If you're looking to withdraw money from your Robinhood account, there are a few simple steps you will need to follow.
In this article, we'll go over the process for withdrawing money from Robinhood, including withdrawal limits, settlement periods and more.
If you're new to Robinhood, be sure to check out my full Robinhood tutorial video below.
Let's dive in!
Robinhood is a popular "all-in-one" investing app.
While they are most well-known for their commission free stock trading, they've recently shaken up the Retirement Investing World too.
Introducing Robinhood Retirement; home of the biggest IRA match on the market.
Here's what you need to know:
And don't worry, this comes with a Portfolio Builder Tool. You don't have to construct your investment portfolio from scratch if you don't want to.
Lastly, you'll even get a free stock worth up to $200 when you open a new Robinhood account using our link.
The biggest detail that often confuses users is the settlement of funds after they sell a stock.
After you sell securities on Robinhood, there is a settlement period before you can withdraw the funds to your bank account.
The settlement period for equities has recently changed to just T+1 settlement - or 1 business day. In the past, it would take 2 business days for your funds to settle (referred to as T+2).
So if you sold a stock on a Monday, the funds would be settled and available for withdrawal by Tuesday - assuming it wasn't a holiday.
If you are unable to withdraw your cash balance from Robinhood, be sure to consider how long it has been since you sold the asset.
Robinhood offers two methods for withdrawing money from your account:
Be sure to consider the fee involved with an instant transfer should you decide to use that method for your withdrawal.
You'll want to start off by clicking on your Buying Power on the home screen of the app to see if you have a cash balance in the account.
If this shows an Individual Cash balance, you should be able to proceed with the withdrawal to your bank account. If not, it will indicate that you have unsettled funds.
Should you have $0 in buying power, that means you have no cash in the account and would need to sell an asset in your portfolio in order to have cash to withdraw.
Here's how to initiate the withdrawal in the Robinhood app:
There are different withdrawal limits depending on the method you use.
For bank accounts, there is a maximum withdrawal amount of $50,000 per day.
For debit cards, the daily withdrawal limit is $5,000.
You might be wondering whether or not you can withdraw the money from selling off your free stock earned by opening the account. While you are able to do so, there is a time period that must pass first.
If you receive a referral stock from Robinhood, you must keep the cash value of the stock in your brokerage account for at least 30 calendar days.
If you sell the stock before the 30 days, you won't be able to withdraw the cash yet.
If you need to cancel a pending withdrawal on Robinhood, here's how:
Keep in mind that there are cutoff times for canceling transfers depending on when you initiated them.
Get 1 Free Stock Worth Up To $200 From Robinhood!
Don't Miss This Opportunity!
Investing Simple readers can claim a free stock from Robinhood worth up to $200 when they open a brokerage account and deposit any amount.
For US Residents only. Investing Simple is affiliated with Robinhood, and we may earn a commission when you sign up for Robinhood.
