John Jagerson

5 Tips for Moving Your Brokerage Account

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3. The transfer process can take several days.

Keep in mind that the ACATS process can take several days, and it is not uncommon (although they won't admit it) for your old broker to drag their feet a little.

During the transfer process you will have limited or no access to your open positions. For long-term traders this is probably not a big deal, but short-term traders may want to make sure they have appropriate risk coverage or have exited open positions.

4. Your old broker will charge you for this service.

To add insult to injury, your old broker can charge you for initiating an ACATS process. Most of the time, this fee is between $50 and $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.

5. If you only have cash in your old account it is quicker to just ask for check or wire.

Because the ACATS transfer process takes several days, it may be easier to just ask for a check or wire to be sent to your new account. The ACATS process is really designed for an account with open positions that you don't want to close.

It is always useful to remember who works for whom when you are working with your broker(s). Don't be afraid to ask for things and to talk to your broker often. Use your new broker to take the pain and frustration out of the account transfer process and get on with your investing life.

For more broker advice, visit OptionsZone's Broker Center.