Prior to closing your Frec account, you’ll need to pay off any outstanding margin loan balance and bring the account balance to $0.00. This process can take up to 30 days to complete if you have pending dividend payments.
You can initiate the closing of your account by going to “Account settings” and clicking the “Accounts” tab. Click “Close your account” in red below the account you want to close. Once you initiate this process, you will no longer be able to place buy trades in your account.
Steps to take before completely closing your Frec account:
- Pay off any outstanding Margin Loan Balance by:
- Depositing cash; or
- Selling securities.
- Submit an ACATS* transfer request to an external brokerage firm:
- Request a Full Transfer of all assets in your account including the margin loan amount; or
- Pay off the margin loan amount and then complete a Full Transfer request.
- Note: Frec charges a $75 ACATS transfer fee for all outgoing transfers.
- Watch for dividends to deposit in your account if you owned securities in your holdings that earn dividends.
- If you completed a full ACAT, your dividends will be swept into your new outside account.
- If you liquidated your securities, your dividends will be deposited into your Frec Cash, and you will need to complete an ACH transfer out of your account for the dividend amount deposited.
*ACATS stands for Automated Customer Account Transfer System. It’s a system that allows you to transfer assets from one brokerage firm to another without losing your securities’ cost basis. Your stocks are not sold when moved between accounts, except for fractional shares. Therefore, an ACATS transfer of whole shares between accounts will not create a capital gains tax event. Fractional shares cannot be transferred between brokerage firms with ACATS.
Re-opening your account
You may request to reopen your account within 30 days of closing by reaching out to help@frec.com. Keep in mind, we may be unable to reopen your account, if it’s been completely closed out within the 30 days.
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