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

Oct. 30, 2012
Investing, Investments
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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.