# ACAT Transfer: How to Transfer a Brokerage Account In-Kind Published: 2026-02-01 Author: Warren Team URL: https://www.heywarren.com/blog/acat-transfer --- Most investors assume switching brokers means selling everything, paying taxes, and starting over. That assumption costs some people thousands in unnecessary capital gains taxes every year. An **ACAT transfer** — Automated Customer Account Transfer — lets you move your entire portfolio from one brokerage to another without selling a single share. Your stocks, ETFs, bonds, and options travel in-kind, and your original cost basis follows electronically. The DTCC (Depository Trust & Clearing Corporation) operates the ACAT system, which connects over 850 broker-dealers across the United States. Most full account transfers complete in 3–6 business days. Many investors either don't know this in-kind transfer process exists — or they've heard it's complicated and avoid switching even when a better-priced, better-featured broker would serve them well. In reality, the receiving broker handles most of the paperwork. You fill out one form, and they coordinate the rest with your current firm through the DTCC network. In this guide, you'll learn exactly how an ACAT transfer works, which assets are eligible, what triggers delays or outright rejections, and how to avoid the most common mistakes. Whether you're moving from a full-service broker to a discount platform or consolidating multiple accounts into one, this process lets you switch brokers without triggering a single unnecessary tax event. ## What ACAT Stands For and Who Runs It ACAT stands for Automated Customer Account Transfer Service, operated by DTCC through its subsidiary, the National Securities Clearing Corporation (NSCC). More than 850 broker-dealers participate in the system, which means almost any mainstream brokerage you'd consider using can send or receive a transfer through this network. Before ACAT existed, moving a brokerage account meant liquidating everything, wiring cash, and rebuilding your portfolio from scratch. DTCC introduced ACAT in the 1980s to standardize broker-to-broker transfers and eliminate that friction. Today the system handles millions of account transfer transactions per year, automating the handoff of securities data, cost basis information, and account details between firms. Key facts about the service: **ACAT**: Automated Customer Account Transfer Service **Operated by**: DTCC (Depository Trust & Clearing Corporation), the central clearinghouse for US securities markets **Participating firms**: Over 850 broker-dealers and financial institutions participate in NSCC's ACAT system **Timeline**: Full transfers typically complete in 3–6 business days; partial transfers in 5–7 business days If your broker does not participate in ACAT — rare among mainstream firms — you'll need a manual transfer process, which takes longer and requires more paperwork from both sides. ## Types of ACAT Transfers An ACAT transfer comes in two forms: a full transfer, which moves the entire account to the new broker, or a partial transfer, which moves only specified assets while leaving the original account open. Choosing between them depends on whether you want to consolidate completely or keep positions at multiple brokers. ![Assets that typically transfer in-kind versus those that may require liquidation or a separate