Robinhood is a popular choice for new stock market investors, but you may wish to delete the app and exit the platform at some point.
As Jennifer Stein, Priebe Wealth’s director of client engagement, notes, “Robinhood has been in the news for deceiving inexperienced investors and allowing them to engage in considerably riskier trades than they are comfortable with. Outside of a conventional brokerage account, Robinhood does not offer retirement accounts, trust accounts, or many other investment vehicles.”
This post will show you how to delete your account for any of the reasons listed above or for any other reason.
Before you can close your Robinhood account
Before you may delete your account, you must first decide what to do with your assets:
- Sell all your shares and close all positions — alternatively, you can just transfer them to another brokerage account through Automated Customer Account Transfer Service (ACATS) form
- Close your debit card if you signed up for one
- Transfer all money out of your account to bring your balance to $0
Keep in mind that if you sell your stock for less than you paid for it, you may lose money. Because you may incur capital gains taxes if you sell, a transfer is usually the wiser alternative. “Investors will be able to keep their money while switching brokerages,” Stein says. “If diversification is their ultimate goal, they can then evaluate the optimum approach for selling the shares and diversifying.”
Frequently asked questions
How much does it cost to close a Robinhood account?
Closing your account is free if you sell your holdings and simply transfer the monies to your bank. There is a $75 fee if you opt to transfer your shares through ACATS.
How do I transfer assets to another brokerage?
Your new brokerage will need to start an ACATS transfer for you. They’ll need your account number, which you can find on the main menu under “Account Information.” A quick reminder: Cryptocurrency holdings are not transferable to other brokerages. They’ll be liquidated, and you’ll be able to transfer the proceeds to your new account.
What happens to my account records?
Even after you’ve closed your account, Robinhood will keep records of it for regulatory purposes, including statements, trade confirmations, and tax paperwork. You can continue to use the app to access them. (Don’t worry, re-downloading the app won’t bring your account back to life.)
How long does it take to close a Robinhood account?
Robinhood estimates that it will take three to five business days to deactivate your account after you’ve liquidated or transferred your holdings, zeroed out your account balance, and requested the deactivation.
The financial takeaway
It’s possible that you’ll want to remove your Robinhood account at some point. Before you do so, you’ll need to sell or transfer your shares to another brokerage. Before determining which path to pursue, you should consider probable capital gains taxes as well as Robinhood’s $75 transfer charge.
Contact Robinhood customer service if you have any issues regarding closing your account. They can assist you in navigating the process.