Move Stocks to a New Brokerage Without Selling: ACATS Steps

Michael Chen

Michael Chen writes about personal finance fundamentals. Bay Area-based · finance enthusiast for 15 years.

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Quick answer: Yes. Open the new brokerage account first, then ask the new firm to start an in-kind transfer (called ACATS). Your shares move as they are, so nothing is sold. Do not close the old account yourself. Most transfers finish in about a week, but some holdings may not transfer and could be sold.↗ Share on X

You can move stocks to a new brokerage account without selling them. The tool for this is called an in-kind transfer, and for most U.S. brokerages it runs through a system named ACATS (Automated Customer Account Transfer Service). You open the new account, fill out a transfer request there, and the two firms move your shares between them. You never touch the cash, and the move itself is not a sale.

Here is how it works, what to check before you start, and the few things that can go wrong.

*This article is general education, not personal financial or tax advice. If your situation is complex, talk to a licensed financial adviser or a tax professional.*

What does "in kind" actually mean?

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"In kind" means the shares move exactly as they are. If you own 40 shares of an index fund at the old broker, you own the same 40 shares at the new one when the transfer ends.

The other way to switch brokers is to sell everything, move the cash, and buy again. That is a taxable sale for any holding that went up in a regular (taxable) account. It also leaves you out of the market for a few days. An in-kind transfer avoids both problems.

Is a transfer a taxable event?

In general, moving shares in kind between two accounts in your own name is not treated as a sale, so it does not create a capital gain by itself. The tax bill shows up only if shares are sold, either by you or by the old broker during the transfer.

Keep one more point in mind: the cost basis (what you originally paid) should travel with the shares. Brokers are required to pass this information along for most shares bought in recent years, but older holdings can arrive with missing details. Check the cost basis in the new account within a few weeks and keep your old statements until you are sure it matches.

If you are unsure how your transfer will be taxed, ask a tax professional before you start.

Step-by-step: how to transfer stocks without selling

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1. Open the new account first. Pick the same type as the old one. A taxable account moves to a taxable account, an IRA to an IRA. Mixing types can force a sale or a tax problem.

2. Make sure the names match. The name, address and tax ID on both accounts should be the same. A mismatch is one of the most common reasons a transfer is rejected.

3. Gather the old account details. You need the old firm's name, the account number, and a recent statement. Some firms also ask for the account title (for example, "John Smith" or "John Smith and Jane Smith JTWROS").

4. Start the transfer at the new broker. Look for "transfer an account" or "ACATS transfer" in the new firm's website or app. Choose full account transfer to move everything, or partial transfer to move only some holdings.

5. Choose "in kind". The form may offer "transfer in kind" and "liquidate and transfer cash." Pick in kind.

6. Submit and wait. The new firm sends the request to the old one. The old firm checks it and, if everything matches, releases the assets.

7. Check both accounts. Watch for the shares to appear in the new account and disappear from the old.

Do not close or empty the old account yourself while the transfer is in progress. A closed account can cause the request to fail.

How long does it take?

For a standard ACATS transfer between U.S. brokers, you should expect roughly a week, often counted as several business days. Delays are common when information does not match, when the account holds assets that need special handling, or when the old firm asks you to confirm the request.

During the move, the shares may be unavailable for trading for a short time. Do not plan trades for those days.

What can go wrong?

Most transfers work fine. These are the usual problems and what to do about them:

Check each item against your own account. Your old broker's support page usually lists what it does and does not transfer.

Will I pay a fee?

Many brokers charge a flat outbound fee when you leave. The amount varies a lot from one firm to another. Some new brokers say they will cover this fee if you move a minimum amount, but those offers have conditions. Read the fine print, and ask in writing before you start if the fee matters to you.

Before you pay anything, compare it to the cost of staying. If the new broker has lower trading costs or lower fund fees, a one-time transfer fee can pay for itself, but only if you do the math with your own numbers.

What about retirement accounts like an IRA?

Use a direct transfer between the two firms. Do not take the money out yourself and send a check. For an IRA, a direct trustee-to-trustee transfer is not a withdrawal. Taking a distribution by mistake can create taxes and penalties.

Keep the account type the same on both sides. A traditional IRA moves to a traditional IRA, and a Roth IRA moves to a Roth IRA. If you want to change account type, that is a different process with different tax rules, so talk to a professional first.

What if I only want to move some stocks?

Choose a partial transfer. You then list each holding and the number of shares. Some brokers let you say "all shares" for a given position, which helps if you do not want to leave a few shares behind.

Partial transfers are useful when:

• You want to keep one holding at the old broker.
• You want to split money between two firms.
• A single position cannot be moved and you want to leave it out.

Always write down your holdings before you start, so you can confirm each one arrived.

How do I check that everything moved correctly?

When the transfer finishes, compare the two sides:

1. List the holdings and share counts at the old firm before the move.

2. After the transfer, check that each holding and share count matches in the new account.

3. Look at the cost basis for each position.

4. Check for dividends that were due during the move. They can land in either account.

5. Keep the old statements and the confirmation messages for at least the current tax year and the next.

If something is missing after a couple of weeks, contact the new broker first. They manage the request on your behalf.

Common mistakes to avoid

• Selling first "to be safe." This can create a taxable gain you did not need to trigger.
• Closing the old account early. Wait until the transfer is finished and checked.
• Moving during a big life event. Do not rush a transfer at the same time as a tax deadline or a major purchase.
• Skipping the account type match. Always mirror the account type.
• Ignoring the paperwork. Save every confirmation page and email.

When should I talk to a professional?

Ask a licensed financial adviser or a tax professional if:

• Your account holds a large unrealized gain.
• You have employee stock, restricted shares or non-U.S. securities.
• You are moving an inherited account.
• You are not sure how an IRA or other retirement account will be treated.

A short consultation is cheap compared with fixing a mistake after the fact.

Your next step

Before you open anything, make a list: the old broker's name and account number, each holding with its share count, and whether the account has fractional shares or mutual funds. Then check the new broker's transfer page to see what it accepts. If the list looks clean, open the new account, start a full or partial in-kind transfer from there, and leave the old account open until every share shows up.

FAQ

Educational content, not personalized financial advice. Sources cited where applicable.