process.](data:image/svg+xml,%3Csvg%20xmlns%3D%22http%3A%2F%2Fwww.w3.org%2F2000%2Fsvg%22%20viewBox%3D%220%200%20760%20211%22%20width%3D%22760%22%20height%3D%22211%22%20role%3D%22img%22%3E%3Ctitle%3EHierarchy%3C%2Ftitle%3E%3Crect%20width%3D%22100%25%22%20height%3D%22100%25%22%20fill%3D%22%23f8fafc%22%2F%3E%3Crect%20x%3D%22300%22%20y%3D%2220%22%20width%3D%22160%22%20height%3D%2258%22%20rx%3D%228%22%20fill%3D%22%232563eb%22%2F%3E%3Ctext%20x%3D%22380%22%20y%3D%2254%22%20text-anchor%3D%22middle%22%20font-family%3D%22system-ui%2C-apple-system%2Csans-serif%22%20font-size%3D%2214%22%20font-weight%3D%22700%22%20fill%3D%22white%22%3EACAT%20Transfer%3C%2Ftext%3E%3Cpath%20d%3D%22M%20380%2078%20L%20380%20105.5%20L%20110%20105.5%20L%20110%20133%22%20stroke%3D%22%23cbd5e1%22%20stroke-width%3D%222%22%20fill%3D%22none%22%2F%3E%3Crect%20x%3D%2230%22%20y%3D%22133%22%20width%3D%22160%22%20height%3D%2258%22%20rx%3D%228%22%20fill%3D%22white%22%20stroke%3D%22%230891b2%22%20stroke-width%3D%222%22%2F%3E%3Ctext%20x%3D%22110%22%20y%3D%22158%22%20text-anchor%3D%22middle%22%20font-family%3D%22system-ui%2C-apple-system%2Csans-serif%22%20font-size%3D%2213%22%20font-weight%3D%22600%22%20fill%3D%22%230f172a%22%3EStocks%20%26amp%3B%20ETFs%3C%2Ftext%3E%3Ctext%20x%3D%22110%22%20y%3D%22176%22%20text-anchor%3D%22middle%22%20font-family%3D%22system-ui%2C-apple-system%2Csans-serif%22%20font-size%3D%2210%22%20fill%3D%22%2364748b%22%3EUS-listed%2C%20in-kind%3C%2Ftext%3E%3Cpath%20d%3D%22M%20380%2078%20L%20380%20105.5%20L%20290%20105.5%20L%20290%20133%22%20stroke%3D%22%23cbd5e1%22%20stroke-width%3D%222%22%20fill%3D%22none%22%2F%3E%3Crect%20x%3D%22210%22%20y%3D%22133%22%20width%3D%22160%22%20height%3D%2258%22%20rx%3D%228%22%20fill%3D%22white%22%20stroke%3D%22%230891b2%22%20stroke-width%3D%222%22%2F%3E%3Ctext%20x%3D%22290%22%20y%3D%22158%22%20text-anchor%3D%22middle%22%20font-family%3D%22system-ui%2C-apple-system%2Csans-serif%22%20font-size%3D%2213%22%20font-weight%3D%22600%22%20fill%3D%22%230f172a%22%3EBonds%3C%2Ftext%3E%3Ctext%20x%3D%22290%22%20y%3D%22176%22%20text-anchor%3D%22middle%22%20font-family%3D%22system-ui%2C-apple-system%2Csans-serif%22%20font-size%3D%2210%22%20fill%3D%22%2364748b%22%3EMost%20fixed-income%3C%2Ftext%3E%3Cpath%20d%3D%22M%20380%2078%20L%20380%20105.5%20L%20470%20105.5%20L%20470%20133%22%20stroke%3D%22%23cbd5e1%22%20stroke-width%3D%222%22%20fill%3D%22none%22%2F%3E%3Crect%20x%3D%22390%22%20y%3D%22133%22%20width%3D%22160%22%20height%3D%2258%22%20rx%3D%228%22%20fill%3D%22white%22%20stroke%3D%22%230891b2%22%20stroke-width%3D%222%22%2F%3E%3Ctext%20x%3D%22470%22%20y%3D%22158%22%20text-anchor%3D%22middle%22%20font-family%3D%22system-ui%2C-apple-system%2Csans-serif%22%20font-size%3D%2213%22%20font-weight%3D%22600%22%20fill%3D%22%230f172a%22%3EOptions%3C%2Ftext%3E%3Ctext%20x%3D%22470%22%20y%3D%22176%22%20text-anchor%3D%22middle%22%20font-family%3D%22system-ui%2C-apple-system%2Csans-serif%22%20font-size%3D%2210%22%20fill%3D%22%2364748b%22%3EIf%20broker%20supports%3C%2Ftext%3E%3Cpath%20d%3D%22M%20380%2078%20L%20380%20105.5%20L%20650%20105.5%20L%20650%20133%22%20stroke%3D%22%23cbd5e1%22%20stroke-width%3D%222%22%20fill%3D%22none%22%2F%3E%3Crect%20x%3D%22570%22%20y%3D%22133%22%20width%3D%22160%22%20height%3D%2258%22%20rx%3D%228%22%20fill%3D%22white%22%20stroke%3D%22%230891b2%22%20stroke-width%3D%222%22%2F%3E%3Ctext%20x%3D%22650%22%20y%3D%22158%22%20text-anchor%3D%22middle%22%20font-family%3D%22system-ui%2C-apple-system%2Csans-serif%22%20font-size%3D%2213%22%20font-weight%3D%22600%22%20fill%3D%22%230f172a%22%3EMutual%20Funds%3C%2Ftext%3E%3Ctext%20x%3D%22650%22%20y%3D%22176%22%20text-anchor%3D%22middle%22%20font-family%3D%22system-ui%2C-apple-system%2Csans-serif%22%20font-size%3D%2210%22%20fill%3D%22%2364748b%22%3EIf%20available%20at%20new%20broker%3C%2Ftext%3E%3C%2Fsvg%3E) *Assets that typically transfer in-kind versus those that may require liquidation or a separate process.