How to Cancel E*TRADE Account in 2026 (Close Brokerage + Morgan Stanley Guide)
Updated 2026-03-03 · 7 min read
🏦 E*TRADE Is Now Morgan Stanley
Morgan Stanley acquired E*TRADE in 2020 and has been gradually integrating the platforms. Your E*TRADE account may have already migrated to Morgan Stanley's system. The closure process is similar either way — but you'll need to call, not click.
Stock Plan Accounts: Employer stock option/RSU management (most common reason people have E*TRADE)
Close E*TRADE Brokerage Account
Call 1-800-387-2331 — E*TRADE does not allow online account closure for brokerage accounts
Verify your identity (name, SSN last 4, security questions)
Request account closure
The rep will ask about your remaining assets and guide you through options
Choose: sell and withdraw OR transfer via ACATS
Account closure processes in 3-5 business days after assets are cleared
⚠️ Stock Plan Accounts Are Different
If your employer uses E*TRADE for stock options, RSUs, or ESPP — you cannot close this account while employed. Your employer controls it. You can transfer vested shares to another brokerage, but unvested equity stays in the E*TRADE stock plan until it vests or you leave the company.
Transfer Assets via ACATS (Recommended)
Open an account at your destination broker
Initiate the ACATS transfer from the receiving broker — they handle the process
Provide your E*TRADE account number
E*TRADE charges a $75 outgoing ACATS transfer fee per account
Transfer takes 5-7 business days
Many receiving brokers will reimburse the $75 transfer fee — ask before initiating
💰 Get the $75 Fee Reimbursed
Fidelity, Schwab, and Interactive Brokers routinely reimburse ACATS transfer fees for accounts over certain thresholds ($25,000+). Call your new broker before transferring and confirm they'll cover it.
Cancel E*TRADE Core Portfolios (Robo-Advisor)
Log into E*TRADE → Core Portfolios
Click Manage Account
Select Unenroll
Your investments transfer to a standard brokerage account
The 0.30% annual management fee stops immediately
You can then sell, transfer, or continue managing the positions yourself
Close E*TRADE Bank Accounts
Transfer all funds to an external bank via ACH
Update direct deposits and automatic payments
Wait for pending transactions to settle
Call 1-800-387-2331 to close the bank account
Close E*TRADE IRA
Trustee-to-trustee transfer: Move to another IRA — no taxes, no penalties (recommended)
Rollover: E*TRADE sends a check, you have 60 days to deposit at new broker
Distribution: Cash out — 10% penalty if under 59½ plus income taxes
Call 1-800-387-2331 to initiate any of these options
E*TRADE Fees to Watch For
$75 ACATS transfer fee — the main pain point. Get the receiving broker to reimburse it.
$0 account closure fee — no charge to close
$0 stock/ETF commissions — standard across all brokers now
Core Portfolios 0.30% fee — stops when you unenroll
$25 wire transfer fee — use ACH (free) instead
Alternatives to E*TRADE
Fidelity: Best overall — $0 fees, zero-expense-ratio index funds, great app, no transfer fee
Charles Schwab: Excellent customer service, thinkorswim platform, no transfer fee
Vanguard: Best for buy-and-hold investors, lowest fund costs
Robinhood: Simplest interface, but limited research tools and customer support
📋 Closure Checklist
Download tax documents and trade confirmations
Export transaction history
Check for any pending orders or unsettled trades
Transfer or sell all investments
Close linked bank accounts separately
Call 1-800-387-2331 to finalize closure
Request written confirmation
Bottom line: E*TRADE's $75 ACATS fee is annoying but avoidable if your new broker reimburses it (most do for accounts over $25K). The phone-only closure process is dated, but Schwab and Fidelity both offer better platforms with no transfer fees. Make the switch during a quiet market day to minimize timing risk.
💡 Hidden subscriptions eating your investment gains?
Upload your bank statement to JustCancel and find every recurring charge you're paying for.