can you transfer stocks without selling?

Can You Transfer Stocks Without Selling?

As many investors ask, "can you transfer stocks without selling" when consolidating accounts, switching brokers, or moving assets between taxable and retirement accounts. In short: yes — in many U.S. brokerage and custodial scenarios you can move eligible securities "in kind" (without liquidating them) using ACAT, transfer-of-assets (TOA) forms, transfer-agent re-registration, or internal transfers. This article explains how those processes work, what transfers are allowed, exceptions, tax and cost-basis implications, timelines, documentation, and common problems to expect.

As of June 1, 2024, according to FINRA guidance and major custodian documentation, broker‑to‑broker in‑kind transfers remain the standard path for migrating listed equities and many ETFs and bonds without selling the holdings.

Scope and applicability

This guide focuses on U.S. brokerage and retirement account practices for moving stocks and commonly transferable securities. When you ask "can you transfer stocks without selling," the answer depends on the account types and the securities involved.

• Typical accounts where in‑kind transfers are supported: individual and joint taxable brokerage accounts, Traditional and Roth IRAs, SEP/SIMPLE IRAs, custodial UTMA/UGMA accounts, trust accounts, and some employer plan rollovers where trustee rules permit.
• Typical transferable securities: exchange‑listed stocks, most ETFs, many corporate and municipal bonds, and many mutual funds (subject to broker support).
• Common exclusions or limitations: proprietary mutual funds of the sending broker, certain mutual funds that don’t accept incoming transfers, fractional shares, many penny or OTC securities, restricted/unregistered shares, annuities and bank CDs, and non‑DTC eligible securities.

If you’re wondering "can you transfer stocks without selling" for a particular holding, check both the sending and receiving broker policies before initiating a transfer.

Key transfer methods

When you want to move assets without selling, the main mechanisms are ACAT, broker‑to‑broker TOA processes, transfer agent re‑registration, internal transfers at a single broker, and in‑kind IRA distributions. Each has strengths and limits.

ACAT (Automated Customer Account Transfer)

ACAT (Automated Customer Account Transfer) is a standardized electronic system run through the Financial Industry Regulatory Authority (FINRA) and the National Securities Clearing Corporation (NSCC) that moves eligible holdings from one broker to another without forced liquidation. ACAT is the most common route when both firms participate.

• How it works: the receiving broker submits an ACAT request with your account and sending broker details. The sending broker validates the request and either approves the full transfer, returns exceptions for ineligible items, or requests additional documentation.
• Typical timeline: many ACAT transfers complete in about 3–7 business days, though transfers can take longer if there are holds, outstanding fees, or incompatibilities.
• Parties involved: you (the account holder), the receiving broker (initiator), and the sending broker (respondent). FINRA/NSCC rules govern timelines and dispute processes.

ACAT is the standard answer to "can you transfer stocks without selling" when both firms support the securities and account type.

Broker‑to‑broker manual transfers / TOA (Transfer of Assets)

When ACAT isn’t available—for example, between custodians that don’t participate electronically or when transferring non‑standard assets—you can use a manual TOA or paper transfer process.

• Process: the receiving firm provides a TOA form (paper or online) that you sign and submit. The receiving firm coordinates with the sending firm to move assets in‑kind where possible.
• Use cases: legacy accounts, transferring certain mutual funds, or when a receiving broker cannot accept an ACAT XML file.
• Timeline: often longer than ACAT; can take several weeks depending on paperwork and the sending firm's responsiveness.

Transfer agent re‑registration

Some shares are held directly with an issuer or via paper certificates. Transfer agents (companies that maintain shareholder records) can re‑register shares to a different name or transfer ownership without selling.

• Use: transferring certificated shares, moving directly registered shares (DRS), or re‑registering shares to a new broker’s DRS program.
• Requirements: completed forms, proof of ownership, and often Medallion signature guarantees for certificates.
• Timeline: varies; often a few weeks.

Internal or intrabroker transfers

If you hold multiple accounts at the same custodian, moving shares between them (for example, from a taxable brokerage account into an IRA at the same broker, or adding a spouse to a joint account) is typically simpler.

• How it differs: the transfer is administrative within the same platform; ACAT/TOA isn’t required.
• Limits: some account‑type moves (taxable → IRA) can trigger tax rules and require formal distributions/rollovers.

