What Is the Automated Customer Account Transfer Service (ACATS)?
By Forex & Brokers DeskUpdated Nov 10, 2026
Definition
The Automated Customer Account Transfer Service (ACATS) is the US system that moves a customer's securities and cash electronically from one brokerage firm or bank to another.
Key takeaways
- Only NSCC members and Depository Trust Company (DTC) member banks can use the system, so both firms in a transfer must participate.
- The transfer is started at the new (receiving) firm, not the old one.
- Holdings move "in kind," so nothing has to be sold and repurchased.
- Some brokers charge an outgoing transfer fee, often called an ACAT out fee.
The Automated Customer Account Transfer Service (ACATS) is the US system that moves a customer’s securities and cash electronically from one brokerage firm or bank to another. The National Securities Clearing Corporation (NSCC) built it to replace a manual, paper-based process, and it standardizes how the delivering and receiving firms exchange account details and assets. An ACATS transfer typically completes in about three to six business days once account details are verified. A manual transfer outside the system can take a month or longer and is more exposed to clerical errors.
How an ACATS transfer works
In the US, customer account transfers between broker-dealers are governed by FINRA Rule 11870, which sets the obligations and deadlines each firm must meet.
- Request at the receiving firm. The customer opens an account at the new broker and signs a transfer form. The receiving firm submits a transfer initiation record through ACATS. It contains the details needed to identify the old account (account number, owner name, tax ID) and the destination account.
- Validation by the delivering firm. The old broker has one business day to respond. It either confirms the account and lists the assets subject to transfer, or rejects the request. Rejections usually come from mismatched details, such as a different name format, the wrong account number or differing account registration.
- Review period. Before delivery, both firms can review and confirm the assets being moved.
- Settlement. The assets move through the clearing system and appear at the new firm with their original quantities and cost basis.
The customer does not need to notify the old broker or advisor first. The receiving firm’s request is what starts the process.
Transfers involving qualified retirement accounts such as IRAs can take longer. Both firms must confirm the account’s tax status so that the move is recorded as a transfer rather than a distribution, which could trigger tax.
What can and cannot move through ACATS
Generally eligible: publicly traded stocks, bonds, ETFs, cash, most mutual funds, options and annuities. CDs held at a bank can move if the bank is an NSCC member. The service handles many account types, including taxable brokerage accounts, IRAs, trust accounts and brokerage 401(k)s.
Often ineligible: what fails to transfer depends largely on what the receiving firm can hold. Common problems include:
- Proprietary products. A firm’s in-house mutual funds or alternative investments may not be transferable. They may need to be sold first, and the new broker may not offer them for repurchase.
- Unlisted or OTC securities. Some firms will not accept shares that trade over the counter or are not listed on an exchange.
- Fractional shares. Partial shares may not transfer in kind and can be sold for cash instead, depending on the firms involved.
Example of an ACATS transfer
Hypothetical example for illustration only.
An investor holds the following at Broker A and wants everything at Broker B:
- 100 shares of Stock XYZ bought at $40
- 20 shares of a listed ETF
- $1,500 in cash
- Shares of Broker A’s proprietary mutual fund
On Monday the investor signs Broker B’s transfer form, and Broker B submits the request. On Tuesday Broker A validates the account. After the review period, within the usual three to six business day window, Broker B shows 100 shares of XYZ with the $40 cost basis, the 20 ETF shares and $1,500 in cash.
The proprietary fund is flagged as non-transferable. The investor must either leave it at Broker A or sell it there and transfer the proceeds. Selling in a taxable account can realize a gain or loss, which an in-kind move would have avoided. If Broker A charges an outgoing transfer fee, it is typically deducted from the cash before delivery.
ACAT vs. non-ACAT transfers
A non-ACAT transfer is any move handled outside the automated system through manual instructions between firms. It applies when one firm is not an NSCC or DTC participant or when the assets are not ACATS-eligible, for example certain annuities.
| ACATS transfer | Non-ACAT transfer | |
|---|---|---|
| Process | Automated, standardized messages between participating firms | Manual instructions and paperwork |
| Who can use it | NSCC members and DTC member banks | Firms outside the system or ineligible assets |
| Typical timing | About 3 to 6 business days after validation | Up to a month or more |
| Error risk | Lower, because data is matched electronically | Higher exposure to typos and mismatched details |
Fees and limitations
ACAT out fee. Some brokers charge departing customers a fee to transfer assets out through ACATS, which raises the cost of leaving. Some receiving brokers offer to reimburse transfer fees, but that is a promotion at the individual firm, not a feature of ACATS.
Rejections and delays. Most delays trace back to mismatched account information. Titling must match: an individual account generally transfers into an individual account, and a joint account into a joint account with the same owners. A tax ID or name that differs between the two firms can stop the request at validation.
Open orders and activity. Pending trades and open orders at the old firm can complicate the move. Letting trades settle and cancelling open orders before submitting the request reduces the chance of a mismatch.
FAQs
Can I transfer only part of an account through ACATS?
Yes. ACATS supports full transfers, which move the entire account and usually close it at the delivering firm, and partial transfers, which move only the positions or cash you specify. Partial transfers leave the original account open.
What happens to a margin balance in an ACATS transfer?
A margin debit generally moves with the account, so the receiving firm must approve a margin account to accept it. If it does not, the debit has to be paid down or positions sold before the move. Changing margin status can also affect your exposure to a margin call at the new firm, which may have different maintenance requirements.
The Bottom Line
Investors moving an account between US brokers can usually rely on ACATS to shift holdings in kind within about three to six business days, keeping original quantities and cost basis. Before starting the request at the new firm, match the account titling and details exactly, settle pending trades, and check for proprietary funds or other assets the receiving firm cannot hold. Also ask whether the old broker charges an outgoing transfer fee.
