Are you ready to delete your Robinhood account? Then, see the following page to see the step-by-step instructions where you will learn the things you must do before deleting the account and the method of transferring your account to another brokerage if you want.
Undoubtedly, Robinhood is the popular choice among individual stock market investors. It allows retail traders easy access to a trading platform through competitive pricing and ETFs, including $0, options, and cryptocurrency trades in the U.S. and Australia. Hence, it is easy to see why its user base has grown dramatically in the past four years.
So far, it is accessible, but many complaints have been filed about Robinhood. So, you should consider more traditional brokerages if you want to day trading or less risk as you are the only one responsible for investing and don’t have a financial advisor.
Plus, another reason for deleting the account is blocking the users suddenly from buying stocks so that you can transfer your account to a stock trading app that will not stop its users from purchasing these stocks. Thus, whatever the reason, you may close your account where you need to pay a cancelation fee also. So, move to the next section to see the details.
What Steps Should You Take Before Closing Your Account?
At first, you have to decide whether you want to close your account or just deactivate it. So, if you wish to close your account, then the only thing you will be able to use the Robinhood app is to check your historical account statements, tax documents, and trade confirmations.
Later, if you want the app to use Robinhood again, then redo the application process. Consequently, if you deactivate your account, you will still be able to check all your documentation. Make sure that you don’t leave any funds in your account. Thus, you can easily reactivate your account if you want to continue trading on the app later.
Your Robinhood account balance has to be $0, whether you choose to delete or deactivate your account. Either sell all of your positions and transfer the proceeds to your bank account or transfer all of your assets from Robinhood to another brokerage.
Remember, if you sell the stock for less than you purchased it, then possibly you may lose the money. Moreover, you can also be obliged to pay capital gains taxes by doing so, so the transfer is typically the better option. This step will permit investors to keep their investments but switch brokerages.
Before you decide to sell your holdings, calculate the taxes you may owe. However, the actual amount will depend on how long you hold the investment and your income level.
Quick Steps to Close Your Robinhood Account
If you want to sell all your positions, withdraw the balance into your bank account. So, you can close your Robinhood account in the app itself. Hence, let’s see the following steps:
- Sign in to your Robinhood
- Click on the Account (person)
- Then, click on the Settings
- Tap on the Account Information
- Scroll down and click on the Deactivate Account.
- Now, apply the steps to close all your brokerage positions and withdraw your outstanding balance.
- Once your balance becomes $0.00 and your stop, you can be able to confirm your deactivation request.
After applying the above steps, your account will be restricted from investing or trading. Your account will not reactivate on re-downloading the app. As Robinhood is mandatory by law to preserve certain books and records, your account will still exist in the Robinhood system.
Moreover, you will still be able to access your account statements, tax documents, and trade confirmations in the app.
Alternate Method: Email a Written Request
According to a few users, the best way to delete a Robinhood account is by sending an email directly to its website. Nevertheless, you must have your account ready to be deleted to speed up the process. Otherwise, it will take up to 1 week to complete the deletion process.
Hence, the deletion process is finished by deleting the Robinhood profile. Well, plenty of online brokers are available so that you can find a new one for yourself.
What Is The Method For Transferring My Robinhood Account To Another Broker?
Alternatively, you can also transfer your Robinhood account to another brokerage if you don’t want to sell your positions. On moving your assets to another, your Robinhood account will automatically close. So if you don’t close your account, then it will automatically close on transferring data.
Hence, the transfer process begins in a few steps at your newly chosen breakage firm. You just have to start an ACATS (Automated Customer Account Transfer Service) request and fill out any paperwork your new brokerage firm requires. After that, they will submit transfer instructions. As a result, your assets and funds can now be moved to the new brokerage firm.
Thus, you might need to provide the other brokerage with your Robinhood Securities (RHS) account number. So you can find this number in your mobile app:
- On the bottom right corner, tap on the Account
- Then, tap on the Investing
- You may notice your account number will be at the top of the screen.
- Now, you have to give this account number to your new brokerage.
- Moreover, you may also need to reference a DTC number, or Robin’s DTC number is 6769 for your transfer.
- Now, the transfer process
- Once the process ends, all your shares, options, and cash from fractional share sales will send to a new brokerage.
Note: If you need help during the account transfer process, you can also call Robinhood’s customer service line at 1-650-940-2700.
Here comes the time when you want to leave your Robinhood trading platform regardless of the reason. So you may remove the account, but you have to sell your holdings or transfer your account to another brokerage.
Though Robinhood takes charges for cancelation of the account and also on transferring the account to another brokerage. So, it’s up to you which path you follow, and let us know your views about the worthiness of the article by commenting.