broker rules that aim to protect customers and preserve accurate reporting.

Overview: What “can you transfer stocks between brokerages” means

The phrase can you transfer stocks between brokerages refers to moving securities and certain account assets from one brokerage firm to another. In the U.S., most transfers between broker‑dealers occur through the Automated Customer Account Transfer Service (ACATS). Transfers can preserve holdings (in‑kind) or move only cash after selling positions (cash transfer).

Investors typically ask can you transfer stocks between brokerages when they want lower fees, different trading tools, consolidation of accounts, better customer service, or to move an IRA. Understanding the mechanics up front reduces delays, unexpected fees, and tax surprises.

Overview of transfer methods

There are two primary ways to move securities between brokers: in‑kind transfers and cash transfers.

In‑kind transfers move securities as they are—stocks, ETFs, most bonds and many mutual funds—without selling them first. This preserves cost basis and avoids triggering a taxable event for taxable accounts.
Cash transfers mean you or the delivering broker sell positions, and only the cash proceeds move to the receiving broker. Selling triggers settlement timelines and may create taxable events if done in a taxable account.

When asking can you transfer stocks between brokerages, most investors prefer in‑kind transfers because they maintain continuity of holdings and tax lots, but in some situations (non‑transferable assets, fractional shares, or urgency) a cash transfer is chosen.

ACATS — Automated Customer Account Transfer Service

ACATS is the most common method for moving retail brokerage accounts between member firms. The system is operated by the National Securities Clearing Corporation (NSCC), part of the DTCC, and automates the matching, verification and movement of assets between delivering and receiving broker‑dealers.

How ACATS works: The receiving broker submits a transfer request (Transfer Initiation Form or online transfer request) through ACATS with your account details and a list of holdings to be transferred. The delivering broker validates holdings and either accepts the in‑kind transfer, raises exceptions, or rejects when rules or account mismatches arise.
Roles: The receiving broker initiates and coordinates the request; the delivering broker responds by confirming, rejecting, or placing exceptions on assets. Customers typically authorize the receiving broker to begin the process.
Timeline: If there are no exceptions, ACATS transfers commonly complete in roughly 3–7 business days. Exceptions, manual transfers, or complex assets can extend the process by days or weeks.

When you ask can you transfer stocks between brokerages, ACATS is usually the answer for U.S. domestic transfers between member firms.

Alternative mechanisms: DRS, manual and journal transfers

Not all transfers use ACATS. Alternative methods include:

Direct Registration System (DRS): Securities can be registered in your name on a company’s books and then moved or re‑registered at the receiving broker. DRS is used for shareholders who want direct ownership records at the transfer agent.
Manual/paper transfers: For international accounts, brokerages without ACATS membership, or nonstandard assets, transfers may occur via manual paperwork with the transfer agent or custodial bank.
Internal journal transfers: When you move assets between accounts at the same brokerage (for example, from one individual account to another account you own at that same firm), the broker typically performs an internal journal transfer that is fast and does not use ACATS.

Each method has different timelines, documentation needs and risk of delay. When evaluating can you transfer stocks between brokerages, check whether your receiving brokerage supports ACATS and whether your assets are ACATS‑eligible.

What can and cannot be transferred

Most common transferable assets:

Individual publicly traded stocks and ETFs listed on major U.S. exchanges.
Corporate and municipal bonds that your broker holds in street name.
Transferable mutual funds (some are transferable across brokers; others are proprietary and not transferable in‑kind).
Cash, settled proceeds and many fixed‑income instruments.

Commonly non‑transferable or problematic items:

Proprietary mutual funds that can only be redeemed at the delivering firm.
Certain illiquid or private securities, private placements, and restricted stock.
Annuities and insurance products that require contract transfers or rollover procedures.
Some fractional shares—many brokers do not transfer fractional shares in‑kind.

Broker policies vary, so when you ask can you transfer stocks between brokerages, always check specific restrictions with both the delivering and receiving brokers to confirm which holdings can be moved.

Fractional shares and special cases

Fractional shares are a frequent stumbling block. Many brokers that offer fractional shares do not support moving those fractions in‑kind through ACATS. Typical outcomes:

The delivering broker may sell the fractional shares and transfer cash instead.
The receiving broker may recreate fractional positions if it supports them, but it depends on policies and timing.

If you hold fractional shares and the question can you transfer stocks between brokerages applies to you, confirm the fractional policy before initiating the transfer to avoid forced sales or unexpected tax implications.

Account types, ownership and eligibility

Account registration and type must generally match for an ACATS transfer to proceed smoothly. Typical rules include:

Like‑to‑like transfers: Individual to individual, IRA to IRA, trust to trust. Transfers that change ownership or account type often require additional paperwork and may be denied.
Margin vs cash accounts: Transferring a margin account to a cash account or vice versa may require paying down margin debt or completing specific forms.
Joint accounts and trusts: Exact account registration matters. Minor mismatches in names, Social Security or Tax ID numbers can create exceptions and delays.

