When you started investing, you may have found yourself simply choosing the cheapest or easiest investment platform or broker to hold your investment accounts with.
However, since then, your priorities might have changed, or you may even have found a platform with better rates and fees for your style of investing.
UK investors have a huge range of investment and trading apps to choose from, and you’ll be pleased to hear that it’s very much possible to switch to a different platform. In fact, it’s often sensible to shop around and see whether there’s a better broker or platform that’s more suitable for your needs than your current provider.
So, find out how to transfer your investments to another broker, as well as the best platforms to consider moving to.
How do I transfer from one brokerage to another?
With most brokers, the quickest and easiest way to make your transfer will be to do so online.
Typically, you first have to put in a transfer request with your existing provider. Next, fill out the transfer form with your new broker and return it. From there, your broker will administer your transfer on your behalf.
Please bear in mind that this process may be somewhat different if you’re transferring to or from a broker based outside of the UK.
How do I transfer stocks from one broker to another?
There are two main ways to transfer stocks and investments from one broker to another: via an “in specie” transfer, or as cash.
In specie transfer
An “in specie” transfer, also known as a “stock transfer”, simply means transferring your assets in their current form. Whether that’s stocks and shares or unit trusts and mutual funds, this allows you to stay invested when you transfer.
Stock transfers are useful as it means you can keep hold of your investments alongside any changes in value. The downside to staying invested rather than liquidating your investments is that it can take upwards of four weeks to transfer your holdings.
Your other option is to sell your holdings and transfer your money as cash. You can make a cash transfer either by selling your investments yourself or by instructing your broker to sell them on your behalf and then transfer the value over to a new broker.
Cash transfers tend to be more straightforward than in specie transfers, meaning they’re typically carried out sooner. However, you obviously also run the risk of missing out on investment returns in the meantime or having to sell at a time when the price isn’t favourable for you.
Transferring ISAs and pensions
There are a couple of extra considerations when transferring ISAs and pensions.
Whether you’re looking to transfer a Cash ISA or a Stocks and Shares ISA, ISA transfers can be slightly more complicated.
ISA investments are entirely free from Income Tax and Capital Gains Tax as they’re protected in the “ISA wrapper”. However, when you transfer an ISA, you need to make sure that the cash or investments are kept within the wrapper. If you don’t do this, you’d have to use your remaining ISA allowance to make your transfer.
Even worse, if this meant you exceeded the ISA allowance, you may have to pay tax on those investments.
To make sure your investments remain within the wrapper, you need to instruct your broker to make a specific ISA transfer. Typically, this involves another transfer form where you can specify exactly what you would like to happen with your ISA.
You can transfer an existing self-invested personal pension (SIPP) or another type of pension into a SIPP with a broker. However, this can be risky, particularly as this is likely the money you’ll need to live in retirement.
That’s why it’s often essential to take financial advice from a professional advisor before you transfer a pension, particularly for a workplace or final salary pension.
Can I transfer all my stocks from one broker to another?
Yes, you can complete a full transfer of your stocks to another broker.
Can I transfer part of my portfolio from one broker to another?
Alternatively, you can also transfer part of your portfolio. This is known as a “partial transfer”. Bear in mind that by doing this, you may have to pay commission and/or dealing account fees to two brokers, rather than just one.
Beware exit fees
Before you go ahead with a transfer, one key thing to remember is that you may have to pay exit fees to your current broker. These fees could make it less cost-effective for you to move, even if you’d be going to a cheaper service.
You should also check whether your new service has exit fees. This is important to do as, if you transfer over and then realise it isn’t the right broker or platform for you, you may have to pay even more to move again.
Best platforms to transfer investments
When choosing a new broker or platform to transfer existing investments over to, your priority should be to find one that both meets your needs while also not charging transfer fees if you need to move on again.
Fortunately, there are plenty of brokers and platforms across the financial services industry that will offer this service.
Why transfer to another broker?
There are various reasons that you might want to consider transferring to another broker. Realistically, the best broker for you will depend on your personal circumstances and your investment goals.
Whether that’s your share dealing account fees or commission fees when you buy and sell, another broker may have better rates and fees.
Greater choice of investments
Some brokers and platforms may offer a wider range of investments that you’re interested in buying. For example, if you wanted to invest in crypto, you’d need a broker such as eToro who offers this service.
Better customer service
You may have had a bad customer service experience with your current broker, and so want to move to a different one where you feel you may be treated better.
Better user experience
Some brokers offer a superior user experience, whether that’s on an app or on their website.
Checking the FCA register
One other crucial thing to remember when transferring money or assets to another broker or platform is to check that the firm is listed on the Financial Services Register on the Financial Conduct Authority (FCA)’s website.
The Financial Services Register is a database of firms that are authorised and/or regulated by the FCA. The Register includes a firm’s basic details, such as its registered office and company number, as well as specific permissions for what sort of financial activities it can carry out.
Make sure you check that your new broker is listed on the Register so that you can be confident that the service it’s offering you is genuine.
The value of your investment can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance. Levels, bases of and reliefs from taxation may be subject to change and their value depends on the individual circumstances of the investor.