Closing your Robinhood account takes about five minutes, but you must sell or transfer all holdings first
To close a Robinhood account, you log in, go to Account Settings, select Close Account, and confirm. The platform will not let you proceed if you hold any stocks, options, crypto, or cash. You must sell everything, transfer holdings to another brokerage, or withdraw cash before the closure goes through. Once you confirm, Robinhood closes the account immediately and stops processing any new trades or transfers.
The account closure itself is free. Robinhood does not charge a fee to close. However, if you transfer holdings to another brokerage instead of selling, that receiving brokerage may charge an incoming transfer fee (typically $0 to $75 depending on the firm). Selling your positions avoids this cost but may trigger capital gains taxes if you have profits.
Key Takeaways
- You cannot close your Robinhood account while you hold any stocks, options, crypto, or unsettled cash—you must liquidate or transfer everything first.
- The closure process happens in Account Settings under Close Account and takes effect immediately after you confirm.
- Robinhood charges no fee to close, but transferring holdings to another brokerage may incur fees from the receiving firm.
- Selling positions before closure may create a taxable event if you have gains, so consider the tax impact before liquidating.
- After closure, you cannot reopen the same account; you would need to create a new one if you want to trade again.
Step-by-step process to close your account
Open the Robinhood app or website and log in with your username and password. Tap or click the Account icon (usually a person silhouette or gear icon in the bottom right on mobile, or top right on desktop). Select Settings or Account Settings from the menu.
Scroll down to find the Close Account option. Tap or click it. Robinhood will show you a summary of any holdings or cash in your account. If you see anything listed, you cannot proceed—go back and sell or transfer those positions first. Once your account shows zero holdings and zero cash balance, return to Close Account and confirm the closure. The account closes immediately.
What to do with your money and investments before closing
If you hold stocks or options, you have two choices: sell them or transfer them. Selling is the fastest route. Open each position, tap Sell, choose how many shares to sell, and confirm. The sale settles in one to two business days, and the cash lands in your Robinhood account. Once the cash settles, you can withdraw it to your linked bank account or leave it there until you close the account.
Transferring holdings to another brokerage takes longer but avoids selling. You initiate an outgoing transfer from Robinhood (usually under Account Settings or Transfers) and provide the receiving brokerage's details. The transfer typically takes five to seven business days. The receiving brokerage may charge an incoming transfer fee; ask them before you start. Robinhood does not charge you to send holdings out.
If you hold cryptocurrency on Robinhood, you must sell it—Robinhood does not allow crypto transfers to external wallets. Sell your crypto position, wait for the cash to settle, then withdraw or close the account. Cash sitting in your Robinhood account can be withdrawn to your linked bank account at any time; it does not need to settle like a stock sale does.
Withdrawing your cash before closure
Once you have sold all positions or transferred them out, any remaining cash in your Robinhood account can be withdrawn. Go to Account Settings, select Transfers, and choose Withdraw. Select your linked bank account and enter the amount. Robinhood processes withdrawals to most banks within one to three business days. You do not have to withdraw the cash before closing—you can leave it there and close the account with a zero balance—but withdrawing it ensures you have access to your money outside the platform.
If you have unsettled cash (money from a recent sale that has not yet cleared), Robinhood will not let you withdraw it until the settlement period ends. Stock sales settle in two business days; options settle in one business day. Wait for the settlement to complete, then withdraw.
Tax considerations when closing your account
Selling stocks or options to close your account may trigger capital gains taxes. If you sell a stock for more than you paid for it, you owe tax on the profit. Short-term gains (stocks held less than one year) are taxed as ordinary income. Long-term gains (stocks held one year or more) usually get a lower tax rate. Robinhood sends you a 1099 form at tax time that reports all your sales for the year, so the IRS will know about the transactions.
Transferring holdings to another brokerage does not trigger a sale, so no tax is due at the time of transfer. You only owe tax when you eventually sell those positions in the new account. If you are closing your account near the end of the year and have losses, you might sell losing positions to offset gains elsewhere in your portfolio—a strategy called tax-loss harvesting. Consider talking to a tax professional if you have significant gains or losses.
What happens after you close your account
Once Robinhood closes your account, you cannot log back in. Any pending transfers or withdrawals that were in progress will complete, but no new activity can happen. If you want to trade again, you must create a brand-new Robinhood account. The new account will have a different account number and will start fresh with no history from the old one.
Robinhood keeps records of your closed account for tax and regulatory purposes. If you need a copy of your transaction history or 1099 form after closure, contact Robinhood support. They can provide historical documents even after the account is closed.
Frequently Asked Questions
Can I reopen my Robinhood account after I close it?
No. Once you close an account, that specific account is permanently closed. You can create a new Robinhood account, but it will be a separate account with a new account number. Any history, settings, or watchlists from the old account will not transfer over.
What if I have a pending deposit or transfer when I try to close?
Robinhood will not let you close if money is in transit to your account. Wait for any pending deposits or transfers to complete, then initiate closure. If a transfer is taking longer than expected, contact Robinhood support to check the status before trying to close again.
Do I owe taxes just for closing my account?
No. Closing the account itself does not trigger taxes. You only owe taxes if you sell positions at a profit before closing. Transferring holdings to another brokerage does not create a taxable event—tax is due only when you eventually sell those positions in the new account.
Can I close my account if I have a negative balance or owe Robinhood money?
No. You must bring your account to a zero or positive balance before closure. If you have a negative balance, contact Robinhood support to resolve it. This usually means depositing money to cover the shortfall or selling positions to raise cash.
How long does it take to close my account after I confirm?
The closure is immediate. Once you confirm in the app or website, your account closes right away and you lose access. Any pending withdrawals or transfers that were already in progress will complete normally, but no new activity can happen.