How To Close Robinhood Account

How To Close Robinhood Account (2024)


Robinhood account closing fee. How to delete Robinhood account online or on the app.


How to Close a Robinhood Account


So, you’ve decided to close your Robinhood account. To prevent any snags along the way, be sure to look over this guide:


Securities, Cryptocurrencies, Spend


Robinhood offers three account types: crypto, securities, and cash. Closing any one of the three will generally follow the same principles outlines below, although there are some important differences that we will note.

The securities account at Robinhood is available as an individual brokerage account or an IRA. These two flavors follow the same rules for closure, although there could be tax differences. For example, selling securities in a taxable account or withdrawing cash from an IRA could result in a Form 1099 the following April. Be sure to visit with a tax pro before taking either step.


Two Methods to Close a Robinhood Account


There are two basic ways a Robinhood account can be closed. The regular way is to sell all positions of securities and cryptocurrencies if any exist, withdraw the cash, and then request the account to be deactivated, which closes it. The second method, which is available only for securities accounts, is to perform a full outgoing ACATS transfer, which will automatically close the account.


Delete Robinhood Account: Method 1


To close an account using the first method, follow these steps:

First: For an investment account, you’ll need to cancel your Gold membership if you have one. This is easy enough to do under the Account menu, which is available on both the website and mobile app. On the website, click on the Account link in the upper-right corner and then select the Gold link. Follow the instructions to unsubscribe. On the mobile app, tap on the little guy in the bottom-right and select the icon for Gold.

Second: Sell all positions in the account if any exist. Obviously, this step can be skipped for a cash account. For a securities or crypto account, all holdings need to be removed. It’s possible to transfer securities or cryptocurrencies and then close the account using the next steps discussed below.

Cryptocurrencies inside a Robinhood account can be transferred to a receiving wallet. Opting for this method would prevent the inevitable tax implications of selling them. Same goes for transferring securities. They can be transferred in a partial ACATS transfer using the steps outlined in the section for Method 2.

To transfer a crypto position out of a Robinhood account, simply head over to the coin’s profile and select ‘Send & Receive’ from the drop-down menu on the coin’s order ticket. You’ll need to establish some security settings on the crypto account before sending the cryptocurrency out of the account. Follow the on-screen instructions.

Third: Once the positions have been eliminated, any remaining cash balance needs to be withdrawn. This is easy enough to do: simply link an external bank account (if one isn’t already connected) and request an ACH transfer into the bank account. The full cash balance should be withdrawn. The same procedure should be followed for a spending account.

To link a checking or savings account, go back to the Account menu and this time select the link for Transfers. Follow the instructions to connect the bank account. It takes just a few minutes.

Fourth: Now that the account has a zero balance, it’s time to close it. This step can be accomplished on either the website or mobile app. On the website, go back to the Account link and select Settings in the drop-down menu. On the next page, you’ll see a red link to deactivate your account, which will close it.

On the mobile app, tap on the little guy in the bottom-right corner. On the next page, tap on the three horizontal bars that appear in the upper-left corner. Scroll down to Settings. On the next page, you’ll see the red button to deactivate the account.


Cancel Robinhood Account


On either the website or mobile app, the deactivation page will have links to disable stock lending and cash sweep if these exist on the account. Simply tap or click on the links and follow the prompts. These tasks will need to be completed before submitting the closure request.


Close Robinhood Account


If a spending account is closed, its debit card will automatically be deactivated, and the rewards program will cease.


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Delete Robinhood Account: Method 2


The second method is to close the brokerage account by transferring the account through the ACATS network to another brokerage firm. This will move all assets from the Robinhood account into a second account at another brokerage firm. Once Robinhood sends the account’s assets to the second firm, it will automatically close the account at Robinhood.

Only securities accounts are eligible for ACATS transfers. Crypto and spending accounts can’t use this method. Both taxable accounts and IRAs can be closed through an ACATS transfer. Securities and cash can both be moved in an ACATS transfer.

Generally speaking, there’s no need to sell any positions in the Robinhood account before the ACATS transfer. However, there are some exceptions. Option contracts, for example, that expire in less than a week should not be moved. These can be liquidated, or you can simply wait until they expire. Not selling assets means there’s no generation of cash, so this method is not a good choice if you’re trying to capture some cash.

To perform an ACATS transfer out of Robinhood, you’ll need to contact the receiving brokerage firm. It is the receiving firm, and not the outgoing one, that initiates the ACATS transfer. It does need to be a full transfer. A partial ACATS will not close the Robinhood account.

As an example, see How to Transfer Robinhood to Charles Schwab.


About the Author
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.