Understanding brokerage account transfers
A brokerage account (aka an investment account) transfer occurs when you move investments from one firm to another. The process starts when you open a new account and initiate the transfer of assets from your old firm. In the US, most transfers use the DTCC's ACATS system, which processes about 14.4 million transfers annually totaling about $1.5 trillion in investments.
What banks and brokerages will tell you
We looked at support pages from 20 different banks and brokerages using ACATS and found that they gave 11 different estimates for what a typical transfer would take. These estimates ranged from 3-4 business days to 10+ business days, with 5-7 business days as the most common. Only 3 firms out of 20 (15%) provided estimates that align with the typical ACATS process of 3-5 business days. This discrepancy might stem from outdated information, intentionally padded expectations for clients, or inefficient processes that wrap around the ACATS process, but it's ultimately hard to tell. Let's look at what's actually happening under the hood.
The typical transfer timeline
For a standard full account transfer in good order:
- Day 0 (before 3pm ET): Client or financial advisor initiates transfer with the firm receiving the assets. The receiving firm then submits transfer instructions to the DTCC, which forwards that instruction to the delivering firm.
- Day 1 (by 11am ET): Delivering firm adds assets to the DTCC for the receiver to review.
- Day 1-2: Receiving firm reviews transferability of the assets.
- Day 3: ACATS system prepares asset movement.
- Day 4: Transfer completes (i.e. “settles”)
Operationally advanced receiving firms can "accelerate" the process after the deliverer adds assets on Day 1. This acceleration instruction reduces their review to 1 day and shortens the overall timeline to 3 business days.
Currently, 80% of full transfers complete within 4 business days, according to DTCC.
The future of transfers
By August 2025, DTCC will remove Day 3 (called “settle prep”) from the above timeline by modernizing their system, allowing 80% of full transfers to complete within 3 business days. With acceleration, advanced firms can complete most transfers in just 2 business days.
Important caveats
Transfers can take longer when:
- Either firm lacks ACATS network access, requiring manual processing that can extend to weeks or months.
- Transfer instructions contain errors
- Non-transferrable assets are involved
However, these cases represent exceptions rather than the norm, as over 80% of transfers proceed without issues.
How we can help
While many firms still rely on manual processes that extend transfer times unnecessarily, technological improvements are driving the industry toward faster, more efficient transfers. The upcoming DTCC modernization in 2025 marks a significant step toward two-day standard transfers, benefiting both firms and their clients.
Our team specializes in helping brokerages and banks optimize their transfer operations. We provide technology solutions and expertise to:
- Automate manual processes
- Reduce transfer times to the fastest possible standard
- Minimize errors and exceptions
- Prepare for the mandatory 2025 DTCC ACATS modernization
- Improve customer satisfaction through faster, more reliable transfers
Contact us to learn how we can help your firm achieve industry-leading transfer efficiency.