Investing: switching from Charles Schwab to Scottrade?
I've been buying and selling stocks with Charles Schwab for a few months now and I've been planning on switching to Scottrade because they have a cheaper trading fee. The commission fee for Charles Schwab is ridiculously high and yet I don't even use most of the extra customer services that they offer.
When I looked at the Scottrade website, it said something about that they can easily transfer all of your assets and information from another broker to a new Scottrade account. Is this possible, and if so how much would it cost? Is it better to transfer your information from one broker to another, or is it easier to simply cancel everything with one broker and start a whole new account with a different broker from scratch?
Has anyone done this before?
- A nobodyLv 78 years agoFavorite Answer
All brokerage move accounts from one firm to another by using the ACATS system (Automated Customer Accounts Transfer System). The balances and positions of such customer usually move the DTC system (Depository Trust Corp) which acts a clearing agency for most security transactions executed on exchanges.
The charges imposed by brokerage firms vary, the receiving firm usually does not charge a fee for having securities/monies moved to them. The charges imposed by the delivering firm varies, most will charge about $15 for the total move, some may charge more.
Not sure how you can "cancel" your positions/balances with a brokerage firm, if you move to a new firm you must, by law, open a new account and apply for those accounts you may need (margin, options etc). Brokerages firms are not permitted to accept new account forms or other agreements prepared for or used by other broker/dealers, therefore the new firm needs all agreements
"GO WITH THE FLOW" you are dead wrong, you DO NOT have to sell positions at one firm and buy them back at the new firm - No one with an ounce of sense would do this nor make you do this.
ISource(s): from the street
- InspectorBudgetLv 78 years ago
Many of the reputable brokerages, like Scottrade, E*Trade, Ameritrade, and others will happily pay any exit fees your previous broker may charge. You only have to ask.
And, your assets transfer completely over. There is no need to sell any assets. But the new brokerage does request that you do not trade while the transfer is being effected - usually 2 days and they will tell you exactly which days.
So it is a very straightforward and painless procedure.
- The Old GuyLv 68 years ago
Yes, I have extensive experience with moving accounts from one brokerage firm to another.
"A Nobody" provided you with a professional, correct repsonce so there is no need to rehash what they provided youSource(s): experience
- Go with the flowLv 78 years ago
Not sure what you mean.
You have to sell all your investments to switch to a different broker.
Selling commissions. Then more commissions for buying them again.