You can move shares from E-Trade to direct registration, but E-Trade charges a fee and the process takes several business days

Direct Registration in Securities (DRS) is a way to hold stock certificates in your name through a transfer agent instead of through a brokerage. If you own shares on E-Trade and want to move them to DRS, you can request what E-Trade calls an "outbound transfer" or "DRS transfer." E-Trade will charge you a fee per position (typically $25 to $50 per transfer, though this varies), and the transfer usually takes 5 to 10 business days to complete. Once the shares arrive at the transfer agent, you will receive documentation showing you as the registered owner.

The main reason people move shares to DRS is to hold them outside the brokerage system entirely. When shares are in DRS, the transfer agent holds the record of ownership, not E-Trade. This means you are not subject to E-Trade's policies about lending your shares or what happens to them if E-Trade faces financial trouble. However, selling DRS shares is slower and more complicated than selling through a brokerage, because you have to contact the transfer agent directly rather than clicking a button in an app.

Key Takeaways

  • E-Trade charges a fee to move shares out to DRS, and the transfer takes 5 to 10 business days.
  • Once shares are in DRS, you own them through a transfer agent in your own name, outside the brokerage system.
  • Selling DRS shares requires contacting the transfer agent by mail or phone, which is slower than selling through E-Trade.
  • You need to know which company's transfer agent holds your shares, because different companies use different ones.

How to request a DRS transfer from E-Trade

Log into your E-Trade account and look for the transfer or account services section. You will need to request an "outbound transfer" or "DRS transfer" — the exact name varies depending on which E-Trade platform you use (web, mobile, or phone). You will provide the number of shares you want to move and confirm which stock or ETF you are transferring.

E-Trade will ask you to authorize the fee before the transfer begins. Once you confirm, E-Trade sends an instruction to the transfer agent for that company. The transfer agent then creates an account in your name and waits for the shares to arrive from E-Trade. This whole process typically takes 5 to 10 business days, though it can take longer if there are delays between E-Trade and the transfer agent.

You do not need to contact the transfer agent yourself to start the process — E-Trade handles that part. However, you should know the name of the transfer agent before you request the transfer, because you will need to contact them later if you want to sell the shares or make changes to your account.

What happens after the shares arrive at the transfer agent

Once the transfer is complete, the transfer agent will send you a statement or certificate showing that you own the shares. The exact form depends on the transfer agent and the company — some send paper certificates, others send electronic statements. You will receive instructions on how to access your account with the transfer agent and how to contact them if you need to make changes.

At this point, the shares are no longer on E-Trade. You cannot sell them through E-Trade's app or website. Instead, you contact the transfer agent directly to place a sell order. This usually means calling them or mailing a form, and the process takes longer than selling through a brokerage — typically 5 to 10 business days from the time you place the order until the sale settles.

Fees and costs you should know about

E-Trade charges a flat fee per transfer, usually $25 to $50 depending on the type of security and your account status. Some E-Trade account tiers may have lower fees or waived fees, so check your account details or call E-Trade to confirm the exact cost before you request the transfer.

The transfer agent may also charge fees for certain services, such as selling shares, issuing certificates, or making changes to your account. These fees vary widely by transfer agent and company. Before you move shares to DRS, contact the transfer agent to ask what fees they charge for the services you think you will need.

Why someone might choose DRS instead of keeping shares on E-Trade

The main reason is ownership and control. When shares are in DRS, you own them directly in your name through the transfer agent. E-Trade cannot lend your shares to other investors, and your shares are not part of E-Trade's assets if the company faces financial problems. For long-term holders who do not plan to sell soon, this can feel like a safer way to hold shares.

Some investors also prefer DRS for companies they believe in strongly and want to hold indefinitely. Because selling is slower and more cumbersome, DRS can serve as a psychological barrier against impulsive selling.

However, DRS has real drawbacks. Selling takes much longer, you cannot use limit orders or other advanced order types, and you have to manage a separate account with the transfer agent. For most active traders or people who might need to sell quickly, keeping shares on E-Trade is more practical.

Finding the transfer agent for your shares

Each company appoints its own transfer agent to handle DRS transfers and shareholder records. You can find the transfer agent's name by visiting the company's investor relations website, calling their shareholder services line, or searching online for "[Company Name] transfer agent."

Common transfer agents include Computershare, American Stock Transfer & Trust Company, and Equiniti, but there are many others. Once you know which transfer agent handles your shares, you can contact them directly to ask about fees, account access, and how to sell shares if you need to.

Frequently Asked Questions

Can I move shares back from DRS to E-Trade?

Yes, but the transfer agent will charge a fee to move the shares back to a brokerage, and E-Trade may charge an inbound transfer fee as well. The process takes several business days. It is usually cheaper and faster to simply sell the shares through the transfer agent and then buy them again on E-Trade if you want them back in a brokerage account.

What if I want to sell my DRS shares quickly?

Contact the transfer agent and request a market sell order. They will place the order, but it typically takes 5 to 10 business days from the time you request it until the sale settles and you receive the money. This is much slower than selling through E-Trade, where the sale usually settles in 2 business days.

Do I pay taxes differently on DRS shares?

No. The tax treatment is the same whether you hold shares on E-Trade or in DRS. You owe capital gains tax on any profit when you sell, and you report dividend income the same way. The transfer agent will send you tax documents just as E-Trade does.

Can I set up automatic dividend reinvestment with DRS shares?

Many transfer agents offer dividend reinvestment plans (DRIPs), which automatically use your dividends to buy more shares. Check with your transfer agent to see if they offer this service and what fees they charge.

What if I lose my DRS statement or forget my transfer agent account password?

Contact the transfer agent directly. They can resend statements, reset passwords, and help you regain access to your account. Keep the transfer agent's contact information in a safe place so you can reach them if you need to.