The fastest way to close your E*TRADE account

You can close your E*TRADE account by calling their customer service line at 1-800-387-2331 or by logging into your account online and submitting a closure request through the Account menu. The phone route is faster — you'll speak to someone who can walk through your holdings, answer questions about tax forms, and process the closure in one call. Online closure takes longer because E*TRADE will mail you confirmation and may ask follow-up questions by email.

Before you call or submit the request, you need to have zero cash and zero open positions in your account. That means selling all stocks, bonds, mutual funds, and options you own, and withdrawing or transferring any cash balance. E*TRADE will not close an account with money or securities still in it. If you have a margin account with a negative balance (money you owe), you must pay that balance first.

The closure itself takes effect immediately once E*TRADE confirms it, but you'll receive tax documents (1099 forms) for the year you closed the account, even if you closed it in December. These arrive in January or February of the following year. Keep your account number and final statements until you've filed taxes for that year.

Key Takeaways

  • Call 1-800-387-2331 to close your account over the phone, which is faster than submitting an online request.
  • You must sell all securities and withdraw all cash before E*TRADE will close your account.
  • If you have a margin account with a negative balance, you must pay what you owe before closure.
  • You'll receive a 1099 form for the tax year in which you closed the account, even if you closed it late in the year.
  • Keep your final statements and account number until after you file taxes, in case you need to reference transactions from that year.

What to do with your securities before closing

Selling your holdings is the most common path. Log into your account, go to your Positions tab, and sell each security at market price. For stocks and ETFs, this usually executes within seconds. Mutual funds may take one business day to settle. Options expire on their expiration date, so if you have open options contracts, you either need to close them (sell to close) or let them expire worthless.

If you don't want to sell — for example, if you want to keep a long-term position open — you can transfer your securities to another brokerage instead of closing the account. E*TRADE charges a transfer-out fee (typically $95 to $150 per account), but your holdings stay intact at the new broker. To do this, contact the receiving broker first; they'll initiate an ACAT (Automated Customer Account Transfer) request, and E*TRADE will process it. This takes five to ten business days.

Cash in your account can be withdrawn by bank transfer (ACH) or check. ACH transfers typically take three to five business days. If you have pending trades or unsettled cash (cash from a sale that hasn't settled yet), wait for those to clear before withdrawing.

Handling tax documents and final records

E*TRADE will send you a 1099-B form (sales of securities) if you sold any holdings during the year, and a 1099-INT form if you earned interest. These arrive by January 31 of the year after you closed the account. You'll also receive a final account statement showing all activity through your closure date.

Download and save your final statements and trade confirmations before you close the account. Once the account is closed, accessing old statements becomes harder — you may need to contact E*TRADE's records department. Your tax documents will arrive by mail, but having your own copies means you won't be scrambling if the mail is delayed or lost.

If you had any wash sales (selling a security at a loss and buying the same or substantially identical security within 30 days before or after), E*TRADE will note this on your 1099-B. Your tax software or accountant will use this information to adjust your cost basis. This doesn't change your ability to close the account, but it does affect how you report the sale on your tax return.

Closing a joint account or account with a power of attorney

If the account is held jointly, both account holders must consent to closure. E*TRADE will ask for written authorization from both parties if you're closing over the phone. If one owner wants to close and the other doesn't, you'll need to contact E*TRADE to discuss splitting the account or other options.

If someone has power of attorney over your account, they can request closure on your behalf, but E*TRADE will verify the power of attorney document is still valid and covers account closure. Bring the original or certified copy of the power of attorney when you call.

What happens to your data after closure

E*TRADE keeps records of closed accounts for seven years, as required by federal securities law. You can request copies of old statements or trade confirmations during this period by calling customer service. After seven years, E*TRADE may destroy the records, though they often keep them longer.

Your personal information (name, address, Social Security number) is retained separately for identity verification and fraud prevention. You can request that E*TRADE delete your personal information by submitting a data deletion request through their privacy portal, though they may retain some information if required by law or to prevent fraud.

If you want to reopen the account later

You can open a new E*TRADE account at any time after closure. There's no waiting period, and you won't be penalized for having closed an account previously. However, you'll go through the full account opening process again, including identity verification and funding your new account. Your old account number won't be reused.

If you closed the account because of a service issue or fee dispute, contact E*TRADE before reopening to see if they can address your concern. Sometimes they'll waive fees or offer account credits if you explain why you left.

Frequently Asked Questions

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

No. You must wait for all trades to settle before closing. Stock trades settle in two business days, mutual funds in one business day. Once everything has settled and the cash is available in your account, you can withdraw it and proceed with closure.

What if I have a negative balance on my margin account?

You must pay the negative balance (the amount you owe E*TRADE) before the account can close. You can do this by transferring funds into the account or by selling securities to cover the debt. Once the balance is zero or positive, you can close the account.

Do I need to close my account to stop trading?

No. You can simply stop logging in and trading without closing the account. However, E*TRADE may charge inactivity fees if the account sits unused for a long time. Check your account agreement for the specific policy, or call customer service to ask about fee waivers for inactive accounts.

Will closing my account affect my credit score?

No. Closing a brokerage account does not appear on your credit report and does not affect your credit score. Credit reports track credit accounts (credit cards, loans, lines of credit), not investment accounts.

How long does it take to close an E*TRADE account?

If you call, closure is confirmed within the same call. If you submit an online request, E*TRADE typically confirms closure within two to five business days. The account is closed immediately once confirmed, though you'll continue to receive tax documents for that year.