ACATS transfers
Transfer brokerage accounts to or from Frec via ACATS. Check timelines, full vs. partial rules, cancellation steps, and transfer fees.
What is an ACATS transfer?
An Automated Customer Account Transfer (ACAT) is used to transfer securities between brokerage accounts held at different firms. These transfers are automated by a system called the Automated Customer Account Transfer Service (ACATS).
An ACAT is initiated when a customer submits a transfer request to the brokerage firm they want to transfer securities to (the "receiving firm"). The receiving firm then communicates with the firm the assets will be transferred from (the "delivering firm") through the ACATS system. Once the delivering firm receives the instructions, they begin the transfer process.
The delivering firm reviews the instructions and can reject the transfer for reasons such as mismatched or incorrect information, or if the transfer would create a credit violation (for example, causing a margin call). If the delivering firm finds no issues, they're required to promptly transfer the securities to the receiving firm.
Not all brokerage firms use the ACATS system. If the firm you want to transfer from doesn't support ACATS, contact us for more information.
Before transferring securities from an external brokerage account into Frec, you'll need to connect that account to Frec, either with Plaid or manually. See our guide on connecting an external brokerage account for instructions on both.
How long does an ACATS transfer take?
A standard ACATS transfer typically takes 5–7 business days once initiated, though it may take longer if an account requires manual review by our clearing firm. You can check your transfer status under the Activity tab.
Full vs. partial transfers
You can transfer your entire account (a full transfer) or only specific positions (a partial transfer). A full transfer will typically close your account at the delivering firm once complete, while a partial transfer leaves the remaining assets and account open there.
The ACATS system doesn't support transferring fractional shares. If you choose a full transfer and your account includes fractional positions, the delivering firm will liquidate those shares and sweep them over as cash rather than transferring them in-kind.
Cancelling an ACATS transfer
Contact us to request the cancellation of a pending ACATS transfer.
Cancellation is a best-effort request, not a guarantee. Once a transfer is in progress, it may not be possible to stop it, depending on how far along it is with the delivering firm, even if you request the cancellation promptly. We also recommend contacting the delivering firm directly to ask them to help stop the transfer on their end. Cancellations are more likely to succeed when both firms are working on it together.
Fees
There is a $75 fee for outgoing ACATS transfers, whether full or partial. See our fee schedule for details. Frec doesn't charge a fee for incoming transfers.
The $75 fee is deducted from your cash balance. If you don't have sufficient cash available, the transfer may be rejected by our clearing firm.
If you're transferring a portfolio line of credit (PLOC) balance to another firm, the $75 fee may instead be added to your loan balance, depending on the receiving firm.