Afraid to Switch Brokers Because of Transfer Fees? Fear No More

Investing, Investments
Afraid to Switch Brokers Because of Transfer Fees? Fear No More

Some people are afraid to switch to a better brokerage account because they’re afraid of transfer fees. These mysterious, “hidden” fees cause people to stay with brokers that charge absurd per-trade commissions.

Here are the facts of the matter:

  • ACAT fees, or transfer fees, are not that expensive. Most of the time, they are between $50 and $100.
  • If you want to know for sure what the ACAT fees are, simply go to the broker’s website and look under Other Fees, where they will be listed. Not all brokerage accounts have these fees.
  • If you are unwilling to pay this fee to change brokerage accounts, keep the math in mind. Slightly higher commissions add up quickly.
  • Example: TD Ameritrade charges $9.99 per trade and has an account transfer fee of $75. TradeKing charges $4.95 per trade. If you make one trade per month, you will be saving money in 15 months. If you switch to a deep-discount broker, such as SpeedTrader ($0.99 per trade), you can be saving money in less than 9 months.

If you’re still worried about incurring ACAT fees, look into transferring to one of the following brokers. They all want to help you make the switch as simple and inexpensive as possible, and will give you real cash to help out.

TradingBlock

Amount of Transfer Fees They Cover: $100
Conditions: Must fund account with at least $2,000
Price Per Trade: $7.50

Just2Trade

Amount of Transfer Fees They Cover: $100
Conditions: Must fund account with at least $10,000
Price Per Trade: $2.50

Sogotrade

Amount of Transfer Fees They Cover: $100
Conditions: Must transfer an account of at least $25,000
Price Per Trade: $3.00