Is there a cost to acat transfers securities from one broker to another? Who charges it?
I want to transfer my securities from etrade to another broker. Is there generally a fee associated with this? If so, who would be charging it- etrade, the new broker, or both? Also if you know how much it is please include that in your answer.
- 1 decade agoFavorite Answer
Securities brokers have a process called ACATS (Automated Customer Account Transfer Service) that is managed by the NSCC (National Securities Clearing Corporation) for moving open positions and cash from one broker to another. An ACATS transfer essentially takes your account from one broker and replicates it, including your open positions, with another broker.
Your old broker can charge you for initiating an ACATS process. Most of the time this fee is between $50-$100 per account. However, this may not be an issue at all. Keep in mind that your new broker wants your business. It is very likely that they will reimburse you for this expense but you have to ask for it. Don't hesitate to find out whether they will cover these costs for you.
- Anonymous4 years ago
NSCC (National Securities Clearing Corporation)
The National Securities Clearing Corporation was created in 1977 as a result of an amalgamation of the subsections of the New York and American stock exchanges and also the National dealer’s association for securities. Through the NSCC, brokerages, exchanges and other clearing organizations are able to carry out mutual settlements. The modern-day NSCC, along with the Depository Trust Company, is the largest service provider for financial market calculations in the world.