When considering can you transfer stocks between brokerages, ensure the receiving account mirrors the delivering account’s registration and type, or be prepared for additional documentation and time.

Step‑by‑step transfer process

A practical walkthrough of the typical ACATS transfer process:

Prepare: Review recent account statements, verify your account registration name and Social Security/Tax ID, and identify holdings you want to move. Check both brokers’ transfer policies, fractional share treatment, and fee schedules.
Open the receiving account: If you do not already have an account with the new broker, open one and ensure the account type matches the delivering account (for example, an IRA to IRA).
Initiate the transfer: Complete the receiving broker’s Transfer Initiation Form (TIF). Many brokers provide online transfer tools that automate the ACATS submission if you provide your old account number and last account statement.
Receiving broker submits ACATS request: The receiving broker sends the ACATS instruction to the delivering broker and to the NSCC/DTCC for matching.
Delivering broker validates: The delivering broker reviews holdings, account registration, and outstanding issues (margin loans, unsettled trades) and responds by accepting, partially accepting, or placing exceptions on specific items.
Exceptions and resolution: If items are non‑transferable or there are mismatches, the receiving broker will work with you to resolve the exceptions. Some exceptions require you to liquidate positions or sign extra forms.
Completion and reconciliation: Once accepted, ACATS moves securities or cash to the receiving account. After completion, reconcile final positions and cost‑basis information with both brokers.

This sequence answers the core of can you transfer stocks between brokerages: it’s typically a receiving‑broker initiated, ACATS‑driven workflow with checks and exceptions.

Information and documentation needed

Common items required to process a transfer:

Exact old account number and delivering broker name.
Exact account registration name and Social Security or Tax ID.
A recent account statement from the delivering broker (often within 30–90 days).
List of holdings for partial transfers and tickers for specific securities.
For special assets, transfer agent information or additional authorization forms.

Providing accurate, up‑to‑date documentation reduces the chance your transfer will be delayed or rejected.

Timeline, freezes and settlement impact

Typical ACATS timings and trading implications:

Standard ACATS timeline: 3–7 business days for straightforward transfers with no exceptions. Many brokers report similar ranges but note that partial transfers or complex assets can extend this significantly.
Freezes and trade restrictions: During the transfer, some brokers may restrict trading in the affected account. You should assume limited access until the transfer completes and not rely on unsettled funds or positions for immediate trading.
Settlement implications: If the delivering broker sells holdings or if you execute sells right before transfer, settlement periods (T+1, T+2 depending on security) affect when cash is available to transfer. Verify settlement rules for your holdings.

When asking can you transfer stocks between brokerages, expect short service interruptions and plan trades and cash needs around the transfer window.

Fees, reimbursements and promotions

Many delivering brokers charge outgoing transfer fees (often a flat per‑account fee). Typical points:

Full vs partial account transfer fees: Brokers sometimes charge a fee for full account transfers but also for each partial transfer or per position. Fee structures differ.
Receiving broker offers: To encourage transfers, some brokers (including certain promotions offered by leading platforms) reimburse documented outgoing transfer fees up to a specified limit when you transfer in assets above a threshold.
Negotiation: Customers can ask the delivering broker to waive fees, especially for high balances or when moving to a competitor that offers transfer reimbursements.

Check both brokers’ fee schedules, and if you plan to transfer, inquire whether the receiving broker offers a transfer fee reimbursement.

Tax and cost‑basis considerations

A key reason investors ask can you transfer stocks between brokerages is to avoid unnecessary tax events. Important points:

In‑kind transfers typically do not trigger taxable events in taxable accounts because the securities are moved without being sold. For IRAs and retirement accounts, transfers between like accounts are not taxable if done as trustee‑to‑trustee transfers.
Selling positions before transfer creates taxable events in taxable accounts; sell carefully and consult tax rules if uncertain.
Cost basis and lot‑level data: Brokers should transfer lot‑level basis information with ACATS or in subsequent transmissions (e.g., to the receiving broker). However, mismatches or partial records are common. After the transfer, verify cost basis and lot allocation on the receiving broker’s statements to ensure accurate future tax reporting.
Steps to verify cost basis: Obtain a final statement from the delivering broker showing lot history and cost basis, then compare with the receiving broker’s imported basis. If discrepancies exist, retain documentation to correct basis reporting for tax returns.

This explains why the question can you transfer stocks between brokerages often includes concern about preserving tax records and avoiding inadvertent sales.

