You can move shares from E-Trade to direct registration, but it requires a manual request and takes one to two weeks
Direct Registration in Securities (DRS) means the company's transfer agent holds your shares in your name instead of a brokerage holding them in "street name" on your behalf. E-Trade does not automatically DRS shares — you have to ask for it. The process involves filling out a form, paying a small fee (usually $25 to $50), and waiting for the transfer agent to receive and process the request.
Most people keep shares at E-Trade because it is simpler and faster to buy and sell. DRS is useful if you want to hold shares long-term without a brokerage intermediary, or if you believe the company's transfer agent offers features you need. The tradeoff is that selling DRS shares takes longer because you have to contact the transfer agent instead of clicking a button in E-Trade.
Key Takeaways
- E-Trade does not move shares to DRS automatically — you must submit a written request to their transfer department and pay a processing fee.
- The transfer takes one to two weeks after E-Trade submits your request to the company's transfer agent.
- Once shares are DRS-registered, you own them directly through the transfer agent, not through E-Trade, and selling them requires contacting the transfer agent by mail or phone.
- You can move shares back from DRS to E-Trade (called "re-brokeraging"), though this also takes time and may involve a fee.
- DRS is most useful for long-term holders who want to avoid brokerage intermediaries; most active traders keep shares at their brokerage.
How to request DRS transfer from E-Trade
Start by logging into your E-Trade account and locating the specific shares you want to move. E-Trade's website has a "Transfer to DRS" or "Initiate DRS" option in the account menu, though the exact location changes with platform updates. If you cannot find it online, call E-Trade's transfer department directly — their phone number is on your account statements and the E-Trade website.
You will need to provide the company name, the number of shares, and confirm your identity. E-Trade will ask whether you want to transfer all shares of that company or only some. They will also tell you the fee upfront — this is not a hidden charge, and you can decide whether to proceed. Once you approve, E-Trade sends a DRS instruction to the company's transfer agent on your behalf.
The transfer agent then creates a new account in your name and receives the shares from E-Trade. This step typically takes five to ten business days. You will receive a letter from the transfer agent with your new account number and instructions for accessing your account online or by phone. Until you receive that letter, you cannot sell or move the shares.
What happens to your shares during the transfer
Your shares do not disappear or change in value during the DRS process. E-Trade straightforward instructs the transfer agent to receive them and register them in your name. You will not see the shares in your E-Trade account once the transfer completes — they move out of E-Trade's system entirely and into the transfer agent's system.
If you have set up dividend reinvestment (DRIP) through E-Trade, that arrangement ends when the shares move to DRS. The transfer agent may offer its own DRIP program, but you will need to set it up separately through the transfer agent's website or by contacting them directly. Check the transfer agent's website before the transfer completes so you know what options are available.
Selling DRS shares takes longer than selling through E-Trade
Once your shares are DRS-registered, you cannot sell them through E-Trade. Instead, you contact the transfer agent by phone or mail and request a sale. The transfer agent will give you the current market price and ask you to confirm the sale. Processing typically takes three to five business days, and the money lands in your bank account rather than your E-Trade account.
This delay is the main reason most traders keep shares at a brokerage. If you need to sell quickly during market hours, DRS is not practical. If you hold shares for years and rarely sell, the delay does not matter. Some investors use DRS for shares they never plan to sell and keep their active trading shares at E-Trade.
Moving shares back from DRS to E-Trade
You can reverse a DRS transfer and move shares back to E-Trade. This is called "re-brokeraging." Contact the transfer agent and request that they send your shares to E-Trade's Depository Trust Company (DTC) account. The transfer agent will ask for E-Trade's DTC number and your E-Trade account number. This process also takes one to two weeks and may involve a fee from the transfer agent.
Once the transfer agent sends the shares to E-Trade's DTC account, E-Trade receives them and deposits them into your account. You will see them in your E-Trade holdings and can sell them when ready through the E-Trade platform. Some investors move shares to DRS temporarily to avoid selling pressure, then move them back to E-Trade when they are ready to trade.
Common reasons people use DRS
Some investors believe that DRS registration reduces risk because the shares are not held by a brokerage and are not part of the brokerage's assets if the company fails. This is technically true — DRS shares are registered directly in your name with the transfer agent, not in E-Trade's name. However, E-Trade is a regulated brokerage and your shares are protected by the Securities Investor Protection Corporation (SIPC) up to $500,000 per account, so the practical risk difference is small for most people.
Other investors use DRS because they want to participate in shareholder meetings or receive physical stock certificates. Some transfer agents make this easier than others. If this is your goal, check the transfer agent's website before you request the DRS transfer to confirm they offer the service you want.
A third group uses DRS as a way to commit to long-term holding — removing the temptation to sell by making the sale process slower. This is a personal discipline choice and works for some investors but not others.
Fees and timing summary
| Step | Who does it | Typical time | Typical cost |
|---|---|---|---|
| Request DRS transfer | You contact E-Trade | Same day | $25–$50 (E-Trade fee) |
| E-Trade sends instruction to transfer agent | E-Trade | 1–2 business days | None |
| Transfer agent receives and registers shares | Transfer agent | 5–10 business days | None |
| You receive account letter from transfer agent | Transfer agent | 1–3 business days after registration | None |
| Total time to full DRS registration | — | 7–15 business days | $25–$50 |
Frequently Asked Questions
Do I lose money if I DRS my shares?
No. The share price does not change, and you do not pay a tax on the transfer. You pay only the processing fee to E-Trade. The shares maintain their cost basis for tax purposes, so when you eventually sell them, your capital gains or losses are calculated the same way as if they had stayed at E-Trade.
Can I DRS only some of my shares in a company?
Yes. E-Trade lets you choose how many shares to transfer. You can move 10 shares to DRS and keep 100 at E-Trade, for example. This is useful if you want to hold some shares long-term through DRS and trade others through E-Trade.
What if I forget my transfer agent account number?
The transfer agent will have your account on file under your Social Security number and name. Call the transfer agent's customer service line (the number is on the letter they sent you) and they can look up your account and reset your online password. You do not need to remember the account number.
Can I sell DRS shares during market hours like I do at E-Trade?
No. You must contact the transfer agent by phone or mail to request a sale, and they execute it at the end of the business day or the next day. If you need to sell during market hours at a specific price, DRS is not the right choice for those shares.
What happens to my DRS shares if E-Trade goes out of business?
Nothing — your shares are not held by E-Trade, so E-Trade's financial status does not affect them. The transfer agent holds them in your name directly. This is one reason some investors prefer DRS, though E-Trade's SIPC protection makes this risk very low in practice.