Is it expensive to transfer brokers? Do they have to sell and rebuy, or do you own the stocks/funds and the?

Question

new house initates transfers?

How hard is it for the consumer and does the consumer pay out the nose?

Answer 1

It should cost you Zero to transfer brokers.  Your old Broker my charge you a fee to close/transfer your account, but your new broker almost always will cover this fee as they want your business.

Just make sure when filling out the transfer forms to make sure you say "transfer in kind", if not your old broker may sell all you securities and then just transfer the $$.  This will trigger gains and losses which may have tax consequences.

Answer 2

In the US, you have to open an account with the new brokerage firm, they will provide you with paper work (ACATS) form which you will complete,

The new firm will send the paper work (electronically) to the old firm.  and the transfer will be completed in a few days

There is no charge for this, BUT you old brokerage firm may have some chages, you should check with them. If they are going to charge you too much, just sell the securities at the old firm and buy them at the new firm

You own the stock/funds now, you will still own them before, during and after the ACATS process.