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How to Transfer a Portfolio to Another Broker

6 min readCompound

Key takeaways

In many cases, a portfolio can be transferred to another broker directly as securities, without the need to sell everything and buy again — thereby preserving both the acquisition price and the ongoing holding period.

Why the Transfer Method Matters

If you decided to sell your portfolio and rebuy it at the new broker, two problems would arise: you would pay tax on any gain, and your three-year holding period would reset — after which gains are exempt from tax in the Czech Republic (subject to the conditions set by law). A direct transfer eliminates these risks.

How a Direct Transfer Works

It is referred to as "transfer in kind" or in the US as "ACATS." Securities are physically moved from the original broker's custodian to the new account. The conditions are that:

The process is initiated by the receiving broker — you fill in a form with account details and the ISINs of the securities. The departing broker may charge an exit fee, typically ranging from EUR 10–50 for the entire transfer or per instrument.

Tip: Find out the acquisition prices of your securities before the transfer — the original broker may not easily provide them after your departure, and you need them for your tax return.

What Cannot Be Transferred

Fractional shares must be sold. Similarly, savings plans (savings plans) activated with the original broker — you will set them up again at the new one. Mutual funds from local managers also have no inter-broker transferability.

Tax Perspective

A direct transfer itself does not create a tax liability — it is not a sale. The key is to keep records of acquisition prices and purchase dates so that you can correctly calculate the tax base at a later sale. For broader context, we recommend the article on taxes on ETFs in the Czech Republic.

Before the actual transfer, also review the broker comparison — make sure the new broker truly offers everything the current one does, and on more favorable terms.

FAQ

Do I have to sell my entire portfolio when switching to a new broker?

No. At EU-regulated brokers and elsewhere, there is a direct transfer of securities without selling. It preserves the acquisition price and does not cancel the holding period. However, it depends on whether both brokers support the given instrument.

How long does a portfolio transfer take?

Typically 1–4 weeks. It depends on the brokers and the custodian through which the securities are held. Euroclear or DTCC tend to have faster processes than local administrators.

Do I lose the holding period with a transfer?

No, if it is a direct transfer (transfer in kind). The acquisition date of the security does not change — the holding period continues. A sale and repurchase would reset the holding period.

How much does a portfolio transfer cost?

The departing broker may charge an exit fee, typically EUR 10–50. Some new brokers refund this fee as a switching bonus. Always verify the current fee schedule on both sides.

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