Close ETRADE Account

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.

How to Close an E*TRADE Account

There are a couple of different methods that you can use to close your E*TRADE account. Each method has pros and cons, and the best one for you will depend on your needs.

One option is to manually liquidate all your positions, transfer your money to your bank account, and send a request for the account to be closed. Another option is to use the Automated Customer Account Transfer Service (ACATS).

We’ll show you how to do both. Keep reading to learn more.

E*TRADE Account Closing With ACATS Transfer

The ACATS transfer is the most intuitive way to close your account. When you transfer all of your assets to another broker, E*TRADE will close your account for you once the transaction is complete.

The benefit of using an ACATS transfer is that the broker will handle the entire process of closing the account from start to finish. E*TRADE can move your cash balance and securities all at once, and it usually takes about ten days. Once the account is clear, it is closed quickly.

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.

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Manual E*TRADE Account Closure – Prerequisites

Before you can close your account manually, there are some things you’ll need to do to ensure a smooth account closing process.

One thing to note is that brokerage accounts cannot be closed if there is anything left in them. Cash balances and active positions must be cleared out before the process to close the account can start.

Another requirement is that the account must be in good standing. If you owe money to E*TRADE for any reason (usually borrowing on margin), or if you are in a margin call, you must bring your account to good standing before closing it.

Another thing to remember is that all your transactions need to be settled before the account can be closed. Money earned from selling securities, dividend and interest payments, deposits, bonus offers, and all other financial transactions take time to settle.

Broker Promotions

If you are moving your E*TRADE account to another brokerage company, make sure to check whether that firm offers incentives for opening a new account: Broker Promotions »

Manual E*TRADE Account Closure – Process

Here’s how to manually close your E*TRADE account.

Unfortunately, there is no single button to push to let E*TRADE know that you want to close your account. Instead, you must send them a message.

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.

Close ETRADE Account

From there, you can navigate to the ‘Contact Us’ tab and choose your desired contact method. E*TRADE accepts communication by telephone, mail, and a secure messaging center.

How to close ETRADE Account

The easiest way to reach E*TRADE is probably by phone but sending your request through the secure message center is also a great 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.

Delete ETRADE Account

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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 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 would have also needed to wait for your funds to settle and your cash transfer to your bank account. Each step takes about three business days.

If you request an ACATS transfer to close your account, the account is closed within ten to fifteen 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 $10 ($25 overnight)

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.’

How to Cancel ETRADE Account

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 advisable to follow 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 to be 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 just clearing 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.