The basic steps to close your E*TRADE account

You can close your E*TRADE account by calling their customer service line at 1-800-387-2331 or by using the account closure tool in your account settings online. Before you close, you need to settle any open positions, transfer or withdraw all cash, and make sure there are no pending transactions. E*TRADE will not close an account with unsettled trades or money sitting in it.

The phone route is faster if you have questions during the process. The online route takes longer because you have to wait for E*TRADE to confirm each step before moving to the next one. Either way, the actual closure usually takes 3 to 5 business days after everything is settled.

If you have a margin account or options trading enabled, closing takes longer because E*TRADE has to review your account status and make sure you do not owe them money. If you do owe a margin balance, you must pay it before the account will close.

Key Takeaways

  • You must sell all open positions and withdraw all cash before E*TRADE will close your account.
  • Calling 1-800-387-2331 is the fastest way to close; the online method requires you to wait for confirmation between steps.
  • If you have a margin balance or outstanding trades, the closure will be delayed until those are settled.
  • The entire process from start to finish usually takes 3 to 5 business days after all money and positions are cleared.
  • E*TRADE will send you written confirmation of the closure to the email address on file.

What you need to do before closing

Close or sell every open position in your account. This includes stocks, options, mutual funds, bonds, and any other securities. E*TRADE will not let you close the account while you still own anything. If you want to keep some investments, transfer them to another brokerage instead of closing the account.

Withdraw all cash and money market balances. Any cash sitting in your account must be moved out. You can transfer it to your linked bank account or request a check. This step can take 1 to 3 business days depending on your bank, so do not wait until the last minute.

Pay off any margin balance if you have a margin account. If you borrowed money from E*TRADE to buy securities, you must repay it in full. E*TRADE will not close the account until the balance is zero. You can pay by transferring funds from your linked bank account or by selling positions to cover the debt.

Check for any pending transactions or unsettled trades. Trades take 2 business days to settle after you place them. If you have trades that have not yet settled, wait for them to complete before requesting closure. E*TRADE will tell you the settlement date when you place the trade.

Closing your account by phone

Call E*TRADE customer service at 1-800-387-2331. Have your account number and Social Security number ready. The representative will verify your identity and ask why you are closing the account. This is a standard question and does not affect whether they will close it.

Tell the representative that all positions are sold and all cash has been withdrawn. They will check your account in real time to confirm this is true. If anything is still pending, they will tell you what needs to settle before they can proceed.

The representative will submit the closure request and give you a confirmation number. Write this down. E*TRADE will send a confirmation email to the address on your account within 24 hours. The account will be fully closed within 3 to 5 business days.

Closing your account online

Log into your E*TRADE account and go to the Account menu. Look for "Close Account" or "Account Closure" — the exact wording changes depending on which E*TRADE platform you use. If you cannot find it, call customer service; some account types do not have an online closure option.

E*TRADE will show you a checklist of what must be done before closure can proceed. Go through each item: sell all positions, withdraw all cash, pay any margin balance. You cannot move forward until every item is marked complete.

After you finish the checklist, E*TRADE will ask you to confirm the closure request. You will receive a confirmation number on screen and by email. The account will close within 3 to 5 business days. You will get a final confirmation email when it is done.

What happens to your data and tax documents after closure

E*TRADE keeps your account records for at least 6 years after closure. You can still download tax documents like 1099 forms from your account for several years after closing, even though you cannot trade or deposit money.

If you need tax documents after your account is closed, you can request them by calling customer service. Have your Social Security number and the year you need documents for ready. E*TRADE will mail them to you or make them available to download.

If you had any restricted stock units, employee stock purchase plan shares, or other employer-sponsored holdings, closing your brokerage account does not affect those. They stay in their original accounts. You only close the E*TRADE brokerage account itself.

If you want to reopen your account later

You can open a new E*TRADE account at any time after closing. There is no waiting period or penalty. You will go through the same account opening process as a new customer, including identity verification and funding your account.

Your old account number will not be reused. Your new account will have a different number. Any positions or cash from your old account are gone — they were either sold or withdrawn before closure, so there is nothing to recover.

Frequently Asked Questions

Can I close my account if I still have unsettled trades?

No. You must wait for all trades to settle before E*TRADE will close your account. Trades settle 2 business days after you place them. If you have pending trades, wait for the settlement date to pass, then request closure.

What if I have a margin balance when I try to close?

You cannot close the account until the margin balance is paid in full. Transfer money from your linked bank account to cover the debt, or sell positions to raise the cash. Once the balance is zero, you can proceed with closure.

Will closing my E*TRADE account affect my credit score?

No. Closing a brokerage account does not affect your credit score. Credit scores are based on credit accounts like credit cards and loans, not investment accounts. Closing E*TRADE has no impact on your credit history.

How long does it take to get my money after I close the account?

If you withdraw cash before closing, it goes to your linked bank account in 1 to 3 business days depending on your bank. The account closure itself takes 3 to 5 business days. You do not have to wait for the account to close to access your money.

Can I transfer my positions to another brokerage instead of selling them?

Yes. You can request an outbound transfer to move your positions to another brokerage. This is called an ACAT transfer. It takes 5 to 7 business days. Once the transfer is complete, you can close your E*TRADE account. This way you keep your investments without selling.