Closing an Account at TradeStation
Deleting a TradeStation account is possible, but there are important details to consider before making the decision.
Timing of a TradeStation Account Termination
TradeStation charges a $50 annual inactivity fee, so you may want to close your account before this fee is applied. The fee is charged once per year on the anniversary of when the account was originally funded.
Closing a TradeStation Account With ACAT
The ACAT electronic transfer system is the easiest way to close a TradeStation account. Assets in the TradeStation account are transferred to another brokerage firm, and the TradeStation account is automatically closed.
The downside to this method is that TradeStation charges a $125 fee for each outgoing ACAT transfer. If you can afford this fee or find a broker that will reimburse you (some brokers, like Webull, will), follow these steps:
First, open a new brokerage account at another firm that is the same type as your TradeStation account. It will also need to have the same name on it.
Second, prepare the TradeStation account by closing out option contracts that expire in less than a week and removing any assets that can’t be moved through the ACAT network (such as futures).
Third, prepare the new account by adding margin and options trading if needed.
Fourth, request the ACAT transfer. This will be managed by the incoming broker. When TradeStation receives the request, it will close the account and transfer the assets.
Keep in mind that an ACAT transfer can take up to 9 business days to complete, so if you want to avoid TradeStation’s inactivity fee, start the transfer well in advance. Also, note that a partial ACAT transfer won’t close the TradeStation account, so be sure to request a full transfer with the outgoing broker.
As an example, see how to Transfer a TradeStation Account to Robinhood.
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Futures Accounts and Other Situations
Futures positions can’t be transferred through the ACAT system, so that method won’t work for them. Since TradeStation keeps futures in separate accounts, securities won’t appear in them, so there’s no point in trying to transfer a balance from one of these accounts through the ACAT system.
If you want to close a securities account entirely, transferring it won’t work either. More steps are required.
The first task in these situations is to exit all investments, whether they’re futures or securities, depending on the account type. Both long and short positions need to be closed.
Once the holdings are liquidated, it’s time to transfer the cash out. This can be easily done using TradeStation’s cash transfer tool, which is available on both the website and mobile app.
On the website, the tool is located under the Transfer Funds tab in the top menu. On the transfer page, find the link for Smart Transfer, which is the ACH tool. There is no charge for using it. There’s also a wire transfer option, but it costs $25 per withdrawal ($35 if using a foreign bank).
On the mobile app, the cash transfer tool can be found by tapping on the main menu icon (three horizontal lines in the upper-left corner) and selecting the Transfer Funds link.
After requesting a cash withdrawal, you can track the transfer online. Go back to the Transfers page and select the history tile to see both scheduled and completed transfers.
Once the account balance is $0, it’s time to close it. This can be done by contacting a TradeStation representative. The website’s support page has a chat feature available during weekdays. You can also contact them by phone (800.822.0512) during the same hours. If these times don’t work for you, you can always email them at ClientServices@tradestation.com.
Closing a TradeStation IRA Account
Selling assets inside an Individual Retirement Account won’t result in a Form 1099 at the end of the year because the IRA is tax-deferred. However, withdrawing cash from the account could trigger penalties and taxes. Before taking this step, consult with a CPA or tax advisor.
TradeStation Account Closing Fee
TradeStation does not charge account closing fees.
TradeStation ACAT Fees
If you decide to move your TradeStation account to another firm through ACAT, TradeStation will charge a $125 fee for a full account transfer. Partial account transfers have no charge. If you move your account to Webull, they will reimburse this ACAT fee (must be at least $2,500).
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Visit Webull Website
Updated on 8/26/2024.
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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