Closing a brokerage or bank account is a significant financial decision, and if you’ve decided to part ways with Charles Schwab, it’s essential to follow the correct steps to ensure a smooth process. Whether you’re switching to another financial institution, consolidating accounts, or no longer need the services, this guide will walk you through the entire process how to close a Charles Schwab account.
Before proceeding, it’s important to understand why you might want to close your account. Common reasons include:
Switching to a different brokerage (e.g., Fidelity, Vanguard, E*TRADE)
Consolidating multiple investment accounts for easier management
Dissatisfaction with fees or services
Relocating abroad where Schwab services may not be available
Inheritance or estate planning changes
Whatever your reason, ensure you’ve considered alternatives like transferring assets instead of closing the account outright.
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Account balance – Ensure no cash or securities remain.
Pending transactions – Confirm no dividends, trades, or transfers are processing.
Recurring transfers or auto-investments – Cancel any automated deposits or withdrawals.
Linked accounts – Unlink external bank accounts if necessary.
You can’t close an account with assets still in it. Choose one of these options:
Option 1: Sell Securities & Withdraw Funds
Sell stocks, ETFs, or mutual funds (tax implications may apply).
Wait for trades to settle (typically 2 business days).
Withdraw remaining cash via ACH transfer, wire, or check.
Option 2: Transfer Assets to Another Brokerage (ACAT Transfer)
If you prefer to keep investments intact:
Open an account with the new brokerage.
Initiate an Automated Customer Account Transfer (ACAT).
Schwab may charge a 50–50–75 outgoing transfer fee (some brokers reimburse this).
Pay any unsettled fees, margin balances, or debit balances.
Return any outstanding checks or debit card transactions.
Once your account balance is $0, you can request closure via:
Method 1: Phone Call (Recommended)
Call Schwab customer service at 1-800-435-4000.
Verify your identity (account number, SSN, security questions).
Request account closure and confirm no pending transactions exist.
Method 2: Secure Message (Online)
Log in to Schwab.com → "Messages" → "Compose New Message."
Request account closure and provide necessary details.
Method 3: Written Request (Mail)
Send a signed letter to:
Charles Schwab & Co., Inc.
P.O. Box 628291
Orlando, FL 32862-8291
Include:
Full name & account number.
Explicit request to close the account.
Signature & date.
Wait for a confirmation email or letter from Schwab.
Check your final statement to ensure $0 balance.
Keep records for tax purposes.
Selling investments may trigger capital gains taxes.
Keep records for IRS reporting (Form 1099-B).
If you have a Schwab Bank account or credit card, closing your brokerage account may affect them.
You can reopen an account, but some promotions may not apply.
If you’re unsure about closing, consider:
Downgrading to a lower-fee account (e.g., Schwab One®).
Keeping it open with a minimal balance for future use.
Closing a Charles Schwab account is straightforward if you follow these steps. Ensure all assets are moved or liquidated, fees are settled, and you receive confirmation. If you’re switching brokers, an ACAT transfer may be the best option to avoid selling investments.
For further assistance, contact Schwab’s customer service at 1-800-435-4000.
Need help with another financial topic? Check out our guides on transferring brokerage accounts, avoiding account fees, and choosing the best investment platform!