How to Transfer Brokers Without Losing Money

The Two Ways to Transfer

Option 1: ACAT Transfer (Recommended)

ACAT (Automated Customer Account Transfer) moves your entire portfolio—stocks, ETFs, options, cash—directly from one broker to another. You don't sell anything, so there's no tax event.

• Pros: No taxes, keeps cost basis, moves everything at once
• Cons: 5-7 day blackout period, possible transfer fee ($50-$75)

Option 2: Liquidate and Move Cash

Sell everything at your old broker, withdraw cash, deposit at new broker, rebuy positions.

• Pros: Fastest, no transfer fees, clean slate
• Cons: Triggers capital gains taxes, out of market during transfer, lose cost basis tracking

For most people, ACAT is the right choice. Only liquidate if you have no gains (or losses you want to harvest) and need speed.

Step-by-Step: ACAT Transfer

Step 1: Open Your New Account

Before initiating a transfer, you need an active account at the receiving broker. This typically takes 10-15 minutes online. Make sure to:

• Open the same account type (individual, joint, IRA, etc.)
• Complete identity verification
• Apply for the same trading permissions (margin, options)

Step 2: Gather Your Old Account Info

You'll need:

• Your old broker's name and DTC number (they'll usually find it)
• Your account number at the old broker
• Recent statement (some brokers request this)

Step 3: Initiate Transfer at New Broker

Important: Always start the transfer from your NEW broker, not your old one. They'll pull the assets electronically.

Look for "Transfer Assets" or "Move Money" in your new account's menu. You'll choose between:

• Full transfer: Everything comes over
• Partial transfer: Select specific holdings

Full transfers are usually faster and cleaner.

Step 4: Wait (and Don't Panic)

ACAT transfers typically take 5-7 business days. During this time:

• Your positions are frozen at the old broker
• You can't trade those specific holdings
• Cash may transfer separately (sometimes faster)

Don't worry if it takes slightly longer—complex accounts with options or margin can take up to 2 weeks.

Step 5: Verify Everything Arrived

Once complete, check:

• All positions transferred correctly
• Cost basis is accurate (may take a few extra days to populate)
• Cash balances match expectations

Transfer Fees: Who Charges What

How to Get Transfer Fees Reimbursed

Many brokers will cover your transfer fees to win your business:

• Firstrade: Up to $250 rebate (best in class)
• Robinhood: Up to $150 rebate
• Schwab: Up to $100-$150 rebate
• Webull: Up to $100 rebate

To claim:

1. Complete your transfer
2. Provide proof of the fee charged (statement)
3. Submit via the new broker's rebate request process
4. Credit typically arrives within 2-4 weeks

Capture Transfer Bonuses

Beyond fee rebates, some brokers offer bonuses for incoming transfers:

• Public.com: 1% match on transfers (uncapped!)
• E*TRADE: Up to $10,000 cash bonus for large transfers
• Tastytrade: Up to $5,000 for transfers
• IBKR: Up to $1,000 in stock

Public's 1% uncapped match is especially valuable for large accounts. Transfer $500,000 and receive $5,000 in bonus.

What Can Go Wrong (And How to Fix It)

Problem: Fractional Shares Won't Transfer

Most ACAT transfers only move whole shares. Fractional shares typically get liquidated at the old broker. This is unavoidable—just expect a small cash residual.

Problem: Certain Assets Won't Move

Some things don't transfer:

• Cryptocurrency (must liquidate or move separately)
• Proprietary mutual funds (Schwab funds to Fidelity, etc.)
• Some penny stocks
• Certain options positions

Your new broker will inform you of any "non-transferable" assets. You'll need to liquidate these before or after the transfer.

Problem: Cost Basis Is Missing

Cost basis sometimes takes 1-3 weeks to transfer after positions arrive. If it's missing:

1. Wait 2-3 weeks
2. If still missing, contact the new broker
3. Provide old statements as backup

Problem: Transfer Is Taking Forever

If your transfer exceeds 10 business days:

1. Check status with new broker first
2. Call old broker to ensure no "hold" on account
3. Verify no margin debt or pending transactions blocking transfer

Pro Tips

• Close margin positions first: Transfers with margin debt are complicated
• Screenshot your cost basis: Keep records in case of transfer issues
• Avoid transferring during volatile periods: Being locked out of trading during a crash is painful
• Transfer IRAs carefully: IRA-to-IRA transfers don't trigger taxes; other moves might

The Bottom Line

Broker transfers are easier than they seem. The ACAT system handles the heavy lifting. Your main tasks:

1. Open a new account
2. Request transfer from new broker
3. Wait 5-7 days
4. Claim fee rebates and bonuses

Don't let a $75 transfer fee stop you from moving to a better broker. Most good brokers will cover it, and the long-term savings (lower margin rates, better execution, higher cash yields) will far exceed the one-time hassle.