Glossary term
ACATS Transfer
An ACATS transfer is the movement of a brokerage account or selected account assets between firms through the Automated Customer Account Transfer Service operated by NSCC.
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Written by: Editorial Team
Updated
What Is an ACATS Transfer?
An ACATS transfer is the movement of a brokerage account or selected account assets between firms through the Automated Customer Account Transfer Service. ACATS is the standardized transfer system used across much of the brokerage industry to move eligible customer accounts from one firm to another.
Many investors change brokerages without selling everything first. When an account transfer goes smoothly, ACATS is often the system handling the operational work in the background.
Key Takeaways
- ACATS is the standard brokerage-industry system for many account transfers.
- An ACATS transfer can move an entire account or selected assets.
- Eligible assets can often move without forcing a sale.
- Some assets are nontransferable and may need special handling.
- A margin account or custodial account can require additional review.
How an ACATS Transfer Works
The transfer usually starts when the customer completes a transfer initiation form with the new or receiving firm. That firm then submits the transfer request through ACATS to the old or delivering firm. If the account information matches and the receiving firm accepts the assets, the firms use the system to validate the transfer and deliver the eligible positions.
This is why an ACATS transfer is mostly a firm-to-firm process even though it begins with a customer instruction. Once the request is in the system, the transfer follows a standardized operational path rather than a custom manual handoff.
What ACATS Can and Cannot Move
Transfer outcome | What it usually means |
|---|---|
Transferable assets | Cash and eligible securities can usually move through ACATS |
Nontransferable assets | The new firm may reject them or require a different disposition |
Not every holding can move cleanly. Proprietary products, certain third-party funds, or assets the new firm does not support may not transfer. In those cases, the investor may have to leave the asset behind temporarily, liquidate it, or handle it outside the standard ACATS process.
How ACATS Transfers Move Brokerage Assets
The transfer method can affect taxes, timing, cost, and disruption to the portfolio. A clean transfer may let the investor move to a new brokerage account without disrupting market exposure. A messy transfer can force sales, trigger fees, or leave the investor out of the market longer than expected.
That is why transfer planning is not just an operations issue. It is also a portfolio-implementation issue.
Full Transfer Versus Partial Transfer
An ACATS transfer can be used for a full account move or for a partial transfer of selected assets. A full transfer usually closes out the old brokerage relationship for that account. A partial transfer leaves the original account open while moving only the specified positions or cash.
Investors may want to move only part of a portfolio, preserve access to a specific legacy holding, or stage the move over time.
The Bottom Line
An ACATS transfer is a brokerage-account transfer handled through the Automated Customer Account Transfer Service. It is the main industry system used to move eligible investment accounts and assets between firms without forcing investors to rebuild the account from scratch.