In‑kind IRA distributions

Moving assets from an IRA into a taxable account as an in‑kind distribution is possible and means the custodian transfers the actual securities rather than selling them.

• Tax note: an in‑kind distribution is treated as a taxable distribution (except qualified rollovers), so taxes still apply on the distribution value even if you keep the securities.
• Use case: taking RMDs in kind or moving IRA assets into a taxable brokerage account when you want to avoid selling at current prices.

What can and cannot be transferred in kind

Answering "can you transfer stocks without selling" requires knowing which instruments are eligible.

Typical transferable securities:

• Exchange‑listed common and preferred stocks
• Most ETFs listed on major U.S. exchanges
• Most corporate and municipal bonds that are DTC‑eligible
• Many mutual funds (but only if the receiving broker supports that fund)

Common exceptions and limits:

• Broker‑proprietary mutual funds often cannot be transferred in kind to a different firm and may require liquidation.
• Fractional shares: many brokers represent fractional ownership internally; receiving brokers may not accept fractional positions and might cash out fractions.
• Penny stocks and many OTC securities can be restricted or ineligible if the receiving broker doesn’t support them.
• Restricted or unregistered shares (e.g., private placements, unvested RSUs, or shares subject to legend) typically cannot be transferred without issuer approval.
• Physical certificates, non‑DTC eligible issues, annuities, and bank CDs usually require special handling or liquidation.

Always check the receiving broker’s list of accepted securities before initiating a transfer.

Steps to initiate a transfer

When you decide that "can you transfer stocks without selling" applies to your situation, follow these typical steps:

1. Verify eligibility and open a receiving account (if needed): confirm the account type matches (taxable ↔ taxable, IRA ↔ IRA, etc.).
2. Gather account details and recent statements from the sending broker: full account number, account title, and a list of holdings.
3. Start the transfer with the receiving broker: complete their online ACAT/TOA request or a paper transfer form; provide authorization.
4. Provide additional documentation if required: medallion stamps for certificates, trust documents, or beneficiary forms for TOD accounts.
5. Monitor progress: the receiving broker will track status, notify you of exceptions, and coordinate with the sending broker.
6. Confirm final holdings and cost basis accuracy in the receiving account after settlement.

If any holdings are ineligible, the brokers will notify you; you may have to sell those positions at the sending broker or arrange alternative handling.

Timing and settlement

Timing varies by method and complexity.

• ACAT electronic transfers often complete in about 3–7 business days when both brokers participate and holdings are compatible.
• Manual TOA or transfer agent re‑registrations can take several weeks.
• Delays often arise from outstanding margin or debit balances, unsettled recent trades, signature or documentation mismatches, proprietary fund restrictions, or cost‑basis information gaps.

If you need a fast move and the receiving broker cannot accept certain assets, you may choose to sell the ineligible holdings and transfer cash — but that defeats the goal of transferring without selling.

Fees and costs

When asking "can you transfer stocks without selling," you should plan for possible fees:

• Outgoing transfer fees: some brokers charge a flat fee to transfer assets out (often called an ACAT or transfer fee). Fees vary widely and may be waived in certain promotions.
• Account closure fees: some firms charge if you close an account after transfer.
• Receiving broker fees: generally rare, but always confirm.
• Cost of mailing certificates or signature guarantee services, if needed.

Many brokers offer reimbursement programs for transfer fees when you switch, and some waive fees entirely for in‑kind transfers. Check both brokers’ published fee schedules or ask customer service.

Tax note: the transfer itself (between like accounts) is not a taxable event, but in‑kind distributions from retirement accounts or transfers that change account types may have tax consequences.

Cost basis, tax reporting, and records

A key concern when you ask "can you transfer stocks without selling" is preserving cost basis and transaction history for tax purposes.

