Moving your investments from one brokerage firm to another doesn’t have to disrupt your investment strategy. With a plan in mind, it can be manageable. Most firms also use the Automated Customer Account Transfer Service (ACATS) system to simplify and speed up the transfer of assets. Here’s how to switch brokers and move your investments.
Have questions about choosing a new broker? You could consider reaching out to a financial advisor.
How to Switch Brokers: The First Steps
The first three steps will involve selecting a new broker, opening an account and making sure that all of your necessary documentation are in order. Here’s a closer look at each:
- Select a new broker: Research and select a new brokerage that aligns with your investment goals and preferences. You’ll likely want to evaluate factors such as trading fees, customer service, available investment options and the platform’s accessibility. Reading reviews and comparing different brokers can help you make the decision that’s best for you.
- Open a new account: Once you’ve selected a new broker, you can typically open an account by completing an online application, providing personal information (such as your Social Security number) and verifying your identity (often using your driver’s license).
- Gather documentation: Before initiating the transfer, gather all of the necessary documentation you can from your current broker. Documentation likely includes your account statements, lists of your holdings and any relevant tax documents. Having this information can help streamline the transfer process and prevent any delays or other potential issues.
How to Switch Brokers – Moving Your Investments
Now, you’ll need to initiate and monitor the transfer to complete the process:
- Initiate the transfer: To initiate the transfer, simply inform your new broker of your intention to move your assets. They can provide you with the necessary transfer forms, which you’ll need to complete and sign. These forms typically require details about your current brokerage account, including the account number and the types of assets being transferred. Most brokerages then use the ACATS system to facilitate the transfer of assets between firms.
- Avoid trading and check for discrepancies: Once you submit the completed transfer forms to your new broker, they will then coordinate with your current broker to initiate the transfer. The new broker will handle the bulk of the transfer process. However, as the transfer process can take between a few days and up to a week, it’s important to refrain from trading during this time to prevent any complications or delays. After the transfer is complete, review your accounts to make sure that all assets were transferred correctly. If you notice any discrepancies, contact both brokers immediately.
- Close the old account: Once all of your assets have been successfully transferred, you can contact your old broker to close your account. It’s a good idea to obtain confirmation of the account closure so that no residual fees or assets remain.
Things to Consider When Switching Brokers
Switching brokers can be a strategic move that enhances your investment experience and better aligns your financial goals. But before you make the switch, it’s important to take several things into account when it comes to how to transfer your assets.
Make sure you understand the transfer process and any associated costs. While many brokers cover transfer fees, some might charge a fee for moving your assets. You should also consider the time it takes to complete the transfer, especially if you’re an active or day trader, as your investments may be inaccessible for a short period of time.
Assess the new broker’s reputation and reviews to confirm that they are reliable and trustworthy, as well. You can verify that an investment broker is registered with regulatory bodies like the SEC or FINRA. You can also confirm that your new broker offers robust security measures to protect your personal and financial information.
Bottom Line
If you’re considering how to switch brokers, it doesn’t have to be hard. Most brokers use the Automated Customer Account Transfer Service system to streamline the process. Just be sure to do your research so that you understand the transfer process, and that you’ve chosen a new broker suited to your financial needs and goals.
Tips for Switching Brokers
- Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three vetted financial advisors who serve your area, and you canhave a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
- Knowing how your investments will grow over time is an important part of planning your financial future. SmartAsset’sinvestment calculatorcan help see what your investments might look like in 10, 20 or 50 years.
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FAQs
Cash transfer
Can I move my stocks from one broker to another? ›
Yes, stocks can be transferred between brokers without selling. This involves transferring shares directly from one Demat account to another, typically initiated by submitting a transfer request form to the respective depository participant.
How hard is it to switch brokers? ›
Bottom Line. If you're considering how to switch brokers, it doesn't have to be hard. Most brokers use the Automated Customer Account Transfer Service system to streamline the process.
How much does it cost to transfer stocks from one broker to another? ›
Many brokers charge a fee when you transfer brokerage account assets. The typical fee ranges from about $50 to $100, but not every broker has an account transfer fee. The only way to know how much your old broker charges is to check its list of fees or contact customer service.
