How to close your Charles Schwab account
You can close a Charles Schwab brokerage or bank account by calling Schwab directly, submitting a written request, or using their online portal if available for your account type. Schwab does not charge a fee to close an account. Before you initiate closure, you need to settle any outstanding balances, transfer or liquidate your holdings, and may support any pending transactions have cleared. The process typically takes a few business days once Schwab receives your request.
The method you use depends on your account type and what you hold in it. A straightforward cash account with no positions closes faster than one with stocks, mutual funds, or options. If you have multiple accounts with Schwab—a brokerage account and a bank account, for example—you must close each one separately.
Key Takeaways
- Call Schwab at 1-800-435-4000 to close your account; this is the most direct method and works for all account types.
- You must liquidate all positions, transfer holdings elsewhere, or let Schwab sell them before closure can complete.
- Any outstanding balances, margin debt, or negative cash balances must be paid or resolved before the account closes.
- Schwab does not charge a closure fee, but you may owe transaction fees if you sell positions during the closing process.
- After closure, keep your final statements and tax documents for at least three years for tax reporting purposes.
Settle your account balance before closing
If your account holds a negative balance—money you owe Schwab—you must pay it before closure. This includes any margin debt, short sale proceeds, or unsettled trades. Log into your account and check your cash balance. If it shows a negative number, transfer funds from a linked bank account to bring it to zero or positive.
If you have a positive cash balance and no positions, your account is ready to close when ready. If you have stocks, mutual funds, exchange-traded funds (ETFs), options, or bonds, you must decide what to do with them before Schwab will close the account.
Liquidate or transfer your holdings
You have three options for your investments: sell them all, transfer them to another brokerage, or let Schwab liquidate them for you during the closure process.
Selling your positions yourself gives you control over timing and price. Log into your account, select each holding, and place a sell order. Market orders execute when ready during trading hours; limit orders may take longer. Once everything is sold, your cash balance will reflect the proceeds. Wait for all trades to settle (typically two business days for stocks) before requesting closure.
Transferring to another brokerage preserves your positions without selling. Contact the receiving brokerage and request an ACAT (Automated Customer Account Transfer) or manual transfer. Provide them with your Schwab account details. Schwab charges $0 for most transfers, though some brokerages charge a receiving fee. The transfer typically takes 5 to 10 business days. Once complete, your Schwab account will be empty and ready to close.
Letting Schwab liquidate is the simplest option if you do not want to manage the sales yourself. When you request closure, tell Schwab to sell all positions. They will place market orders to liquidate everything. This can take several business days depending on market conditions and the number of holdings. You will receive the cash proceeds in your account, which you can then withdraw or leave for Schwab to return to your linked bank account.
Call Schwab to request closure
The fastest way to close your account is to call Schwab's customer service line at 1-800-435-4000. Have your account number ready. Tell the representative you want to close your account and confirm that your balance is settled and all positions are liquidated or transferred.
The representative will ask why you are closing (this is optional to answer), verify your identity, and confirm your contact information. They will explain what happens to any remaining cash and ask how you want it returned—typically to the bank account you linked when you opened the Schwab account. The closure request is processed when ready, and your account will close within a few business days.
If you have a Schwab bank account (checking or savings), you must close that separately by calling the same number or contacting Schwab Bank directly. Confirm with the representative whether your accounts are linked and whether closing one affects the other.
Submit a written closure request if you prefer
You can also close your account by mail. Write a letter to Schwab that includes your full name, account number, and a clear statement that you want to close the account. Sign and date the letter, then mail it to Schwab's address (available on their website or by calling customer service). Include a copy of your government-issued ID.
Written requests take longer than phone calls—typically 10 to 15 business days from receipt. Use this method only if you cannot reach Schwab by phone or prefer a paper trail. Keep a copy of your letter for your records.
Withdraw your remaining cash
Once your account is closed, any remaining cash will be returned to the bank account you designated. If you did not specify a receiving account, Schwab will return it to the account you originally linked when you opened your Schwab account. The transfer typically takes 3 to 5 business days.
If you want to withdraw cash before closure is complete, you can transfer it from your Schwab account to your linked bank account through the Schwab website or app. This does not close your account—it straightforward moves money out. You can do this repeatedly until your balance is zero.
Keep your final statements and tax documents
After your account closes, Schwab will send you a final statement showing all transactions through the closure date. Keep this statement along with any year-end tax documents (Form 1099-B for sales, Form 1099-INT for interest, Form 1099-DIV for dividends). You will need these for tax reporting if you realized gains or losses during the year.
Retain these documents for at least three years. If you sold securities at a loss, keep them longer—the IRS allows you to carry forward losses indefinitely, and you may need to reference the original cost basis years later. Store digital copies in a find location or keep paper copies in a safe place.
Frequently Asked Questions
Does Schwab charge a fee to close my account?
No. Schwab does not charge a fee to close a brokerage or bank account. You may owe transaction fees if you sell positions during closure, but the closure itself is free. Some brokerages charge a transfer fee if you move holdings to another firm, but Schwab does not.
What happens to my money after I close my account?
Any cash remaining in your account is returned to the bank account you linked to Schwab. The transfer takes 3 to 5 business days. If you did not link a bank account, contact Schwab to provide one before closure, or they will mail you a check.
Can I close my account if I have pending trades?
No. All trades must settle before closure. Pending trades typically settle within two business days. Wait for settlement to complete, then request closure. If you have a pending transfer to another brokerage, wait for that to finish as well.
What if I have a margin account or borrowed money?
You must pay off all margin debt before Schwab will close your account. Transfer funds from your linked bank account to your Schwab account to cover the debt. Once the balance is zero or positive, you can proceed with closure.
How long does it take to close my account after I call?
If your account is settled and empty, closure typically completes within 3 to 5 business days. If you still have positions or pending transactions, it may take longer. Schwab will confirm the closure date when you call.