• Cost basis transfer: brokers generally transfer cost basis and lot history with the assets, but practices differ. The receiving broker should request basis data from the sending broker via ACAT or manual transfer. Always verify that cost basis—acquisition dates and original purchase prices—arrived intact.
• Tax forms: transfers between like custodians don’t usually generate 1099s. However, in‑kind IRA distributions generate Form 1099‑R for the distribution, and subsequent sales trigger 1099‑B reporting.
• Transfers between retirement and taxable accounts: moving assets as a rollover between like IRAs is typically non‑taxable, but an in‑kind distribution from an IRA to a taxable account is taxable as ordinary income to the extent of the distribution.
• Gifting shares: for gifts, the recipient generally inherits your cost basis (carryover basis) for future capital gains calculations, subject to special rules for gifts that have appreciated substantially.

Always confirm cost basis after transfer and keep copies of statements that show original purchase dates and amounts.

Transfers between like retirement accounts

If you move assets "in kind" between the same account type (e.g., Traditional IRA at Broker A → Traditional IRA at Broker B), the transfer is generally non‑taxable. Brokers typically handle it as a trustee‑to‑trustee transfer.

In‑kind IRA distributions / RMDs

If you take an in‑kind distribution from an IRA, the fair market value of distributed securities is reportable as income for tax purposes (unless it’s a qualified rollover). Required minimum distributions (RMDs) taken in kind still count as taxable distributions for traditional IRAs.

Gifting shares

Gifting stock to family can be done without selling. The donor must follow gift‑tax rules and reporting thresholds. The recipient generally receives the donor’s cost basis (carryover) and holding period for capital gains calculations.

Consult a tax professional for complex situations.

Special situations and limitations

The simplest answer to "can you transfer stocks without selling" gets more nuanced in special situations.

• Fractional shares: many brokers create fractional shares internally. If the receiving broker doesn’t support fractions, fractions may be liquidated for cash during transfer.
• Low‑priced / penny / OTC securities: often ineligible at large custodians and may be forced to sell or remain at the sending broker.
• Restricted or unregistered shares: these often require issuer or transfer‑agent approval and may be ineligible for standard transfers.
• Employee stock plans (RSUs, ESPP, 401(k) holdings): vested shares in a brokerage account are typically transferable; unvested or employer‑held shares and plan accounts may have specific rules.
• Inherited accounts and beneficiary transfers (TOD, POD): beneficiary transfers can often be processed in‑kind but require death certificates and beneficiary documentation.
• Foreign and ADR securities: some foreign‑domiciled shares may not be transferable between U.S. brokers without special handling.
• Trusts and custodial complexities: transferring assets held in trust, estate, or custodial UTMA/UGMA accounts requires trust documents, letters testamentary, or court orders.

If your situation involves restricted, employer, or trust assets, talk to both brokers and consider legal or tax counsel.

Documentation and authentication requirements

Transferring without selling requires correct documentation:

• Common documents: account numbers, recent statements, matching account titles, transfer authorization form (ACAT/TOA).
• Identity verification: Social Security or Tax ID numbers, personal identification, and matching registration details.
• Signature guarantees: some transfers, especially re‑registration of certificates, require Medallion signature guarantees from eligible financial institutions to protect against unauthorized transfers.
• Transfer agent forms: when moving certificated or directly registered shares, the transfer agent’s paperwork may be required.

Prepare documents in advance to reduce delays.

Brokerage policies and customer protections

Policies vary by broker. When you ask "can you transfer stocks without selling," remember these protections and rules:

• FINRA/NSCC: ACAT processes are governed by industry rules that set timelines and dispute mechanisms for broker‑to‑broker transfers.
• Broker discretion: each custodian decides which securities they will accept. The receiving broker has the right to reject holdings they consider ineligible.
• Dispute escalation: if a sending broker refuses to transfer eligible holdings or unreasonably delays, customers can escalate to the receiving broker’s transfer department, the sending broker’s compliance office, or file a complaint with FINRA.

Choosing a broker with clear transfer procedures and proactive transfer teams (like many large custodians) reduces friction.

Practical examples and common use cases

Here are common scenarios where investors ask "can you transfer stocks without selling":

• Switching brokers to lower fees or access different services: use ACAT to move listed stocks and ETFs in kind.
• Consolidating multiple accounts: move several taxable and retirement accounts to one custodian to simplify management.
• Gifting equity to family members: transfer shares in kind to a relative’s taxable brokerage account (observe gift‑tax and reporting obligations).
• Taking RMDs in kind: transfer securities from an IRA to a taxable account to satisfy RMDs without selling.
• Transferring inherited shares: move assets into an inherited‑IRA or a beneficiary account; documentation is needed to re‑register shares.

