It is a common request from traders to transfer assets from their accounts within other brokerage firms to the firm running the ETNA Trader platform. Now, it is possible to do so digitally with the Automated Customer Account Transfer Service (ACATS). This eliminates the need to sell stocks with the current broker and then invest the proceeds with a new one to switch brokers. With ACATS, it is now possible to simply move the investments.
What is ACATS?
The Automated Customer Account Transfer Service (ACATS) is a system that automates and standardizes procedures for transferring assets in a customer account from one brokerage firm or bank to another. Customers can transfer US stocks, options, ETFs, most mutual funds, and cash.
How does it work?
Using one of the ETNA Trading frontends, a trader can initiate a transfer by specifying a carrying firm, account number, securities tickers, and quantities. The resulting request then needs to be approved by the trade desk in ETNA Back Office to be sent to the clearing firm for processing with NSCC. Once processed, the trader will automatically receive the requested securities with the same purchase prices in their account.
How long does it take to complete a transfer?
The delivery time is 3-6 business days, compared to up to one month or more for a non-ACATS transfer.