How to close your E*TRADE account

You can close your E*TRADE account by calling their customer service line or by using their online account closure process. The method you use depends on your account type and whether you have open positions or cash balances. E*TRADE does not charge a fee to close an account, but you will need to settle any outstanding trades and withdraw or transfer any remaining funds before the account can be fully closed.

The closure process typically takes a few business days once you have submitted your request and resolved any remaining account activity. If you have a brokerage account with positions or cash, you must either sell those positions and withdraw the funds, or transfer them to another brokerage before closure is complete.

Key Takeaways

  • You can initiate account closure by phone at E*TRADE's customer service number or through your online account dashboard.
  • All open positions must be closed and any remaining cash balance must be withdrawn or transferred before your account can be fully closed.
  • E*TRADE does not charge a fee to close an account, but you are responsible for any tax consequences from selling positions.
  • The closure process takes several business days after you submit your request and settle all account activity.
  • If you have retirement accounts (IRA, 401k), those have separate closure procedures and may have different rules depending on the account type.

Closing a standard brokerage account online

Log into your E*TRADE account and navigate to the Account menu. Look for an option labeled "Close Account" or "Account Settings." E*TRADE's online closure tool will walk you through the steps and show you any positions or cash that must be settled before closure can proceed.

Before you can complete the online closure, you must have zero open positions and zero cash balance in the account. If you have stocks, options, or other securities, you will need to sell them first. If you have cash remaining, you can request a transfer to your linked bank account or to another brokerage account.

Once all positions and balances are cleared, submit your closure request through the online form. E*TRADE will send you a confirmation email, and the account will be marked for closure. The actual closure typically completes within three to five business days.

Closing your account by phone

Call E*TRADE's customer service number (found on your account statements or the E*TRADE website) and tell the representative you want to close your account. They will verify your identity and review your account to see what needs to be settled before closure.

If you have open positions or cash, the representative can help you understand your options: you can sell positions immediately over the phone, or you can request a transfer of securities or cash to another account. Some customers prefer phone closure because the representative can walk them through the process and answer questions about tax implications or transfer procedures.

After you have settled all account activity, the representative will submit your closure request. You will receive a confirmation number and an email confirming that your account is scheduled for closure.

What happens to your money and investments

Any cash remaining in your account must be withdrawn before closure. You can request a wire transfer to your bank account, a check mailed to your address, or a transfer to another brokerage. Wire transfers typically arrive within one to two business days; checks take longer depending on mail delivery.

Any securities (stocks, mutual funds, options) must be sold or transferred. If you want to keep your investments, you can transfer them to another brokerage without selling. E*TRADE can initiate an Automated Customer Account Transfer Service (ACATS) transfer to move your holdings to a different firm. This process usually takes five to seven business days.

If you sell positions to close your account, you are responsible for any capital gains taxes on those sales. E*TRADE will report the transactions to the IRS, and you will owe taxes on any profits when you file your tax return.

Closing retirement accounts (IRA and 401k)

Retirement accounts have different closure rules than standard brokerage accounts. If you have an E*TRADE IRA (Traditional, Roth, or SEP), you must first decide what to do with the money: withdraw it, transfer it to another IRA, or roll it over to a new employer's 401k plan.

Withdrawals from Traditional IRAs before age 59½ may trigger a 10% early withdrawal penalty plus income taxes on the amount withdrawn. Roth IRA withdrawals have different rules depending on how long you have held the account. Contact E*TRADE's IRA support line to discuss your options before you close the account, because the tax consequences can be significant.

If you have a 401k through E*TRADE (usually from a previous employer), you can roll it over to an IRA at another institution, to your current employer's plan, or leave it where it is. Closure of a 401k account is handled differently than a standard brokerage account and may require additional paperwork.

Transferring your account to another brokerage

If you want to move your investments to a different brokerage instead of closing your account outright, you can request an ACATS transfer. This allows you to move your securities and cash to another firm without selling everything and triggering immediate tax consequences.

Contact the new brokerage first and ask them to initiate the transfer. They will request your account information from E*TRADE and handle most of the paperwork. E*TRADE will send you a transfer request notification; you may need to sign and return documents to complete the move.

ACATS transfers typically take five to seven business days, though some accounts take longer if they contain certain types of securities or if there are complications. Once the transfer is complete, your E*TRADE account will be closed automatically.

What to do before you close

Before you submit a closure request, download or save copies of your account statements, tax documents, and transaction history. E*TRADE will keep records on file, but having your own copies makes it easier to track your investments for tax purposes or if you need to reference past transactions.

If you have any pending trades, dividend payments, or other activity scheduled, wait for those to settle before closing. Closing an account with pending activity can delay the closure process or cause complications.

If you have linked bank accounts for transfers, make sure your bank account information is current. If you are transferring to another brokerage, confirm that the receiving firm has received your account information before you close at E*TRADE.

Frequently Asked Questions

Does E*TRADE charge a fee to close my account?

No, E*TRADE does not charge a fee to close an account. However, if you have open positions that you need to sell, you may pay standard trading commissions on those sales. Any wire transfer fees charged by your bank are separate from E*TRADE's closure process.

What if I have a pending trade when I try to close my account?

Pending trades must settle before your account can be fully closed. Wait for the trade to complete, then submit your closure request. If a trade is stuck or not settling, contact E*TRADE customer service to resolve it before you close.

Can I reopen my E*TRADE account after I close it?

Yes, you can open a new E*TRADE account at any time after closing. However, you will need to go through the account opening process again, including identity verification and funding your new account. Your old account records will still be available if you need to reference them for tax or investment history purposes.

How long does it take to close my account after I submit the request?

Account closure typically takes three to five business days after you have settled all positions and balances. If you have complications or pending activity, it may take longer. E*TRADE will send you email confirmations at each stage of the process.

What happens to my tax documents after I close my account?

E*TRADE keeps your tax documents (1099 forms, transaction records) on file for several years. You can download them from your account before closure, or contact E*TRADE customer service after closure to request copies. The IRS requires you to keep your own records for at least three years.