If you follow the right steps, transferring stocks from one brokerage to another can be a simple process. Many investors choose to move their holdings to a new brokerage for better features, lower fees, or better customer support. Some accounts also offer transfer reimbursement and bonuses.

Transfer Bonuses

Many investment platforms offer attractive transfer bonuses.

  • Futu Moomoo: Now offers an extra transfer bonus that matches 1.5% of the total amount of your first transfer, up to $20,000, equivalent to $300. Transfer fees can be reimbursed.
  • TradeUp platform: TradeUp now has an extra signup bonus of 1 share of Nvidia + a chance to win 5 shares, and funds transferred in also count. You can transfer in part of your holdings to activate this signup bonus.
  • Robinhood: Incoming transfers may be reimbursed up to $75 if you transfer $7,500 at once
  • Webull: Accounts with at least $2,000 transferred in can receive a $100 bonus. IRA transfers also get an additional $75 bonus.

Why Transfer Stocks

There are many reasons you might consider transferring stocks between brokerage accounts. Some investors want better research tools, lower fees, or a more user-friendly platform. Others may be looking for a brokerage that offers specific services, such as access to international markets or specialized retirement accounts. Moving your portfolio can help you align your investments with your goals and trading style. In addition, if you start out using a more basic investing platform with no monthly fee, you can later transfer your stocks to a more advanced platform once you gain more experience and want to do more complex transactions. Or sometimes you can transfer stocks to unlock account-opening bonuses or earn a higher interest rate on cash. Before starting a transfer, be sure to review the brokerage account features, since that can help ensure you choose a platform that fits your needs.

Today, you no longer need to sell your stocks and transfer cash instead. You can move directly from one investment platform to another. There are two reasons not to sell:

  • If you sell, transfer the cash, and then buy the original stock again, large market swings could lead to significant losses.
  • Buying and selling stocks may involve fees.
  • After selling a stock, if the price has changed compared with your purchase price, that creates a loss or a gain. You must report it when filing your annual taxes. For higher-income earners, more gains can mean higher taxes.

How Stock Transfers Work and the Steps Involved

Stock transfers between brokerage accounts typically use the Automated Customer Account Transfer Service (ACATS). ACATS simplifies the process of transferring assets such as stocks, bonds, mutual funds, and cash between brokerages, making the process relatively fast and hassle-free. Once initiated, an ACATS transfer may take 3 to 5 business days to complete, depending on the complexity of the transfer.

Stock transfers between brokerage accounts typically use ACATS for efficiency, but there are also other methods, such as the Direct Registration System (DRS), which is used for transfers with transfer agents and for book-entry transfers within the same brokerage, depending on the assets and account types involved. 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. With ACATS, investors can avoid the often lengthy paperwork normally required and can transfer holdings without selling the assets, thereby avoiding any potential tax consequences. The good news is that, by law, all U.S. brokerages provide this functionality.

To transfer stocks between brokerages, follow these general steps:

  • Research and choose a new brokerage: Select a brokerage that aligns with your trading goals and offers the services you need.
  • Open a new account: Complete the application process with your new brokerage and make sure all account details match the information at your current brokerage.
  • Initiate the transfer: Log in to your new brokerage account and follow the prompts to start an ACATS transfer.
  • Review the transfer details: Double-check your holdings to confirm that all assets are listed.
  • Wait for completion: The ACATS process may take 5 to 7 business days; you will receive a notification once it is complete.

A few things to pay special attention to:

  • Check the fees: Some brokerages charge a fee for outgoing transfers, so watch for any related costs.
  • Verify the account type: Make sure the account types match (for example, IRA to IRA, individual account to individual account).
  • Confirm transfer status: Check in with both brokerages regularly to make sure your assets have been transferred correctly.
  • Watch for restrictions: Certain assets, such as some mutual funds, may not be transferable, or they may need to be sold and transferred as cash.
  • Timing matters: Consider scheduling the transfer during a period of lower market volatility to avoid unexpected price moves (only for assets that cannot be transferred directly).

Example of a Stock Transfer

One important thing to note is that stock transfers are initiated from the platform receiving the stocks, just like transferring a phone number. For example, if you are transferring from Robinhood to Moomoo, the transfer is initiated on the Moomoo side. The information you need to enter is the Robinhood account and stock information. Below, we’ll use transferring stocks to Moomoo as the example, but the process is the same for other platforms.

Step 1: Open the Moomoo app, tap Accounts, select an account, and go to Transfer > Stock Transfer In.

Step 2: Select the assets you want to transfer. If you need to transfer shares across different markets, submit separate transfer instructions.

Step 3: Fill in the receiving and delivering party information, account number, name, and so on.

Step 4: Check the information for the assets being transferred out, including the brokerage, stock ticker, number of shares, and so on.

Review the overall information

Step 5: Contact the brokerage to transfer the stocks out. Since notification methods vary by brokerage, please refer to the specific requirements of the relevant brokerage. In general, you will need to fill in the information for the Moomoo account receiving the transfer. (The image below shows the information needed to transfer out of Moomoo; transfers from other brokerages are similar.)

After completing the steps above, please wait patiently for 5-7 business days. If you need additional help, contact the appropriate representatives at both brokerages.

There are also two types of account transfers: partial transfers and full transfers. If you choose a full transfer out, you generally do not need to list each individual stock. However, keep in mind that some assets may not be transferable in a full transfer. For example, Robinhood fractional shares cannot be transferred and will be automatically sold for cash before the transfer is completed.

Transfer Fee Summary

Below is a summary compiled online of transfer fees, account closure fees, and transfer bonuses for your reference. Please note that if you really plan to transfer, it is best to confirm the current fees with both the sending and receiving platforms. This table is for reference only.