Robinhood is actually a US-based broker-dealer service that is primarily beneficial for those who really want to perform smartphone-based trading. The service is also available on iPhone, Android, and the web and permits its users to place trades directly from their smartphones. Along with benefits such as zero commission, cryptocurrency trading, and much more. In this article, we are going to talk about How to Deactivate Robinhood Account – Tutorial. Let’s begin!
Just like everything else online, there are a handful of shortcomings that won’t please you whenever you are using Robinhood. Some of these also include the lack of advanced trading tools, and the ability to only trade in ETFs, trade stocks, and also options, software glitches, blackouts, and much more. If for any of these reasons, that you’re planning to delete your Robinhood account, so the following post should help you do that.
How to Deactivate Robinhood Account – Tutorial
At any given time, you guys can deactivate your Robinhood account from the app or also on the web as well. You can close your Robinhood account in just two different ways relying on how you guys want to handle your available funds.
Steps to Take Before Closing Closing Your Account
First, you have to decide if you want to close your account, or just deactivate it. If you guys close your account, the only thing that you will be able to use the Robinhood app for is just checking your historical account statements, tax documents, and also trade confirmations.
Also, if you later decide that you want to trade using Robinhood again, then you will have to redo the application process. If you deactivate your account, then you will still be able to check all of your documentation. You don’t really have to leave any funds in your account. But, you will be able to easily reactivate your account if you guys want to resume trading on the app at a later time.
If you select to close or deactivate your account, your Robinhood account balance has to be $0 actually. This basically means you guys have to either sell all of your positions and withdraw the balance to your bank account. Or you also have to transfer all of your assets from Robinhood to another brokerage as well.
1 – If you want to Close your positions
If you guys wish to withdraw all of your funds after closing your positions on Robinhood. Then you request to deactivate your Robinhood account through opening the Robinhood app on your phone and then clicking on the Account option.
In order to get to the deactivation option, head to Settings > Account Information and choose the ‘Deactivate Account’ option on the screen.
You will have to follow through with all of the instructions that you are presented along with on the screen to close all your positions and withdrawing your outstanding balance. When that’s done, your account balance should show $0.00, and also your positions on Robinhood should be closed. Now you can then confirm your request for account deactivation.
If this doesn’t really work out, then you guys can type a request to close your account and then send them an email at [email protected]
2 – If you wish to transfer your account to another brokerage
If your purpose of closing your Robinhood account is only because you guys want to transfer stocks and cash to other brokerages. Then your first step should be to decide where you guys want to transfer your account. Some of the well-known options for really low-cost brokerage are basically WeBull, AllyInvest, TD Ameritrade, M1 Finance, and Firstrade as well.
Before you proceed to transfer your account out of Robinhood actually. Then you should know that there is a $75 fee that is charged via Robinhood regardless of if you select a partial or full transfer. This fee will actually be debited from your Robinhood account’s balance and if not, then from your outside brokerage account as well.
When you have sorted out the brokerage you want to switch your account to. Then you can initiate the transfer process so that they transfer over your assets and funds as well.
For the transfer process to go smoothly, you guys will have to share your Robinhood Securities (RHS) account number. In order to see this number, just open the Robinhood app, click on the Account option, and choose ‘Investing’. And then your RHS account number should appear at the top of your screen as well.
What happens when you guys Deactivate your Robinhood account
The consequences of your Robinhood account closure will rely widely on how you closed your account.
- If you have closed all your positions on Robinhood, then you guys will no longer control trades and options on the Robinhood app. But, you will be able to browse your tax documents, account statements, and also trade confirmations from within the app.
- If you transferred your account to another brokerage, then your account will no longer be accessible. During the transfer processing period, then you won’t be able to make trades, manage your options or cryptocurrencies as well. After the transfer is complete, then you can perform all trades and options on your new brokerage account too.
Reasons Why Folks Want to Delete Their Robinhood Account
- Less than a stellar trading platform for stocks. Robinhood has actually no advanced trading platform or tools (think hotkeys). This makes it virtually impossible to day trade stocks as well.
- You guys can only trade stocks, ETFs, and also options.
- The risks of trading via their app are compounded because of numerous software glitches over the years.
- In 2018, Robinhood actually released software that mistakenly reversed the direction of options trades. Providing customers the opposite outcome from what they really expected.
- In 2019 they mistakenly allowed folks to borrow an infinite amount of money in order to multiply their bets. This was actually a dark day for those who didn’t have proper risk management strategies in place.
- A complete blackout of their site for just two days in March 2020 frustrated many. Then again many times later.
Robinhood basically lets users link their bank account for direct trades on the platform. If you guys no longer want to trade with Robinhood or you don’t want it to have access to your bank account. Then you can unlink it from Robinhood via following the instructions below. The ability in order to unlink your bank account from Robinhood is available on Android, iOS, and the web.
In order to unlink your bank account from Robinhood, just open the Robinhood app on your phone. Then tap on the Account icon at the bottom right corner of the app’s Home Screen actually. Now, just head to Transfers > Linked Accounts, and choose the bank account you wish to unlink from Robinhood.
You can go ahead and delete your bank account from the service via tapping on the red ‘Unlink’ button on the screen. Then confirm the process via the green ‘Unlink’ option from the dialog that appears. The additional confirmation dialog basically appears only on iOS devices. For the Robinhood app on Android, then your bank account will be unlinked without any further confirmation whenever you click on the “Unlink” option.
You guys can also unlink your bank account on your computer via logging in to your Robinhood account on the web. Whenever you’re signed in, tap on the ‘Account’ option in the top right corner of the webpage, and then choose the ‘Banking’ option from the menu that appears as well.
Now locate the section named “Linked account”, and then tap on the ‘Remove’ button adjacent to the bank account you want to unlink from Robinhood.
Alright, That was all Folks! I hope you guys like this article and also find it helpful to you. Give us your feedback on it. Also if you guys have further queries and issues related to this article. Then let us know in the comments section below. We will get back to you shortly.
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