ACAT Fees
How much do you have to pay for outgoing ACAT transfers in 2023? Do you pay more ACAT fees at your current broker than at another? If your broker is Merrill Edge, Vanguard, Fidelity, Ally Invest, Webull, Robinhood, or any other popular broker, your fees might be higher than you expect.
Learn how much ACAT fees are in 2023, and how to get ACAT reimbursement.
What Are ACAT Transfers?
The Automated Customer Account Transfers Service (ACAT/ACATS) transfer moves brokerage accounts, either completely or partially, from one broker to another. This type of transfer is set up to give you an easy option when it comes time to move to a new broker.
Instead of having to liquidate all the securities in your investment account just to reestablish your positions at a different broker, the ACAT transfer makes the entire process automatic, saving you time and money. The convenience comes at a cost, however, as you can see from the outgoing ACAT fees found at most brokers.
How Long Does ACAT Take?
The primary benefit to using the ACAT transfer is the simplicity that it offers. The ability to move an investment account in one transaction means that you will be up and running in the new account much sooner than you would otherwise. Many ACAT transfers take from 5-10 days to complete, which can be faster than selling, waiting for settlement, transferring funds out to a bank, and then transferring those same funds to the new brokerage account.
Can You Get an ACAT Fee Reimbursement?
While outgoing ACAT transfer fees are unavoidable in most cases, you should not let the ACAT fees stop you from enjoying the freedom that these types of transfers can provide. In fact, in many cases, the (new) broker that accepts your portfolio from another will often reimburse the fees that you had to pay. So, when all is said in done, ACAT transfers can be completely free.
One of the most notable brokers for
ACAT fee reimbursement is TD Ameritrade. When you move your account to TDA, you can receive an ACAT fee reimbursement up to $150.
TD Ameritrade ACAT Reimbursement Link
Open TD Ameritrade Account
List of Brokerage ACAT Fees
2 - IRA closing/termination fee.
3 - A $2,500 minimum equity balance must remain in the account; otherwise the $75 full transfer fee will apply.
4 - Transfer a security through the Direct Registration Service (DRS).
Trade Location
Another important benefit is that you may have nice entry points in the securities that populate your portfolio. Liquidating these positions means that you have to go through the process of reestablishing the same trades, with a (hopefully) similar risk profile, a second time. Using ACATs, your positions stay as is and the resulting PnL in your investment account will also be the same.
Which Securities Can You Transfer?
If you are wondering if ACAT transfers are right for you, the question may come down to the complexity, size, and types of securities in your account. As far as securities are concerned, ACATs are a good option is the portfolio is made up of ‘standard’ securities.
The securities that you can transfer include stocks, ETFs, trading capital, bonds, and some mutual funds. Many brokers have limitations for incoming ACATs that include securities like pink sheet stocks, foreign exchange-listed stocks, unsettled funds, unsettled positions, and cryptocurrencies.
How ACAT Fees Work?
ACAT fees come in a few different forms. There are full account transfer fees, partial account transfer fees, and account closing fees. Each is handled differently from one broker to another.
Note that; there are no fees for incoming ACAT transfers.
Fees come into play when transferring accounts out. The highest and most charged ACAT fees are the full account transfer fees. These range from $50-$125 per transfer.
An additional (and often overlooked) fee that is applied when initiating full account transfers is the account closure fee. Some brokers do not charge for closing an account, but some can charge more than $100.
Partial account transfers are typically free, but many brokers do charge for these as well. In most cases, however, fees assigned to partial account transfers will be lower than fees for full account transfers.
