ACATS / Outbound Transfer Fee
The Formal Definition
An administrative exit fee charged by a brokerage to transfer an investor's securities and cash out to another brokerage firm via the Automated Customer Account Transfer Service.
Exit Drag = Outbound Transfer Toll ($50 to $100 per Account) + Liquidation Fees for Partial Shares
Cole Barrett's Reality Check
The Unvarnished Bottom Line"Outbound transfer fees are a broker's exit penalty. When you decide to leave for a better platform, your old broker will often hit you with a $75 to $100 fee just to electronically send your shares over the ACATS network."
Interactive Simulator: Test the Math
Real-World Example: Scenario Breakdown
Examining the real numbers for: Transferring an account with 8 stock positions to a new brokerage
| Execution Metric | Broker with ACATS Reimbursement | Transfer Without Reimbursement |
|---|---|---|
| Fee / Rate | Old broker charges $75 outbound exit fee | Old broker charges $100 full ACATS fee |
| Spread / Buffer | New broker offers transfer fee reimbursement | Fractional shares liquidated with trading fees |
| Execution / Status | Transferred entire portfolio intact | Exit fee debited from account cash |
| Total Cost / Result | Switched platforms with zero out-of-pocket exit drag | Paid a 2% fee penalty to move a $5,000 portfolio |
How Brokers Weaponize This Term
Brokers keep outbound transfer fees high to discourage clients from moving portfolios to lower-cost competitors, while making account deposits fast and completely free.
Broker Evaluation Matrix
Cole Approves
Webull / Interactive Brokers: Regularly offers ACATS transfer fee reimbursements and deposit promotions for incoming account transfers.
Read Audit →Cole Flags / Avoids
Legacy Retail Brokerages: Charges $75 to $125 in outbound ACATS transfer fees without fee waivers.
View Trap Details →Frequently Asked Questions
Will my new broker cover my old broker's transfer fee?
Many competitive brokers (including Webull, Robinhood, and Tastytrade) will reimburse your outbound ACATS transfer fee if you transfer an account above a minimum balance (usually $2,000 to $5,000).
Can fractional shares be transferred over ACATS?
No. The ACATS network only transfers whole shares; any fractional share positions will be liquidated to cash by your departing broker.