How to Move Your Investments to a New Brokerage Without Selling Anything
The single most common reason people stay at a bad broker is the belief that leaving means selling everything and paying tax. It doesn't. The transfer is free, automated, and usually reimbursed.
- An in-kind transfer moves your actual holdings to a new broker without selling them, so no capital gain is triggered.
- In the US, the process runs through ACATS (Automated Customer Account Transfer Service) and typically completes in 5 to 7 business days.
- In Canada, the equivalent is a T2033 form for registered accounts, handled through your new broker.
- Your losing broker typically charges a transfer-out fee, commonly $50 to $150 per account.
- Most major brokers reimburse that fee for incoming transfers, frequently up to around $150 per account, sometimes with a minimum balance requirement.
- You always initiate a transfer at the NEW broker, never the old one.
- Transferring a registered account (TFSA, RRSP, IRA) directly does not use contribution room and is not a withdrawal.
A large number of people stay at brokers they dislike for one reason: they believe leaving means liquidating the portfolio, paying capital gains tax, and rebuying everything at whatever price the market offers that week.
That is not how it works. There is a standardised system, in both countries, for moving your holdings as they are — your shares, your cost basis, your holding period — to a different broker. Nothing is sold. No tax is triggered. You do not need to time anything.
It is called an in-kind transfer, and the process is more boring than the fear of it.
What "in-kind" actually means
Two ways to move a portfolio.
In cash: sell everything, transfer the money, rebuy. In a taxable account this realises every gain and every loss in one day, generating a tax bill you chose to create. It also puts you out of the market for however long the money is in transit.
In kind: your 47 shares of VTI move to the new broker as 47 shares of VTI. Your cost basis follows. Your dividend history follows. Nothing is sold at any point.
Always use in kind. The only reason to use cash is if the receiving broker genuinely cannot hold something you own.
The US process: ACATS
The Automated Customer Account Transfer Service is an industry-wide system run through the National Securities Clearing Corporation. Nearly every US broker participates, and the process is largely automated.
1. Open the account at the new broker first. It must be the same registration type — an individual taxable account transfers to an individual taxable account, a Roth IRA to a Roth IRA. Mismatches are the most common cause of rejection.
2. Initiate the transfer at the new broker. Look for "Transfer an account" or "Transfer assets." Never contact your old broker to start this. They have no incentive to help and will route you to retention.
3. Provide your old account statement. The new broker needs your account number and the exact name registration. Have a recent statement open. Names must match exactly — a middle initial on one side and not the other will delay it.
4. Choose full or partial. A full transfer moves everything and closes the old account. A partial transfer moves specific positions and leaves the account open. Full is simpler and is what most people want.
5. Wait 5–7 business days. Your positions are frozen during the transfer. You cannot trade them. Plan around that.
The Canadian process
Canada has no single ACATS equivalent, but the mechanics are similar and it is still initiated at the receiving institution.
Registered accounts (TFSA, RRSP, RESP, FHSA, LIRA) use a T2033 direct transfer form, handled by the new broker. This is the critical mechanism: a direct institution-to-institution transfer is not a withdrawal, so it does not touch your contribution room.
Non-registered accounts use the broker's standard transfer authorisation.
Canadian transfers are generally slower than US ones — two to four weeks is normal, and bank-owned brokerages are typically at the slower end. Build that into your expectations.
The one mistake that costs real money
Do not withdraw from a TFSA and re-deposit it at the new broker.
A withdrawal restores that contribution room, but only on January 1 of the following year. If you withdraw $60,000 in March and re-deposit it in April at a new broker, you have made a $60,000 over-contribution and the CRA charges a penalty of 1% per month on the excess.
Direct transfer. Always. The form exists precisely so this does not happen.
Getting the fee reimbursed
The broker you are leaving will charge you for leaving — commonly $50 to $150 per account. Some US brokers charge nothing; some Canadian bank brokerages charge $150 per account, which adds up quickly if you are moving a TFSA, an RRSP and a cash account.
The broker you are joining will usually pay it back. Reimbursement offers commonly run up to around $150 per account, sometimes conditional on a minimum transfer size.
