How To Close A Robinhood Account 2023 [Close Or Transfer]

If you've been using Robinhood for your investing adventures but are now looking to bow out, you're probably wondering how to close a Robinhood account.

It's an understandable concern. After all, managing your investments and financial information should be straightforward. However, this process is not always as easy or apparent as hoped.

Fear not! This guide is here to help you sail through the closure process smoothly and without a hitch.

So whether you're moving onto other trading platforms or just taking a pause from the investment world altogether, this guide has your back.

So, pull up a chair, and let’s get started on the necessary steps to close your Robinhood account efficiently and effectively.

Crucial Considerations Before Closing Your Robinhood Account

Before you take the plunge and close your Robinhood account, there are some significant checkpoints to cover.

Crossing these off your list ensures your financial house is in order and prevents potential hiccups.

First and foremost, you must sell all your investments in Robinhood. This includes any cryptos, stocks, or options currently in your account. Once these assets are sold, it's delivery time! You will move all this cash into your bank account(s).

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Zero Out Your Balance

Ensure your Robinhood account balance is zeroed out before attempting closure. This process includes waiting for any pending transactions to clear. Remember, there might be a slight delay while the transfer is completed.

Transfer or Sell Assets

If, instead of selling, you'd like to keep your holdings, consider transferring them instead of selling them outright.

Using a process called ACATS (Automated Customer Account Transfer Service), you can transfer these assets to another brokerage. But do note that Robinhood charges $75 for this service.

It is always prudent to review all closing considerations with due diligence to ensure a seamless transition during the closure or migration of any valuable investment portfolio.

How To Close A Robinhood Account

Closing your Robinhood account might come across as a daunting task, especially if you are unsure about where to start. However, the process is relatively straightforward if you can follow step-by-step instructions.

Kindly follow the steps detailed below to close your Robinhood account successfully:

• Open the Robinhood app on your mobile device.
• Upon opening the app, look for Account in the bottom right corner of your screen; tap on it.
• From there, navigate to Settings in the upper right corner.
• Find and select Account Information, present near the bottom of the settings menu.
• You'll see an option labeled as Deactivate Account. Click on this to proceed.
• After selecting 'Deactivate Account,' you will be guided through a set of prompts to instruct you on closing and withdrawing any outstanding balance.

Once all these steps have been properly executed and confirmed by you, wait for all funds to settle; once your balance is at $0 and there are no pending transactions left –your account is effectively closed.

It's important to note that once closed, you cannot reactivate it instantly - as such, ensure that closure aligns with your financial roadmap.

Do not hesitate to contact Robinhood's user support if you face any complications during this process- every decision concerning financial assets is essential, and getting it right from closure also matters.

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Transfer Your Robinhood Brokerage Account To Another Brokerage Company

If you want to shift gears or try out a new brokerage firm, transferring your Robinhood brokerage account instead of fully closing it might be an excellent alternative.

This way, you can avoid liquidating your investments and seamlessly continue trading securities via another broker.

Before you transfer your account, it's of utmost importance that all restrictions on your account— if any— are resolved.

If the remaining funds are in your Robinhood account, ensure that all of those are either withdrawn or resolved to zero. All negative balances should be paid off, too.

Now that we've established the prerequisites let's dive into the steps needed to transfer your Robinhood brokerage account without breaking a sweat.

• Initiate An ACATS Transfer: Brokerages use ACATS (Automated Customer Account Transfer Service) for securely shifting accounts between firms. You'll have to contact the brokerage where you'd like your assets moved and provide them with the necessary information (like Robinhood Securities RHS account number). Ask them to initiate the ACATS transfer for you.
• Partial Transfer Option: It's worth noting that both entire and partial transfers are possible with Robinhood accounts. That means if you'd instead not move every asset from Robinhood to the new broker, you don't have to; only specific ones can be moved.
• Hand Over Your RHS Account Number: For the outside firm to start this process, they need your unique Robinhood Securities (RHS) number, which differs from your regular account number with Robinhood. Here's how to find the RHS number – open the app > Click on 'Account' > Invest > The RHS number will show near the top of this page.
• Pay The Fees: Keep in mind initiating an automated transfer does involve fees, with most brokerages—Robinhood being no exception—charging a $75 fee for a complete outgoing automatic transfer, whereas a partial transfer runs at no cost.

While ending or shifting financial journeys like these can feel overwhelming at first glance- when handled one step at a time, they morph from intimidatingly complex ordeals into simple tasks that provide avenues for better financial management.

It always pays off to confirm details of these steps by placing calls with both parties involved, ensuring seamless execution timed just right without losing out critical amounts during shifting markets.

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How To Find Robinhood Securities (RHS) Account Number

When you're in the process of transferring or closing your Robinhood account, one critical piece of information that you'll require is your Robinhood Securities (RHS) Account Number.

Although it may sound technical, locating this number is straightforward and can be accomplished within minutes.

To find your Robinhood Securities (RHS) Account Number, follow these steps:

• Open the Robinhood app on your device.
• Tap on Account, usually located at the bottom of your screen.
• From the options available, select Investing.
• Your RHS account number will be displayed near the top of the page. Note this number down, as you'll need it for any account transfers or closures.

In addition to your RHS account number, specific financial transactions may require you to know Robinhood's DTC number, which happens to be 6769.

The DTC (Depository Trust Company) number is a unique identifier code assigned by the DTC and helps facilitate timely settlement among participants trading securities.

FAQs About Robinhood Account

Conclusion

Navigating through closing or transferring your Robinhood account may seem daunting.

However, with a step-by-step guide and meticulous attention to crucial details, these tasks morph into easy-to-handle actions.

Always remember that the aim is to execute these procedures stress-free while ensuring a complete transfer of your financial assets.

Whether switching to a new brokerage or simply pausing from trading, being educated about all aspects of managing and closing accounts ensures you remain in control of your financial journey.

Stay informed and make intelligent decisions that align with your unique investment objectives.