How to Delete Robinhood Account
The Robinhood trading platform has proven to be one of the most reliable and efficient ones out there.
The Robinhood ecosystem is pretty easy to manage, so Robinhood users often feel very comfortable while making risky investments and using their trading account.
But the Robinhood app is not unique - there are other brokerage firms to choose from.
In fact, those who want to exchange traded funds with a new brokerage firm that offers robust research tools are on their right to do so.
It doesn’t matter if you are a retail trader or you are looking for information that retail investors can use - we’ll show you how to get rid of your profile in this stock trading app once and for all.
Read further to learn more about:
- How to delete Robinhood account;
- Things you need to know before you close individual brokerage accounts;
- Guidance during the entire process of closing your Robinhood account.
What Happens When You Delete Your Robinhood Account?
Robinhood allows users to trade stocks, perform cryptocurrency trades and withdraw money to their account with low trading and transfer fees.
Trade confirmations are usually pretty fast and efficient, but it is safe to say that Robinhood isn’t perfect.
Yes, retail traders and millennial investors will certainly find some advantages between Robinhood and traditional brokerages, but this will change over time.
For instance, those who want to perform advanced day trading will feel very limited on the Robinhood app.
What’s more, it’s possible to get a Robinhood Account Restricted from Purchasing if uninformed individual investors are unaware of Robinhood securities, which is frustrating.
1. You Need to Move All the Funds to Your Bank Account or Another Platform
First things first - the outstanding balance on your account must be withdrawn before being able to close it.
Therefore, you need to clean up your Robinhood account balance.
Withdraw Money from Robinhood to an external bank account and you’ll be good to go.
Pro Tip: You are completely responsible for withdrawing your funds into your linked bank account number.
Nonetheless, if you can’t transfer your account cash, then read our related blog post to learn more: Can’t Withdraw Money from Robinhood.
2. Robinhood Will Keep Your Historical Account Statements
Robinhood is obligated by certain laws to keep your history, tax documents, and all your securities transactions for a while after you tap “deactivate account.”
Follow the steps as stated on their official page so you can know which Robinhood data will be preserved after you close your Robinhood account.
3. You Can Start an Account Transfer Process Instead of Deleting Your Account
If you are not done with the trading world, then open a new account with another broker.
You can simply transfer your account to your newly chosen brokerage firm thanks to the Automated Customer Account Transfer Service.
Closing your profile on Robinhood costs nothing, but the platform will charge account closure fees if you want to move to another platform.
This cancellation fee for a transfer is $75.
Learn more about this fee by going to the official Robinhood Website.
How to Delete Robinhood Account
Let’s close your account once and for all! As we stated before, there isn’t an account closure fee, so doing this will be totally free.
Since the Robinhood trading platform considers itself to be a smartphone-first brokerage, managing the Robinhood system via the firm’s mobile app is easier than you imagine.
Pro Tip: If you have Unsettled Funds on Robinhood, then you won’t be able to withdraw this money until the settlement period ends.
Thus, have some patience - they will be unsettled sooner than later.
Step 1: Log In to Your Robinhood Brokerage Account
Log in to your Robinhood profile on the app.
Then, tap on your account icon and proceed.
Step 2: Tap on “Account Information”
An option that says “Account Information” will be shown on the screen.
Tap there and continue as stated in the following step.
Step 3: Select the “Deactivate Account” Option
Select “Deactivate Account.” Robinhood will show you the two main requirements that you must comply with before being able to successfully close your profile.
Step 4: Close All Your Positions and Withdraw Your Cash Balance
Sell all of your trading positions and certain stocks that you have on your account.
Likewise, it’s fundamental to withdraw all the funds into your bank account before being able to delete your profile.
A couple of checkmarks will appear on the screen.
These checkmarks must be green - otherwise, the process won’t be able to be completed.
Step 5: Confirm the Deactivation Request
After you have fulfilled all the requirements, your account will be able to get deactivated in no time.
Tap on the option, and there you go - Robinhood account deleted!
Alternatively: Submit a Written Request
Some users state that the best way to delete a Robinhood account is by sending an email directly to [email protected].
Nonetheless, in order to accelerate the process, you must have your account ready to be deleted.
Otherwise, it can take up to one week for them to complete the deletion process.
That’s all you need to know about deleting your Robinhood profile.
There are plenty of online brokers in the ocean, so worry not! You’ll find a new one.
Delete Robinhood Account FAQ
Can You Recover Your Profile When You Close Your Robinhood Account?
You will need a new brokerage account if you want to go back to using this broker.
Having a new Robinhood account requires you to go through the signing process all over again.
Thus, you must provide personal information again, such as your SSN to Robinhood.
Can You Have Two Robinhood Account?
No. You can only have one account with your information. The platform won’t allow you to have more than one profile.
Steve specializes in cryptocurrency and finance. As a born researcher, he won’t leave any stone unturned when it comes to topics he covers.