How To Close Etrade Account

How to Close ETRADE Account in the USA: The Ultimate 2025 Guide

Managing your investments is all about control — and sometimes that means knowing when to walk away. Whether you’re consolidating your brokerage accounts, unhappy with ETRADE’s offerings, or simply stepping away from the stock market for a while, closing your ETRADE account might be on your to-do list.

Introduction

ETRADE is one of the most popular online brokerages in the United States. Known for its easy-to-use trading platform, robust research tools, and low-cost commissions, it’s become a go-to for millions of retail investors. But just because ETRADE is a strong player doesn’t mean it’s the right fit for everyone.

Maybe you’ve found better trading fees elsewhere. Maybe you’re consolidating your accounts to simplify your portfolio. Or perhaps you’ve simply decided the ups and downs of the market aren’t for you anymore. Whatever your reason, closing your E*TRADE account is your right — and it’s easier than many people think, as long as you follow a proper checklist.

Before you start, remember: this isn’t like canceling a Netflix subscription. Brokerage accounts can involve open trades, unsettled funds, tax considerations, and data privacy issues. Closing it without a plan could create costly or time-consuming headaches later. That’s why this guide doesn’t just tell you how to close your E*TRADE account — it also helps you prepare properly so you won’t regret it later.

Things to Consider Before Closing Your E*TRADE Account

Check for Any Open Positions

First things first: if you have any stocks, ETFs, options, or other investments still sitting in your E*TRADE account, you’ll need to do something with them. Brokerage firms generally will not close an account with open positions still inside.

So what are your choices?

• Sell your positions: This is the simplest option. Liquidate everything, wait for the trades to settle (usually 2 business days), then withdraw your cash.
• Transfer your positions: If you’re moving to another broker, you can often transfer your entire portfolio via the Automated Customer Account Transfer Service (ACATS). This keeps your investments intact, avoiding the need to sell and possibly incur capital gains.

Don’t overlook options contracts. Make sure all options have either been exercised, expired, or closed. If you forget, those contracts could complicate the closure — or worse, you might get assigned on an option you thought was out of mind.

Clear Pending Transactions or Settlements

Even if you hit “sell” on all your stocks today, the funds don’t immediately appear as cash you can withdraw. Most trades have a T+2 settlement cycle, meaning two business days after the trade date.

Similarly, if you recently deposited funds into your ETRADE account, your deposit may still be on hold. ETRADE usually places a 3-5 day hold on new deposits to ensure the money clears. Trying to close your account before these funds officially settle can lead to rejection of your closure request.

So, check:

• Any unsettled trades? Wait until settled.
• Any recent deposits? Make sure they’re cleared.

It might feel like a hassle to wait a few days, but it prevents having your closure delayed.

Download Statements and Tax Documents

Here’s something many people forget in their rush to close: your statements, trade confirmations, and tax forms. Once your account is closed, you might lose easy online access to these records.

At tax time, you’ll still need those 1099 forms to report capital gains or dividends. And if you ever need to prove cost basis for assets you’ve sold (or transferred elsewhere), having trade confirmations is critical.

So, before you initiate closure:

✅ Log into your E*TRADE account
✅ Download your monthly/quarterly statements
✅ Download your trade confirmations
✅ Download all tax documents from past years (or at least the last 3-4)

This is also a good time to look over your account for anything unexpected. Maybe there’s an old dividend reinvestment you forgot about, or a small leftover cash balance. Cleaning this up now avoids trouble later.

Understand Possible Fees and Penalties

While E*TRADE doesn’t charge a direct “account closure fee,” it does have fees you might trigger indirectly. For example:

• Outgoing ACATS transfer fees: If you’re moving your assets to another broker, E*TRADE charges $75 for a full outgoing transfer. (Partial transfers are usually cheaper or sometimes free.)
• Mutual fund fees: Some no-transaction-fee mutual funds may impose short-term redemption fees if you sell them within 30-90 days of purchase.
• Margin balances: If your account has a margin debit, you’ll need to pay it off before closure.

Double-check the E*TRADE fee schedule so you’re not surprised. A few minutes spent reading fine print now could save you hundreds later.

How to Close Your E*TRADE Account (Step by Step)

Alright, you’ve done your homework. You’ve closed out all open positions or initiated an account transfer, downloaded your documents, and confirmed there are no surprises waiting to derail your plans. Now let’s get down to the nitty-gritty of actually closing your E*TRADE account.

E*TRADE offers three primary ways to close your account, each with its own pros and cons. Let’s break them down.

Option 1 – Closing Online via E*TRADE Portal

This is by far the most convenient option for most users. E*TRADE’s online account center allows you to initiate a closure right from your dashboard.