* **Full ACAT transfer**: The entire account moves to the new broker. All eligible securities transfer in-kind; uninvested cash may follow separately via ACH or wire. Once complete, the delivering account zeros out — or closes entirely, depending on the firms involved. **Partial ACAT transfer**: You select specific positions to move. The original account stays open with remaining holdings. Partial transfers work well when you want to relocate individual stocks, ETFs, or bonds without shutting down the existing account. **What transfers in an ACAT**: - Individual stocks and ETFs (US-listed) - Bonds (most fixed-income securities) - Mutual funds (if the receiving broker also offers that specific fund) - Options (if the receiving broker supports options trading) - Cash (usually transfers separately via ACH or wire after the securities move) **What may NOT transfer via ACAT**: - Proprietary products (Vanguard mutual funds, for example, may not transfer in-kind to Fidelity — they may need to be sold and repurchased at the new broker) - Annuities (require a separate transfer process, often with insurance company involvement) - Limited partnerships (require manual paperwork and can take weeks) - Certain over-the-counter or illiquid securities Identify any non-transferable assets before you initiate the transfer. You'll need to decide whether to liquidate those positions first — and account for any taxes — or keep them at the original broker while moving everything else via a partial ACAT. ## How to Initiate an ACAT Transfer To start a brokerage account transfer, open an account at the receiving broker and submit the request there — not at your current broker. The receiving firm contacts your old broker through the DTCC system and manages the transfer on your behalf. You provide your current account number and basic account details; the two brokers handle the rest. ![Step-by-step sequence of a full ACAT transfer from initiation to completion, typically 3–6 business days.](data:image/svg+xml,%3Csvg%20xmlns%3D%22http%3A%2F%2Fwww.w3.org%2F2000%2Fsvg%22%20viewBox%3D%220%200%20800%20149%22%20width%3D%22800%22%20height%3D%22149%22%20role%3D%22img%22%3E%3Ctitle%3ETimeline%3C%2Ftitle%3E%3Crect%20width%3D%22100%25%22%20height%3D%22100%25%22%20fill%3D%22%23f8fafc%22%2F%3E%3Cline%20x1%3D%22120%22%20y1%3D%2255%22%20x2%3D%22680%22%20y2%3D%2255%22%20stroke%3D%22%23cbd5e1%22%20stroke-width%3D%223%22%2F%3E%3Ccircle%20cx%3D%22120%22%20cy%3D%2255%22%20r%3D%2224%22%20fill%3D%22white%22%20stroke%3D%22%23cbd5e1%22%20stroke-width%3D%222%22%2F%3E%3Ctext%20x%3D%22120%22%20y%3D%2260%22%20text-anchor%3D%22middle%22%20font-family%3D%22system-ui%2C-apple-system%2Csans-serif%22%20font-size%3D%2215%22%20font-weight%3D%22700%22%20fill%3D%22%230f172a%22%3E1%3C%2Ftext%3E%3Ctext%20x%3D%22120%22%20y%3D%22101%22%20text-anchor%3D%22middle%22%20font-family%3D%22system-ui%2C-apple-system%2Csans-serif%22%20font-size%3D%2212%22%20font-weight%3D%22600%22%20fill%3D%22%230f172a%22%3EOpen%20Account%3C%2Ftext%3E%3Ctext%20x%3D%22120%22%20y%3D%22119%22%20text-anchor%3D%22middle%22%20font-family%3D%22system-ui%2C-apple-system%2Csans-serif%22%20font-size%3D%2210%22%20fill%3D%22%2364748b%22%3EAt%20receiving%20broker%3C%2Ftext%3E%3Ccircle%20cx%3D%22260%22%20cy%3D%2255%22%20r%3D%2224%22%20fill%3D%22white%22%20stroke%3D%22%23cbd5e1%22%20stroke-width%3D%222%22%2F%3E%3Ctext%20x%3D%22260%22%20y%3D%2260%22%20text-anchor%3D%22middle%22%20font-family%3D%22system-ui%2C-apple-system%2Csans-serif%22%20font-size%3D%2215%22%20font-weight%3D%22700%22%20fill%3D%22%230f172a%22%3E2%3C%2Ftext%3E%3Ctext%20x%3D%22260%22%20y%3D%22101%22%20text-anchor%3D%22middle%22%20font-family%3D%22system-ui%2C-apple-system%2Csans-serif%22%20font-size%3D%2212%22%20font-weight%3D%22600%22%20