How to close and delete your Robinhood account

• You can delete your Robinhood account easily through the app. The process takes three to five business days.
• Before closing your account, you'll need to sell your holdings or transfer them to another brokerage.
• There is no cost to deactivate your account, but transferring holdings costs a one-time fee of $75.

Robinhood is a popular choice for beginning stock market investors, but at some point, you may want to delete the app and remove yourself from the platform.

As Jennifer Stein, director of client engagement at Priebe Wealth, explains, "Robinhood has made headlines for misleading inexperienced investors and allowing them to make far riskier trades than they are comfortable taking on. Robinhood also does not offer retirement accounts, trust accounts, or many other investment vehicles outside of a standard brokerage investment account."

Whether you want to delete your account for the above reasons or for some other purpose, this guide will show you how.

Before you can close your Robinhood account

Prior to deleting your account, you'll first need to choose what to do with your holdings:

• Sell all your shares and close all positions - alternatively, you can just transfer them to another brokerage account through Automated Customer Account Transfer Service (ACATS) form
• Close your debit card if you signed up for one
• Transfer all money out of your account to bring your balance to $0

Just keep in mind: If you sell for less than you purchased the stock, you may lose money. You may also owe capital gains taxes by doing so, so a transfer is typically the better option. "This will allow investors to keep their investment but switch brokerages," Stein says. "They can then determine the best strategy for selling the shares and diversifying if that is their ultimate goal."

Quick tip: Calculate the taxes you may owe before you decide to sell your holdings. The exact amount will depend on how long you held the investments and your income level. The IRS breaks these taxes down here.

Deleting Robinhood on iOS

1. Open up the Robinhood app on your phone. From the home screen, click on the account icon, which looks like a silhouette of a person, located in the lower, right-hand corner of the screen.
2. Click on the three lines located in the top right corner (often called a "hamburger").
3. Scroll down and click Settings.
4. Click on Account Information.
5. Scroll down and select Deactivate Account.
6. Select Close Account.

Deleting Robinhood on Android

1. Open up the Robinhood app on your phone and go to your profile.
2. Navigate to the settings menu.
3. Click on Settings.
4. Click on Account Information.
5. Scroll down and click Deactivate your account.

Frequently asked questions

How much does it cost to close a Robinhood account?

If you sell your holdings and simply transfer the funds to your bank, closing your account is free. If you choose to transfer your holdings via ACATS, there is a $75 fee.

How do I transfer assets to another brokerage?

You'll need to initiate an ACATS transfer through your new brokerage. They will need your account number, which you can find under "Account Information" in the main menu. A quick note: Crypto holdings cannot be transferred to other brokerages. They will be liquidated, and your cash proceeds can then be transferred to your new account.

What happens to my account records?

For regulatory purposes, Robinhood will hold onto records of your account - including statements, trade confirmations, and tax documents - even after you've closed it. You can continue to access them through the app. (Don't worry, re-downloading the app will not reactive your closed account.)

How long does it take to close a Robinhood account?

Once you've liquidated or transferred your holdings, zeroed out your account balance, and requested the deactivation, Robinhood estimates it takes anywhere from three to five business days.

The financial takeaway

There may come a time when you're ready to delete your Robinhood account. Before doing so, you'll need to sell your holdings or transfer them to another brokerage. You should take into account possible capital gains taxes, as well as Robinhood's $75 fee for transfers, before deciding which route to take.

If you have questions about closing your account, reach out to Robinhood customer support directly. They can help guide you through the process.