How to do it:

1. Log into your E*TRADE account.
2. Navigate to “Account Services” or “Profile & Settings.”
3. Look for “Close Account” (it might also be under “Account Maintenance”).
4. Follow the prompts to confirm your identity and verify your intention to close.

During this process, the system will automatically check for:

• Any unsettled trades
• Remaining balances
• Open margin positions

If everything looks good, it will give you a final confirmation screen. You’ll then receive an email verifying that your account closure is underway.

✅ Tip: Keep a copy of the confirmation email for your records.

Option 2 – Call E*TRADE Customer Support

If you’d rather talk to a human — or if your account is more complex (say you have a margin account, options contracts, or it’s a joint or trust account) — it’s smart to close by phone.

How to do it:

• Call E*TRADE at 1-800-387-2331 (their standard customer service line for brokerage accounts).
• Tell the representative you’d like to close your account.
• Be ready to answer security questions and confirm your balances.
• Contact Us

They’ll walk you through any last-minute issues and let you know if there’s anything holding up closure. In some cases (especially if you’re closing a retirement account), you may have to fill out a specific distribution form.

✅ Tip: After your call, ask them to send you an email or letter confirming the closure request.

Option 3 – Submit a Written Request

This is the old-school method — not commonly used anymore but sometimes necessary if your account has legal complexities (like an estate account) or you’re overseas and can’t call easily.

How to do it:

• Write a brief letter stating you wish to close your E*TRADE account. Include:
  • Your name
  • Account number
  • Last four digits of your Social Security Number
  • Signature
• Address it to: mathematicaCopyEditE*TRADE Securities LLC P.O. Box 484 Jersey City, NJ 07303-0484 USA

✅ Tip: Always use tracked mail. Once they process it, they’ll typically send you a confirmation.

How Long Does It Take to Close an E*TRADE Account?

One of the top questions people have is “How long is this going to take?” The answer: it depends on how “clean” your account is.

• Simple cash accounts: If you have no positions and no recent deposits, E*TRADE can close your account in as little as 3-5 business days after the request.
• If you recently sold securities: You’ll have to wait until trades settle (typically 2 business days) plus a little admin time.
• If you’re transferring to another broker: An ACATS transfer usually takes 5-7 business days. Once the new firm receives your assets, your E*TRADE account will automatically close if everything was moved out.

More complex scenarios (like options contracts near expiration, or retirement accounts requiring special paperwork) could extend the process to 2-3 weeks.

✅ Pro Tip: Always log back into your account about a week after your closure request. Make sure it shows as fully closed and no tiny balance (like dividends) has landed afterward. If it did, call them to issue a final check.

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What Happens to Your Funds After Closing?

This is a super important question — because closing your account doesn’t mean your money disappears. Depending on how you structured your closure:

• If you liquidated everything into cash: E*TRADE will either issue a check to your address on file or ACH the funds directly to your linked bank account. Make sure your linked bank account is still active and correct.
• If you did an ACATS transfer: Your stocks, ETFs, or other securities simply move over to the new broker. Once the transfer is complete, your E*TRADE account will automatically close (as long as it’s empty).

✅ Watch for tiny leftover dividends. Even after closing, some companies might issue a small dividend a month later. This could temporarily “reopen” your account with a small balance. In that case, E*TRADE will usually send you a check.

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Avoiding Common Mistakes When Closing Your E*TRADE Account

Let’s be real: closing a brokerage account isn’t something most people do often, so it’s easy to make slip-ups. Here are some common mistakes that could trip you up — and how to avoid them.

Overlooking Small Balances

Sometimes after you sell everything, a tiny amount stays behind. This could be from:

• A fractional share sold for less than $1
• A dividend that paid out after you sold
• Interest on uninvested cash

✅ Fix it: After you think your account is empty, check the balance screen. If it says even $0.01, request a full sweep or transfer.

Not Updating or Verifying Your Linked Bank Account

If your old bank account is closed, E*TRADE can’t push your final withdrawal. That could mean delays and even returned funds.

✅ Fix it: Double-check your linked bank details before requesting closure.

Forgetting to Download Tax Documents

As we covered earlier, you’ll still need your 1099s for the year you closed your account. If you forget to download them, you may have to call and request paper copies later.

✅ Fix it: Save all your documents before you initiate closure.

Can You Reopen Your E*TRADE Account Later?

This is a great question that pops up all the time — because let’s be honest, life changes fast. Maybe six months from now you’ll want to start trading again, or take advantage of a new promotion E*TRADE rolls out.

So, can you simply reopen the same account?

