How Do You Transfer Investments to Another Brokerage?

Moving to a different brokerage does not automatically mean selling every investment first. Many customer accounts move through an automated transfer process. The important first question is what your new firm can accept and what it will cost to move.

Where does the transfer start?

FINRA explains that the process generally begins with the receiving firm, the brokerage you want to move to. You complete its Transfer Initiation Form, and it communicates with the current firm.

Many transfers use the Automated Customer Account Transfer Service, or ACATS, operated by the National Securities Clearing Corporation. Common assets such as cash, domestic company stocks and bonds, and listed options can be transferred through that system. Not every asset or transfer fits the same route.

Why might an investment not transfer?

The receiving firm may not accept a particular product. FINRA identifies proprietary products and third-party funds without a selling agreement as examples. Credit policies and margin-related requirements can also affect acceptance.

Ask both firms for the alternatives before authorizing a sale. Leaving an asset behind and selling it for cash are different choices. The SEC warns that selling or moving assets can involve commissions, other fees, taxes, penalties or restrictions depending on the account and transaction.

What should you verify afterward?

Compare the final old statement with the new account's records. Check each asset, cash amount and any remaining position. Keep the transfer paperwork and ask about anything that did not arrive as expected.

Review beneficiary instructions separately. FINRA recommends confirming whether those designations transfer when you change firms. A successful asset transfer is not proof that every account preference and estate-planning instruction is unchanged. Avoid promising yourself a specific completion date until the firms confirm the process for your account.

Frequently asked questions

Must I sell my stocks to switch firms? Not necessarily. Ask whether the receiving firm accepts the holdings for transfer.

Is a transfer automatically free? No. The SEC lists transfer and closing fees among possible brokerage charges. Confirm both firms' current fees before starting.

Sources and further reading: FINRA, Brokerage Accounts (https://www.finra.org/investors/investing/investment-accounts/brokerage-accounts); Investor.gov, How to Open a Brokerage Account (https://www.investor.gov/introduction-investing/general-resources/news-alerts/alerts-bulletins/investor-bulletins-43); FINRA, Transfer Brokerage Assets on Death (https://www.finra.org/investors/insights/plan-ahead-transfer-your-brokerage-account-assets-death).