[In the United States, when transferring assets and stocks between accounts at different brokers, the 'cost' information (cost base) will be transferred simultaneously.]

[In the United States, when transferring assets and stocks between accounts at different brokers, the 'cost' information (cost basis) will be transferred simultaneously.] Easy Investment Chat CLEC Investment and Financial Education Academy Blog Date: May 26, 2021

Good morning, teacher!

Reporting to senior! I just finished listening to your Clubhouse and noticed that some of the 'research' shared by that Silicon Valley investor friend at the end was not entirely accurate, so I wanted to share my own actual experience with you here. Currently, my brokerage account, Roth IRA, and Rollover IRA are all at ETRADE. Recently, I opened a new account at Charles Schwab and will transfer all my accounts from ETRADE to Charles Schwab. Right now, I only have the company 401K and company RSI stocks at Fidelity, which I haven't moved since I'm not leaving or retiring yet.

In fact, for most brokers in the United States whose names are well known, account transfers between brokers, whether for IRA or regular stock accounts, should handle all cost basis information together. It's unavoidable; it's just a matter of speed. Otherwise, the customer service staff at each broker would be either overwhelmed or exhausted, which would also create more trouble for the brokers and the IRS.

The following are all my actual experiences. By the way, I completed all these account transfers online myself, which was very convenient:

1. I transferred my Rollover IRA from Fidelity to E*TRADE, and all the cost basis information was clearly transferred. About a week after the account was moved in, all the cost basis information was online, which may be related to the fact that Fidelity is a well-known large brokerage.

2. I also once transferred my regular stock account from Robinhood to E*TRADE. The stocks appeared online normally, usually within five to seven days. But it took nearly more than two months for the cost basis information to transfer and appear online!

In the meantime, I even called E*TRADE customer service to ask why I couldn't see the cost basis details. They could only apologize and tell me that this is a Robinhood issue, and transferring these cost basiss from Robinhood is relatively slow. However, the customer service representative told me that if I want to trade these newly transferred stocks or ETFs, it's fine at any time, because those cost basiss will eventually arrive. This might be because Robinhood is a small online broker! So it really is better to go with a long-established larger broker.

In summary, the cost basis information for account transfers between most brokers will generally be transferred. Those who are concerned can keep their monthly statements in advance for future reference. This is a sharing based on my personal practical experience, and perhaps the teacher will have a chance to share again in the future!

Next, I will share a bit more detail about account transfers, which may be helpful for a few people who have no concept or experience at all. Here are the details:

If someone wants to transfer their regular investment account (brokerage account) or retirement account (Roth IRA, Traditional IRA, Rollover IRA, etc.) from 'Broker A' to 'Broker B,' they can do so themselves on Broker B's website as long as they have the corresponding account at Broker B, without notifying Broker A. If there is no corresponding account, they must first open the corresponding account at Broker B and then transfer the account from Broker A. A typical account transfer takes three to ten days, depending on the broker. After the account is successfully transferred to Broker B, basic information about individual stocks and ETFs (such as the number of shares and market value) will appear first, while detailed information about the purchase cost and time of individual stocks and ETFs will transfer later, depending on each broker's situation.

Example:

William wants to transfer his Rollover IRA at Fidelity to his account at Charles Schwab, but he currently does not have a Rollover IRA account at Charles Schwab. Therefore, William must first open a new Rollover IRA account at Charles Schwab, and then he can proceed with the account transfer. There is no need to go through any broker; he can complete all of this 100% online by himself.

By the same logic, transfers for other accounts (brokerage account and Traditional IRA, Roth IRA) are the same...

Thank you, senior. Have a great weekend!

PS: Supplement

I would like to add some points about transferring accounts between brokers.

1. I agree that it is best to retain cost information before the transfer; however, institutions usually keep old account information for another 1-2 years. If necessary, please take this opportunity to download it.

2. Sometimes calling the institution directly can speed up the process, and you can specifically tell the agent to carry out the physical transfer based on cost information.

3. Some institutions charge transfer fees. You can request the receiving institution to reimburse them.