Can I switch my broker? ›
For example, it is possible to shift your demat account from one DP to another but it is not possible to shift your F&O open positions from one broker to another. In such cases, you will have to wind up positions with one broker before initiating with another broker.
How do I move my investments from one broker to another? ›
Here are the steps involved:
- Contact your new broker. The new broker will be more than willing to help since they want your money invested with them. ...
- Gather information from your old broker. ...
- Wait for the new broker to move your account. ...
- Get acquainted with your new account.
Most firms allow for in-kind brokerage account transfers, enabling customers to move existing investments directly from one broker to another without first having to sell investments and then transfer the cash proceeds. In-kind transfers typically do not incur costs.
How do you tell your broker you are switching? ›
Writing a resignation letter, email, or message to tell your real estate broker you are leaving is a standard practice. The goal of such a letter isn't just to convey the decision but to do so in a manner that maintains a good relationship and respects the professional bond shared.
Is Charles Schwab or Fidelity better? ›
Fidelity is generally better for lower account balances (accounts less than $25,000) and direct crypto exposure. Charles Schwab is better for higher balances and offers a more comprehensive selection of advanced charting tools like the thinkorswim platform.
How do you announce a switching brokerage? ›
Send them an email like the following: “Hi, XX, I want you to be the first to know that I'm changing agencies. I will now operate as part of XYZ Real Estate — an agency well known for its customer service, local knowledge, and dedication to its clients.
Your new broker communicates with your old broker. They set up the transfer. Your old broker must confirm, reject, or change your transfer information within three business days. Assuming your old broker confirms the transfer and there are no issues, the transfer should be completed within six business days.
Which is better Fidelity or TD Ameritrade? ›
Fidelity offers excellent value to investors of all experience levels, and it may be a good fit for some active traders (remember, it doesn't support futures trading). Due to its comprehensive educational offerings, live events, and intuitive platforms, TD Ameritrade is our top choice for beginners.
Is it safe to put all money in one brokerage? ›
Spreading your assets across different brokerage accounts can help protect you against potential fraud or unauthorized access, Roller says. If one broker has a breach, then you can still trade with another investment firm. The safety of your funds is also a concern.
What happens when you switch brokers? ›
You will still most likely get your commission for sales in progress. But your current listings usually stay with your current brokerage. Still, you should tell your clients how they can follow you to your new broker. Once you're at your new broker, you'll want your book to settle in.
How do you end a relationship with a broker? ›
- 1 Assess your situation. Before you decide to terminate a broker relationship, you should evaluate your reasons and expectations. ...
- 2 Review your contract. ...
- 3 Communicate your decision. ...
- 4 Handle the pending transactions. ...
- 5 Find a new broker. ...
- 6 Here's what else to consider.
In India, SEBI has set guidelines on the maximum amount of brokerage a broker can charge. Considering such guidelines, a broker can't charge brokerage fees of more than 2.5% of the total trade value for equity delivery trades and 0.25% for intraday trades.
Can I move my shares from Robinhood to another broker? ›
Whole, settled security shares in your RHF account are eligible to be transferred through the Automated Customer Account Transfer Service (ACATS) to outside brokerages. You can transfer all your eligible securities in a full ACATS transfer, or only some in a partial ACATS transfer.
Can you transfer options between brokers? ›
Customers can transfer US stocks, options and cash held at another brokerage firm to IB through the National Securities Clearing Corporation's (NSCC) Automated Customer Account Transfer Service (ACATS). Requests for ACATs are made through Account Management.
Can you transfer stock to another person without paying taxes? ›
"When you decide to gift it, there's nothing to be taxed," says Owens. Still, transferring stock from one person to another won't completely eliminate capital gains tax. Someone will have to pay it eventually or, at the very least, report the gain.
Can I transfer stocks from etrade to another broker? ›
Close or move your E*TRADE account(s) to another broker-dealer of your choice. You must provide the receiving broker-dealer with transfer instructions and these transfer instructions must be initiated by the new broker-dealer before the date listed in the Notice of Changes we sent you.
