Regardless of if you have been investing in Robinhood for days, weeks, months, or years, there may come a time that you want to withdraw from the brokerage. We have the different steps you will need to take to assure a secure and simple transfer of your investments to your bank account.
The initial step to getting your funds transferred to your bank account from Robinhood is to sell your shares. This is where you can decide if you wish to keep some of your shares or sell all of them. Here are the steps for the selling process:
It then will take the day of the trade plus two more trading days for the funds to settle before being available for withdrawal. Before the next step, you will need to choose between a partial or a full withdrawal depending on your needs. Below are the steps for each platform withdrawal process.
*We will cover what goes into transferring to a different account below
Once you have gone through the steps to withdraw money into your connected bank account, it may take up to five trading days to be ready for withdrawal. Within that time period, this money cannot be invested.
This would be the case if you wish to deposit your funds into a different account than the one you had originally been depositing funds into Robinhood with. One of the largest drawbacks, if you are on a time crunch, is that it may take 60 days to verify the account due to the verification process.
You may be prompted to give some of the reasoning as to why you are using a different account than the one already connected to Robinhood.
As a result, your best bet is generally to withdraw to the same account you initially linked to your Robinhood account.
One of the perks Robinhood gives their investors is the free stock received when signing up. If that is one of your stocks you are looking to withdraw from, there is a thirty-day holding requirement to be able to do so.
This means that you'll have to wait a full month after opening your account to cash out on that free stock.
Before withdrawing from Robinhood, make sure you have a strong understanding of the different processes you will need to go through to do so. We hope this article can be a resource for you to use time and time again as you go through your investing journey.