Common problems and causes of delay

Frequent causes of transfer delays or rejections include:

Mismatched account registration names, Social Security numbers or account numbers.
Outstanding margin loans, pledges or collateral that prevent moving assets until settled.
Unsettled trades or pending corporate actions that complicate the transfer process.
Non‑transferable or proprietary funds and certain annuities.
Fractional shares or micro positions below the minimum transfer thresholds.
Incomplete or incorrect Transfer Instruction Forms.

What to do if your transfer is rejected or delayed: Contact both brokers, request the reason for rejection, rectify the mismatch or settle outstanding issues, and request the receiving broker resubmit the ACATS instruction. If you encounter unresolved disputes, you can escalate to the delivering broker’s compliance department or file a complaint with regulators.

Broker responsibilities and regulatory framework

Both delivering and receiving brokers have responsibilities under industry rules:

Receiving broker: Initiates transfer, communicates with the customer, and submits ACATS instructions.
Delivering broker: Verifies holdings, flags exceptions (e.g., margin liens), responds in a timely manner and executes accepted transfer instructions.
Oversight and regulation: Systems like ACATS operate under the DTCC/NSCC. Regulators including the SEC and FINRA provide guidance and consumer protection resources. If brokers mishandle transfers, customers can seek remedies through broker complaint procedures and regulator channels.

Regulatory guidance helps answer can you transfer stocks between brokerages by establishing timelines and best practices for brokers and customers.

Special situations

Moving IRAs and retirement accounts

Moving IRAs typically involves trustee‑to‑trustee transfers or rollovers. Common points:

Trustee‑to‑trustee transfers between like retirement accounts generally avoid taxation if done directly.
Rollover distributions that are issued to you personally and then redeposited must follow IRS rollover timing rules to avoid taxes and penalties.
Custodial forms and transfer acceptance timelines can differ among custodians and brokerages, which can extend the process.

When you ask can you transfer stocks between brokerages for an IRA, confirm the receiving custodian’s trustee procedures and whether in‑kind movement of securities is supported.

International transfers and non‑U.S. brokers

Moving assets between U.S. and foreign brokers often requires manual processes, transfer agent involvement, or re‑registration of securities. Additional complications include:

Different custody and settlement systems.
Potential local tax or regulatory requirements.
Currency conversions and foreign custody fees.

In many international cases, direct in‑kind transfers are more complex or impossible; expect longer timelines and extra paperwork.

Third‑party transfers, gifts and transfers by instruction

Transferring securities as gifts, or moving assets to a third party, typically requires transfer agent paperwork and may need medallion guarantees or notarized signatures. Transfers for estate or trust purposes can require death certificates, probate documents, and specific trustee authorization.

When your question is can you transfer stocks between brokerages for gifting or third‑party movement, prepare for additional documentation and longer processing times.

Best practices and checklist for a smooth transfer

Follow this checklist to minimize problems when you arrange a transfer:

Confirm the answer to can you transfer stocks between brokerages by checking both brokers’ transfer policies and ACATS eligibility.
Verify account registration names exactly match and have accurate Social Security/Tax ID information.
Download or print a recent statement from the delivering broker (within the required timeframe for the receiving broker).
Confirm fractional‑share policies and decide whether to accept forced sale or recreate fractions at the receiving broker.
Clear outstanding margin loans, unpaid fees, or pledged collateral that could block the transfer.
Ask the receiving broker about transfer fee reimbursements and how to claim them.
Initiate the transfer through the receiving broker and keep records of the Transfer Initiation Form (TIF) and confirmation numbers.
Track the transfer status, respond quickly to exception notices, and reconcile final positions and cost basis on arrival.

Following this checklist answers practical aspects of can you transfer stocks between brokerages and reduces the risk of unexpected delays.

How major brokers handle transfers (examples)

Different brokerages provide varying levels of online support for ACATS transfers. Typical approaches include:

Online transfer tools where you enter your old broker name and account number and authorize the receiving broker to pull assets via ACATS.
Dedicated transfer teams that assist with manual paperwork for complex or retirement transfers.
Promotions that reimburse documented outgoing transfer fees when you transfer assets above set thresholds.

If you are weighing can you transfer stocks between brokerages, compare the receiving broker’s online convenience, transfer fee policies and promotional reimbursement offers when choosing where to move your account. When selecting a platform, consider Bitget’s ecosystem for trading and custody if you are also exploring crypto services; for securities transfers, verify that Bitget’s brokerage partners or custody arrangements meet your needs.

When to sell instead of transfer

Selling then transferring cash may be preferable when:

Assets are non‑transferable or proprietary at the delivering broker.
Positions are too small or fractional and the delivering broker will force a sale; selling yourself gives control over timing.
You want to simplify lot‑level complexity or realize losses/gains for tax planning reasons.
Immediate cash access at the receiving broker is more important than holding the specific securities.

