Here’s a post that’s more of a FAQ for newer or maybe even more experienced traders.
I recently made an ACATS transfer this week. What is an ACATS you ask? ACATS stands for Automated Customer Account Transfer Service. In a nutshell, it is a transfer of your positions from one brokerage to another brokerage. It removes the middle man of transferring from broker to your bank then to your new or other broker.
My old broker was Scottrade. I was mostly doing swing trades and using my 3 day trades per week as well. I’ve decided to take the plunge and fund a $25k+ account so that I can day trade freely without the PDT restriction. The broker I transferred to was Interactive Brokers.
So I had 3 open swing trade positions in MU, S and AMD. Each position transferred over without any hiccups. The only thing to watch out for is that you cannot sell/buy during the transfer period which could take up to 4 days. For me it only took 2 business days so it happened relatively quick. And luckily none of those positions took any huge swings in the 2 days it took to transfer over.
For those of you looking to make a switch in brokers, I thin ACATS is the best and easiest way to do it since it removes the hassle of using wire transfers and losing a few dollars in fees and commission as well.