Robinhood is an online brokerage platform that has recently gained significant popularity. During that time, investors rushed to create accounts and take advantage of the commission-free trading, user-friendly interface, and accessible stocks. However, as with most trading trends, not everything sticks, and some users want to delete their Robinhood accounts.
After all, not everyone is a Wall Street guru, and those with no account balance may decide to close their account. If you’re one of them, this guide will walk you through the steps to delete your Robinhood account.
Things to Know Before You Delete Robinhood Account
Before you proceed to delete your Robinhood account, here are a few things to know:
- Withdraw Your Funds
Make sure to withdraw all the funds from your Robinhood account before you delete it. If you have any unsettled trades, you must wait until they are settled before withdrawing the funds.
- Tax Implications
If you have realized gains or losses on any investments in your Robinhood account, you must account for them when filing your taxes.
- Permanent Deletion
Deleting Robinhood account is a permanent action, and you won’t be able to retrieve it or any associated data after deletion.
With these things in mind, users wishing to close and delete Robinhood accounts should consider the decision before proceeding. The last thing users want is to close the account without withdrawing funds, as it’s impossible.
Steps to Delete Robinhood Account
Now that you have learned what you need to know before deleting your Robinhood account, let’s move on to the steps you must follow to delete your account.
Step 1: Open the Robinhood App or Website
You must access the app or website to delete your Robinhood account. Open the Robinhood app on your phone or tablet, or go to the Robinhood website on your desktop or laptop.
Step 2: Go to Settings
Once you’re logged in, click on the profile icon located in the top left corner of the app or website. Then, from the dropdown menu, select “Settings.”
Step 3: Select “Account Information”
In the “Settings” menu, scroll down and select “Account Information.”
Step 4: Click on “Close Account”
Under “Account Information,” you’ll find the option to “Close Account or Deactivate Account.” Click on it.
Step 5: Verify Account Details
Before you can close or delete Robinhood account, the platform will ask you to verify your account details. This built-in security feature prevents unauthorized users from deleting Robinhood accounts. Make sure to read and understand the information provided before proceeding.
Step 6: Confirm Account Deletion
After verifying your account details, Robinhood will ask you to confirm the action. Click on “Continue” to proceed.
Step 7: Enter Eeason for Deletion
Robinhood will ask you to provide a reason for deleting your account. This option is entirely optional. Select a reason from the dropdown menu or enter your own reason.
Step 8: Confirm (Once More) Account Deletion
Once you’ve provided a reason, Robinhood will ask you to confirm once again that you want to delete your account. Click on “Delete Account” to confirm.
Step 9: Receive Confirmation
After clicking “Delete Account,” Robinhood will confirm that your account has been deleted. You’ll also receive an email confirming the deletion of your account.
As you can see, deleting your Robinhood account is easy and seamless and can be done in a few steps. What’s important regarding the Robinhood account deletion process is to withdraw your balance and close your positions before confirming the action. If you don’t do that, you won’t be able to delete your Robinhood account.
To permanently delete your Robinhood account, you must do the following:
Go to “Settings.”
Click on “Account Information.”
Select “Deactivate Account.”
Perform the security checks and additional steps and confirm once more.
Users who don’t withdraw their Robinhood balance or close positions cannot delete their Robinhood account. So if you are shown an error message when trying to delete your Robinhood account, make sure you’ve withdrawn your account balance and closed existing trades.
No, deactivating your Robinhood account won’t delete it. You can still reactivate it, and your documentation will still exist on the account, eliminating the verification process the next time you reactivate it.
No, there is no penalty for deleting your Robinhood account. But there is a one-time fee of $75 for transferring holdings.