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If you’re here, then you probably wish to close your Robinhood account.
Be it out of the need to switch brokers, cash out, or simply cease trading altogether. Regardless of whether you wish to delete your account for one of the reasons listed above or for another, this article will show you different methods you can use to close your Robinhood Account.
In This Post:
- How to Delete Your Robinhood Account (Step-By-Step)
- How to Transfer Your Money out of Robinhood
- How to Unlink Your Bank Account from Robinhood
- Does Deactivating Your Robinhood Account Delete It?
- What are the Fees When Closing Your Robinhood Account?
- How Long Does it Take to Close Your Robinhood Account?
- Wrapping Up
How to Delete Your Robinhood Account (Step-By-Step)
Using the Robinhood App
Follow these steps to delete your Robinhood account using the Robinhood App:
- First, open your Robinhood app.
- A drop-down menu will appear. Here select ‘Settings’ and then ‘Account information.’ A screen will pop up with your personal information that is associated with your Robinhood account like your name, your phone number, email, your address, and your account number.
- Scroll all the way to the bottom and choose the ‘Deactivate Account’ button.
- If you currently have any open stock or option positions in your Robinhood account, you do need to either sell your shares or close out your options or sell your options to close out those positions.
- Now, once you’ve closed all your positions, you’re going to get an account balance in cash. In order to close your Robinhood account, your balance should be zero, so you will have to withdraw all your money first. Transfer all your balance to your bank and confirm ‘Deactivate Account.’
Using the Robinhood Website
Deleting your Robinhood account using the website is fairly similar to how you would in the App. Here’s how to do it:
- Visit the Robinhood website and log in to your account.
- Go ahead and sell all of your stock in your portfolio. By doing this your account will reflect your balance in cash.
- Note that, it might take a couple for the money to reflect in your account. So wait for the money to reflect in your account first.
- When the money reflects in your account, proceed to withdraw that money to your bank account.
- Wait a few more days for the money to get into your bank account. Once you successfully withdraw the money, confirm that you don’t have any open or pending positions.
- After you confirm this, go to ‘Messages’ and Email Robinhood’s support to close your account.
To do this you will be required to state your name, account number, and the date on which you would want your account closure to take effect.
How to Transfer Your Money out of Robinhood
You can not delete your Robinhood account if you have money in your account. So you first need to transfer all your money into your bank account before proceeding.
Here’s how to do it:
- Go to the bottom right-hand corner of the app, and press the little person icon. You’re going to see a spot where it says transfer. When you click it, it’s going to give you a couple of different options.
- Choose ‘transfer to your bank’. Then select the amount of money available in your account and transfer everything into your bank account.
- Then go ahead and click on ‘transfer to your bank’ and type in whatever amount that you have available for you to be able to deposit back into your bank.
How to Unlink Your Bank Account from Robinhood
To unlink your bank account from Robinhood is pretty easy. Here’s how to do it.
- On the home screen, you’re going to see five buttons at the bottom. Click on the little person icon on the far right corner.
- Next, a screen will pop up where you should click on the third button from the top button labeled ‘Transfers’.
- Then select ‘Linked Accounts’. This will display any bank account that you have attached to your Robinhood account.
- Go ahead and click on the account you want to remove. The last four digits of the account will be displayed so make sure you’re choosing the correct one.
- Then click on the red unlink button and confirm that you would like to unlink your bank account from Robinhood. After just a few seconds the screen will refresh and you will no longer see the selected bank account under your linked accounts.
If at any point you feel like you want to use your unlinked bank account again in the future, you will need to add it again to Robinhood.
Does Deactivating Your Robinhood Account Delete It?
When you permanently close your Robinhood account, it does not delete all of the data. This is so because based on federal guidelines, they do need to keep records of the transactions that happened in your Robinhood account.
What are the Fees When Closing Your Robinhood Account?
There are no fees associated with closing your Robinhood account.
However, while there are not any fees, there are taxes to consider. So if you’ve made any gains in the positions that you’ve held in your Robinhood account, you are going to have to pay taxes on those gains, as soon as you sell those positions.
Moreover, the amount of money you’re going to have to pay in taxes is solely dependent on how much capital gain you had when you sold those positions, and how long you held those positions, to begin with.
For beginners, NerdWallet has a great calculator on its website. It comes in handy when you need to figure out how much money you’re gonna have to pay in taxes.
How Long Does it Take to Close Your Robinhood Account?
Note that the activation or closing of your account usually takes one to three business days, so it’s not going to be anything immediate.
In a nutshell, before you close your Robinhood account, you’ll need to sell or transfer your shares to another brokerage. To determine which option to pursue, you should consider probable capital gains taxes as well as Robinhood’s $75 transfer charge.
The steps above will guide you to successfully close your account and keep what you had earned over the time.
- NerdWallet: https://www.nerdwallet.com/reviews/investing/brokers/robinhood
- Brokerage Review: https://www.brokerage-review.com/account-fee/closure/robinhood-account-closing-fee.aspx