ACATS Transfers in Singapore

Views 2585Mar 6, 2024

As you build your portfolio and grow your investments, you may discover that you want to change your brokerage at some point. If you are a stock trader or a buy-and-hold fund investor, it is not uncommon to transfer securities from one broker-dealer to another.

Transferring or switching brokerage accounts does not have to be hard. ACATS or in-kind transfer can not only help you make the change quickly, but it can also often help you save time and frustration.

Unlike some non-ACATS eligible brokers, moomoo SG offers the ACATS method to all of our clients from TD Ameritrade. As a faster and simpler way to transfer than the traditional DTC method, ACATS helps to save your time and energy while minimizing the potential for errors. More importantly, ACATS allows you to have greater flexibility in transferring different kinds of assets in both full and partial ways, including stocks, options, and cash balances, which may not be available through non-ACATS eligible brokers.

Before initiating any transfers, here is what you need to know about the ACATS process.

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https://invest.sg.moomoo.com/transfer_in

What is ACATS?

ACATS stands for Automated Customer Account Transfer Service. If you want to transfer your investments between brokers, this system can help you complete the process with fewer obstacles. ACATS gives investors the freedom to work with a broker that fits well with their investment goals. With the help of ACATS, you do not have to sell your investments, transfer the cash, and then rebuy stocks with a new broker. Instead, the National Securities Clearing Corporation (NSCC) facilitates the transfers between the brokerages.

Many brokers accept ACATS transfers or in-kind stock transfers for a wide array of common investment types, including stocks and bonds, ETFs, mutual funds, and options. However, not all brokers offer all investment types, so transfers that the new broker does not support will need to be sold first, and then transferred as cash.

What are the benefits of ACATS?

Well recognized for its electronic transfer of assets, ACATS facilitates the transfer of securities between brokerage firms, making the whole process simple and fast. In comparison, the manual method DTC can be time-consuming and intricate, as multiple parties, including brokers, banks, and custodians, will get involved to complete the process, largely reducing the efficiency.

An ACATS position transfer provides many benefits for building your portfolios. Among others, four benefits stand out.

Tax Benefits

Cashing out investments to move to a new brokerage can have tax consequences for investors. Making a transfer through ACATS can help alleviate the tax consequences of selling investments since this is a transfer and not a sale.

Greater brokerage flexibility

Instead of being tied down with a single brokerage for decades, inventors have greater flexibility and can switch between the brokerages best suited for their goals.

Broad range

The ACATS system can also simplify moving investments between brokerage firms and some banks.

Simplified transfer process

The stock transfer process is quicker and more efficient than manually cashing out and transferring investments.

How does ACATS work on moomoo SG?

Moomoo SG supports transfers via the ACATS method from TD Ameritrade Singapore. If you want to transfer positions from TD Ameritrade Singapore to moomoo SG, simply follow three steps and help your assets find a new home.

Step 1: Start the transfer process in the moomoo app

1.1 Click "Accounts", go to "Transfer", select "Transfer Stock In"
1.2 Select “US Market”

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Step 2: Provide details of your TD Ameritrade account

2.1 Select "TD Ameritrade"
2.2 Enter your account number with TD Ameritrade
2.3 Upload your account statement with TD Ameritrade

Please provide your latest account statement in PDF format. The statement must include your address, full name, and position quantity.
Learn more about how to find your account number, or how to find my statement with the other broker.

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Step 3A: Choose Full or Partial Transfer: select "Full Transfer"

3a.1: Select "Initiate Full Transfer" for all your assets from TD Ameritrade SG.
3a.2: Confirm your account number and statement with TD Ameritrade.

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Step 3B: Choose Full or Partial Transfer: select "Partial Transfer"

3B.1: Select "Initiate Partial Transfer" from your TD Ameritrade SG account.
3B.2: Choose the Stocks, Options, or Cash you wish to transfer to moomoo SG.

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Questions you may ask about the ACATS transfer

While using ACATS is generally straightforward, investors can lean heavily on their new brokerage to answer any questions they might have. Here are some issues you may want to take a look at.

ACATS transfer fees

When you apply to transfer your investments, you will often receive a fee charged by your old broker. A transfer fee typically falls in the $50-$100 range. However, some brokers will reimburse you for this fee when you transfer investments to them. Others might offer a bonus for joining that covers the fee. For instance, moomoo SG does not charge any fees for shares received into your moomoo SG universal account with us, but TD Ameritrade may charge a fee. Please consult TD Ameritrade for details.

Many people decide to switch brokers because of lower or no commissions. If your new brokerage does not reimburse your transfer fee, chances are that the lower or lack of commission fees will allow you to make up the difference.

ACATS transfer timeline

Once you begin transferring your accounts, it can take five to seven business days to complete. Ask your new broker for timeline information as they may have a better idea of the ACATS transfer timeline based on your specific account. They might also have a way for you to track the process.

Times may arise when this process gets delayed. For example, if the institution transferring your investments to the new brokerage is not a brokerage specifically, the process may take longer. Certain accounts, such as those with a custodian or bank, may also take longer to transfer.

Due to a potentially high volume of position transfer requests at TD Ameritrade, the position transfer-in process may take longer than usual. The transfer process may take up to 15 business days, depending on when TD Ameritrade processes and transfers the shares out of your account.

ACATS transfers eligible assets

For financial assets trading on US markets and exchanges, moomoo SG accepts the transfer of stocks, ETFs, American Depositary Receipts(ADRs), and Options. moomoo SG supports the transfer of selected US listed ETFs (traded at over US$5/share and has a market value of over US$300 million).

For TD Ameritrade customers, please note that both US options expiring within 14 days and US Index Options cannot be transferred. Finally, other financial assets that may not be eligible for transfer include fractional shares, short positions, selective OTC stocks, mutual funds, bonds, futures, and annuities.