Selling can trigger taxes in taxable accounts and settlement delays, so weigh the tradeoffs before deciding.

Frequently asked questions (FAQ)

Q: Will transferring trigger taxes?

A: In most cases, an in‑kind transfer does not trigger a taxable event because you are not selling the securities. Selling securities prior to transfer will create realized gains or losses in taxable accounts. For retirement accounts, trustee‑to‑trustee transfers are typically non‑taxable.

Q: How long does an ACATS transfer take?

A: ACATS transfers typically complete in about 3–7 business days when there are no exceptions. Complex assets and exceptions can extend this timeframe.

Q: Can I trade during a transfer?

A: Access to trade may be limited for positions being transferred. Some brokers restrict trades while assets are in the transfer process. Confirm with your broker and avoid relying on unsettled funds.

Q: What if my broker charges an outgoing fee?

A: Some brokers charge outgoing transfer fees. Ask the receiving broker if they will reimburse incoming customers’ documented outgoing fees as part of a promotion.

Q: Will cost basis information transfer?

A: Brokers generally transmit cost basis and lot data with transfers, but discrepancies happen. Save a final statement from the delivering broker and compare the cost basis after transfer.

Common troubleshooting actions

If a transfer is delayed or rejected:

Verify registration details and correct any mismatches.
Confirm there are no outstanding margin loans or liens.
Ask the delivering broker for a written reason and any required steps to resolve exceptions.
Request the receiving broker retry the ACATS request after corrections.
If unresolved, contact the delivering broker’s compliance department or use regulator complaint channels.

These steps help answer practical problems that arise when you wonder can you transfer stocks between brokerages.

Sample Transfer Instruction Form fields (what you will typically complete)

Below is a typical set of fields you will be asked to provide when initiating a transfer (TIF):

Delivering firm name
Delivering account number
Exact account registration (full legal name)
Social Security number or Tax ID
Receiving account number at the new broker
Type of transfer (full account, partial, specific positions)
List of securities and ticker symbols (for partial transfers)
Signature and date

Providing accurate values for these fields helps ensure a smooth transfer and reduces the chances of exceptions.

Reporting and reconciliation after transfer

Once the transfer completes:

Reconcile positions and verify that all expected holdings arrived.
Confirm cost basis and lot‑level data. If discrepancies exist, retain original statements and request corrections.
Verify that any cash balances, pending dividends, or pending corporate actions were handled correctly.

Proper reconciliation completes the practical answer to can you transfer stocks between brokerages and preserves your tax documentation.

Practical tips to avoid surprises

Start the transfer at a calm time — not right before major corporate actions or when you need immediate liquidity.
Document everything: screenshots, confirmation emails, final statements.
Confirm fractional handling and ask whether the delivering broker will liquidate fractions or the receiving broker will recreate them.
If you hold private or restrictive securities, contact both brokers early to understand transfer agent requirements.

These practical tips reduce stress and unexpected costs when you decide can you transfer stocks between brokerages.

Regulatory and consumer protection notes

Regulators provide resources and complaint pathways if transfers are mishandled. If you believe a broker did not follow proper procedures or unduly delayed a transfer, document communications and use the broker’s formal complaint process; you may also consult the SEC or FINRA guidance for dispute resolution options.

More about how Bitget fits (brand mention)

While this article focuses on brokerage transfers of securities, if you also use crypto services and wallets, consider Bitget products for custody and trading in the crypto domain. For securities transfers, rely on established broker processes; for crypto custody and wallet needs, Bitget Wallet provides integrated tools within the Bitget ecosystem.

References and authoritative sources

As of 2024-06-01, the following resources provide primary guidance on transfers and consumer protections: Investor.gov (SEC guidance on transferring brokerage accounts), DTCC/NSCC documentation on ACATS operations, and consumer finance overviews from Investopedia, NerdWallet, Bankrate and The Motley Fool. Brokerage help centers (for example, Charles Schwab) also publish step‑by‑step instructions on transfers.

Final checklist — quick action plan

Confirm the answer to can you transfer stocks between brokerages for your specific holdings.
Verify matching account types and exact registration.
Obtain a recent statement and list of holdings.
Decide in‑kind vs cash transfer based on transferability and tax implications.
Initiate the transfer with the receiving broker and retain confirmation details.
Track, resolve exceptions quickly, and reconcile final statements and cost basis.

Further explore Bitget’s user resources for custody needs in crypto and consult your chosen broker’s transfer center for firm‑specific instructions. If you need a printable checklist or a sample Transfer Instruction Form tailored to your account type, request one from your receiving broker’s support team or the broker’s transfer help center for guidance.

The content above has been sourced from the internet and generated using AI. For high-quality content, please visit Bitget Academy.