fill%3D%22%230f172a%22%3ESubmit%20Request%3C%2Ftext%3E%3Ctext%20x%3D%22260%22%20y%3D%22119%22%20text-anchor%3D%22middle%22%20font-family%3D%22system-ui%2C-apple-system%2Csans-serif%22%20font-size%3D%2210%22%20fill%3D%22%2364748b%22%3EReceiving%20broker%20files%20wi%E2%80%A6%3C%2Ftext%3E%3Ccircle%20cx%3D%22400%22%20cy%3D%2255%22%20r%3D%2224%22%20fill%3D%22%232563eb%22%20stroke%3D%22%232563eb%22%20stroke-width%3D%223%22%2F%3E%3Ctext%20x%3D%22400%22%20y%3D%2260%22%20text-anchor%3D%22middle%22%20font-family%3D%22system-ui%2C-apple-system%2Csans-serif%22%20font-size%3D%2215%22%20font-weight%3D%22700%22%20fill%3D%22white%22%3E3%3C%2Ftext%3E%3Ctext%20x%3D%22400%22%20y%3D%22101%22%20text-anchor%3D%22middle%22%20font-family%3D%22system-ui%2C-apple-system%2Csans-serif%22%20font-size%3D%2212%22%20font-weight%3D%22600%22%20fill%3D%22%230f172a%22%3EValidation%3C%2Ftext%3E%3Ctext%20x%3D%22400%22%20y%3D%22119%22%20text-anchor%3D%22middle%22%20font-family%3D%22system-ui%2C-apple-system%2Csans-serif%22%20font-size%3D%2210%22%20fill%3D%22%2364748b%22%3EDelivering%20broker%20reviews%E2%80%A6%3C%2Ftext%3E%3Ccircle%20cx%3D%22540%22%20cy%3D%2255%22%20r%3D%2224%22%20fill%3D%22white%22%20stroke%3D%22%23cbd5e1%22%20stroke-width%3D%222%22%2F%3E%3Ctext%20x%3D%22540%22%20y%3D%2260%22%20text-anchor%3D%22middle%22%20font-family%3D%22system-ui%2C-apple-system%2Csans-serif%22%20font-size%3D%2215%22%20font-weight%3D%22700%22%20fill%3D%22%230f172a%22%3E4%3C%2Ftext%3E%3Ctext%20x%3D%22540%22%20y%3D%22101%22%20text-anchor%3D%22middle%22%20font-family%3D%22system-ui%2C-apple-system%2Csans-serif%22%20font-size%3D%2212%22%20font-weight%3D%22600%22%20fill%3D%22%230f172a%22%3ESecurities%20Move%3C%2Ftext%3E%3Ctext%20x%3D%22540%22%20y%3D%22119%22%20text-anchor%3D%22middle%22%20font-family%3D%22system-ui%2C-apple-system%2Csans-serif%22%20font-size%3D%2210%22%20fill%3D%22%2364748b%22%3EIn-kind%20transfer%20executes%3C%2Ftext%3E%3Ccircle%20cx%3D%22680%22%20cy%3D%2255%22%20r%3D%2224%22%20fill%3D%22white%22%20stroke%3D%22%23cbd5e1%22%20stroke-width%3D%222%22%2F%3E%3Ctext%20x%3D%22680%22%20y%3D%2260%22%20text-anchor%3D%22middle%22%20font-family%3D%22system-ui%2C-apple-system%2Csans-serif%22%20font-size%3D%2215%22%20font-weight%3D%22700%22%20fill%3D%22%230f172a%22%3E5%3C%2Ftext%3E%3Ctext%20x%3D%22680%22%20y%3D%22101%22%20text-anchor%3D%22middle%22%20font-family%3D%22system-ui%2C-apple-system%2Csans-serif%22%20font-size%3D%2212%22%20font-weight%3D%22600%22%20fill%3D%22%230f172a%22%3ETransfer%20Complete%3C%2Ftext%3E%3Ctext%20x%3D%22680%22%20y%3D%22119%22%20text-anchor%3D%22middle%22%20font-family%3D%22system-ui%2C-apple-system%2Csans-serif%22%20font-size%3D%2210%22%20fill%3D%22%2364748b%22%3EOld%20account%20zeros%20out%3C%2Ftext%3E%3C%2Fsvg%3E) *Step-by-step sequence of a full ACAT transfer from initiation to completion, typically 3–6 business days.* Here's the step-by-step process: 1. **Open an account at the receiving broker** if you don't already have one. The account type must match — individual taxable to individual taxable, IRA to IRA, and so on. 2. **Initiate the transfer at the receiving broker** — they handle the paperwork on your behalf. You'll typically complete a Transfer of Account form or an online equivalent in their portal. 3. **Provide your current account information**: account number, full account title, and the delivering broker's name and contact details. 4. **The receiving broker submits the ACAT request** to DTCC, which routes it to your current broker. 5. **The delivering broker has 1–3 business days** to validate and accept or reject the transfer. Common rejection reasons include a margin debit balance, pending transactions, or a name mismatch. 