|
How To Close an E*TRADE Account
|
How to Cancel an E*TRADE Account
There are a few different ways you can close your E*TRADE account. Each method has advantages and disadvantages, and the best choice will depend on what you need.
One option is to manually liquidate all of your positions, move your money to your bank account, and contact E*TRADE to request that the account be closed. Another option is to use the Automated Customer Account Transfer Service (ACATS).
We’ll walk through both methods below. Keep reading to learn more.
E*TRADE Account Closing With ACATS Transfer
An ACATS transfer is the most straightforward way to close your account. When you transfer all of your assets to another broker, E*TRADE will close your account for you after the transfer is complete.
The advantage of using an ACATS transfer is that the broker handles the full closing process from beginning to end. E*TRADE can transfer your cash balance and securities together, and it usually takes about 3-6 days. Once the transfer is completed, the account is generally closed soon after.
One thing to keep in mind is that you will need to initiate your ACATS transfer from another brokerage
firm. Learn more in Transfer E*TRADE account to Charles Schwab.
Manual E*TRADE Account Closure – Prerequisites
Before you can close your account manually, there are a few things you’ll need to take care of to make the process go smoothly.
One important point is that brokerage accounts cannot be closed if anything is still inside them. Cash balances and open positions must be removed before the account-closing process can begin.
Another requirement is that the account must be in good standing. If you owe money to E*TRADE for any reason (usually because of margin borrowing), or if you are in a margin call, you must bring your account back into good standing before closing it.
Another thing to keep in mind is that all of your transactions need to be settled before the account can be closed. Proceeds from selling securities, dividend and interest payments, deposits, bonus offers, and all other financial transactions take time to settle.
Manual E*TRADE Account Closure – Process
Here’s how to manually close your E*TRADE account.
Unfortunately, there is no single button you can press to close your E*TRADE account. Instead, you will need to contact the firm with your request.
Assuming you have completed the steps mentioned in the previous section and your account is ready to be closed, the first step is to find the ‘Customer Service’ page. You can find it in the top-right corner of the webpage.
From there, you can go to the ‘Contact Us’ tab and choose your preferred contact method. E*TRADE accepts communication by telephone, mail, and a secure messaging center.
The easiest way to reach E*TRADE is probably by phone, although sending your request through the secure message center is also a good option. You can select ‘Account Services’ from the subject menu and ‘Close Account’ from the topic menu.
Then, in the message box, you can type your request.
Best Brokers
E*TRADE Account Closure Timeline
If you send a request to close your account through the secure message center, a response can take up to one week. Once the broker responds to your request, the account can be closed in a matter of days.
Before contacting the support staff about closing your account, remember that you will also need to wait for your trades to settle and for your cash transfer to your bank account to finish. Stock and ETF trades generally settle in one business day, while Transfer Money to an outside bank can take up to three business days.
If you request an ACATS transfer to close your account, the transfer itself often finishes in about three to six business days.
Fees for Closing an E*TRADE Account
There are no direct fees for closing your account. However, you will incur some fees depending on the method you choose.
E*TRADE outgoing ACATS transfers cost $75 (reimbursed by Robinhood)
Wire transfers cost $25
Check requests cost $0, and overnight mail costs $25
Getting Information from a Closed Account
If you need any of your account data after you have closed your account, you can find it in the same way that you did while your brokerage account was live. E*TRADE is obligated to provide your information, even after you have closed your account.
To find your tax data, log in to your account (even if you have closed your brokerage account) and locate the ‘Tax Center.’
Do Dormant E*TRADE Accounts Close Automatically?
If you don’t want to go through the process of closing your E*TRADE brokerage account, you might be tempted to let it go dormant and let E*TRADE close it for you. It is not a good idea to take that route, however.
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 your account.
Obviously, going through the process of getting your assets back from the state would not be as easy as simply clearing your account.
Updated on 4/7/2026.
I work in investment analytics and have been investing in the market since I was in high school. I enjoy anything that involves lots of strategy (i.e. a good game of chess), which is why I was naturally drawn to investing and researching companies. Outside of investing, I’m a big fan of the outdoors. In summer, you’re most likely to find me kayaking, camping, and hiking in the mountains.
|