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What Is the Automated Customer Account Transfer Service (ACATS)?

By

澳洲幸运5官方开奖结果体彩网:James Chen

Updated March 31, 2025

Reviewed by

JeFreda R. Brown

Automated Customer Account Transfer Service (ACATS): A system that facilitates the transfer of securities from one trading account to another at a different brokerage firm or bank. — Investopedia / Michela Buttignol

What Is the Automated Cuꦜstome🍨r Account Transfer Service (ACATS)?

The Automated Customer Account Transfer Service (ACATS) facilitates the transfer of securities from one trading accou𒐪nt to another at a different brokerage firm or bank.

The 澳洲幸运5官方开奖结果体彩网:Natio⛄nal Securi🐟ties Clearing Corporation (NSCC) developed the ACATS system, replacing the previous manual asset transfer system with this fully automated and standardized one. This greatly reduced the cost and time of moving assets between 澳洲幸运5官方开奖结果体彩网:brokerage accounts as well as cut down on human error.

In the United Kingdom and Ireland, the central securities depository process is handled by the 💛Certificateless Registry for Electronic Share Transfer (CRE🔥ST).

Key Takeaways

The Automated Customer Account Transfer Service can be used to transfer stocks, bonds, cash, unit trusts, mutual funds, options, and other investment products.
The system may be required when an investor wants to move their account from one brokerage firm to another.
Only NSCC-eligible members and Depository Trust Company member banks can use ACATS.
After verifying the customer account information, the delivery process takes about three to six business days to move assets from one firm to another.
Some brokerages charge their customers an ACAT fee per transfer.

How the Automated Custo💟mer Account Transfer Service (ACATS) Works

The ACATS system is initiated when a client signs the transfer documents from the (new) receiving firm. Once the document is received, the receiving firm submits a request using the client's account number and sends it to the delivering firm. If the information matches between both the delivering and the receiving firms, the ACATS process can begin. Delivery usually takes three to six business days to complete.

The ACATS simplifies the process of moving assets from one 澳洲幸运5官方开奖结果体彩网:brokerage firm to another. The delivering firm transfers the exact holdings to the receiving firm. For example, if the client had 100 shares of Stock XYZ at the delivering firm,🎃 then the receiving ౠfirm receives the same amount with the same purchase price.

This makes it more convenient for clients, as they don't need to 澳洲幸运5官方开奖结果体彩网:liquidate their positions and then repurchase them with the new firm. Another benefit is that clients do not need to let their previous brokerage firm or advisor know beforehand. If they are unhappy with their current broker, they can simply go to a new one and start the 澳洲幸运5官方开奖结果体彩网:transfer process.

Important

Transfers involving qualified retirement accounts like IRAs may take longer. T🧸he sending and receiving firms must validate the tax statu♎s of the account to avoid errors that could cause a taxable event.

Securities Eligible for the Automated Customer Account ✤Transfer Service (ACATS)

Clients can transfer all publicly traded stocks, bonds, 澳洲幸运5官方开奖结果体彩网:exchange-traded funds (ETFs), cash, and most mutual funds through the ACATS system. Options and an🍃nuities can also be transferred using the 𝄹system.

ACATS can also transfer 澳洲幸运5官方开奖结果体彩网:certificates of deposit (CDs) from banking institutions, as long as the bank is a member of the NSCC. The service also works on all types of accounts, such as taxable accounts, 澳洲幸运5官方开奖结果体彩网:individual retireme🦹nt accounts (IRAs), trusts, and brokerage 401(k)s.

Tip

Your broker or financial professional can let you know whether your account is eligible for transfer using the ACATS system.

Securities Ineligible for ACATS

Ineligible securities depend on the regulations of the receiving brokerage firm or bank. Many institutions have proprietary investments, such as non-transferrable mutual funds and alternative investments that may need to be liquidated and which may not be available for repurchase through the new broker. Also, some firms may not transfer unlisted shares or financial products that trade 澳洲幸运5官方开奖结果体彩网:over the counter (OTC).

How Does an ACATS Transfer Work?

An ACATS transfer is initiated by a brokerage customer at the receiving institution by submitting a transfer information record. The TI contains all of the information needed to identify the customer's existing brokerage account and where it will be delivered.

The delivering firm must respond to the output within one business day, by either addin✱g the assets that are subject to the transfer or by rejecting the transfer. Before delivery is made, a review period is opened during which the sending and receiving firm can confirm the assets to be transferred.

What Is the Difference Between an ACATS and Non-ACATS Transfer?

The main difference between an ACATS transfer and a manual (non-ACATS) transfer is primarily one of automating the proces🌳s such that it cuts the delivery time down to three to six business days for ACATS versus up to one month or more for a non-ACATS transfer. The other difference is that the automated system is far less prone to mistakes, typos, and other forms of human error.

What Is an ACAT Out Fee?

Some brokers charge existing customers a fee to transfer their assets using the ACATS system to a new brokerage. Brokerage firms may charge this fee to make it more costly to close the account and move assets elsewhere. Keep in mind that not all brokerages charge these fees, so check wiಞth yours before initiating a transfer.

The Bottom Line

ACATS is a system that allows people to transfer their eligible accounts from one brokerage to another. It automates and accelerates the process as long as both firms are members of the NSCC and/or DTC banks. If you're planning on transferring your account to a new brokerage firm, ask your existing one if it charges a fee as some will charge you to complete the transfer.

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