6. **Transfer completes**: Securities appear in the new account. For full transfers, the old account zeros out. For partial transfers, the original account continues with remaining holdings. During this process, your portfolio may be temporarily frozen — you won't be able to trade the positions being transferred. That freeze typically lasts no more than 3–5 business days. ## Why ACAT Transfers Get Delayed or Rejected An ACAT transfer stalls or gets rejected most often because of a margin balance, a name mismatch, or assets that can't move in-kind. Identifying and resolving these blockers before you submit the request saves time and prevents a transfer from bouncing back after several days in progress. **Margin balance**: An account with an outstanding margin loan cannot transfer until you pay down or resolve the debit. The delivering broker won't release a leveraged account. Pay off the margin balance first, or ask your new broker whether they'll absorb it. **Option assignments or expirations**: Pending option exercises, assignments, or expirations can freeze a transfer request. Wait for open options positions to settle before initiating the move. **Restricted securities**: Stocks with transfer restrictions — Rule 144 restricted shares, unvested employee stock grants — require additional documentation and can take far longer than a standard securities transfer. **DRS-registered shares**: Shares held directly at a transfer agent in your name (not in "street name" at a broker) require a direct registration transfer, not an ACAT transfer. That's a separate process with different paperwork. **Name mismatch**: The account title at both brokers must match exactly. A missing middle initial, a hyphenated last name formatted differently, or a trust name that varies slightly will trigger a rejection. Confirm the account titles match before submitting. **Proprietary funds**: If your current broker's proprietary mutual funds aren't available at the receiving broker, those positions must be liquidated before the rest of the portfolio can transfer in-kind. Selling proprietary funds in a taxable account creates a capital gains event — a key consideration when timing the move. ## ACAT Transfer Fees Most discount brokers charge $0 to receive an incoming ACAT transfer. The delivering broker sometimes charges an outgoing fee, typically $75–$125. To compete for new assets, many receiving brokers reimburse that fee — usually up to $75–$150 — when you move your account to them. **Most modern discount brokers**: $0 or a minimal fee to receive incoming transfers. Schwab, Fidelity, and most major platforms waive incoming fees entirely. **Outgoing transfer fees**: Some brokers charge $75–$125 when you initiate an outgoing ACAT transfer. This is their administrative fee for processing the paperwork on your behalf. **Transfer fee reimbursement**: Many brokers reimburse the delivering broker's transfer fee as an account-opening incentive — typically up to $75–$150. Fidelity, Schwab, and TD Ameritrade have historically offered this. Check the receiving broker's current promotions before initiating your investment transfer. For most investors moving a mid-to-large account, transfer fees are a minor consideration. The tax savings from avoiding a forced liquidation typically far outweigh any $75–$125 outgoing fee. ## Tax Implications of ACAT Transfers An in-kind ACAT transfer triggers no taxable event. Securities move at their current market value, your original cost basis carries over unchanged, and no capital gains are realized during the portfolio transfer. The receiving broker gets your full purchase history and cost basis data electronically through