Why Switching From the Big Name Brokers Could Be Right for You

It’s normal for your financial goals to change, so it makes sense that you may want to switch from one brokerage to another. You may also want to break up with your broker if you’re tired of paying fees or customer service hasn’t been great. Maybe you just found a broker with a more intuitive website, better investment options, or additional perks. Whatever the reason, you can close your account with one broker and easily transfer to another. We’ll guide you through the process in a few steps.

How to Switch Brokers, Step by Step

1. Select a New Broker

Spend a little time researching brokers to learn about each company—what types of financial products it offers, customer reviews, and reputation. You should also learn about potential transfer fees and how long it takes to complete a transfer. Don’t forget to play around with each broker’s website to get an idea of how intuitive it is.

2. Open a New Account

Once you’ve chosen a broker, double-check that it offers the kind of account you want to open. For example, brokers typically offer investment accounts and individual retirement accounts (IRAs), but some may offer products such as international stocks, low-cost options trading, mutual funds, and cryptocurrency. Then, spend a few minutes providing your information in order to open your new brokerage account.

3. Gather Documentation From Your Current Broker

In order to transfer your current investments to your new account, you’ll typically need your current account statements and tax documents. Your new broker should give you transfer forms to complete using that information. Then, it will probably use an automatic transfer system to move your funds.

4. Transfer Your Investments

After you provide your new broker with the transfer request, it’s important that you don’t trade, which can make the process more complicated or cause delays. Putting a pause on trading makes it easier to complete your transfer request, which should go through within a few days. Then, you can resume trading.

5. Close Your Old Account

If your funds have been completely transferred, contact your old broker’s customer service department and explain that you’d like to close your account. The team will explain how long it takes and initiate the process. Once the account is closed, confirm that it’s closed so you aren’t charged fees going forward.

The Bottom Line

The hardest part about breaking up with a broker is doing the research to find one that fits your financial needs. Fortunately, once you’ve found one, it’s easy to transfer funds and close your old account. That said, if you’re unsure about which broker to use or have questions about your investments, don’t hesitate to speak with a trusted financial advisor.