If you are ready to close a Charles Schwab brokerage account, the process is fairly simple, but there are a few important steps you need to complete before Schwab will officially shut the account down. Missing even one requirement can delay the closure process.
In this guide, you will learn exactly how to close a Charles Schwab brokerage account, what to prepare beforehand, and what happens after you contact Schwab support.
Start From Your Profile Settings
To begin the process inside the mobile app, open your Schwab account and tap the profile icon in the top-left corner of the screen.
From there:
- Go to the Security section
- Tap Security Settings
- Scroll all the way to the bottom
- Select Close My Account
At this point, Schwab will show a pop-up explaining the requirements before your account can be closed. Many users skip this message, but it contains critical information about what must be completed first.
What You Must Do Before You Close a Charles Schwab Brokerage Account
Before you can close a Charles Schwab brokerage account, Schwab requires four important steps to be completed in order.
1. Remove Your Investments From the Account
If you still hold investments like stocks, ETFs, or mutual funds, you have two options:
- Sell your investments
- Transfer them to another brokerage
If you are moving to another broker, transferring your positions is usually the better option. This is done through an ACATS transfer initiated from the new brokerage account.
Transferring investments instead of selling them can help you avoid creating a taxable event. Your holdings and cost basis stay intact during the transfer.
However, if you are completely done investing and want cash instead, you will need to sell your positions before you close a Charles Schwab brokerage account.
2. Cancel Open Orders and Recurring Transfers
Schwab will not close the account if there are still pending transactions attached to it.
Make sure you cancel:
- Open buy or sell orders
- Automatic investment plans
- Recurring bank transfers
- Scheduled deposits
Everything must be inactive before the closure can move forward.
Link a Bank Account First
After your investments are removed, you may still have cash sitting in the account. Schwab needs a destination for those funds.
If your external bank account is already linked, Schwab can transfer the remaining balance electronically. If no bank is connected, they may send a paper check instead, which can take much longer to arrive.
This is an easy step to overlook when trying to close a Charles Schwab brokerage account.
Write Down Your Account Number
Before calling Schwab, make sure you have your account number available.
You can usually find it directly on the account screen underneath your account name. The support team will ask for it during the verification process.
You Cannot Fully Close the Account Inside the App
One thing many users do not realize is that you cannot completely close a Charles Schwab brokerage account directly from the mobile app.
The app only provides the option to contact Schwab support. You must either:
- Call Schwab directly
- Send a written request
This extra step exists for security reasons. Schwab wants to verify that the request is actually coming from the account owner.
How to Contact Charles Schwab
When you tap the call option inside the pop-up, the app can dial Schwab support automatically.
You can also call manually at:
1-800-435-4000
Once connected:
- Enter your account number
- Verify your identity
- Tell the representative you want to close your account
The representative will guide you through the remaining steps.
Important Questions to Ask During the Call
When you speak with Schwab support, there are a few smart questions worth asking.
Ask About Closing Fees
In most cases, there is no fee to close a Charles Schwab brokerage account.
However, if you are transferring investments to another brokerage, there may be a transfer fee of around $50. Some brokerages reimburse this fee for new customers.
Confirm Your Tax Documents
Even after your account is closed, you will still need access to your tax forms.
Ask Schwab to confirm that you will receive your 1099 form during the next tax season.
Request Written Confirmation
Always ask for written confirmation by email once the account closure is complete.
This gives you proof that the account was officially closed and can help if any issues appear later.
How Long Does It Take to Close a Charles Schwab Brokerage Account?
The closure is not always instant.
If funds or investment transfers are still processing, the account can remain open until everything fully clears. In most cases, this takes between 1 and 7 business days.
Once the account balance reaches zero and all transfers settle, Schwab usually closes the account automatically.
Watch for Final Statements and Tax Forms
After you close a Charles Schwab brokerage account, keep an eye on your email and physical mail.
Schwab may send:
- A final account statement
- Tax documents like your 1099
Save these records carefully. You or your accountant may need them later.
Final Thoughts
Learning how to close a Charles Schwab brokerage account is mostly about preparation. Before contacting Schwab, make sure your investments are removed, recurring transactions are canceled, and your bank account is linked.
Once those steps are complete, the actual closure process is straightforward. A quick call to Schwab support is usually all it takes to finish the process safely and officially.
