Cross-broker asset liquidity restructuring: How does Gate reduce the friction costs of transferring US and Hong Kong stocks?

On June 26, 2026, the U.S. stock market ended a volatile week amid turbulence. The Dow Jones Industrial Average closed at 51,876.11 points, down 0.09%; the S&P 500 closed at 7,354.02 points, down 0.05%; and the Nasdaq closed at 25,297.62 points, down 0.24%. For the week, the S&P 500 fell 1.95%, while the Nasdaq plunged 4.60%. The Hong Kong stock market also came under pressure, with the Hang Seng Index closing at 22,671.86 points last Friday, down 405.05 points or 1.76%, and falling 1,252 points for the week, a decline of 5.24%, marking the longest weekly losing streak in over a decade.

Against the backdrop of heightened market volatility, investors' demand for flexibility in asset allocation is rising rapidly. However, a long-overlooked reality is that when you want to transfer stock holdings between different brokers, the cost goes far beyond a simple fee bill.

Assets Locked in Platforms: The True Cost of Cross-Broker Transfers

A typical multi-broker investor's portfolio structure often looks like this: U.S. stocks with Broker A, Hong Kong stocks with Broker B, and perhaps some crypto assets on Platform C. This diversification is rarely a deliberate choice but more of a "historical legacy" formed by opening accounts and trading over time.

But when market conditions change—for instance, if a broker adjusts its fee structure, or you wish to consolidate assets onto a platform with more comprehensive services—migrating assets becomes a test of patience.

The first cost is financial. Some brokers charge a fixed fee for transferring out stocks, e.g., $75 per transfer; others charge a percentage of the transfer value, up to 6%. These fees are incurred directly upon transfer and are often set unilaterally by the transferring broker, leaving users with little room to negotiate.

The second cost is time. DTC FOP transfers of U.S. stocks typically take time. During this period, your holdings are "in transit"—you cannot trade them with the original broker nor the new one. If the market experiences sharp volatility during this time, the opportunity loss is entirely borne by the investor.

The third cost is information. Different brokers have vastly different ways of communicating the transfer process. Some offer clear online tracking systems, while others rely solely on email communication. Users often need to repeatedly confirm progress between the transferring and receiving brokers, making the entire process opaque.

The fourth cost is opportunity cost. When assets are "locked" on a single platform, you cannot leverage the differentiated services of different brokers—such as low fees from Broker A, premium research from Broker B, or cross-asset allocation capabilities from Platform C. The more dispersed the assets, the more significant the efficiency loss from this "lock-in effect."

DTC and CCASS: Understanding the Technical Backbone of Cross-Broker Transfers

To understand why cross-broker transfers have long been inefficient, you need to know the two systems underlying the clearing and custody of U.S. and Hong Kong stocks.

The underlying clearing of U.S. stocks is handled by the Depository Trust Company (DTC), a subsidiary of the Depository Trust & Clearing Corporation (DTCC). DTC handles the custody and settlement of securities for the vast majority of U.S. brokers and banks. When users transfer U.S. stock holdings between different brokers, they are essentially moving positions from one broker's custody account to another within the DTC system.

The clearing and custody of Hong Kong stocks are handled by the Hong Kong Central Clearing and Settlement System (CCASS), which is a wholly owned subsidiary of HKEX. All securities listed on the Hong Kong Stock Exchange are settled and custodied through CCASS. Cross-broker transfers of Hong Kong stocks require relevant position transfer operations within the CCASS system.

Both systems are standardized and mature. The problem lies in the execution at the broker level—each broker has different internal processes for handling transfer requests, staffing levels, and system integration. Although FOP (Free of Payment) is a standard transfer method under both DTC and CCASS, in practice, from the user's submission of the request to the completion of reconciliation and system confirmation by both brokers, and then to the actual arrival of the holdings, multiple manual steps are involved.

Gate's stock transfer uses the FOP method. The wide range of this time window itself reflects the complexity of cross-broker transfers—it is not an assembly line but a series of steps requiring manual coordination.

Gate's Structural Transformation: Turning Transfer from a "Process" into a "Product"

Gate's newly launched stock transfer feature is not simply an additional entry point in the app; it represents a productized reengineering of cross-broker asset migration.

Unified entry point, two-way connectivity. Users can access the "Deposit Stocks" or "Withdraw Stocks" function via Gate App's "More" - "Common Features" (please update the App to v8.26.0 or above to experience it), and follow the instructions by selecting either the U.S. or Hong Kong stock market. For deposit scenarios, users need to fill in the original broker's information and submit the request, then contact the original broker to initiate the transfer. For withdrawal scenarios, users need to accurately fill in the receiving broker's information. This design covers the complete loop of asset inflow and outflow.

Zero fee strategy. Gate does not charge fees for stock deposits or withdrawals. This means the explicit financial cost of cross-broker migration is reduced to zero. It should be noted that if the original or receiving broker charges fees, those still apply per their rules, and Gate cannot waive them.

