Is your existing brokerage account not working well for you and you are looking forward to transferring your stocks to another brokerage? If yes, then you have come at the right spot. Many people are confused about whether it is possible or not. Well, let us clear this for you in detail. Yes, it is possible and you can easily transfer your stocks from one brokerage to another.
However, you have to go through an entire process to achieve this. The procedure can vary from broker to broker. But you have to be prepared to pay some fees to the brokerage firms for transferring your stocks otherwise they will create certain obstacles in your path.
Process to transfer stocks from one brokerage to another
• Picking a new broker:
Before you think of shifting your investment from current broker to another, ensure to pick a reliable new broker. There are various things you need to consider before choosing a trustworthy brokerage including the fees charged by them. You can begin your research online. Look for the different brokerage firms online and visit their website. Check how many ratings each website has received. Also, do not forget to read the online reviews posted by the past clients to know if the firm is reputed or not.
• Submitting TIF:
The entire process of transferring will begin once you submit the TIF (Transfer Initiation form). But from where you will get this form? You will receive this form from the brokerage firm where you want to transfer your stocks. Fill in all the required details in the form and submit it. Make sure that all the details you mentioned in the new form should match with the form of your existing brokerage.
• Contacting the current brokerage firm:
The next step involves contacting the existing brokerage firm after submitting the TIF. But this is done by the new broker. The former broker also known as the delivering firm will verify the information provided by the new one. They will verify if the details provided matches with the forms that they have. If they find any errors in it, be prepared to get this issue resolved. You may also be asked to pay fees to the new brokerage firm to get these mistakes resolved.
• Reviewing the assets:
After the TIF gets accepted by the delivering firm, you should start working with your new broker to review your assets. This will help you know if the brokerage firm is ready to accept the assets available in your account. You cannot guarantee that the new broker will accept the mutual funds that were present in your previous account.
Different brokers have different credit requirements. If by chance any problem arises, you can try to resolve it by working with your new brokerage firm. After everything is resolved, you are just required to wait for the stocks to get transferred. It might take a week for the entire process to get complete. Check out tradingforexsites.com to find the best brokers that can help you with this process.
Advantages of investing in stocks
• Great profits in short term:
There are many forms of investments accessible to us but out of all of them, the stock market is the best choice if you want to earn huge profits in the short term. Obviously, there are risks involved as well but when you have the right knowledge and follow the right steps, you end up receiving great returns on your investment. Infact, you also get a good opportunity to earn profits in the long run by investing in stocks.
• Ownership stake:
Investing in stocks is the best method to become a small owner of a company. Whenever you purchase any organization’s stock, the ownership stakes are shared with you. Although the percentage is very low, whenever the business will take any important decisions related to the company, you have the right to vote. In case, you do not want to remain a minority owner of any company, then you can simply sell its stock to some other person willing to buy it.
• Easy to purchase:
Many people think that buying a stock is a lengthy process but in reality it is not. You can purchase the shares of any company in the stock market very easily. All you need to do is find a reliable broker online to do such transactions. Once you have selected the right broker, you need to create an account on their site. After creating an account, it will take you only a few minutes to buy a stock if you know which one is profitable for you.
• No need to have a lot of money:
Another assumption that amateurs have about the share market in their mind is that they need a lot of money to start investing in the stocks but this is not true. There are certain brokers available who allow you to purchase a fraction of shares that are too expensive for you. It means even if you want to buy an expensive share, you can consider purchasing a fraction of it according to your budget.
The term liquid is used by economists to refer to shares that can be converted into cash quickly by paying very low transaction charges. The best thing about the stocks is that you can sell them at any point of time you want and take out your cash. It is a great point to consider if you need money urgently.
To Sum Up
Yes, you can easily transfer your stocks from one brokerage firm to another. The process may vary depending upon the brokers. However, to give you a better understanding we have shared some general steps that can help you learn about this simple procedure. Also, check out the benefits of investing in stocks to know more about it.