Cost to close stock broker account

IRA and Brokerage Account Closing Fees (2023)


See how much does your online stock broker charges in fees to cancel/terminate brokerage account or IRA.


IRA and non-IRA Account Closing fees Charged by Brokers




Closing Fees: Brokerage or IRA. Cost To Cancel Account


If you are ready to close your brokerage account, it is good to know the potential fees you can face. While some brokers charge various fees for account closure, others allow you to close your account for free.

Here are some fees you can run into when closing your brokerage account.


IRA Closing Fees


IRA Closing fees can vary among brokers. Not all brokers charge a fee to close an IRA account, but the ones that do have fees ranging from $25 to $100.

In addition to the fees associated with closing IRAs, it is possible to lose the tax advantage that IRAs are known for. There is also a 10% penalty that investors must pay for withdrawing from an IRA early.

To avoid IRA closing fees, it is best to use brokers that do not charge customers for closing IRA accounts. It can also be a good idea to transfer your IRA to another broker instead of closing it prematurely.


ACAT Fee


Mutual Fund (Early Closure Fees)


Whether you have a regular brokerage account or an IRA account, you might need to sell your mutual funds when closing an account.

If you need to sell mutual funds before the predetermined maturity date, there are often early closure fees to deal with. It usually costs around $49.99 to redeem a mutual fund early. Some brokers also charge a transaction fee, which is added to the redemption fee.


Account Transfer Fees and Withdrawals


The method you choose to move your assets out of your account can come with some fees.

You can use an automated account transfer (ACATS) or manually move your assets to your bank account. Both options usually come with fees; however, some brokers offer these services at no cost.

Full account transfers range from $50 to $100.

Wire transfers usually cost around $25 per transfer.


Annual and Maintenance Fees


Some brokers charge annual and maintenance fees for investment accounts. Many brokers have stopped charging maintenance fees, but several popular brokers still include the fee in their pricing schedule.

If your broker charges annual or maintenance fees, you can expect the following:

Maintenance fees for regular brokerage accounts usually cost between $20 and $50 per year, while IRA accounts cost individual investors around $25 annually.

Also, remember that if you are trying to close an account with annual or maintenance fees, you’ll need to pay those fees before closing your account.


Statements and Paperwork


You may need printed copies of your account statements and other documents. If so, it is good to note that some brokers charge for your account documents.

Fees for account statements range from $2 to $10, depending on the broker.

Check withdrawals range from $5 to $15.

Duplicates for checks and statements come with fees ranging from $2 to $5.

Stock certificate fees can cost as much as $500 per certificate.


Overnight/International Mail Fees


Should you need to have anything sent to you via the U.S. or International Mail (like a check or account statement), brokers will often charge for that service.

Domestic mail is often free. However, domestic overnight can be as must as $20, while international mail can cost as much as $30.


Brokerage Account Closing Fees Summary


Many brokers advertise free account closure. However, as you can see, closing your brokerage account can come with some fees. Most of the ‘hidden’ fees for closing accounts are small, but they can add up, depending on the services and investment vehicles you have in your account.


Ben Wright
About the Author
Ben Wright is an investor, a trader, an educator, and something of an explorer. He spends his days in the markets when he is not teaching or spending time with his family. Ben writes about stockbrokers, markets, investment vehicles, promotional offers, and tools that help investors make the most of their time in the markets.