As mentioned in a previous article, Robinhood calls closing an account with them deactivating it even though they mean two different things. So what exactly does deactivating an account with them really do? Honestly, it adds a message to the bottom of your screen after you log back in to your account that says the account is deactivated and a button to reactivate the account. Nothing else has changed.
If you get to the point where you can deactivate an account with them, your account has to have a zero balance and all positions must be closed. At this point you cannot trade with a zero balance so you basically have already done it. At the time of this post, they have no process to actually close and delete your account even if you go through this process.
Have two options:
Option 1: Deactivate the account (Done).
Option 2: Close The Account (Too difficult?)
Step 1. Close the online account by removing any ability to access that account from the Internet and the app.
Step 2. Keep the data you are required to keep for regulatory purposes in your database and delete those records when you are no longer required to keep them.
That’s it! Why is this so hard for Robinhood to understand?
Another excuse you make not to close an account is that a customer may need their documents. The only document they need on a closed account is a 1099 form for taxes and only if they used the account. There is nothing else and you know this. Mail the customer their 1099’s like all other stock brokers when it is ready or give them the option to download it by filling out a form like Webull with certain account information they will only know if you need a good example.
Did your developers not add an option to delete or close an online account from the Internet and the App while keeping your data requirements in your database offline? You claim you delete accounts after a certain period of time but do you really? We asked this question and no one confirms it. If that is the case, this means all customers that every created an account with you still have one whether they want it or not.
Robinhood is constantly being sued, fined or called out for the lack of customer service for some of the most simple issues that could be easily avoided. Maybe you consider any publicity is good news but if you can’t understand a basic concept of closing an account, as a so called tech company in the financial industry, your lack of understanding the most simple issues that could easily be resolved should be very concerning.
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This article is based on our own experience, point of view and from others we have spoken to about Robinhood that share similar experiences. If anyone feels anything is incorrect, email.