---
title: Transfer securities into a classic direct index
description: Move whole shares into a classic direct index from an outside brokerage using ACATS, or fund it with cash instead.
---
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2. [Transfers & deposits](https://help.frec.com/en-us/transfers-deposits?hsLang=en-us)
3. [Securities transfers (ACATS)](https://help.frec.com/en-us/transfers-deposits?hsLang=en-us#securities-transfers-acats)
September 15, 2026
# Transfer securities into a classic direct index
## You can fund a classic direct index with cash, or by transferring individual whole shares directly from an external brokerage, including robo-advisors, into your self-managed portfolio on Frec without selling them, using ACATS. Most brokerages, like Betterment, allow partial transfers. Others, like Wealthfront, require a full transfer.
### What happens during a full transfer
All ETFs, stocks, and other securities in your external account (including mutual funds, fixed income, and options contracts) transfer in-kind to Frec's self-managed portfolio. [Learn more about which assets you can transfer into Frec.](https://help.frec.com/hc/en-us/articles/19984393231764-What-type-of-assets-can-you-transfer-into-Frec?hsLang=en-us)
Any cash from your external account becomes available as cash in your Frec account.
We'll also bring over your ETF and stock tax lot information, though this can take 3–5 additional business days once your transfer is received.
See our [ACATS article](https://help.frec.com/hc/en-us/articles/10653302477716-What-is-an-ACATS-transfer?hsLang=en-us) for more details.
### Funding your direct index with stocks
1. Transfer your stock into Frec first, or use stock you already hold in your Self-managed. See our guide on [transferring securities into Frec](https://help.frec.com/hc/en-us/articles/19984393231764-What-type-of-assets-can-you-transfer-into-Frec?hsLang=en-us) for how to do this.
2. Go to the [**Invest**](https://frec.com/app/invest) tab \> choose your index \> click **Start** to begin creating your direct index.
3. When it's time to fund, select **Fund by ETFs or stocks**.
4. Review your holdings which will be split into two groups: **Inside your index** and **Outside your index**.
5. Stock inside your index is assigned a target weight based on your index methodology and any customizations. Only part of each holding may be used to seed it; the rest may rebalance over time.
6. Stock outside your index gets a 0% target weight. It will be sold, and the proceeds used to buy your underweight index positions, while avoiding wash sales. Review your tax lots first, since this can trigger capital gains.
7. If your portfolio is still under the investment minimum after funding it with stock, add cash to reach the minimum.
### Good to know
- Your external brokerage may charge an outgoing ACAT fee, typically between $50 and $100. Frec doesn't charge any fees for incoming ACATs.
- To avoid transfer rejections, make sure the name and account type at your external brokerage match your Frec account.
- If you want to avoid selling when you transfer stock, only transfer whole shares. Fractional shares will be sold and transferred as cash, which could result in a capital gain or loss.
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