- 1). Ask the receiving firm which transfer method is used. Most financial institutions use the Automated Customer Account Transfer Services (ACATS) electronic transfer; however, some financial institutions are non-ACATS members and only process manual transfers. An ACATS transfer takes up to 6 business days once the receiving firm inputs the information into the ACATS system. Manual transfers on the other hand, take anywhere 6 to 8 weeks.
- 2). Double check with the receiving firm that your securities are transferable, as some securities are non-transferable. Should you have any non-transferable securities, you will have some decisions to make. You can either hold your non-transferable securities at your current brokerage firm or liquidate them and transfer the cash balance. Remember, it takes T+3, or the day of the trade plus 3 business day before the trade clears and the cash is available. Liquidate assets before starting any transfer, as this could slow things up for you otherwise.
- 3). Open the appropriate brokerage account (non-retirement or retirement account) if you don't currently have one at the receiving institution. Do this before initiating the transfer process. You can either download the form and send it by mail, or open the account online. Opening the account online will expedite the process.
- 4). If your intention is to close out your brokerage account at your current custodian, be sure to check with a representative whether or not there will be any administrative or closing fees assessed on your account. Leave the cash needed to cover these fees.
- 5). Download the transfer of assets paperwork from the receiving firm and fill it out accordingly. Doublecheck your account information, the securities you wish to transfer, the amount of shares you are transferring and so forth. Any error you have in this paperwork will cost you time in the transfer process. Keep in touch with both firms to be sure the transfer process is initiated and processing without any glitches.
- 6). Do not trade the securities you intend on transferring once the transfer process has begun. Also, don't be surprised to see a freeze placed on your account by the custodian once the transfer is initiated.
- 7). After the transfer takes place, dividends and capital gains may still be deposited into your old account. Your former custodian is required to send those dividends and capital gains to your account at the receiving custodian for the first 6 months after the transfer.
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