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How To Close ETRADE Account (2024)
How to close an ETRADE account online, on mobile app, or on the phone. Fee to delete ETRADE
brokerage or IRA investment accounts.
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How to Close an E*TRADE Account
There are a couple of different ways to close your E*TRADE account. Each method has its advantages and disadvantages, and the best choice depends on your needs.
One option is to manually sell all your positions, transfer your funds to your bank account, and request the account to be closed. Another option is to use the Automated Customer Account Transfer Service (ACATS).
We’ll guide you through both methods. Keep reading to learn more.
E*TRADE Account Closing With ACATS Transfer
The ACATS transfer is the simplest way to close your account. When you transfer all your assets to another broker, E*TRADE will automatically close your account once the transfer is complete.
The advantage of using an ACATS transfer is that the broker handles the entire process, from start to finish. E*TRADE can transfer your cash balance and securities all at once, and it usually takes about ten days. Once everything is transferred, the account is closed quickly.
Keep in mind that you’ll need to initiate your ACATS transfer from the other brokerage firm. Learn more in Transfer E*TRADE account to Charles Schwab.
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Manual E*TRADE Account Closure – Prerequisites
Before closing your account manually, there are some steps you need to take to ensure a smooth process.
First, brokerage accounts cannot be closed if there’s anything left in them. Cash balances and active positions must be cleared out before the account can be closed.
Additionally, the account must be in good standing. If you owe money to E*TRADE (e.g., borrowing on margin) or are in a margin call, you must resolve these issues before closing the account.
Lastly, all transactions need to be settled before the account can be closed. This includes money from selling securities, dividend and interest payments, deposits, bonus offers, and any other financial transactions.
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If you are moving your E*TRADE account to another brokerage, check if that firm offers incentives for opening a new account:
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Manual E*TRADE Account Closure – Process
Here’s how to manually close your E*TRADE account.
Unfortunately, there isn’t a single button to close your account. Instead, you need to send a message to E*TRADE.
Assuming you’ve completed the steps mentioned earlier and your account is ready to be closed, start by finding the ‘Customer Service’ page, located in the top-right corner of the webpage.
From there, navigate to the ‘Contact Us’ tab and choose your preferred contact method. E*TRADE allows communication by phone, mail, or through their secure messaging center.
The easiest way to reach E*TRADE is likely by phone, but sending your request through the secure message center is also a good option. Select ‘Account Services’ from the subject menu and ‘Close Account’ from the topic menu.
Then, type your request in the message box.
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E*TRADE Account Closure Timeline
If you send a request to close your account via the secure message center, a response may take up to a week. Once E*TRADE responds, the account can be closed in a few days.
Remember that you’ll also need to wait for your funds to settle and your cash to be transferred to your bank account before contacting support. Each step takes about three business days.
If you choose an ACATS transfer to close your account, the process takes about ten to fifteen days.
Fees for Closing an E*TRADE Account
There are no direct fees for closing your account, but you may incur some fees depending on the method you choose.
E*TRADE charges $75 for outgoing ACATS transfers (this fee is reimbursed by Robinhood).
Wire transfers cost $25.
Check requests cost $10 ($25 for overnight).
Getting Information from a Closed Account
If you need any information from your account after it’s closed, you can still access it as you did when the account was active. E*TRADE is required to provide your information even after the account is closed.
To find your tax data, log in to your account and go to the ‘Tax Center.’
Do Dormant E*TRADE Accounts Close Automatically?
If you’re thinking of letting your E*TRADE account go dormant instead of closing it, be aware that it’s not advisable.
Every U.S. state has escheatment laws that brokers must follow. After three to five years of inactivity (depending on the state), brokerage accounts are considered ‘abandoned.’ If your account is deemed abandoned, E*TRADE will send your assets to the state and close the account.
Recovering your assets from the state is much more difficult than simply closing your account.
Updated on 8/26/2024.
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.
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