How Much Does It Cost to Transfer Stocks Between Brokers?

Moving investment assets from one brokerage account to another, known as a stock transfer, allows individuals to consolidate their holdings, seek different services, or address dissatisfaction with their current broker. Understanding the associated costs is key. These transfers involve various fees and procedural nuances that can impact the overall expense.

Common Costs of Stock Transfers

When transferring stocks, the delivering broker charges an outgoing transfer fee. This flat rate fee applies per account, regardless of the number of securities. Fees can range from approximately $50 to over $100.

A full account transfer, which closes the account at the delivering broker, may also incur an account closing fee. This charge can be separate from or combined with the outgoing transfer fee. These fees often range from $50 to $75.

While less common, some receiving brokers may charge fees for certain types of incoming transfers. This is true for non-standard or complex assets requiring special handling. Many brokers have eliminated or reduced incoming transfer fees to attract new clients.

Several factors influence the total transfer cost, including whether it is a full or partial transfer. Specific asset types, such as physical stock certificates, mutual funds not held directly, or alternative investments, can also affect fees due to increased complexity. The policies and fee schedules of both the delivering and receiving brokers determine the final expenses.

Some receiving brokers offer programs to reimburse transfer fees. These programs credit the client’s account for fees incurred from the delivering broker. Eligibility often depends on the size of transferred assets or specific promotional offers.

Types of Stock Transfers

The Automated Customer Account Transfer Service (ACATS) is the primary method for moving standard securities between financial institutions. It facilitates the transfer of widely traded assets like stocks, bonds, mutual funds, and ETFs. ACATS transfers are standardized, clear, and typically complete within a few business days.

Non-ACATS transfers are for assets not handled by the automated system, often illiquid or requiring manual processing. Examples include physical stock certificates, limited partnership interests, or certain alternative investments. They are more complex and take longer than ACATS transfers. Fees can be more varied and higher due to increased administrative effort.

A full transfer involves moving all assets from one brokerage account to another. A partial transfer moves only a selected portion of assets, leaving the rest in the original account.

Choosing between a full or partial transfer influences whether an account closing fee is applied by the delivering broker. Full transfers are more likely to incur such a fee. Partial transfers, while avoiding account closure fees, may involve more detailed cost basis reconciliation for remaining assets.

Preparing for a Stock Transfer

Before initiating a stock transfer, gather specific account information from both the current (delivering) and prospective (receiving) brokers. This includes accurate account numbers, the precise account type (e.g., individual, joint, IRA, trust), and recent account statements. Ensure registration details, such as the name and address on both accounts, match exactly to prevent delays in the transfer process.

Next, identify the specific securities or assets intended for transfer, whether it involves a full account transfer or a partial transfer of select holdings. Reviewing your current investment portfolio helps in deciding which assets align with the new broker’s offerings and your long-term financial goals. This step ensures that only desired assets are moved, preventing accidental transfers of assets that might be better suited elsewhere.

Understanding the transfer policies and fee schedules of both your current and prospective brokers is also a necessary preparatory step. While specific fees were discussed previously, reviewing these policies directly with each firm ensures there are no unforeseen charges or requirements. This proactive approach helps to avoid surprises and provides clarity on the financial implications of the transfer.

Consider any special assets that might be part of your portfolio, such as fractional shares, mutual funds not directly held by the brokerage, or physical stock certificates. Fractional shares often cannot be transferred and may be liquidated, while physical certificates require special handling and mailing procedures. Planning for these non-standard assets in advance can prevent complications during the transfer.

Initiating and Completing a Stock Transfer

The process of transferring stocks is almost always initiated by the receiving broker, the new firm where you wish to consolidate your investments. To begin, contact your new broker and inform them of your intention to transfer assets. They will typically provide a specific transfer request form, which often comes pre-populated with some of your account details.

You will need to complete this form, providing accurate information about your existing brokerage account and the assets to be transferred. This typically includes the delivering broker’s name, your account number there, and whether it is a full or partial transfer. Providing any necessary supporting documentation, such as recent statements or identification, will also be required by the new broker.

Once the request form is submitted, the receiving broker coordinates directly with the delivering broker to request the transfer of assets. The delivering broker then processes the request, verifying the information and releasing the specified assets. This inter-broker communication ensures a smooth transition of your holdings.

Typical timelines for transfers vary depending on the type of transfer. Automated Customer Account Transfer Service (ACATS) transfers for standard securities usually complete within 3 to 10 business days. Non-ACATS transfers, which involve manual processing or less liquid assets, can take significantly longer, ranging from several weeks to even months.

After initiating the transfer, it is advisable to monitor its progress, often through the new broker’s online portal or by contacting their customer service. Once the assets appear in your new account, perform a post-transfer verification. This involves ensuring the accuracy of all transferred positions, confirming that cost basis information for tax purposes is correct, and, if it was a full transfer, verifying that the old account has been properly closed.