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I want to transfer some of my stocks to another person.

Right now, my stocks are in Interactive Brokers. The other person's account is in Fidelity.

It seems that ACATS does not support transfer between two different people.

What is the best way to do it without selling my stocks?

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  • Have you asked IB?
    – RonJohn
    May 27, 2021 at 22:14
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    Google: "Transfer Shares of Stock to Another Person" and see if any of the suggested ways to do so can be done at IB. May 27, 2021 at 23:08
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    Also consider creating a Fidelity account for transferring the shares into so that the transfer will be within one organization. Without details of why you may wish to check with Fidelity. May 28, 2021 at 6:41
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    What are you trying to accomplish by not selling the stocks? If you are doing this in an attempt to defer your taxation on realizing a capital gain on selling, you should be aware that transferring the stock is likely considered a 'taxable event' anyway [though you didn't list a tax jurisdiction]. May 28, 2021 at 13:22
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    @HartCO Yes, it could be a gift. If I sell the stock, transfer the money to the recipient, and then the recipient uses the money to buy the stock again, we could end up losing money if the stock price is in the upward trend. That is why transfer the ownership of the stock may be a better solution. May 29, 2021 at 16:15

1 Answer 1

-3

I think it is a bit late for my answer but your question made me think about how one could do that "next time".

Next time, one could open an LLC, then register the account at IB to the LLC and buy the stock with that account. Then if you want to transfer stock, you could do so internally. Or sell the entire LLC, etc.

Update (June 2023):

  • Emphasis in NEXT TIME, IF, starting from 0...
  • An LLC can be opened overnight ( or the equivalent depending on the country )
  • e.g. in Delaware you can get an LLC with printed bearer shares. https://corplaw.delaware.gov/facts-and-myths/
  • This is all assuming the cost of the shares and transaction is worth the cost of the LLC and time.
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    Good point. This could be a solution for me next time. May 28, 2021 at 2:56
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    What do you mean with 'the idea of 'transferring internally'? Not sure that is a well fleshed-out concept. May 28, 2021 at 14:41
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    I think he means change the ownership of the LLC. Then, you don't need to change anything with the brokerage you use. It is a smart idea. I don't know why people do not like this idea and gave him "-4". May 29, 2021 at 16:09
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    This seems like an extraordinarily difficult way to accomplish this. As far as I know, transferring stock usually means submitting one form, or perhaps two forms and a phone call. Taking the advice in this answer, on the other hand, would seem to consist of forming an LLC, and then transferring money to the LLC, and then transferring ownership of the LLC, after which the recipient will eventually have to transfer the cash back out of the LLC and dispose of the LLC. That sounds several times more complicated than necessary. May 30, 2021 at 5:47
  • @TannerSwett. I have updated the question. I am not thinking on disposing of the LLC nor cashing out the stock. Instead, for NEXT TIME, one could evaluate the viability of using an LLC. Then you can simply sell the LLC along with the account and issue an internal act. The new owner could then change the withdraw setting for cashing out when desired, if asked, he has proof of ownership of the LLC. Jun 12, 2023 at 6:53

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