Why would you want to do a brokerage transfer? Why would you want to go to the time, expense and trouble of finding a new brokerage service provider and arranging an account transfer? You must be either running away from some aspect of your current brokerage service that you are unhappy with or (and this is much more likely) you can get a better deal when you transfer brokerage.
Either way, brokerage transfer will not be made easy by your current brokerage firm. You can’t blame them. They don’t want to lose your business. I found this out recently when I looked into doing a brokerage account transfer because the new brokerage firm is offering some eye-catching cut price transaction fees and I was planning to do a high number of transactions.
Here is a top tip if you are considering a brokerage account transfer. Look for those brokers that offer you the best incentives to open an account with them. There are offers such as a three-month free brokerage period. Or free up to date reports on the markets you may be thinking about. These brokerage enhancements will help boost your account and start it off as a profitable trading account but they should also offset the administration fee that will inevitably be charged by your present broker. There will be no set up fee at the new receiving broker.
Actually arranging the brokerage account transfer could not be easier. Start at the new brokerage and fill in all of their asset transfer forms. This is particularly easy online. The difficulties for me came in trying to extricate myself from my current brokerage. Their ‘help’ page and ‘frequently asked questions’ had no information on brokerage transfer fees. They just don’t want to lay this possibility out in front of you.
So there was nothing for it but email them. Guess where the ‘contact us’ page took me first? Yes, the FAQs! Anyway I finally emailed and asked them how much it would cost to do a brokerage account transfer away from them. And why wasn’t this in their terms and conditions? It took two business days to get the answer back and it would take up to 10 business days to actually accomplish the transfer itself.
A top time saving tip for your brokerage account transfer is to know in detail what you want to transfer. You can of course do your entire account or just a single batch of shares or the cash value of yours shares or even a mixture of cash and shares. Be sure to have the all the share names, quantities, book costs etc. before you plunge into the brokerage transfer.
For me, transferring my brokerage account was very worthwhile but it did take some time and a lot of detail handling but at least I know what to do next time there is a profitable brokerage transfer opportunity.