How to Transfer a Brokerage Account: ACAT Process Explained

How to Transfer a Brokerage Account: ACAT Process Explained

Switching brokers does not require selling your investments. The ACAT system transfers your positions in-kind, meaning no tax event and no time out of the market.

What ACAT Is

ACAT stands for Automated Customer Account Transfer Service. It is a standardized system used by most US brokerages to move positions from one firm to another without requiring you to liquidate them first. Your stocks, ETFs, bonds, and options transfer as-is.

How to Initiate a Transfer

Always initiate the transfer at the receiving broker (where you want the account to go), not the sending broker. You will need your old account number and the exact account title from a recent statement. The receiving broker handles the paperwork and contacts your old broker on your behalf.

Timeline

ACAT transfers typically take 5-7 business days. During this time, your positions are frozen — you cannot trade them. Plan accordingly if you have active positions you need to manage.

What Does and Does Not Transfer

Most stocks, ETFs, bonds, and listed options transfer in-kind. What does NOT transfer: proprietary mutual funds that are exclusive to the sending broker (they must be sold first), some OTC penny stocks, and fractional share positions (which may be liquidated and transferred as cash).

Transfer Incentives

Many brokers offer cash bonuses for transferring large accounts. As of 2026, transferring $250,000+ can earn $500-$600 in bonus cash at several major brokers. This is genuine free money — research current offers before initiating.

Pending Dividends and Options

Pending dividends are typically handled correctly and will be paid to the correct account. Open options positions can complicate transfers — check with both brokers before initiating if you have active options trades.