To close your Robinhood account, you must sell all your holdings, withdraw your funds, and then deactivate the account through the app or website.
Are you done with Robinhood? Whether you're cashing out your investments or simply moving on to a different platform, closing your Robinhood account is a straightforward process – but there are a few things you should know before you hit that "close" button. Stick around, and we'll walk you through the essentials to ensure you can shut it down without leaving loose ends.
Before You Close Your Robinhood Account
Hold your horses before you hit that "Close Account" button! You need to wrap up a few things before you can sever ties with Robinhood.
- Sell All Your Holdings: You can't close your account if you still hold onto stocks, ETFs, or other securities. Robinhood doesn’t let you ghost with assets in hand. Make sure to sell everything off and get your cash back in the clear.
- Ensure a Zero Balance: Just like you wouldn’t walk away from a restaurant without settling the bill, don’t try to close your Robinhood account with money still sitting there. Withdraw every penny into your linked bank account before saying adios.
- Download Transaction History: Uncle Sam doesn’t care if you’re done with Robinhood; he still wants his cut. Download your transaction history for tax purposes because getting this information might turn into a wild-goose chase once your account is closed.
- Recoverability: Deleted your Robinhood account but having second thoughts? You can recover it within a certain time frame. Don’t wait too long, or that window might close for good.
- Transfer Fees: Closing your account? No problem, that's free. But transferring your assets to another brokerage? Robinhood might charge you a little farewell fee. Keep that in mind if you're considering hopping over to a new trading platform.
Closing Your Robinhood Account: A Step-by-Step Guide
Alright, you're sure this breakup is for real. Let's walk through how to close your Robinhood account without breaking a sweat.
Step 1: Go to the Robinhood App or website
First, make sure you're logged in to your Robinhood account on either the app or the website. No point in trying to close an account you can’t even access, right?
Step 2: Go to the Account Tab
Once you're in, head over to the Account tab. This is where the magic happens. In the Account menu, you'll find all the important options for managing your Robinhood experience, including the not-so-hidden option to part ways.
Step 3: Tap on Settings and Select Account Information
Navigate to Settings from the Account tab. Under Account Information, you'll get to the nitty-gritty of your Robinhood account. It's the place to be if you're looking to update your details – or, in this case, set the wheels in motion to close your account.
Step 4: Scroll Down to Find the Option to Close Account
Now, scroll down in the Settings section until you find that sweet "Close Account" option. It might be a little buried, but it’s there. Remember, you can’t proceed until you’ve sold all your holdings and emptied your account balance.
Step 5: Request Account Closure
Found the "Close Account" button? Good. Hit it, but brace yourself – Robinhood will probably ask you to confirm your intentions. You might need to contact their support team to make it official and don’t be surprised if they ask for more info to confirm that you want out.
Step 6: Confirm Account Closure
You're almost at the finish line with all the formalities out of the way. Robinhood will deactivate your account once it’s confirmed you have a zero balance and no open positions. This process could take three days to a week, so don’t panic if it’s not instant. They’ll send you a confirmation email once the deed is done.
Robinhood Alternatives
Maybe you’re not done with investing – just done with Robinhood. If you're looking for a new trading platform, here are some alternatives that might catch your eye.
Best for Global Traders: Interactive Brokers
Interactive Brokers is a big name in the trading world, offering access to global markets that Robinhood doesn't even touch. This might be your next stop if you dream of buying stocks in Tokyo or Frankfurt.
Why We Picked It: With low fees and a wide range of investment options, Interactive Brokers is the go-to for traders who want access to a broad spectrum of global markets. Plus, their advanced trading tools make it a favorite among seasoned investors.
Best for Intermediate Traders: Webull
Webull is a strong contender if you want to step up from Robinhood. It offers more advanced charting tools and extended trading hours, perfect for those who aren’t quite beginners anymore but don’t want to drown in complexities.
Why We Picked It: Webull's user-friendly platform is a step up for those looking to get more serious about trading. With no commissions on trades and an intuitive interface, it's a solid choice for the intermediate trader.
Best for Futures Trading: TradeStation
TradeStation is a haven for traders who are serious about futures and options trading. Unlike Robinhood, TradeStation provides more advanced trading tools and a range of features designed for those who want to dive deep into market analysis.
Why We Picked It: TradeStation's platform is designed for those ready to go beyond the basics. With powerful analytics tools and a customizable interface, it’s perfect for traders specializing in futures trading.
Best for Traders of All Levels: moomoo
moomoo is the new kid on the block, offering a blend of features that appeal to beginners and experienced traders. It’s like Robinhood but with more flair and a focus on social trading.
Why We Picked It: moomoo stands out for its blend of beginner-friendly features and advanced tools. It’s great for anyone, from a rookie just getting started to a seasoned trader looking for new ideas.
Best for Trade Ideas: Public.com
Public.com takes a social approach to investing, making it easy to see what others are trading and get inspiration. It's perfect for traders who love learning from the community and seeing trends.
Why We Picked It: Public.com’s social features make it a standout. The ability to follow other investors and get insights from the community adds a new dimension to trading, one that Robinhood doesn’t offer.
Frequently Asked Questions
Can you permanently delete a Robinhood account?
Yes, once your account is closed, it’s gone for good. Just make sure you’ve downloaded any needed information before closing it.
How much does it cost to close a Robinhood account?
Closing your account is free. However, transferring assets to another brokerage might come with a fee.
How long does it take to close Robinhood?
Depending on how smoothly everything goes, it can take anywhere from three days to a week to close your account.