Firstrade

How To Close Etrade Account


How to cancel Etrade account. Close and transfer Etrade account/stocks/investing portfolio/money/funds online to another broker.



Overview of Closing a E*Trade Investment Account


If you have decided that it’s time to close your E*Trade investment account (hopefully because you have found a better brokerage firm and not because you have given up on securities trading), there are several options available to you. The broker-dealer provides its customers with several avenues to contact a company associate, which is the first step in closing an account.


E*Trade Account Closing Fees


E*Trade charges nothing to close a taxable or non-taxable account. Keep in mind, however, that taking an early distribution from an IRA does carry a $25 charge. Transferring an E*Trade account to another firm, which is an option that will be discussed later, costs a full $75; although partial transfers only cost $25 per security.



General Guidelines


If you don’t plan to use your E*Trade account in the future, it is best to go ahead and close it. Closing an account prevents anybody from using it. Leaving it open allows unauthorized parties the possibility of accessing the account. In today’s world of cyber crime, you don’t want to do that.

Generally, it is better to bring an account to a zero balance first, transfer out all funds, and then request the account be closed. This gives you the ability to sell securities at a price and time of your choosing, rather than the broker’s.

When you’re ready to submit your closure request, you simply need to contact E*Trade, and a variety of methods are available to you.


Mobile App


To send a message to E*Trade using its convenient mobile app, just tap on the menu icon that sits in the upper-left corner of the screen. In the pop-out menu that appears, scroll down to ‘Messages & Alerts’ and choose ‘Message Center.’ In the new screen that appears, there will be a green button in the lower-left part of the screen that says ‘New Message.’ Tap on that button, and a message form will appear. You’ll need to select the specific account you want to close in the first drop-down menu (it will have the last 4 digits of all your E*Trade accounts pre-populated). Then you’ll want to select ‘Account Services’ in the subject menu (the second drop-down menu). Finally, you’ll want to type your message in the message box that follows, and then tap on the green ‘Send’ button when you’re finished.


Internal Messaging


If you’re still using a computer instead of a mobile device, have no fear, because E*Trade has plenty of customer service options here, too. There is an internal messaging feature on the E*Trade website where you can send your request. Just click on the ‘Customer Service’ link at the very top of the website. This will produce a new page with all of the broker’s many customer service options. Near the top of this page is a link that says ‘Send us a Secure Message.’ Clicking on this generates a new page where a message can be composed and sent to the broker.

The website’s messaging software has a slightly different setup than the mobile app. You’ll need to select ‘Account Services’ in the subject field, and then choose ‘Close Account’ as the topic.


On-line Chat


The same customer service page has an icon in the upper-right corner for live chat. Clicking on it produces a pop-up window (make sure this feature is enabled in your browser) where a chat session can be started with a representative. You’ll be able to select the specific account you want to close in the first drop-down menu. The last 4 digits of the account number will be displayed.


Branch Location


This would be the best option if you want in-person service, or if you have a complex case.

There are thirty E*Trade brick-and-mortar locations scattered throughout the United States. They are open during the weekday. And evening and Saturday appointments are also available at some locations.


Alternatives to Etrade


If you’re closing a E*Trade account, you may be interested in finding a replacement. There are several brokers that are competitive with E*Trade’s quality, pricing, and services, and may even perform better in some areas. For instance, Ally Invest charges just $4.95 for stock and ETF trades, much lower than E*Trade; and Ally also gives a $1 discount to clients who place at least 30 trades per quarter, or maintain a $100,000 balance.


Broker Review Stocks/ETFs
Commissions
Mutual Funds
Commissions
Options
Commissions
Maintenance
Fees
IRA Setup
and Annual Fees
Ally Invest $4.95 ($3.95) $9.95 $4.95 + $0.65 per contract $0 $0
TD Ameritrade $6.95 $49.95 $6.95 + $0.75 per contract $0 $0
TradeStation $5.00 $14.95 $5.00 + $0.50 per contract $0 $0


Snail Mail


The broker also accepts correspondence through the traditional mail service. To close a brokerage account, and not an E*Trade Bank account, you’ll need to send your letter to ‘E*TRADE Securities’. For first-class mail, you can send your request to:  

E*TRADE Securities LLC
PO Box 484
Jersey City, NJ 07303-0484


For overnight mail, send your letter to:

E*TRADE Securities LLC
Harborside 2
200 Hudson Street, Suite 501
Jersey City, NJ 07311-1113


Remember to include your account number in your letter, and how you want your funds distributed to you, such as an electronic wire to an external bank account or a paper check mailed to you.

ACAT Service


One last option is to transfer your E*Trade account to another broker if you have one in mind. This is a good choice if you don’t want to liquidate securities in your account. Transferring an investment account will automatically close it at the original brokerage house.

To start the transfer, you will want to contact the new broker. Most firms today have an on-line transfer system where you can submit your request electronically. You’ll need the title of the account (for an individual account, this is usually your name) along with the account number. In most cases, the account your setting up must be the same type as the one being transferred. For example, a regular individual brokerage account cannot be transferred into an LLC account.

Most brokerage firms do not charge anything to receive a transfer; after all, they want your business. The sending broker usually does, and E*Trade is no exception, as already mentioned.


Canceling an E*Trade Account Summary


Closing an E*Trade investment account is fairly simple and does not cost a dime. Transferring an account will equally close it, but will set you back a hefty $75. Some brokers, however, are willing to reimburse this charge, so keep your eye out for these specials.


Updated on 9/26/2017.






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