Stock transfer fees what do they mean?
I'm trying to figure out what outgoing/incoming DTC and ACAT mean.....If you can explain it or tell me where to find the info I would really appreicate it. Ive been trying to find it out on my own but I havent came up with anything yet...I might be looking in the wrong places =)
- Dave WLv 61 decade agoFavorite Answer
Those acronyms don't have anything to do with fees. They are related to direct electronic transferring of stock/funds from one brokerage firm to another.
I think DTC stands for Depository Trust Company ( see http://www.dtcc.com/about/subs/dtc.php ). That code just indicates what brokerage firm (Merrill Lynch, TDAmeritrade, etc.) the transfer is being made to. (In addition to the DTC code, the account number is needed to indicate which account the transfer is being made to.)
ACAT stands for "Automated Customer Account Transfer" and ACATS is the "Automated Customer Account Transfer Service. (See http://www.dtcc.com/products/cs/equities_clearance... )
Neither of those has anything to do with fees. The DTC probably charges the brokerage company fees for doing transfers, but in my experience, the brokerage firm receiving the stock/funds generally does not pass that cost on to the customer. (They WANT more accounts transferred to them so they don't want to discourage that by charging fees.) The firm that you're transferring the stock/funds away from often does charge a fee (because they don't want you doing that).
- 3 years ago
Great point, I'm interested to know more too
- Anonymous3 years ago
Well, it depends..