Closing a Public.com Brokerage Account
If you have a Public.com account that you’re not using, it’s best to delete it instead of allowing it to sit unused. Be sure to read our guide before getting started.
Avoiding Public.com’s Inactivity Fee
Public assesses a $5 inactivity fee every 6 months against any account that has less than $20 in it and has had no activity for more than 90 days. If you don’t plan on meeting these minimums, it’s best to go ahead and close the account before the fee is charged.
Avoiding Public.com’s Premium Fee
A Premium subscription at Public.com will cost $10 per month once the service is launched. After trying it out, if you decide you no longer want the service, you can cancel it without closing the account.
Delete Public Account With ACATS Transfer
If you still need to close a Public.com account after considering the Premium service and the annual inactivity fee, it’s definitely possible. There are two options here: the easy way and the slightly more difficult way. We’ll start with the former.
The simplest way to close a brokerage account at Public is to transfer the account to another investment firm through the ACATS network. Doing so will automatically close the account at Public.
The only disadvantage we can think of with this option is Public’s $75 outgoing ACATS transfer fee.
There’s no way around the fee at Public, although some broker-dealers, such as TD Ameritrade, will refund other firms’ ACATS fees. So definitely check with the new brokerage firm on this issue.
If the transfer fee is acceptable, then the rest of the process is fairly straightforward. You will need, of course, to open an account with the new brokerage firm. The new account must have the same name on it and be of the same account type (individual in this case). If either of these two conditions isn’t met, the electronic transfer won’t go through.
With the receiving account open, it’s time to do a little prep work in the Public account. First and foremost, cryptocurrencies can’t be moved through the ACATS system, so any crypto positions will have to be appropriately dealt with. They can be moved to a second Public account or sold off. You can’t leave them behind in a partial transfer because a partial transfer won’t close the Public account. It has to be a full transfer.
The second issue is fractional shares. Because the Public platform uses whole-dollar investing, there will inevitably be partial shares. These can’t be moved through the ACATS network, so they will have to be liquidated, either by Public or by yourself. Public will liquidate them if necessary when it receives the transfer request.
Because Public.com doesn’t offer margin trading or options contracts, there won’t be much prep work in the receiving account. Just make sure it is an individual taxable account with the same name on it as the Public.com account.
Now it’s time for the transfer request. This will have to be submitted with the receiving firm, not Public. Most investment firms nowadays have very user-friendly transfer tools online, so reach out to the new broker. Once the request is made, Public will be notified, and the account will be closed as the assets are transferred over.
As an example, see how to Transfer a Public.com Account to Webull.
Best Alternatives
Second Method: Sell, Withdraw, Close
If an account transfer won’t work, there is always the old-fashioned method of draining the account and then closing it. And we do emphasize draining the account because a Public.com account can’t be closed unless it has a $0.00 balance.
First, sell all securities and cryptocurrencies in the account. Once these trades have settled, it’s time to withdraw the entire cash balance. This is easy enough to do on the website or mobile app. On the latter platform, tap on the little man in the upper-left corner, then hit Account Settings, then Withdraw funds.
When the account has nothing left in it, it’s time to send a closure request to Public. This can be done on the mobile app. Go back to Account Settings. This time, scroll all the way down until you see the link to close an account. Tap on this and follow the instructions. A request to close an account can also be emailed to support@public.com.
Cancel Public Account Fee
Public.com does not charge account closing fees for both brokerage accounts.
Public ACAT Fee (Transferring OUT)
Public account transfer fee (also known as ACAT fee) is $75. If you move your account to
Webull,
they will reimburse this ACAT fee (must be at least $2,500).
Public Wire Transfer Fee
Domestic wire transfers at Public.com have a $30 charge.
Updated on 9/20/2022.
Chad Morris is a financial writer with more than 20 years experience
as both an English teacher and an avid trader. When he isn’t writing
expert content for Brokerage-Review.com, Chad can usually be found
managing his portfolio or building a new home computer.
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