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How To Close Robinhood Account? How to Transfer a Robinhood Account to Fidelity, Etrade, Schwab, or Ameritrade?


How to move Robinhood trading account/stocks/investing portfolio/money to Fidelity, Etrade, TD Ameritrade, Vanguard, or Charles Schwab.



Overview of Transferring or Closing a Robinhood Securities Account


If you've decided that you've had enough of Robinhood's brokerage services, you can transfer your account or simply close it. The steps involved aren't that complicated, and the time required is minimal. This article will show you exactly how to do both, and give you a few alternatives as well.


How to Close a Robinhood Account


Robinhood has made closing a brokerage account easy and straightforward, although there are a few requirements you should be aware of. To start with, the company will not close an account unless it has a $0 balance. So you need to sell all your holdings first, and then transfer the proceeds to an external bank account or another brokerage account. The withdrawal can be completed using the broker's mobile app. Even better, since Robinhood doesn't charge commissions, you won't see any large charges for the sales in your account. The broker does, however, pass on SEC and FINRA sales charges, but those are very minimal.

After you have done this, you must submit a written request to Robinhood to close your account. You can send the request to support@robinhood.com. Unfortunately, it can take the firm up to five business days to take care of the closure request.

The company will also accept account closure requests through its mobile app. First, go to the app's "Help" menu. You will see a selection of choices with "Help Center" as one of the options. Tapping on this link produces another set of choices. Tap on "Your Account" and you will find a link for "Closing Your Account." This gives you some basic information on the company's policies for closing a trading account.

To submit your written request, tap on "Contact Support" under the app's "Help" menu. Here you will find many choices. Tap on "My Account" and then select "Close my account." Now you can compose a short message and request the broker close your account.

Regrettably, Robinhood doesn't have any functionality on its website to submit account closure requests. Other brokerage houses do offer this capability. Fidelity, for example, has an on-line chat function where traders can submit these types of requests to a company associate.

One nice aspect of Robinhood's pricing schedule is that there is no fee to close an account. Because the company does not offer IRA's, there obviously isn't a fee to close a retirement account.

Robinhood keeps trade confirmations, account statements, and tax documents on file after an account is closed. These materials can still be accessed through the company's mobile app. Nevertheless, if you want to re-open your account, you'll have to submit another application. Also keep in mind that deleting and downloading the Robinhood mobile app will not cause your account to open again.


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How to Transfer a Robinhood Account


Instead of closing a Robinhood account, you could transfer it to another brokerage house if you have a specific firm in mind. While transferring a trading account to Robinhood costs nothing, there is a $75 charge to go in the other direction. This fee is above average by industry standards. Ally Invest customers, for example, pay only $50; while Vanguard charges nothing. Investors at WellsTrade have to pay a very steep $95 to move an account.

To start this process, you actually don't need to do anything at Robinhood. You begin the move at the new broker. Most firms nowadays have an on-line form to submit an ACAT request. This is the automated system that will move your account electronically.

At the new brokerage firm, you will need to submit your Robinhood account number, and whether you want to move the entire account, or just certain securities. Keep in mind that the Robinhood account cannot be moved into a different account type, such as moving a joint account into a trust, for example. The process usually takes a week or two to complete. A few brokers don't have an on-line form. A paper form will have to be submitted instead, although check to see if the broker will accept it via fax or scan.

If you have any questions during the account transfer process, or you need some assistance, feel free to contact a Robinhood representative. The company maintains customer service hours during the weekday. Strangely, the phone number isn't toll-free (1-650-940-2700).


Alternatives to Robinhood


If you're closing or moving your Robinhood account, chances are that you've decided the broker's fees aren't worth the compromises that are made elsewhere at the firm. There are several other low-cost firms that might be better values.

Ally Invest and Firstrade, for instance, have equity commissions at a very low $4.95 ($3.95 for active investors) and $0.00 respectively. Despite this low charge, both companies have great customer service (unlike Robinhood), excellent websites (unlike Robinhood), and free banking features (unlike Robinhood). They also offer mutual funds (unlike Robinhood) at only $9.95 per trade at Ally and $0 at Firstrade - the lowest rate in the industry.

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How to close Robinhood account



Closing Robinhood Account Summary


Changing brokers isn't that difficult. A Robinhood account can be transferred or closed. Closing an account seems like the better option, because there is a steep fee for transfers. While some brokers are much more expensive than Robinhood, a few exist that have low commissions and much better service.