How to transfer a brokerage account
Last updated August 2026
Short answer
The process is standardised and mostly automatic. The things that go wrong are cost basis arriving incomplete and fractions being sold without anyone mentioning it.
Start at the new broker
Open the receiving account first, matching the registration exactly: individual to individual, joint to joint, IRA to the same type of IRA.
A mismatch in registration is the most common reason a transfer is rejected, and it costs days.
The new broker's transfer form asks for the old account number and usually a recent statement.
Ask for in kind
An in-kind transfer moves the securities themselves, so nothing is sold and nothing is realised.
A cash transfer liquidates everything first, which in a taxable account creates gains and puts you out of the market during the move.
In kind is the default in most cases, and it is worth confirming rather than assuming.
Before you start
Download a full statement showing every lot, its acquisition date and its cost basis. Do this while you still have access.
Note any positions that may not transfer: proprietary funds, unusual share classes, anything held in fractions.
Cancel open orders and turn off automatic investments, which can otherwise fail mid-transfer and complicate the reconciliation.
Try it in Walnut
Walnut connects to your brokerage and reads what you hold, so after a transfer you can confirm the positions arrived as expected.
What happens during the transfer
The account is generally frozen once the request is validated, so trading stops for several days.
Full transfers close the old account when complete, and partial transfers leave it open.
Dividends paid during the window sometimes arrive at the old broker afterwards and are swept across later, which is normal rather than an error.
Fractional shares and other losses
Fractions cannot be transferred and are sold, with the proceeds sent as cash.
In a taxable account that realises a gain or loss on your behalf without a decision from you.
For a portfolio built entirely from fractional purchases, the cumulative effect can be a meaningful tax event, which is worth modelling before switching.
After it lands
Check every position and quantity against the statement you saved.
Check cost basis and acquisition dates specifically, because they are what arrives incorrectly most often.
Re-establish automatic investments, dividend reinvestment settings and beneficiary designations, none of which travel with the assets.
Should you transfer or just open a second account
Opening an account at the new broker and directing future contributions there avoids the transfer entirely.
That leaves two sets of statements and two cost basis records, which is a real cost in attention if not in money.
Transferring makes sense when you want everything in one place or the old broker's costs are genuinely worse. Splitting makes sense when the old account holds positions that cannot move.
Sources
The account transfer process and what to expect are published by FINRA at Transferring Your Brokerage Account, with cost basis reporting rules in IRS Publication 550. Walnut is informational and is not an investment adviser. This guide is educational and not personalized investment advice.
FAQ
How do I transfer a brokerage account?
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Open the account at the new broker, then start the transfer there rather than at the old one. You will provide the old account number and a recent statement, and the two firms settle it between themselves through the ACATS system.
What is an in-kind transfer?
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Moving the securities themselves rather than selling them. Nothing is realised, so there is no tax event, and you are never out of the market. It is the default and the option to ask for explicitly.
How long does it take?
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A full ACATS transfer commonly takes five to ten business days. The account is generally frozen for part of that, so avoid starting one when you expect to need to trade.
Will I be charged a fee?
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The outgoing broker frequently charges an account transfer fee, often around $75 to $100. Many receiving brokers reimburse it on request if the balance is large enough, and asking costs nothing.
Can I transfer only part of the account?
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Yes, a partial transfer is supported. Specify the positions and quantities. It is useful if some holdings are proprietary funds the new broker cannot hold.
Does my cost basis come with it?
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It should, and it does not always arrive intact or promptly. Save a final statement from the old broker showing lots and acquisition dates before you start, because reconstructing basis afterwards is considerably harder.
What cannot be transferred?
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Proprietary funds the receiving broker does not support, some non-transferable share classes, and fractional shares. Anything in that category has to be sold, with the tax consequences that implies in a taxable account.
Is it simpler to open a second account instead?
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Sometimes. Directing future contributions to the new broker avoids the transfer entirely, at the cost of two sets of statements and two basis records. Transferring is worth it when you want one place or the old broker is genuinely more expensive.