3429: How to Transfer Your Brokerage Account by Jeff Rose of Good Financial Cents on Investment Relocation

What It Covers

Jeff Rose explains the mechanics of transferring brokerage accounts between firms, including the ACAT system that completes most transfers within six business days, typical fees ranging from fifty-five to ninety-five dollars, and common pitfalls to avoid during the process.

Key Questions Answered

• •ACAT Transfer System: Most brokerage transfers use the automated customer account transfer service operated by the National Securities Clearing Corporation, which completes transfers in six business days maximum. You work only with your new firm, never contacting your old broker directly during the process.
• •Transfer Fees Structure: Brokerage firms charge transfer-out fees between fifty-five and ninety-five dollars, with IRA accounts potentially costing more. Some firms add prorated IRA custodial fees on top, with one example totaling one hundred fifteen dollars. Always request fee schedules in writing before opening accounts.
• •Mutual Fund Liquidation: Certain mutual funds cannot transfer in-kind between brokerages and must be sold before account transfer. Send written liquidation instructions to your current firm rather than calling, specifying which investments to sell and requesting transfer upon settlement of funds to maintain documentation.
• •Paperwork Accuracy Critical: Complete transfer paperwork over the phone with a representative from your new firm rather than filling forms independently. One investor's incorrect paperwork transferred only cash holdings instead of investments, extending a one-week process to three months and risking IRA rollover deadline violations.