If you're new to investing with Robinhood, you may be wondering how long it takes to withdraw funds after selling a stock.
It's important to understand that there is a settlement period that must occur before you can withdraw your funds.
In this article, we cover Robinhood's settlement period.
The settlement period for equities, such as stocks, is two trading days after the trade date, also known as T+2. This means that if you sell a stock on Monday, the funds from that sale won't be available for withdrawal until Thursday.
Once the settlement period has passed and the funds are available, you can choose between a standard bank transfer or an instant transfer to withdraw your funds.
A standard bank transfer is free but can take up to five business days to complete.
This is the most common method of withdrawing funds from Robinhood, and it's important to keep in mind that the five-day period includes weekends and holidays.
On the other hand, an instant transfer allows you to withdraw your funds within 10 minutes, but it comes with a fee of 1.5% of the transferred amount.
This fee may seem high, but it can be worth it if you need the funds immediately or if you're worried about missing out on an investment opportunity.
It's important to note that there may be additional delays if you're transferring funds to an external bank account that you haven't previously used with Robinhood.
In some cases, Robinhood may need to verify the account before processing the transfer, which can add a few extra days to the process.
In conclusion, it generally takes up to three days to be able to withdraw funds from Robinhood after selling a stock.
Once the settlement period has passed, you can choose between a free but slower standard bank transfer or a faster but more expensive instant transfer.
Be sure to factor in these timelines when planning your investments and withdrawals to avoid any unnecessary delays.
This article was generated using automation technology, and thoroughly edited and fact-checked by an editor on our editorial staff.
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