In brief

A brokerage transfer can carry an outgoing account fee even when the receiving firm advertises free trading. The larger risk is not always the fee: unsupported funds, proprietary products, fractional shares, open orders, margin balances, or account-registration mismatches can delay the transfer or force a liquidation.

Before initiating ACATS, obtain both firms’ current fee schedules, confirm which assets can move in kind, download records, and identify any sale that could create a taxable gain or loss.

What ACATS does

The Automated Customer Account Transfer Service helps firms move eligible brokerage assets. The receiving firm generally initiates the request. Account name, type, ownership, and tax registration need to match; an IRA-to-IRA transfer is operationally and tax-wise different from moving a taxable individual account.

A full transfer attempts to move the account’s eligible assets. A partial transfer specifies positions or cash. Firms can charge different fees, and a full transfer may close the delivering account.

Why assets fail to transfer

Common obstacles include:

  • fractional shares;
  • proprietary mutual funds or cash products;
  • securities unsupported by the receiving firm;
  • unsettled trades or recent deposits;
  • open options or margin debit balances;
  • worthless, restricted, or thinly traded securities; and
  • mismatched registration or incomplete paperwork.

The SEC notes that a nontransferable asset may need to remain, be sold, or be handled another way. Selling can affect taxes. Do not authorize liquidation in a taxable account without understanding cost basis and realized gains.

Fees and reimbursements

The delivering firm may charge an outgoing transfer or account-closing fee. The receiver may advertise reimbursement above a transfer-size threshold, often requiring proof. A reimbursement is a provider policy, not a right, and may exclude rollovers or certain account types.

As current examples, Betterment’s June 2026 fee page states a $75 outbound charge for each investing account, Robinhood’s IRA-match FAQ states a $100 outgoing ACATS fee, and Wealthfront states it does not charge an account-transfer fee. These examples can change and are not a complete market survey.

Records to preserve

Download recent statements, trade confirms, tax forms, contribution and conversion records, beneficiary confirmations, and cost-basis lots. After completion, reconcile every position, quantity, cash balance, acquisition date, and tax lot. Cost basis can arrive after the securities, so continue monitoring rather than assuming a blank field means zero.

Transfer checklist

  1. Open the matching receiving account and verify registration.
  2. Ask both firms for current transfer and closing fees.
  3. Obtain an asset-by-asset eligibility review.
  4. Resolve margin, options, open orders, and unsettled activity.
  5. Download records before access changes.
  6. Decide how to handle fractions and unsupported assets.
  7. Reconcile positions and basis after completion.

Bottom line

A brokerage transfer is not automatically free or fully in kind. Verify fees, asset eligibility, fractional-share treatment, tax consequences, and records before initiating ACATS, then reconcile every position and cost-basis entry after the move.

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