How to Transfer Stock Between Brokerage Accounts
- 1). Choose a full or partial transfer. The ACATS system allows you to transfer over your whole account, or just specific securities. Most investors who consider transferring stock to another brokerage account choose full transfers, as the reason for transfer is often dissatisfaction with one brokerage house or broker. As such, you must consider what your working relationship will be with a broker from whom you are transferring assets. However, there are some situations where partial transfers are common, such as charitable donations.
- 2). Complete transfer paperwork. The receiving firm will have the appropriate paperwork for you to fill out to initiate your transfer. You will have to supply relevant information about the transfer, such as the specific securities to be transferred, your account number and whether or not you want the securities to be liquidated and transferred over as cash. If you choose to liquidate, you will often have to contact your original broker directly as well. You must be especially careful in completing the paperwork for partial transfers to prevent the transfer from being recorded as a full transfer.
- 3). Monitor your transfer. Although ACATS is an automated system, designed to transfer your account in just a few business days, glitches do hit the system, and sometimes human error is involved. Some brokers do not rush through transfer paperwork when they receive it, as they are reluctant to let the assets in the account leave. If you feel the transfer is being unnecessarily delayed, contact your branch manager. Once the transfer is initiated, watch to make sure that the correct securities have transferred and/or been liquidated in accordance with your wishes. In the case of a full transfer, check your original account a week or two after the transfer to see if any additional dividends or reinvestments have appeared in the account. The ACATS system is supposed to automatically transfer over any residual cash or securities, but you should follow up as well.