In Specie Transfer
What is an in specie transfer?
An in specie transfer moves your investments as they are. Without selling them first. Your shares and funds transfer directly from one provider to another. “In specie” is Latin for “in its actual form.”
What’s the alternative?
A cash transfer. Your old provider sells everything, transfers the cash, and your new provider buys the investments again. This is simpler but has downsides.
Why choose in specie?
- Stay invested. You’re not out of the market while cash moves
- Avoid trading costs. No selling and rebuying fees
- Keep your positions. Don’t lose your holdings if prices move
If markets rise while your money is sitting as cash, you miss out. In specie avoids that gap.
Are there downsides?
In specie transfers are slower and more complex. Not all funds are available on all platforms, so some holdings might need to be sold anyway. And if you’re switching to very different investments, selling first might make more sense.
Some platforms also charge per holding for in specie transfers, which can add up if you own lots of different funds.
When is in specie worth it?
If you’re happy with your current investments and just want them on a cheaper or better platform. If you’re planning to change what you hold anyway, a cash transfer is simpler.
Key points about in specie transfers
- Investments move without selling. Stay invested throughout
- Avoids trading costs and market gaps
- Slower and more complex than cash transfers
- Check the new platform has your funds. Not everything is available everywhere