How to Change Broker Dealers

Changing brokerage firms is relatively easy, but does require time.

Investors often change their brokerage firm to receive better commissions, fees or services. Changing brokerage firms is relatively easy, but does require about five to ten business days depending on the broker. Larger trading accounts usually take longer to change brokers due to the fee processing and the security measures that go along with transferring tens of thousands of dollars. Carefully consider whether you may need to trade before you change brokerage firms. During the time you are changing firms you are unable to trade stocks.

Instructions

1. Choose a brokerage firm that is right for you. There are hundreds of different online brokers and more than likely a brokerage firm near you. Ask about the commission, fees and services of the firms you are assessing. Compare these values with your current brokerage firm. In addition, research reviews of the brokerage firm online.

2. Evaluate whether or not you need to change brokerage firms. Often most brokers execute stock trades at the same speed due to electronic communication networks (ECNs). Furthermore, if you change brokerage firms you will be unable to access your money. In addition, during the time you change brokerage firms no interest rates will apply to your portfolio.

3. Request an application from the brokerage firm you would like to switch to. Have a photo identification card and all your financial information to fill out the application. Email, fax or mail the completed application to the brokerage firm.

4. Call your brokerage firm daily to check the status of your account application. Processing an application typically takes one to three days, but some brokerage firms take up to a week.

5. Liquidate all your current assets in your current brokerage firm once your trading account has been created. This is done by selling all of the stocks you currently own.

6. Ask your new brokerage firm about wiring instructions. Request your current brokerage firm to close your account and wire the money to your new brokerage firm. The other option is to request your current brokerage firm to send your new brokerage firm a check.

References

• Dolans: How to Easily Change Financial Brokerage Firms
• The Digerati Life: Transferring Your Brokerage Account? Switch Brokers With Ease