E*TRADE closes accounts through their customer service team, not through the website

You cannot close an E*TRADE account by yourself online. You must call E*TRADE directly or work with a representative in person at a branch. The process takes a few minutes on the phone, but you need to have certain information ready and understand what happens to your money and positions before you call.

E*TRADE's main account closure line is 1-800-387-2331. Have your account number and Social Security number ready. If you have open positions (stocks, options, or other holdings), you will need to decide what to do with them before closing — E*TRADE will not close the account while you still own securities.

Key Takeaways

  • Call E*TRADE at 1-800-387-2331 to close your account; you cannot do it online.
  • You must sell or transfer all stocks, options, and other holdings out of the account before closure is complete.
  • Cash remaining in the account will be sent to the bank account you have on file, usually within three to five business days.
  • If you have a margin account with a balance owed, you must pay that balance before the account can close.
  • Keep your final statement and tax documents for your records, especially if you made trades during the year.

What you need before you call

Gather your account number (it appears on your statements and in the top right of your account dashboard when you log in) and have your Social Security number ready. The representative will verify your identity using these details.

Know what you want to do with any open positions. If you own individual stocks, ETFs, mutual funds, or options, you have three choices: sell them and close with cash, transfer them to another brokerage, or ask E*TRADE to liquidate them for you. Liquidation means E*TRADE will sell everything at market price during normal trading hours, which usually happens the same day you request it.

If you have a margin account and owe money, have a plan to pay that balance. E*TRADE will not close the account until the debt is settled.

The step-by-step process

Call 1-800-387-2331 during business hours (Monday through Friday, 8 a.m. to 10 p.m. Eastern Time; Saturday and Sunday, 9 a.m. to 6 p.m. Eastern Time). Tell the representative you want to close your account.

The representative will ask about any open positions. If you have holdings, you can ask them to liquidate everything when ready, or you can say you will sell them yourself and call back. If you choose to sell them yourself, do that before calling back — the account cannot close while you still own securities.

Once all positions are cleared and any margin debt is paid, the representative will process the closure. They will confirm the bank account where your remaining cash should be sent. Cash transfers typically take three to five business days.

Ask the representative for a confirmation number and note the date. You should receive a final statement by mail within a few weeks.

What happens to your money

Any cash sitting in your account will be transferred to the bank account E*TRADE has on file for you. This is usually the account you used to fund the E*TRADE account originally, but confirm with the representative that the routing information is correct before you hang up.

If the bank account information is wrong or outdated, tell the representative before closing. They can update it, or you may need to wait for the transfer to fail and then contact E*TRADE to redirect the funds.

If you have pending deposits or withdrawals, those will be cancelled when the account closes. Any pending trades will also be cancelled.

Tax documents and final statements

E*TRADE will mail you a final statement showing all activity through the closure date. Keep this for your records. If you made any trades during the year, you will also receive a Form 1099-B (for stocks and ETFs) or Form 1099-OPT (for options) by January 31 of the following year, even after the account is closed.

Do not throw away these documents. You need them to report your gains or losses to the IRS when you file your tax return. If you moved positions to another brokerage instead of selling them, that brokerage will report the cost basis to the IRS, but E*TRADE's records of what you originally paid are still useful to keep.

If you want to reopen an account later

Closing an E*TRADE account does not prevent you from opening a new one. You can open a new account at any time using the same process you used the first time. There is no waiting period or penalty.

However, if you closed the account because of a problem with the platform or customer service, consider whether a different brokerage might serve you better. E*TRADE's fees, tools, and support are the same whether you are opening a first account or a second one.

Frequently Asked Questions

Can I close my E*TRADE account if I have unsettled trades?

No. Unsettled trades (trades that have not yet completed their settlement period, usually two business days) must settle before the account can close. Wait for settlement to complete, then call to close.

What if I have a joint account?

Both account holders must agree to close the account. E*TRADE may require both of you to be on the call, or they may accept written authorization from the other holder. Ask the representative what proof they need.

Will closing my account hurt my credit?

No. Closing a brokerage account has no effect on your credit score. Credit bureaus do not track brokerage accounts, only credit accounts like loans and credit cards.

How long does the whole process take?

The phone call itself takes five to ten minutes. If you have positions to sell, that can take a few hours to a day depending on market hours. Cash transfer to your bank account takes three to five business days after the account is fully closed.

What if I forgot my password and cannot log in?

You do not need to log in to close the account. Call the number above and tell the representative you cannot access your account. They will verify your identity using your account number and Social Security number, then help you close it.