Quick question I’m hoping someone can clarify — when shares are transferred in via ACATS, how does Alpaca value them for the purposes of net deposit calculations?
Specifically: is it the market price on the transfer date, or the original cost basis of each lot?
This matters a lot if shares were accumulated over time at varying prices. For example, transferring in 100 shares with a $85 average cost basis but a current market price of $350 would be a $26,500 difference in how the transfer gets recorded.
I have an open support ticket on this but curious if anyone in the community can share their experience. I’ve also been unable to find any Alpaca documentation stating that ACATS transfers are valued at cost basis rather than market value. If this is the methodology being applied, where is it disclosed? Seems to go against industry norms to apply a cost basis calculation.
Hmmm seems like a bug. I would expect total market value at time of settlement. Seems super strange to use cost basis - that is standard industry practice
Why is this strange to use cost basis. If you held by previous broker XYZ stock 1000shares at 10 than when you transfer your shares to new broker it must the same 1000 shares at 10
I agree with what you are saying for a tax reporting / cost basis perspective, but disagree for net deposit value perspective. Eg:
You buy XYZ stock for $1
XYZ stock is now worth $10
You transfer XYZ stock to a new broker
The new broker will say “thank you for transferring $10 worth of stock into your account, welcome to $10+ club”, not “thank you for transferring $1 into your account, you are not yet eligible for the $10 club”