This is not investment advice. The information provided is for educational and informational purposes only and does not constitute a recommendation to buy or sell any financial product.
Switching brokers is straightforward thanks to the Automated Customer Account Transfer (ACAT) system. Most transfers complete in 5-10 business days, and your investments move without selling them.
How ACAT transfers work
- You open an account at the new broker.
- You request a transfer from the new broker (not the old one).
- The new broker initiates the ACAT transfer with your old broker.
- Your assets (stocks, ETFs, cash) transfer electronically.
- The old broker closes your account after the transfer completes.
You never interact with the old broker during the process. The new broker handles everything.
What transfers and what does not
Transfers:
- Stocks, ETFs, mutual funds (most)
- Options positions
- Cash balances
- Cost basis information
Does not transfer:
- Crypto positions (most brokers)
- Proprietary mutual funds (Fidelity Zero funds cannot transfer to non-Fidelity brokers)
- Fractional shares (liquidated to cash)
- Open orders (cancelled before transfer)
ACAT transfer fees
The outgoing (old) broker typically charges a fee for transferring your account out. Standard fees:
| Broker | ACAT Out Fee |
|---|---|
| Fidelity | $0 |
| Vanguard | $0 |
| Interactive Brokers | $0 |
| Charles Schwab | $50 (full) / $25 (partial) |
| Robinhood | $100 |
| Webull | $75 |
| E*TRADE | $75 |
| Ally Invest | $50 |
Many brokers will reimburse your transfer fee if you move an account over a certain size:
- Schwab: Reimburses fees for accounts over $25,000
- Fidelity: Does not charge outgoing fees, so no reimbursement needed
- Interactive Brokers: Does not charge outgoing fees
Partial vs full transfer
Full transfer: All assets move. The old account closes.
Partial transfer: Only specified assets move. The old account stays open. Useful for testing a new broker without fully committing.
Partial transfers are typically either free or cheaper than full transfers.
Before you transfer
- Save your statements. Download your transaction history, cost basis, and tax documents from the old broker. Once the account closes, access may be lost.
- Sell proprietary funds. Fidelity Zero funds, Schwab proprietary funds, and other broker-specific products cannot transfer. Sell them and transfer the cash, or leave them behind.
- Check for fractional shares. These will be liquidated to cash. In a taxable account, this triggers a taxable event.
- Cancel open orders. Any open buy or sell orders will be cancelled before the transfer.
- Resolve negative balances. Margin debit balances transfer, but any other negative balance must be resolved.
After the transfer
- Verify cost basis. After the transfer completes (usually 1-2 weeks after assets arrive), check that your cost basis transferred correctly. Errors in cost basis can increase your capital gains tax.
- Set up dividend reinvestment. DRIP settings do not transfer. Re-enable if desired.
- Update recurring deposits. Cancel automatic transfers at the old broker and set them up at the new one.
Common questions
Will I owe taxes if I transfer my account? No. ACAT transfers are not taxable events. You are moving assets, not selling them.
What if the transfer fails? Most common reason: the name or SSN on the new account does not exactly match the old account. Contact the new broker to resolve.
How long does a transfer take? 5-10 business days for a standard ACAT transfer. Crypto transfers, if available, may take longer.
Where to start
Open an account at your new broker. Initiate the transfer from the new broker's website. If the outgoing fee is a concern, check if the new broker reimburses fees.