How to Transfer Your Brokerage Account
Moving brokers doesn't mean selling everything and starting over. The ACATS system transfers your holdings in-kind, tax-free — here's the step-by-step and the fee gotchas to watch.
Don't have time? Here's what you need to know:
- 1ACATS transfers move your holdings in-kind, so they aren't sold and the transfer isn't a taxable event.
- 2Always initiate the transfer at the new (receiving) broker, not the one you're leaving.
- 3Expect a $50-100 transfer-out fee from the old broker, which the new one will often reimburse on request.
- 4Watch for proprietary funds and fractional shares, which may not transfer in-kind and can be liquidated instead.
The Transfer System: How ACATS Works
Most U.S. brokerage transfers run through ACATS — the Automated Customer Account Transfer Service — a standardized system that moves your account from one broker to another. The crucial thing to understand is that ACATS transfers your holdings 'in-kind,' meaning your shares of VOO, individual stocks, and most other positions move over as-is rather than being sold. Because nothing is sold, an in-kind transfer does not trigger capital gains and is not a taxable event.
You always initiate the transfer at the receiving broker — the new firm you are moving to — not the old one. You give the new broker your old account details, they pull the assets over, and the old account is typically left empty or closed. A standard ACATS transfer usually completes in about five to seven business days, though residual items like dividends can take a little longer to sweep over.
The Step-by-Step Process
The mechanics are simpler than people expect. Done in order, a transfer is mostly waiting:
- Open the new account first. You need a destination of the same type — a taxable account transfers to a taxable account, a Roth IRA to a Roth IRA. Mismatched types can't transfer in-kind.
- Gather your most recent statement from the old broker. The new broker will ask for the account number and the holdings, and a statement makes the form accurate.
- Start the transfer at the new (receiving) broker, choosing a full or partial ACATS transfer. Full moves everything; partial lets you pick specific positions.
- Wait for the in-kind transfer to settle, typically five to seven business days. Avoid trading in the old account while it's in transit, since open trades can reject the transfer.
- Confirm everything arrived, including cost-basis data, and then close the old account if it isn't closed automatically.
Tip: Transfer in-kind whenever possible. Selling your positions at the old broker and re-buying at the new one can trigger capital-gains tax and time out of the market — an in-kind ACATS move avoids both.
Fees and Gotchas to Watch
The old broker — the one you are leaving — typically charges an ACATS transfer-out fee, commonly in the $50-100 range. The receiving broker usually charges nothing to bring assets in, and many new brokers will reimburse the outgoing fee if you ask, especially on a sizable account. It never hurts to request reimbursement; it is a routine retention offer.
A few specific snags trip people up. Proprietary funds may not transfer: a broker's in-house mutual funds (for example certain zero-fee index funds) often can't move in-kind and may have to be sold first, which can create a taxable event in a taxable account. Fractional shares sometimes don't transfer through ACATS and get liquidated by the old broker. And make sure cost-basis information follows the shares — without it, calculating future gains becomes a headache.
| Item | Typical cost / detail |
|---|---|
| ACATS transfer-out fee (old broker) | $50-100 (often reimbursed by new broker) |
| Transfer-in fee (new broker) | Usually $0 |
| Time to complete | ~5-7 business days |
| Tax impact of in-kind transfer | None — not a taxable event |
| Proprietary funds | May need to be sold first |
| Fractional shares | May be liquidated, not transferred |
Important: Don't sell your whole portfolio just to move brokers. In a taxable account that can trigger a large capital-gains bill — the entire point of ACATS is to move the shares themselves, tax-free.
Want the full framework? This 2-hour ETF course teaches you exactly how to pick, buy, and hold profitable ETFs — from zero to confident investor. Under $15.
When a Transfer Is Worth It
Switching brokers makes sense when the new firm offers something concrete the old one doesn't — a better cash sweep, lower fund fees, a platform you prefer, or features like fractional shares and integrated banking. Consolidating scattered accounts into one broker is also a common and sensible reason, since it simplifies rebalancing and your annual tax paperwork.
It is rarely worth it for a small one-time cash bonus alone, and never worth selling appreciated positions in a taxable account to chase one. If the destination genuinely improves your costs and experience, transfer in-kind, ask for the exit fee to be reimbursed, and enjoy the better setup for years. The friction is a few days of waiting; the benefit, if the new broker is truly better, compounds for decades.
Frequently Asked Questions
Will transferring my brokerage account trigger taxes?
Not if you transfer in-kind through ACATS, which moves your actual shares rather than selling them. An in-kind transfer is not a taxable event, so no capital gains are realized. Taxes only come into play if you sell positions — for instance if a proprietary fund can't transfer and has to be liquidated first in a taxable account. To stay tax-free, always choose an in-kind transfer.
How long does a brokerage transfer take?
A standard ACATS transfer usually completes in about five to seven business days. Residual items like trailing dividends or interest can take a bit longer to sweep over. Avoid placing trades in the old account while the transfer is in progress, since open or unsettled trades can cause the transfer to reject and restart the clock.
Who do I contact to start the transfer — the old or new broker?
Always start at the new (receiving) broker. You provide them your old account number and a recent statement, and they pull the assets over through ACATS. You generally don't need to contact the old broker at all; the system handles the request automatically, and the old account is typically closed or left empty when finished.
What's the fee to transfer a brokerage account?
The broker you're leaving usually charges a transfer-out (ACATS) fee, commonly $50-100. The new broker typically charges nothing to receive assets, and many will reimburse the outgoing fee if you ask — it's a routine retention offer, especially for larger accounts. It's always worth requesting reimbursement before you start.
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.