How to Transfer Shares Between Brokerage Firms

Transferring stocks between brokerage firms can be a simple process if you follow the right steps. Many investors choose to transfer their holdings to a new brokerage to access better features, lower fees, or improved customer support.

Here’s our guide to transferring stocks from one broker to another, including how it works, tips for a smooth transition, and the steps involved if transferring stocks to moomoo.

Why and when to transfer stocks

There are various reasons to consider transferring stocks between brokerage accounts. Some investors want better research tools, lower fees, or a more user-friendly platform. Others may seek a broker that offers specific services like access to international markets or specialized retirement accounts. Moving your portfolio could help align your investments with your goals and trading style. Be sure to review brokerage account features before initiating a transfer, as this will help to ensure you choose a platform that meets your needs.

How stock transfers works

Stock transfers between brokerage accounts are typically done using the Automated Customer Account Transfer Service (ACATS). ACATS streamlines the transfer of assets like stocks, bonds, mutual funds, and cash between brokerage firms, making the process relatively quick and hassle-free. Once initiated, an ACATS transfer can take anywhere from 3-5 business days to complete, depending on the complexity of the transfer.

Stock transfers between brokerage accounts often use ACATS for efficiency, but other methods exist, like Direct Registration System (DRS), for direct transfers with transfer agents and journal entry transfers within the same brokerage, depending on the assets and account types involved.

What is ACATS (Automated Customer Account Transfer Service)

The Automated Customer Account Transfer Service (ACATS) is an automated system managed by the National Securities Clearing Corporation (NSCC). It facilitates the transfer of assets from one brokerage account to another. Through ACATS, investors can avoid the lengthy paperwork often required for transfers and it makes it possible to move your holdings without selling assets, thereby avoiding any potential tax implications.

How to transfer stocks from one broker to another

To transfer stocks between brokers, follow these general steps:

1. Research and select a new broker: Choose a brokerage that aligns with your trading goals and offers the services you need.

2. Open a new account: Complete the application process with your new broker and ensure all account details match those with your current broker.

3. Initiate the transfer: Log into your new brokerage account and follow the prompts to start an ACATS transfer.

4. Review transfer details: Double-check your holdings to confirm all assets are accounted for.

5. Wait for completion: The ACATS process can take anywhere between five to seven business days; you’ll receive a notification once it’s done.

Considerations when moving stocks

• Check fees: Some brokers charge fees for outgoing transfers, so be aware of any costs involved.

• Verify account types: Ensure that the accounts you’re transferring between are the same type (e.g., IRA to IRA, individual to individual).

• Confirm transfer status: Regularly check with both brokerages to ensure your assets are correctly transferred.

• Be aware of restrictions: Some assets, like certain mutual funds, may not be transferable or must be sold and transferred as cash.

• Timing matters: Consider planning to transfer during times of low market volatility to avoid unexpected price changes.

How to transfer stocks to moomoo: Step by step

Step 1: Open moomoo, tap Accounts and select an account, Transfers> Transfer Stock In.

Images provided are not current, and any securities are shown for illustrative purposes only.

Step 2: Select the stock market to be transferred. If you need to transfer shares in different markets, please submit position transfer instructions separately.

Images provided are not current, and any securities are shown for illustrative purposes only.

Step 3: Fill in the receiver and transferor information, account number, name, etc.

Images provided are not current, and any securities are shown for illustrative purposes only.

Step 4: Check the information of transferred stocks, securities companies, stock codes, number of shares, etc.

Images provided are not current, and any securities are shown for illustrative purposes only.

Step 5: Contact the broker to transfer the stocks out. Since the notification methods of various securities companies are inconsistent, please refer to the specific requirements of the relevent securities companies.

After completing the above operations, please wait patiently for 5-7 working days. If you need additional assistance, reach out to the appropriate staff of both brokerages.

Potential benefits and limitations of transferring shares

Transferring shares can present several advantages, like retaining existing positions without needing to sell. This can help investors avoid capital gains taxes and simplify portfolio management. There are also limitations to consider.

Some brokers may charge a transfer fee, and certain asset types, like proprietary mutual funds, might not be eligible for transfer. Check with both brokers to understand what assets can and cannot be moved to avoid surprises during the process.

FAQs about stock transfers

What is the best way to transfer stocks?

The ACATS system is generally the best way to transfer stocks, as it ensures a smooth transition of assets between brokerage firms without the need to sell and repurchase. However, always check with your broker about their specific process for a seamless experience.

Is it free to transfer stocks?

The cost of transferring stocks from one brokerage to another will depend on your broker, however moomoo charges no transfer fees. Moomoo charges a $75 fee for each stock transfer-out request. Transfers can be made for both U.S. and Hong Kong stocks, but only between accounts under the same name. For more details, visit Moomoo's Help Center.

Can you transfer stocks without selling?

Yes, ACATS allows investors to transfer stocks without selling. This option is beneficial for avoiding capital gains taxes and maintaining your positions. Verify eligibility with both brokers to confirm that your assets can be transferred as-is.

Can I transfer my stocks to someone else?

Transferring stocks directly to another person isn’t typically permitted unless it's a gift or inheritance transfer. However, some brokers may offer account transfer options for specific circumstances, such as transferring assets to a spouse. Consult your broker for details on allowed transfers to other individuals.