How to actually collect it:
- Confirm the offer before you transfer. Terms change and vary by broker; check the current promotion page or ask support in writing.
- Complete the transfer.
- Find the fee on your old broker's final statement. You need documentary proof.
- Submit it to the new broker — usually by uploading the statement or completing a short form.
- Follow up if it does not appear. Reimbursements are typically credited within several business days of approval, but they are rarely automatic. If you do not claim it, you do not get it.
Multiple accounts means multiple fees and multiple claims. Check whether the reimbursement cap is per account or per household.
What can go wrong
Non-transferable holdings. Proprietary mutual funds are the usual culprit — a bank's own fund family often cannot be held elsewhere. Certain foreign-listed securities and some structured products also fail. Send your holdings list to the receiving broker before initiating and ask them to flag anything that will not move.
Fractional shares. Most brokers cannot transfer fractions. They are typically liquidated and sent as cash, which is a small taxable event in a non-registered account. Usually trivial, occasionally not.
Margin loans. A margin balance complicates a transfer considerably. Pay it down first if you can.
Name and address mismatches. The most common rejection cause and the most avoidable. Make sure both accounts show identical registration details before you start.
Timing around dividends. Distributions paid mid-transfer sometimes land at the old broker and get forwarded, which can take weeks. Not a loss, just a delay.
When it is actually worth switching
Transfers are free and easy, but they are not free of hassle. Reasons that justify it:
- Materially lower ongoing costs — account fees, FX conversion spreads, expense ratios on a proprietary fund family you are locked into.
- A meaningfully better cash sweep rate. The difference between roughly 4% and roughly 0.45% on idle cash is real money on a large balance.
- Access to something you need — US dollar registered accounts, specific ETFs, better tools.
- Consolidating scattered accounts. Four accounts at four institutions is how portfolios drift out of alignment without anyone noticing.
Reasons that do not justify it: a sign-up bonus by itself, a slightly nicer app, or a temporary promotion. You will be at this broker for years. Optimise for the fee schedule and the account types, not the welcome offer.
Frequently asked questions
Do I have to sell my investments to switch brokers?
No. An in-kind transfer moves the actual securities to the new broker. Your shares, cost basis and holding period all come with you. Nothing is sold, so no capital gain or loss is realised and there is no tax consequence in a taxable account.
How long does a brokerage transfer take?
In the US, a full ACATS transfer typically takes 5 to 7 business days once initiated. In Canada, registered account transfers commonly take 2 to 4 weeks and occasionally longer. Both are slower if the receiving broker has to correct mismatched account details.
How much does it cost to transfer a brokerage account?
The broker you are leaving usually charges a transfer-out fee, commonly $50 to $150 per account. The broker you are joining usually reimburses it — frequently up to around $150 per account, sometimes conditional on a minimum transfer amount. You typically have to claim the reimbursement by submitting the statement showing the charge.
Can I transfer my TFSA or RRSP to another broker without losing contribution room?
Yes, provided you do a direct institution-to-institution transfer rather than withdrawing and re-depositing. A direct transfer is not a withdrawal and does not use contribution room. If you withdraw from a TFSA yourself, you cannot re-contribute that amount until the following calendar year — which is the single most expensive mistake in this whole process.
Do I initiate the transfer at my old broker or my new one?
Always at the new broker. They pull the assets. Contacting the old broker generally results in being routed to a retention team and does not start the process.
What if my new broker doesn't support something I own?
Non-transferable holdings — proprietary mutual funds, certain foreign-listed securities, fractional shares — either stay behind or have to be sold first. Ask the receiving broker to review your holdings list before you initiate. Fractional shares are commonly liquidated automatically, which can create a small taxable event in a non-registered account.
Primary sources
Data & disclaimer: This article is for educational purposes only and is not financial, tax or investment advice. Figures reflect data available as of September 1, 2026, and conditions change — always confirm current pricing, rates and rules with the provider before you act. Written by Elizabeta Dimoska. See our editorial standards and disclosure.
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