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How to Move Your Brokerage Account in 5 Simple Steps

Transferring a brokerage account seems a little intimidating to many investors. But if you are in an unhappy brokerage relationship, don't let the paperwork scare you. Whatever your reasons for leaving, it's easy to get it done if you know the right questions to ask.

There are two general ways to transfer one account to another broker. If your current account is all in cash you will probably have an easier time with a check or wire transfer. However, if you have open positions and don't want to close them, it gets a little (but not much) more complicated.

Securities brokers have a process called ACATS (Automated Customer Account Transfer Service) that is managed by the NSCC (National Securities Clearing Corporation) for moving open positions and cash from one broker to another. An ACATS transfer essentially takes your account from one broker and replicates it, including your open positions, with another broker.

Here are five tips to make this process as pain-free as possible...

NEXT: Tip #1: Let your new broker handle it.