Process visibility. The platform provides a query function for application records, allowing users to check the processing status in real time, including "Processing," "Completed," "Canceled," and other progress statuses. This addresses the opacity issue in traditional transfer processes—users no longer need to repeatedly call customer service to check progress.

Limited-time incentive campaign. From June 29 to July 7, 2026, users who enroll and complete a U.S. or Hong Kong stock deposit application, with successfully deposited assets worth at least 3,000 USDT equivalent, can submit valid transfer fee receipts from the original broker to apply for fee reimbursement and enjoy VIP upgrade benefits. U.S. stock transfer fees can be reimbursed up to 15,000 USDT.

The key to this product bundle is that it transforms cross-broker transfers from a "process that users must figure out themselves" into a "standardized service product offered by the platform." Users no longer need to research what DTC codes and CCASS codes are, or how FOP works—they simply fill in information, submit the request, and track the status within the app.

From Trading Platform to Asset Management Hub

The launch of the stock transfer feature is a key extension of Gate's global stock business product capabilities.

Previously, Gate already allowed users to trade over 10,000 U.S. mainstream stocks and ETFs with USDT, covering major U.S. securities exchanges including NYSE, Nasdaq, NYSE Arca, NYSE American, BATS, and others. It also listed over 1,500 Hong Kong stock targets and supported more than 1,000 Korean stocks, cumulatively covering over 12,500 global stocks and ETFs.

In terms of trading experience, Gate stocks already support 7×24-hour trading for U.S., Hong Kong, and Korean stocks, breaking the time constraints of traditional securities markets. The platform also supports fractional share trading with a minimum of 0.01 shares.

In terms of account structure, leveraging a unified account architecture, Gate integrates digital assets and global stock assets on the same platform, allowing users to manage cross-asset portfolios without switching between multiple accounts. Gate stocks are now linked to the platform's VIP tier system—users with holdings reaching $2,000 can upgrade to VIP, enjoying exclusive stock trading fees as low as 0.023%.

The addition of the stock transfer feature completes the final piece of the asset transfer puzzle. Thus, Gate's full capability loop for stock business is now formed: global stock selection (12,500+ targets) → flexible trading (7×24 hours, fractional shares, USDT settlement) → unified account (stocks + crypto assets) → free transfer (cross-broker deposit and withdrawal).

Industry Implications of Liquidity Restructuring

From a broader perspective, Gate's launch of the stock transfer feature points to a deeper structural shift.

The business model of traditional brokers is built on the assumption that "client assets stay within the platform." Once a user opens an account and buys holdings with a particular broker, the friction cost of transferring assets naturally forms a moat. This logic has worked well for decades—because the high cost of cross-broker transfers itself serves as a client retention mechanism.

But Gate's approach breaks that assumption. Zero-fee transfers mean the moat of "asset lock-in" is being leveled. When users can migrate holdings between platforms at low cost, competition among brokers will no longer revolve around "who can retain clients first" but around "who can provide greater long-term value to users."

Going a step further, when stock assets can flow freely between Gate and external brokers, Gate's unified account system essentially builds a bridge between traditional financial assets and digital assets. Stocks can be transferred into Gate via FOP and then managed alongside crypto assets within the same account system. This "migratable allocation" capability returns asset ownership and usage rights to the users—assets shift from being "held on a platform" to being "allocatable on any platform."

Of course, this does not mean the technical complexity of cross-broker transfers has been completely eliminated. The processing period of 3 to 15 business days still exists, and the success of a transfer still depends on the cooperation of both brokers. However, Gate's productization attempt at least proves one thing: the efficiency of cross-broker asset transfer can be systematically optimized, and the direction of optimization is to put control back in the hands of users.

FAQ

1. Which markets does Gate support for stock transfers?

Currently, Gate supports the deposit and withdrawal of stocks in both the U.S. and Hong Kong markets. For deposits, users can search for all U.S. and Hong Kong stock targets supported by the platform; for withdrawals, only stocks currently held by the user can be selected.

2. How long does a stock transfer take?

Transfers use the FOP method, with U.S. stocks processed through the DTC system and Hong Kong stocks through the CCASS system. The actual completion time depends on the processing efficiency of both brokers and market procedures. Submitting a request does not mean it will be completed instantly.

3. Does Gate charge fees for stock transfers?

Under the current product plan, Gate does not charge fees for stock deposits or withdrawals. If an external broker charges fees, those will be subject to that broker's rules.

4. Do I need to fill in the cost basis when depositing stocks?

The cost basis is optional and is only used for displaying and calculating subsequent gains and losses. If not filled in, the market value on the day of successful deposit will be used as the cost reference.

5. Why can't I select certain targets or fill in enough quantity when withdrawing stocks?

The withdrawal function only supports stocks currently held in the user's account, and the quantity to withdraw cannot exceed the user's current available holdings. Stocks not held or quantities exceeding holdings cannot be withdrawn.