ACAT system ?'s

Derf

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Administrative nuisances with some financial institutions
Here is a thought. Have the financial institution that you are moving the assets to use the ACAT system to make the transfer. The link below will describe how this works.
https://www.investopedia.com/terms/a/acat.asp
Old_Skeet November 30 in Fund Discussions

First I was interested if anyone here ,MFO'ers, or visitors have used ACAT ? Second question . Can anyone answer as to how much this would cost ? I checked the link & didn't find anything related to the cost. I guess I''ll google ACAT & see what shows up.

@Old-Skeet; Thanks for the link & just for the record I sold the few shares of BHF @ $3.50/ share commish& moved on.

Derf
Added:
Came up with this fee schedule , but I don't know how dated it is plus one may encounter closing fees !!
List of brokers and their ACAT fee:

WellsTrade: $95
Bank of America: $75
TD Ameritrade: $75
SogoTrade: $75
E*Trade: $60
Charles Schwab: $50
Zecco: $50
Sharebuilder: $50
TradeKing: $50
FirstTrade: $50
OptionsXpress: $50
Scottrade: $0
Fidelity: $0

msf

I believe (on little but circumstantial evidence) that these fees are for transfers of securities, regardless of medium. That is, the fees would be charged regardless of whether the ACAT service were used to send the securities to another institution. It's just that in nearly all cases, the securities are sent via ACATS. Hence "transfer" and ACAT are used synonymously.

For example, WellsTrade says that its "Outgoing Transfer Fee" is $95 (and that it "will display as “Termination Fee” on client statement.") It does not say that this is for a transfer via ACATS.

Third party sites often conflate account transfer and ACAT:

• Top Rated Firms:Account Transfer Out Fees At Brokers (ACAT Cost)
• BrokerageReview.com: Wellstrade Account Closing Fee (ACAT)
• Magnify Money: To transfer the assets in your account, many brokers charge you what is known as an ACAT fee.

That last page does a much better job of explaining what's going on. While calling the fee an "ACAT fee", it clarifies that the fee is "for the costs [brokerages] incur to complete the paperwork necessary to make the transaction as well as to transfer information about the purchase date, cost basis, etc., of securities in your account." I recommend this page for a clear explanation of the transfer process and fees.

Consistent with its guidance on avoiding outgoing fees, I've closed a Schwab account for free by transferring all securities out ($0 for a partial transfer), and getting a check sent for the remaining few dollars of cash left in the account.

The Investopedia page is at best imprecise. It seems to imply that the ACAT system can handle all security transfers. But it cannot handle fractional shares. I believe this is why Merrill simply will not transfer fractional shares, even of mutual funds that trade in fractions. On the other hand, Merrill will accept incoming fractional shares, which are transmitted outside of ACATS by most other institutions.

Investopedia also seems to imply that mutual fund families can use ACATS ("NCC-eligible members"). According to DTCC (which through its NSCC subsidiary runs ACATS), "Mutual Fund Service Members of NSCC are eligible to use the service on a limited basis, only as the contra-party to a transfer initiated by a broker dealer or a bank for the purpose of re-registering a mutual fund position to or from them directly."

The ACAT system is just the usual medium for transferring securities into or out of a brokerage. If you've ever transferred an account or a holding from one brokerage to another, you've made an ACAT transfer. So if you've ever closed an account by doing anything other than liquidating it and getting a check cut, you've likely used ACATS.

Derf

@msf: Thank you for more clarification on this post.
Derf

carew388

IIRC, I transfered mutual fund positions with fractional shares when I closed my TDAmeritrade and Scottrade accounts.

msf

I've transferred fund positions with fractional shares as well, but I believe the fractions transfer separately, outside of the ACAT system. Not sure about that, though.