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How To Close Sofi Invest Account (2022)
How to close a Sofi Invest account online, on mobile app, or on the phone. Fee to delete a Sofi Invest brokerage or IRA account.
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How to Close an Account at Sofi Invest
Closing a SoFi Invest account is a fairly straightforward process, although there are a few requirements you need to be aware of.
SoFi Invest offers both robo and self-directed accounts. Either type can be closed or transferred. Transferring an account through the Automated Customer Account Transfer Service to another broker will close it automatically.
Closing a Sofi Account by Selling Everything
The regular method to close a brokerage account is to sell all holdings, transfer the cash out, and then close the account. This can be accomplished using the SoFi Invest mobile app.
The first step to close a self-directed account is to sell all securities in the account (SoFi Invest will perform this step for a robo account). Once the cash is available for withdrawal, it must be moved out of the account. The account must have a $0.00 balance before it can be closed. This means that a negative balance will have to be eliminated before the account can be closed.
To move cash out of a SoFi Invest account, look for the “Transfer money” link at the top of the website. A similar icon will appear on the mobile app. It’s easiest to schedule a “Full Balance Withdrawal” on the transfer ticket. This should automatically close a robo account.
If there is a linked crypto account, this account must also have a $0.00 balance before the securities account can be closed. SoFi Invest requires all recurring asset purchases and any pending or recurring deposits to be turned off as well.
Once all the requirements have been met, it’s time to request an account termination. Open the mobile app and tap on the Invest icon in the bottom menu. On the next page, tap on the Profile link. Scroll down to the button and hit the red button to delete the account. Just follow the prompts from there.
If you need any help at all, there is a chat tool on the website and mobile app. On the app, head over to the main menu (tap on the little guy in the upper-left corner) and scroll down to the Help link. Tap on this, and the online chat tool will be found. The broker-dealer also provides phone service during the weekday at 855-456-7634.
Alternatives to Sofi
Closing a Sofi Account by Transferring
If you can’t sell securities for tax reasons, you could instead transfer the account out of SoFi Invest to another brokerage firm. Once the assets are transplanted to the other brokerage firm, the SoFi Invest account will be closed.
An ACATS transfer is always initiated with the receiving firm. After opening a brokerage account with the second firm, it needs to be correctly prepared for the imminent transfer. This means adding margin privileges if you have a margin balance coming over from SoFi.
Fractional shares can’t be transferred through the ACATS system, so getting rid of them is advisable before starting the transfer. If you don’t liquidate them, SoFi will, and the resulting cash will arrive a few days after the securities.
To request the transfer, log into the account of the receiving brokerage firm. It should have a transfer tool to move assets from an outside brokerage firm. Be sure to specify a full transfer, as a partial transfer won’t close the outgoing account.
Bear in mind that SoFi Invest charges $75 for a full outgoing ACATS transfer. Some brokerage houses, but not all, will reimburse this transfer fee.
Learn more in
Transfer from Sofi to Ally Invest.
Tax Issues
Remember that withdrawing cash from a retirement account or selling securities inside a taxable account could result in tax implications come tax season. This is true with both self-directed and robo accounts. It’s advisable to visit with a CPA before closing an account or making withdrawals from it.
Updated on 9/24/2022.
Chad Morris is a financial writer with more than 20 years experience
as both an English teacher and an avid trader. When he isn’t writing
expert content for Brokerage-Review.com, Chad can usually be found
managing his portfolio or building a new home computer.
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