Usually, yes. An in-kind brokerage transfer moves eligible stocks and other assets to the new firm without placing a sell order, but the receiving firm must be able to hold each asset and the account registrations must match; fractional shares, proprietary products, margin debt and unsettled activity can change the result.
An in-kind transfer moves the position, not a sale order
An in-kind transfer means the security itself moves from the carrying firm, which is the old broker, to the receiving firm, which is the new broker. If 40 whole shares arrive as 40 whole shares, the investor remains exposed to their market price during the move and does not create a sale merely to raise transfer cash. The receiving account then becomes the place where those shares are held and serviced.
ACATS is a delivery system, not a portability guarantee
ACATS, short for Automated Customer Account Transfer Service, is the standardized electronic system used for many U.S. broker-to-broker moves. It does not decide whether an investment is good, and it does not make every asset portable. It coordinates account and position information when both firms and the requested assets can use the service; otherwise, a manual or asset-specific process may be needed.
Full and partial instructions solve different problems
A full transfer asks the old firm to move the transferable account and close or restrict what remains under its procedures. A partial transfer names selected assets or cash and generally leaves the old account open. Partial can be useful when one holding is not accepted by the new firm, but it also leaves two accounts, two fee schedules and two sets of records to monitor.
Start at the receiving firm and match the account exactly
Investor.gov says the transfer starts with the new firm. The customer submits its Transfer Instruction Form, often called a TIF, and the receiving firm sends the instruction to the carrying firm through ACATS when the transfer qualifies. Sending an ordinary withdrawal request to the old broker is not the same process and can create extra cash movement or paperwork.
Registration mismatches can stop the instruction early
Names, taxpayer identification, account numbers and account registration should match the old statement. An individual taxable account cannot simply be treated as the same registration as a joint, trust, custodial or retirement account. A small mismatch or an incomplete form can cause an exception before asset compatibility is even considered, so copying from the latest statement is safer than relying on memory.
Get an asset-by-asset acceptance answer in writing
Before signing, give the new firm the old statement and ask for a position-by-position answer: accepted as is, transferable by another method, or not accepted. Also ask whether current margin, options, mutual-fund and account-minimum rules would apply after arrival. The useful question is not only whether ACATS can transmit a position, but whether the receiving firm is willing and permitted to carry it for this account.
🔎 Four holdings can break an otherwise simple transfer
Fractional shares generally cannot move through ACATS. A firm may liquidate the fraction and transfer the resulting cash, leave it behind or require another instruction, depending on its agreement and the type of transfer. A position of 12.6 shares can therefore arrive as 12 whole shares plus cash from 0.6 share, and that sale can have fees or tax consequences in a taxable account.
A fund can be real yet unavailable at the new firm
A proprietary mutual fund or money market fund sold only through the old firm may not be available at the new one. The same problem can affect third-party funds when the receiving firm lacks the relationship needed to carry them, plus certain private placements, bankrupt securities or foreign positions. FINRA Rule 11870 defines several of these as nontransferable assets rather than treating every rejection as a failure of the entire request.
Margin debt travels only if the new firm accepts the credit risk
A margin balance turns the move into a credit decision. The receiving firm can apply its own credit policies and house maintenance requirements, and pledged assets may not be freely transferable while they secure a loan. An investor should compare the debit balance, each position's eligibility and the new firm's requirement before initiating, because moving collateral does not erase the debt or guarantee identical borrowing capacity.
Account activity can change the delivery list
Open orders, unsettled trades, recent deposits and corporate actions can make the position list change while the instruction is being processed. Buying or selling during a transfer can complicate or delay reconciliation, and the old account may become restricted after validation. Record which orders were canceled, which trades settled and which dividends or other residual credits are expected to follow later.
⚖️ Selling and moving cash changes the problem
Selling everything first can make the transfer list simpler, but it replaces portability questions with execution and tax questions. A taxable sale can realize gains or losses, spreads and commissions or other fees can reduce proceeds, and the investor may miss price movement while cash travels. The convenience of one cash balance is therefore not free even when the cash transfer itself is straightforward.
Who an in-kind transfer fits
An in-kind transfer can fit an investor who wants to keep transferable holdings and avoid choosing a sale date solely because the custodian changes. It does not freeze prices, eliminate account fees or guarantee that every service will remain the same. Research access, trading permissions, dividend instructions, securities lending, cash sweeps and margin terms are features of the new relationship, not attributes embedded in the stock.
When cash may be the cleaner route
A cash transfer can fit when the new firm cannot carry important positions, when the investor independently intended to sell them, or when maintaining several residual accounts would cost more than simplifying. That choice should be evaluated lot by lot rather than with one all-or-nothing rule. A small fractional liquidation and a large appreciated whole-share sale can have very different consequences.
Count exit charges and destination costs separately
Transfer-out, account-closing and retirement-custody fees can apply even when no trade occurs. The new firm may reimburse some charges, but a marketing promise should be confirmed with amount limits, eligible account types and documentation requirements. Compare the old firm's exit costs with the new firm's ongoing account, fund and service costs; a one-time reimbursement does not make a more expensive destination cheaper.
Reconcile shares, tax lots and residual cash after delivery
Do not treat the first new-account balance as the final receipt. Compare the last old statement with the first new statement security by security: ticker or identifier, whole-share quantity, cash, margin debit and account registration. Mark any nontransferable position that should remain behind and any residual dividend, interest or sale proceeds that may arrive in a later sweep.
Securities can arrive before complete basis data
Cost basis can appear after the securities themselves. DTCC's Cost Basis Reporting Service supports standardized basis exchange, but delays or errors can still occur, especially for older or noncovered lots. Preserve confirmations and prior statements, then compare acquisition dates, quantities, covered status and basis lot by lot before selling from the new account; a blank basis field is not evidence that the tax basis is zero.
Automation cannot decide what the new firm may carry
It is frustrating when a process described as automated still needs manual checking. The verified rules explain why: ACATS standardizes communication between firms, while the receiving firm's product menu, credit policy and the legal form of each asset still control what can arrive. Automation reduces delivery friction; it does not replace the investor's inventory or the firms' exception handling.
Run a five-column transfer check before authorizing
Download the latest statement and make five columns for every holding: quantity, whole or fractional, accepted by the new firm, debt or restriction attached, and basis records saved. Send that list to the receiving firm and ask it to confirm each exception, the expected trading restriction and all fees in writing. Start the transfer only after every row has a planned destination: move in kind, move another way, sell deliberately or remain at the old firm.
Sources and dates
- Financial Industry Regulatory Authority, Customer Account Transfers and FINRA Rule 11870; ACATS process, firm duties, nontransferable assets, partial transfers and residual credits checked October 26, 2026 Korea time.
- U.S. Securities and Exchange Commission, Investor.gov, Transferring Your Brokerage Account; receiving-firm initiation, form accuracy, reconciliation and fees checked October 26, 2026 Korea time.
- U.S. Securities and Exchange Commission, Investor Bulletin: Transferring Your Investment Account; account restrictions, asset compatibility, margin, fees and nontransferable-asset choices checked October 26, 2026 Korea time.
- Financial Industry Regulatory Authority, Investing in Fractional Shares; limited transferability and possible sale consequences checked October 26, 2026 Korea time.
- Depository Trust & Clearing Corporation, Automated Customer Account Transfer Service and Cost Basis Reporting Service; standardized account transfer and basis-data exchange functions checked October 26, 2026 Korea time.
- Scope note: this guide describes common U.S. brokerage transfers. The account agreement, registration, asset, tax status, debt, receiving-firm policies and current transfer instructions control a specific result.