transferring brokerage accounts, There are a lot of steps required when you want to switch brokerage accounts.Most transfers take a number of weeks and could cost a fee from the previous broker. The main reason why investors transfer their accounts is to save on commissions from brokers while some needs additional service to their portfolio.
However there are types of securities that cannot be transferred. These securities consist of the following, annuities, bankrupt securities, exclusive securities, money market funds, and mutual funds that are not available in newer firms. If the transfer includes non-transferable securities, then you have to prepare for a long wait. It is advisable to just sell the security and transfer the proceeds to the new brokerage or just leave the non-transferable security.
To avoid delays in the transfer, it is advisable to not to change your account name and account type. The brokerage firm should provide the investor transfer accounts form which to comply depending on the type of account that is to be transferred. The form would require to give your social security, identification number, account name, destination type of the account, the previous firm’s statements and the recent statement of account. It is very important to be at par with the old account in providing information to avoid any delay.
Most transfers between brokerage firms uses the Automated Customer Account Transfer Service (ACATS) System. The firms have to comply with different stages of the transfer process with a certain time period. If the transfer is made through ACATS, and there are no problems, the transfer should take no more than six business days to complete from the time your new firm enters your form into ACATS. During this time, your old firm compares the information you provided on the transfer form with its information. If there are no glaring discrepancies, old and new firms would glance the transferable assets. Marginal accounts follow a different sets of transfer because both firms have to examine if they follow the same standards with regards to lending to investors. Transfer brokerage account would involve administrative cost so be prepared to pay fees. In some cases, the new brokerage firm will also charge a fee, which would be stated in the new account agreement.See full size image - See full size image - See full size image - See full size image - See full size image - See full size image - See full size image - See full size image -