In each example, verify asset eligibility, tax consequences, and documentation requirements before proceeding.

Troubleshooting and common transfer problems

Even when the simple answer to "can you transfer stocks without selling" is yes, transfers can encounter problems. Common issues and remedies:

• Partial transfers: some holdings transfer while others don’t because the receiving broker won’t accept certain positions. Remedy: ask the sending broker to liquidate ineligible positions or leave them in a retained account.
• Missing cost basis: confirm the sending broker transmits lot history; if not, provide purchase documentation to the receiving broker.
• Transferred holdings sold: if the receiving broker can’t support a security, they may liquidate it on transfer. Prevent this by verifying eligibility first.
• Long delays: verify signatures, ensure no outstanding margin/loan, confirm all required documents, and escalate to transfer specialists if needed.
• Account‑title mismatches: ensure account registration (names, SSN/TIN) matches on both sides to avoid rejection.

If problems persist, contact both brokers’ transfer departments, ask for a written timeline, and if needed, file a complaint with FINRA.

When you must sell instead of transfer

There are situations where you cannot avoid selling:

• Ineligible asset types (annuity contracts, proprietary money‑market funds not accepted elsewhere).
• Receiving broker policy: the broker won’t accept the security.
• Transfer restrictions: securities encumbered by regulatory or issuer restrictions (legends, lockups) or plan‑specific constraints.
• Need for cash: if you require liquidity at the receiving broker immediately, selling before transfer may be the only route.

If selling is required, compare tax implications and timing to minimize adverse outcomes.

Further resources and references

For the most accurate and current rules, contact your sending and receiving brokers’ transfer departments. Review ACAT and transfer guidance published by FINRA, the NSCC, and major custodians. For tax questions related to in‑kind distributions, rollovers, and gifting, consult a qualified tax advisor.

As of June 1, 2024, FINRA and major custodians continue to support ACAT and TOA procedures for moving eligible securities in kind, but policies and accepted holdings vary by firm — verify details with your providers.

Appendix A: Glossary of terms

• ACAT: Automated Customer Account Transfer — an electronic system for broker‑to‑broker transfers.
• TOA: Transfer of Assets — a manual or paper transfer process initiated by the receiving broker.
• Transfer agent: a company that maintains issuer shareholder records and can re‑register shares.
• Medallion signature guarantee: a special stamp guaranteeing authenticity for securities transfer documents.
• DTC: Depository Trust Company — central securities depository for electronic settlement; DTC eligibility affects transferability.
• Cost basis: the original purchase price plus adjustments, used to calculate capital gains/losses.
• In‑kind distribution: transferring the actual securities rather than cash from one account to another.
• RMD: Required Minimum Distribution — mandatory withdrawals from certain retirement accounts after reaching a given age.
• TOD: Transfer on Death — a beneficiary designation that allows seamless transfer to named beneficiaries.

Appendix B: Quick checklist for initiating an in‑kind transfer

• Verify that your desired receiving account type is open and can accept the securities.
• Confirm that the receiving broker accepts the specific stocks/ETFs/mutual funds.
• Gather recent account statements and the sending account number.
• Start the ACAT/TOA with the receiving broker and sign authorization forms.
• Provide any required documentation: Medallion guarantee, death certificate, trust paperwork, or proof of ownership for certificates.
• Monitor transfer status and confirm cost basis and lot history after settlement.
• If an item is rejected, decide whether to sell at the sending broker or retain the position there.

Practical next steps

If you’re ready to consolidate or move assets, contact both brokers’ transfer departments and ask them to verify eligibility for each holding. If you’d like a streamlined custody option and responsive transfer support, consider opening or transferring to Bitget’s brokerage and custody services and explore Bitget Wallet for related self‑custody needs. Bitget’s customer support can assist with the ACAT/TOA initiation and provide guidance tailored to your account types.

Further explore Bitget’s account options and transfer support to see if your holdings qualify for in‑kind movement. Remember to keep tax and cost‑basis records through the transfer process and consult a tax professional for distributions and gifting.

More practical questions? Ask your Bitget representative for step‑by‑step support to initiate an in‑kind transfer.