<Robinhood, a brokerage firm that caters to individual traders. It has gained popularity among millennial investors. A brokerage that makes it simple for retail traders to access trading platforms using their smartphones is known as a mobile brokerage. The ETF, option, and cryptocurrency transactions made available by traders have contributed to the growth of its customer base. It has seen a significant increase in the previous four years. Even amid the coronavirus outbreak, the stock price of Robinhood has risen significantly. Some, on the other hand, are critical of easily accessible trading systems. It has recently made headlines for lodging several grievances against Robinhood.
Deleting Robinhood Account
If you need to close your account, we can help you with that process. Within the Robinhood app, you can choose to delete your account if you want to do so. Once your account has been canceled, you will be able to access previous statements, tax documents, and trade alerts from within the app as well.
Similar to the popular story’s central character, Robinhood is the center of far too many controversies. Perhaps you recall them making headlines for the short squeeze event that occurred a few months ago and, as a result, for restricting the number of shares that its users were able to buy as a result of the short squeeze event, respectively.
Recent events, such as the data breach that exposed the personal information of more than 7 million Robinhood users, provide a compelling argument for not continuing to use the platform. The reality is that the ease of access that Robinhood provides can spell doom for uninformed individual investors, particularly if you are prone to making risky investments. If it’s combined with the lack of robust research tools.
Easy-to-use trading platforms, on the other hand, are not without scandal. Some recent news stories have highlighted many complaints directed at Robinhood. This could explain why people are looking up how to delete a Robinhood account.
Read also: Ways To Make Money From Home
Few Things to Know Before Deleting the Robinhood Account
One of the first things you must do is get your balance to zero, which can be accomplished by selling your assets and withdrawing your funds, or by transferring your funds to another account, for which a fee will be assessed.
To transfer your assets, choose where you want them to go and give the other brokerage your Robinhood Securities (RHS) account number so they can initiate an ACATS (Automated Customer Account Transfer Service) transfer. Initiating a full transfer, on the other hand, will result in your account being deleted.
Reasons Why You Might Want to Delete Your Robinhood Account
You may be looking for information on how to close a Robinhood account because you have received one of three types of complaints against Robinhood:-
If you want to do more day trading, you should:-
A simple trading platform with no-frills provided by Robinhood, making trading as simple as it possibly can be. You can only trade stocks, exchange-traded funds (ETFs), and options, which eliminates many of the more sophisticated day trading platforms and tools. You should close your Robinhood account if you want to try your hand at day trading.
Prefer less risky, more traditional brokerages:-
Robinhood makes it simple to trade as a retail trader who is an individual. Because you do not have access to a broker or a financial consultant within the Robinhood ecosystem who can offer you customized suggestions, you are completely responsible for your investment plan. In the absence of knowledge, it is possible to lose a significant amount of money in this business. It may be necessary to delete your Robinhood account to switch your account to a more traditional investment broker, such as an institutional asset broker, to finish the transfer.
You prefer riskier, less traditional brokerages:-
A significant portion of Robinhood’s customer base was alienated when the company took the unprecedented step of restricting its users from purchasing certain stocks in early 2021. Retail investors who were using Robinhood as a way to get away from traditional, institutional brokerages viewed this move as “stealing from the poor to give to the wealthy.” This is especially true if you want to transfer your account to a stock trading app that has not prohibited its users from purchasing these stocks. If you do not want to keep your Robinhood account, you should close it.
Procedures to Follow Before Closing Your Account Closing Your Account
First and foremost, you must decide whether you want to permanently delete your account or simply deactivate it. If you close your account, the only thing you will be able to do with the Robinhood app is to review your historical account statements, tax forms, and trade confirmations.
You will still be able to access all of your previous documentation even if your account is deleted. You are under no obligation to leave any funds in your account. If you later decide that you would like to trade with Robinhood again, you will have to go through the application process again. In case you decide to reactivate your account later on, you will have no trouble getting back into trading on the app.
Your Robinhood account balance must be zero before you can close or deactivate your account. This means that you must either sell all of your positions and withdraw the remaining funds to your bank account, or you must transfer all of your assets from Robinhood to another brokerage firm to avoid losing your money.
Alternative to this is to sell all of your positions and transfer any remaining funds to your bank account, after which you can close your Robinhood account from the app.
How to Delete a Robinhood Account?
- Select the Account (person) icon from the drop-down menu.
- Select Account Information from the drop-down menu.
- Scrolling and tapping are required. Deactivate your user account.
- Follow the steps to close out all of your open positions and withdraw your remaining balance owed.
- You will be able to confirm your deletion request once your account balance has reached $0.00 and all of your open positions have been closed.
If you want to delete your account, send an email to Robinhood (firstname.lastname@example.org) detailing your reasons for doing so.
Once you have completed these steps, your account will be restricted from making any investments or trading. Your account will not be reactivated if you re-download the application. Because Robinhood is required by law to maintain certain books and records, your account will continue to exist in the Robinhood system, and you will continue to be able to access your account statements, tax documents, and trade confirmations through the Robinhood mobile application.
Are There Any Cancellation Fees Associated With Robinhood?
Robinhood does not impose any account closure charges on any of its customers’ financial accounts. Closing your Robinhood account, on the other hand, will result in a financial loss.
If you choose to sell your positions, Robinhood will not charge you any fees, which is a significant benefit. Robinhood, like the majority of brokerages, will pass on the SEC and FINRA sales commissions to you, the customer. Additionally, selling your positions could have an impact on your capital gains tax position.
If you choose to transfer your positions to various brokerage firms, you will be required to pay transfer fees as well. While transferring your trading account to Robinhood is free, transferring your account to another brokerage will incur a fee. When you transfer your positions to a brokerage firm, you may be eligible for a reward. It can be offset in some cases by the brokerage firm offering the incentive.
Finding out how to delete a Robinhood account is easy no matter what reason you have for wanting to leave the Robinhood trading platform. Choosing the Deactivate Account option on the app will prompt you to sell all of your trading positions and transfer the balance of your account to a bank account of your choice. It is necessary to initiate an automated customer account transfer service request. This is to transfer your Robinhood data to a new brokerage if you do not wish to sell your trading positions. It is important to keep in mind that, even though Robinhood does not charge a fee for account closure, it is still possible for you to incur a financial loss as a result of either option.
When your Robinhood account is closed, you will have to go through the entire process of registering for a new Robinhood account at a later date. Additionally, you are not allowed to have two Robinhood account. So you must either close one to open a new one or attempt to recover the old one you already have.
Overall, the process of closing your Robinhood account is straightforward, but keep in mind that you must first close out your positions, which can be accomplished by selling or transferring them to another account.
Leave your views if you find the article interesting. Read other blogs by hitting the link in this article.