Not exactly.
Once your E*TRADE account is officially closed, it’s closed. Your old account number is retired, and the digital doors are locked. If you want to come back, you’ll typically need to submit a brand-new application just like any other new customer.

The upside? It’s generally pretty fast and easy — and often fully online. E*TRADE will still have your history archived, but for compliance reasons, you start fresh with a new account.

✅ If you’re unsure: Instead of closing outright, consider just emptying the account and leaving it open with a $0 balance. That way, if you decide to trade again, you simply fund it and you’re ready to roll. No need for a new application.

Alternatives to Closing: Should You Just Keep It Dormant?

Not totally sure you want to sever ties? You’re not alone. A lot of investors hesitate to close an account because they worry they’ll regret it. The good news is, there’s no rule that says you must close it if you’re not actively using it.

Pros of keeping it open:

• Easier to jump back in later.
• Keeps your historical transaction records in one place.
• You might avoid having to re-submit documents if you return.

Cons of keeping it open:

• If you have certain account types (like IRAs), there may be maintenance fees if you don’t meet a balance threshold.
• It’s one more account for hackers to potentially target, so make sure your passwords and 2FA are locked down.

✅ Smart move: Many E*TRADE customers just withdraw all funds, leave the account with a $0 balance, and keep it idle. If there are no annual maintenance fees tied to inactivity (which is generally true for standard brokerage accounts), this is a safe way to pause without fully closing.

Security and Privacy: Ensuring Your Data is Protected After Closing

This is something a lot of folks overlook. Even after your account is closed, E*TRADE is required by federal law to keep certain records for at least 5-7 years. This is to comply with SEC and FINRA regulations — so your transaction history doesn’t just vanish into thin air.

What does E*TRADE do with your data?

• They retain your records securely for legal compliance.
• They cannot use it to open new accounts without your consent.
• They typically do not market heavily to closed accounts (though you might still get occasional promotional emails, which you can unsubscribe from).

How you can protect yourself:

✅ Use strong passwords & enable two-factor authentication (2FA) on your old account login even after closure.
✅ Monitor your credit reports periodically for any unexpected accounts or hard inquiries.
✅ Request written confirmation of your closure so you have proof in case of any future disputes.

Final Checklist Before You Hit “Close”

To save yourself from frustrations down the road, here’s a quick last-minute checklist. Don’t skip it — these are the most common loose ends people forget:

✅ To-Do	Notes
Download ALL account statements	Go back at least 3 years if you can.
Download tax forms (1099, etc.)	Critical for IRS filing.
Verify all trades have settled	Check “settled cash” vs. “buying power.”
Zero out your cash balance	Request ACH to your bank.
Confirm no open positions or margin loans	Especially options or short sales.
Update/verify your bank account on file	Ensures smooth payout.
Contact customer service for closure receipt	Always get an email or letter.

✅ Pro Tip: Save all these documents in a secure cloud folder labeled “E*TRADE Closure 2025” so you can find them fast at tax time.

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Conclusion

Closing your E*TRADE account doesn’t have to be a big ordeal — but it does require a little attention to detail. From making sure you’ve closed all your trades, to downloading vital tax records, to double-checking your linked bank info, taking these steps ensures your exit is smooth and stress-free.

Whether you’re moving on to another broker, consolidating accounts for simplicity, or taking a break from investing altogether, this guide should help you handle the process with total confidence. And who knows? Down the road, you might be back — the markets have a funny way of pulling us in again.

FAQs

Can I close my E*TRADE account online?

Yes! For most standard brokerage accounts, you can close your E*TRADE account directly from your online dashboard. Just navigate to Account Settings > Close Account and follow the prompts. If your account is more complex (like having margin loans or open options contracts), you may be directed to call customer service.

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

No, E*TRADE doesn’t charge a fee just to close an account. However, if you transfer your account to another broker via ACATS, they typically charge $75 for a full outgoing transfer. Always check their latest fee schedule to avoid surprises.

What if I have open positions?

You won’t be able to close your account with active holdings. You’ll need to either sell your investments or transfer them to another brokerage first. After your portfolio is empty and all trades have settled, you can proceed with closure.

How do I transfer my assets before closing?

Most people use the ACATS system to transfer stocks, ETFs, and other assets to a new broker. Start the process with your new brokerage (not ETRADE) — they’ll initiate the transfer on your behalf. Once completed, your ETRADE account will typically auto-close if there’s nothing left in it.

Is it possible to close a joint E*TRADE account?

Yes, but joint accounts usually require consent from both account holders. Expect to fill out additional forms or provide dual signatures. It’s best to call E*TRADE directly to ensure you complete the process correctly.