How to Transfer Your RRSP to a New Brokerage

Why Consider Transferring Your RRSP?

Your RRSP is one of your most important financial assets—it deserves to be at the brokerage that serves your needs best. Many people stick with their original RRSP provider simply due to inertia, but there are compelling reasons to consider moving:

• Better Fees: If you're paying 1.5% MER at your current provider, switching to a brokerage charging 0.20% on index ETFs could save you tens of thousands over your lifetime
• Promotional Bonuses: Transfer bonuses worth $150-$500 are common, essentially giving you free money
• Better Platform or Tools: Some brokerages offer superior mobile apps, research tools, or customer service
• Consolidation: Moving all accounts to one brokerage simplifies your financial life

Understanding Transfer Types: In-Kind vs. In-Cash

In-Kind Transfer (Preferred)

Your actual securities move from one brokerage to another. No selling occurs, so you avoid market timing risk, tax triggers, and trading commissions. This is almost always the better choice. For example, if you own 100 units of VFV at your current brokerage, those exact 100 units move to your new brokerage.

In-Cash Transfer

Your securities are sold at your current brokerage, and the cash proceeds are transferred to your new brokerage where you repurchase similar (or different) investments. This approach creates several risks: you might sell at a market low, you pay commissions at both brokerages, and there's a gap period where your money sits in cash. Only choose this if your current brokerage doesn't support in-kind transfers.

Step-by-Step RRSP Transfer Guide

Step 1: Inventory Your Current Holdings

Before initiating a transfer, document exactly what you own. Create a spreadsheet listing:

• Security names and ticker symbols
• Number of shares or units
• Current value
• Any GICs or cash positions

This documentation helps you verify that everything arrived correctly at your new brokerage and serves as a safety check during the transfer process.

Step 2: Open Your New RRSP Account

Select your target brokerage and open a new RRSP account. You don't need to fund it yet—just have it ready before initiating the transfer. During account opening, note any promotional offers and their eligibility requirements.

Step 3: Complete the Transfer Form (ATON)

The Automated Transfer Out Notice (ATON) is the official document that initiates your RRSP transfer. Your new brokerage will typically provide you with the form or help you complete it online. You'll need to provide:

• Details of your current RRSP account at the old brokerage
• Account numbers and institution codes
• Your personal information (SIN, date of birth, address)
• Whether you want an in-kind or in-cash transfer
• A list of holdings (if doing in-kind transfer)

Submit the completed form to your new brokerage. They handle the communication with your old brokerage from here.

Step 4: Wait for Transfer Completion (2-6 Weeks)

The two brokerages communicate behind the scenes. Your old brokerage packages up your assets (or liquidates them if it's an in-cash transfer), and your new brokerage receives them. You'll receive confirmation emails from both institutions. During this period, you cannot access or trade within your RRSP—it's in transit. This is normal and expected.

Step 5: Verify All Assets Arrived

Once you receive notification that the transfer is complete, log into your new brokerage account and verify that every holding arrived intact. This is crucial. Compare your pre-transfer inventory against your new account holdings. If anything is missing or incorrect, contact your new brokerage's transfer team immediately to investigate.

Step 6: Claim Your Transfer Bonus

Once the transfer is complete and verified, your promotional bonus should deposit automatically within 4-6 weeks. If you don't see it within the promised timeframe, contact the brokerage's support team with your transfer confirmation number.

Understanding Transfer Fees

Most brokerages charge $50-$150 to process outgoing RRSP transfers. This is the fee charged by your old brokerage. However, the good news is that most new brokerages will reimburse this fee as part of their promotional offer. Make sure this is clearly stated in their promotion terms before you proceed.

Pro tip: Ask your new brokerage to confirm in writing that they'll reimburse the transfer fee. Get documentation of this promise before initiating the transfer.

Common Mistakes to Avoid

Selling Holdings Unnecessarily

The biggest mistake is selling your holdings at your old brokerage before the transfer. This creates tax reporting complications and trading costs. Always use in-kind transfers to keep your investments intact.

Triggering Unintended Tax Consequences

RRSP transfers themselves don't trigger tax events—the RRSP remains registered throughout the process. However, if you withdraw money from your RRSP to fund the new account manually, that withdrawal is taxable. Never do this. Use only official transfer procedures.

Transferring During Market Turbulence

If doing an in-cash transfer (sometimes unavoidable for certain holdings), avoid transferring when markets are volatile. You might be forced to sell at a temporary low.

Missing Contribution Room Implications

RRSP transfers don't affect your contribution room—you're not withdrawing money, just moving it. But don't transfer and then immediately deposit additional funds if you've already used your annual contribution limit.

After Your Transfer: What's Next?

Once your RRSP is settled at your new brokerage:

• Review your investment allocation to ensure it still matches your goals
• Confirm you're paying reasonable fees (compare MERs or commission rates)
• Set up automatic contributions if desired
• Keep your old brokerage account open for a few months in case of issues, then close it

Frequently Asked Questions

Q: Can I transfer a partial RRSP, or does it have to be all or nothing?

A: You can transfer part of an RRSP and leave the rest behind. This is useful if you want to consolidate but need to keep certain holdings at your current provider (like employer group RRSPs). Specify partial transfer amounts on your ATON form.

Q: What happens to GICs in my RRSP during a transfer?

A: GICs can be transferred in-kind if they haven't matured. If a GIC is set to mature during the transfer window, it might automatically convert to cash and be transferred as a cash amount. Check with your old brokerage on the timing if you have maturing GICs.

Q: Is there any tax consequence to transferring my RRSP?

A: No. RRSP transfers via ATON are a direct movement of registered assets. No tax is triggered. The transfer maintains your contribution room and your RRSP status throughout.

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