How To Close TD Ameritrade Account
Closing a TD Ameritrade Account
Occasionally, there is some confusion as to how to close a brokerage account. With a standard bank account, typically you go down to the bank in person or call customer service, or even write a letter telling them to close your account. They will send you a check for the remaining balance at that time.
But, with a brokerage account, things can be a little different. This is primarily because assets which may be invested cannot simply be "sent" to the account holder. Rather, they must either be liquidated first, or transferred in kind to another financial institution, neither of which can be done based on the "implicit" authority of an account close request. Thus, closing a TD Ameritrade account or other brokerage account involves transferring the contents of the account.
Transferring the account is done via a form from the financial institution that the account will be transferred to. There is generally no form available from the current brokerage that can be used to transfer the money away to another institution.
Steps to Close TD Ameritrade Account
Step 1
Determine what type of account is to be closed and what assets are currently in it. IRA accounts and other qualified accounts must be transferred to like accounts. If it is a margin account and any margin positions exist, the account must be transferred to an account already approved for margin.
Step 2
Obtain an account transfer form from the financial institution where you want to transfer your assets. You may use the TD Ameritrade Internal Transfer form, if you will be transferring your account to another TD Ameritrade account.
Step 3
Complete the transfer form including the current account number and other required information. Invested assets may either be liquidated (sold) and the cash transferred or wired to another account, or assets may be transferred in kind to a new brokerage account.
Step 4
Select "Total Transfer" on the asset transfer form. An account can only be closed if it is empty.
Step 5
Submit the transfer form to the the financial institution where the funds will be transferred to. The receiving firm will then initiate the transfer with TD Ameritrade.
Step 6
Verify all assets are transferred to the new firm. Contact the new brokerage firm, or login to your account in case of an online broker, and review all balances and positions to ensure that the holdings and number of shares match the balances from the old account.