DTCC's Cost Basis Transfer Service. The key advantages of an in-kind securities transfer: - **No capital gains**: You don't sell anything, so there's nothing to report to the [IRS](https://www.irs.gov/) for the transfer itself. - **Original cost basis preserved**: The receiving broker records your original purchase price and purchase date — not the current market price. Your tax situation is identical before and after the move. - **Cost basis transferred electronically**: DTCC's Cost Basis Transfer Service handles the data handoff between brokers, so you don't need to manually re-enter purchase dates or prices. The exception: if any positions cannot transfer in-kind and must be liquidated — typically proprietary mutual funds or restricted securities — those sales are taxable events in a non-retirement account. Identify these positions early, calculate the likely tax impact, and decide whether to liquidate them before or during the transfer, or to leave them at the original broker. In a tax-advantaged account such as an IRA or Roth IRA, liquidations during the transfer may not trigger immediate taxes, but the rules vary. Confirm the specifics with a tax professional before proceeding. ## Authoritative Sources For deeper background and primary-source data on this topic, the following authoritative sources are useful starting points: - [SEC — Securities and Exchange Commission](https://www.sec.gov/) - [FINRA](https://www.finra.org/) ## Conclusion An ACAT transfer is the standard, tax-efficient way to switch brokerage firms without selling your holdings. Here are the key takeaways: - **No forced selling**: An in-kind transfer preserves your portfolio and your original cost basis — no capital gains taxes are triggered by the move itself. - **The receiving broker runs the process**: Initiate the transfer at your new broker, not your current one. They submit the request to DTCC and manage communication with the delivering firm. - **Expect 3–7 business days**: Full account transfers typically complete in 3–6 business days; partial transfers take up to 7. - **Clear blockers before you start**: Margin balances, proprietary funds, and name mismatches are the most common reasons an ACAT transfer stalls or gets rejected. - **Fees are often offset**: Many receiving brokers reimburse the $75–$125 outgoing fee charged by your current broker — check for promotions before initiating. Whether you're consolidating multiple accounts or moving to a platform with lower costs and better tools, an ACAT transfer gives you the flexibility to switch without upending your tax situation. For related brokerage and investment concepts, see our guides on [RSU restricted stock units](/blog/restricted-stock-unit-definition) and [intraday trading vs. swing trading](/blog/intraday-trading-vs-swing-trading). Ready to put this knowledge to work? Try Warren, your AI financial advisor — get personalized, conflict-free guidance at heywarren.com --- ## Related Reading **More from Warren**: - [RSU (Restricted Stock Unit) Definition: How They Work and How They're Taxed](/blog/restricted-stock-unit-definition) - [Intraday Trading vs. Swing Trading: Key Differences Explained](/blog/intraday-trading-vs-swing-trading) - [NCUA vs. FDIC: Which Insurance Covers Your Deposits](/blog/ncua-vs-fdic) **Authoritative sources**: - [DTCC — ACAT Service](https://www.dtcc.com/clearing-services/equities-clearing-services/acats) - [FINRA — Transferring Your Brokerage Account](https://www.finra.org/investors/learn-to-invest/choosing-investment-professional/transferring-your-brokerage-account) - [SEC — Brokerage Account Transfers](https://www.sec.gov/investor/pubs/transferaccount.htm)