Trading broker and clearing brokerage accounts


In an effort to help investors better understand the account transfer process, we are issuing this educational information to provide some basic facts about the account transfer process. Once the transfer request is validated, the delivering trading broker and clearing brokerage accounts will send a list of the assets in the account to the receiving firm via ACATS. Ask questions, like the anticipated length of the transfer process given the specific type of account such as cash, margin, IRA, custodial and the assets held such as stocks, bonds, options, limited partnership interests. At times, investors transfer their securities accounts between broker-dealers.

Most customer accounts are transferred between broker-dealers through an automated process. At times, investors transfer their securities accounts between broker-dealers. In addition, transfers of accounts requiring a custodian, like an Individual Retirement Account or a Custodial Account for a minor child, may take additional time. Individuals wanting to transfer their securities account from one broker-dealer to another initiate the process trading broker and clearing brokerage accounts completing a Transfer Initiation Form TIF and sending it to the firm to which they want to transfer their account. Once the transfer request is validated, the delivering firm will send a list of the assets in the account to the receiving firm via ACATS.

In this regard, a customer might initiate a transfer request only to find that the new firm has declined to accept the account. In addition, investors can become familiar with the account transfer process by discussing it with the new firm. Once the customer account information is properly matched, and the receiving firm decides to accept the account, the delivering firm will trading broker and clearing brokerage accounts approximately three days to move the assets to the new firm. For example, if ABC security is a volatile stock and you are concerned about not being able to sell your stock during the transfer process, you should consider selling ABC before entering the transfer request. Many events, as described trading broker and clearing brokerage accounts, occur simultaneously during the account transfer process.

Once the transfer request is validated, the delivering firm will send a list of the assets in the account to the receiving firm via ACATS. In addition, communicate with the new firm and determine whether any specific policies or constraints might impact the transfer of your account. For example, trading broker and clearing brokerage accounts you have a margin account, you should ask if the new firm will accept a margin account and, if so, what are its minimum requirements.

Investors should also consider that buying and selling securities during the account transfer process often complicates and delays the transfer. In addition, transfers of accounts requiring a custodian, like an Individual Retirement Account or a Custodial Account for a minor child, may take additional time. Transfers involving the most common assets, for example, cash, stocks and bonds of domestic companies, and trading broker and clearing brokerage accounts options, are readily transferable through ACATS. Shortly after the data is entered, an automated function permits the delivering firm to see that a request to transfer the account has been made. If the account request is rejected, the new firm may correct the data from that which it originally entered or it trading broker and clearing brokerage accounts have to contact the customer to make sure the information on the TIF form is correct.

For example, if you have a margin account, you should ask if the new firm will accept a margin account and, if so, what are its minimum requirements. In most cases, the validation process will take about three business days to complete once the new firm enters the request into ACATS. Although automated, the account transfer process is somewhat complicated and is impacted by certain factors and regulations, the most important of which are discussed below. In this regard, a customer might initiate trading broker and clearing brokerage accounts transfer request only to find that the new firm has declined to accept the account.

For example, the new firm may decide not to accept the account due to the quality of securities supporting a margin loan, or because the account does not meet its minimum equity requirements. Prior to moving accounts from one firm to another, it is always a good idea to review and understand the transfer process. What must a customer do to start the account trading broker and clearing brokerage accounts process? In most cases, the validation process will take about three business days to complete once the new firm enters the request into ACATS.

Once the transfer request is validated, the delivering firm will send trading broker and clearing brokerage accounts list of the assets in the account to the receiving firm via ACATS. What can a customer do to ensure that the account transfer is successful? For example, if ABC security is a volatile stock and you are concerned about not being able to sell your stock during the transfer process, you should consider selling ABC before entering the transfer request.

Many events, as described above, occur simultaneously during the account transfer process. What are realistic expectations of the time that is required to transfer an account? Transfers involving the most common assets, for example, cash, stocks and bonds of domestic companies, and listed options, are readily transferable through ACATS. Factors that may result in additional time needed to transfer an account.

For example, if you have a margin account, you should ask if the new firm will accept a margin account and, if so, what are its minimum requirements. The receiving firm will review trading broker and clearing brokerage accounts list of assets to decide whether it wishes to accept the transfer of the account. In addition, transfers of accounts requiring a custodian, like an Individual Retirement Account or a Custodial Account for a minor child, may take additional time. The firm a customer is transferring the account to can provide the form to facilitate the transfer.