Is there a penalty for closing a Robinhood account? {{Take~Charge
No—there’s no penalty
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or fee just for closing your Robinhood account.
However, there are a
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few situations where you could still incur costs, depending on
what you do before closing:
If you sell your
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investments (stocks or crypto) to cash out before closing, you may
owe capital gains taxes on any profits. That’s not a Robinhood
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fee—it’s a tax
obligation.
If instead you
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choose to transfer your assets to another brokerage (called an ACATS
transfer), Robinhood typically charges about a $75 transfer fee. Again, that’s
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not for
closing the account itself, but for moving your holdings elsewhere.
You’ll also need to make sure:
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Your balance is $0
All trades are settled
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There are no pending transactions or restrictions
If you have a margin balance or
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negative balance, you’ll need to pay that off before
closing.
Bottom line:
Closing your
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Robinhood account is free, but you could face taxes or transfer fees
depending on how you handle your money before
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shutting it down.
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