ACAT Transfer Guide: Moving Brokers
ACATS is the system that moves your investments between brokers in-kind, so you don't sell and trigger taxes. Here's how to do it cleanly, what it costs, and how long it really takes.
Don't have time? Here's what you need to know:
- 1An ACAT transfer moves your ETFs between brokers in-kind, so you don't sell and trigger capital-gains tax — basis carries over.
- 2Initiate the transfer at the receiving broker; choose a full transfer (closes old account) or partial (keeps it open).
- 3Expect roughly 5–7 business days, with assets frozen and untradeable during the transfer window.
- 4The old broker often charges a $50–$100 transfer-out fee, which many receiving brokers will reimburse if you ask.
What an ACAT Transfer Is — and Why You'd Use It
ACATS stands for the Automated Customer Account Transfer Service, the standardized industry system that moves securities from one brokerage to another. When you do an ACAT transfer, your ETFs and other holdings move 'in-kind' — meaning the actual shares move to the new broker rather than being sold for cash. That's the whole point: in a taxable account, selling to move brokers would trigger capital-gains tax, while an in-kind transfer keeps your positions and cost basis intact and avoids that tax event.
People use ACAT transfers to consolidate accounts, chase a better platform or lower fees, or follow a financial advisor. The key idea is that you almost never need to liquidate to switch brokers. You keep holding VTI or VOO the entire time; only the custodian changes. You also generally initiate the transfer at the receiving broker — the one you're moving to — not the one you're leaving.
Tip: Start the transfer at the broker you're moving TO, not the one you're leaving. The receiving broker 'pulls' your assets through ACATS, so that's where you fill out the transfer request.
Full vs Partial Transfers
A full transfer moves everything — all your positions and cash — and typically closes the old account in the process. A partial transfer moves only specified holdings (say, just your VTI and BND positions, or a set dollar amount) and leaves the old account open with the rest. Both run through the same ACATS system; you simply indicate which you want when you initiate the request.
Partial transfers are useful when you want to split assets across brokers or move only part of a portfolio while keeping the old account for some reason. Full transfers are cleaner when your goal is to consolidate and close. One detail to watch: assets that can't transfer in-kind — for example, a proprietary fund the new broker doesn't support — may have to be sold first or left behind, so it's worth checking compatibility before a full transfer.
| Full transfer | Partial transfer | |
|---|---|---|
| What moves | Everything | Selected positions/amount |
| Old account | Usually closed | Stays open |
| Typical use | Consolidate and switch | Split assets across brokers |
| System used | ACATS | ACATS |
Timeline and Fees: What to Expect
A standard ACAT transfer usually takes around 5 to 7 business days from initiation to completion, though it can run longer if there are mismatches in account details, unsupported assets, or paperwork issues. During the transfer window your account may be temporarily 'frozen' — you typically can't trade the assets in transit — so it's wise not to start a transfer when you expect to need to trade those positions immediately.
The broker you're leaving often charges a transfer-out (ACAT) fee, commonly in the range of $50 to $100 for a full transfer. Here's the good news: many receiving brokers will reimburse that fee, especially on larger transfers, if you ask — so it's worth contacting the new broker to request reimbursement before or after you move. Make sure the account titles match exactly at both brokers (same owner, same account type), because a mismatch is the most common reason a transfer gets rejected or delayed.
Important: Your assets are usually frozen and untradeable while the ACAT transfer is in progress. Don't initiate one right before you expect to need to buy or sell the positions being moved.
Ready to invest? Open an IBKR account in 10 minutes and get free stock. $0 commissions on US ETFs • Fractional shares from $1 • 150+ global markets.
How to Do an ACAT Transfer Cleanly
Start by opening the account at the receiving broker if you don't already have one, making sure the account type and ownership match your old account exactly — an individual taxable account transfers to an individual taxable account, an IRA to the same kind of IRA. Then initiate the transfer request at the new broker, providing your old account number and a recent statement so they can match the holdings.
Before pulling the trigger, confirm that your specific holdings can transfer in-kind and decide between a full or partial transfer. Ask the receiving broker whether they'll reimburse the transfer-out fee. Then monitor: positions usually go quiet for several business days and then appear at the new broker with cost basis carried over. Verify that your cost-basis data transferred correctly once it lands — occasionally basis needs to be re-sent, and you'll want it accurate for future tax reporting.
Tip: Keep your final statement from the old broker. If cost-basis information doesn't transfer perfectly, that statement is your record for reconstructing it — and accurate basis matters for your future capital-gains tax.
Frequently Asked Questions
How long does an ACAT transfer take?
A standard ACAT transfer typically takes around 5 to 7 business days from start to finish. It can take longer if account details don't match, if some assets can't transfer in-kind, or if there are paperwork issues. Your assets are usually frozen and untradeable during the transfer window.
Will I pay taxes when I transfer brokers?
No, not from the transfer itself. An ACAT transfer moves your ETFs in-kind — the actual shares move rather than being sold — so you don't realize capital gains and trigger no taxable event. Your positions and cost basis carry over to the new broker intact. Selling to move would be different and could create a tax bill.
How much does an ACAT transfer cost?
The broker you're leaving often charges a transfer-out fee, commonly $50 to $100 for a full transfer. Many receiving brokers will reimburse that fee, particularly on larger transfers, if you ask. It's worth contacting the new broker to request reimbursement before or after you initiate the move.
What's the difference between a full and partial ACAT transfer?
A full transfer moves all your positions and cash and usually closes the old account. A partial transfer moves only specified holdings or a set amount and leaves the old account open. Both use the same ACATS system; you just indicate which you want, and partial transfers are useful for splitting assets across brokers.
Further Reading
Free Tools
Alex Harrington
CFA Level II Candidate, Finance & Economics
Alex Harrington is an independent ETF researcher and personal finance writer with over 8 years of experience analyzing exchange-traded funds. A CFA Level II candidate with a background in economics, Alex has reviewed 800+ ETFs and helped thousands of beginners build their first investment portfolios through clear, jargon-free education.
This content is for educational purposes only and does not constitute financial advice. Past performance does not guarantee future results. Consult a licensed financial advisor before making investment decisions.