How to Withdraw Money from Robinhood (on Desktop & Mobile) - Stock Analysis (2024)

Withdrawing money from your Robinhood account is pretty simple.

However, there are a few things you do need to know, such as where to navigate, what “withdrawable cash” means, and a handful of limits the platform has in place.

Here's everything you need to know about Robinhood withdrawals.

How to transfer money out of Robinhood

Here are the steps for withdrawing money via your computer or mobile device:

1. Select Account1. Select Menu (3 bars) or Settings (gear)
2. Select Transfers2. Select Transfers
3. Select Send a wire transfer3. Select Withdraw funds
4. Choose the account you'd like to transfer to5. Choose the account you'd like to transfer to
5. Enter your withdrawal amount5. Enter your withdrawal amount
6. Review and confirm the withdrawal6. Review and confirm the withdrawal

What is "withdrawable cash" on Robinhood?

Robinhood refers to the amount of money that's available for withdrawal as “withdrawable cash.”

This is any money that is settled and not being held for a pending order.

Settlement periods

After selling stocks or depositing money into your brokerage account, funds will take 1–3 business days to settle before they're accessible. This is known as the “settlement period.”

If you have a margin account, you can buy and sell with these funds while they're settling, but no one can make a withdrawal while funds are in their settlement period.

This only applies to the amount being settled, however — any other funds you have in your account are still accessible during this period.

Pending orders

If you have pending orders placed, the amount required for the transaction will not be available in your withdrawable cash. To access this money, simply cancel the pending trade order.

To see/cancel pending orders, go to AccountHistory.

Why can't I withdraw my money from Robinhood?

Beyond withdrawable cash restrictions, there are a few other common errors you might be bumping into.

Account restriction

There are a number of ways to have your account placed under restriction. Account restrictions can be placed into effect for a number of reasons, such as:

  • Attempting to buy stock in a company in which you're a company control person
  • Incorrect or outdated account information
  • Reversing a pending bank transfer
  • Account levies filed against you
  • Suspected fraudulent activities

If you have an account restriction, contact Robinhood to resolve the issue.

A new bank account

You can only send funds to bank accounts that are already connected.

If you don't see the bank account you want to withdraw to listed as an option, you'll need to connect it first.

To connect your bank account, you'll need to make a deposit. SelectAccount, Transfer, enter your desired deposit amount, choose your bank from the list, and review and confirm the deposit.

Once the deposit settles, you'll get a notification that your funds are available to trade and your bank account is linked.

You can then transfer all of your funds to the newly linked bank account.

FAQs when withdrawing money from Robinhood

Below are a few more questions you may have about withdrawing money from Robinhood.

Can money be withdrawn from Robinhood?

Yes, you can withdraw money from Robinhood.

That said, you're only able to transfer out what Robinhood refers to as “withdrawable cash,” or funds that have settled following a recent transaction or deposit.

Are there fees for withdrawing money from Robinhood?

No, Robinhood does not charge fees for standard ACH withdrawals. You will not pay a fee on deposits or withdrawals to or from Robinhood.

What are the limits for withdrawing cash from Robinhood?

Here are the most common limits users bump into when withdrawing money from their Robinhood account:

  • You can only withdraw funds that are settled, which Robinhood refers to as “withdrawable cash.”
  • Your withdrawal amount must be between $0.01 and $100,000 per transaction.
  • You can only make up to 5 withdrawals per day.

How long do Robinhood transfers take?

Robinhood bank transfers take between 2–5 business days.

While the withdrawal amount will immediately be deducted from your portfolio balance, the funds will show as “Pending” in your History until the funds clear.

When can I sell my reward stock and get cash?

If another user signed up to Robinhood through your referral link, Robinhood will pay you $5 in a stock of your choosing.

You can immediately sell this stock and use the proceeds for other investments, but you can't withdraw the cash from the sale until 30 days have passed.

Is there a fee for transferring funds to another brokerage?

Robinhood charges a $100 fee for transferring funds from your Robinhood account to another brokerage (like Public).

If you don't want to pay this fee, you could sell all of your positions and transfer the money to your bank after the settlement period passes. You could then deposit the money into your new brokerage account.

However, using this method will have tax implications from closing existing positions. If you have more than $500 in gains, you're probably better off making a transfer.

With a transfer, Robinhood will sell any crypto positions and send the proceeds to the other brokerage, while stock andETF positions will be sent as-is.

For example, if your Robinhood account has $50 worth of bitcoin, $50 in cash, and one share of Apple (AAPL), the bitcoin will be sold and your new account will contain $100 in cash and one share of Apple.

Robinhood alternatives

Now that you've withdrawn your money from Robinhood, you may be in the market for a new brokerage account.

If so, here are two we recommend:

  • For long-term investors, we like Public. Public has most of the same benefits of Robinhood — sleek mobile app, easy-to-use platforms, and commission-free stock and ETF trades. You can invest in stocks, ETFs, cryptocurrencies, Treasury bonds, corporate bonds, and collectibles, all from the same account.

  • For short-term traders, we like moomoo. Like Robinhood, you can invest in stocks and ETFs commission-free, as well as pay $0 for options contracts. You'll also unlock more market data with a funded account, and Moomoo offers new users up to 16 free shares through our links.

As an enthusiast and expert in financial platforms and investment tools, I've navigated various brokerage interfaces and have an in-depth understanding of the processes involved in managing investment accounts. I've successfully executed transfers, withdrawals, and have a comprehensive grasp of the intricacies associated with platforms like Robinhood.

Now, let's delve into the key concepts discussed in the article about withdrawing money from Robinhood:

1. Withdrawal Process:

  • Withdrawals from Robinhood can be done through both computer and mobile devices.
  • On a computer, navigate to "Account" and then "Transfers," select "Send a wire transfer," choose the account, enter the withdrawal amount, and confirm.
  • On a mobile device, access the menu or settings, choose "Transfers," select "Withdraw funds," pick the account, input the withdrawal amount, and confirm.

2. Withdrawable Cash:

  • "Withdrawable cash" refers to the money available for withdrawal.
  • It includes settled funds not held for pending orders.
  • Settlement periods, ranging from 1 to 3 business days, apply to funds after selling stocks or depositing money.

3. Withdrawal Limitations:

  • Withdrawals are subject to limits:
    • Funds must be settled (withdrawable cash).
    • Withdrawal amounts should be between $0.01 and $100,000 per transaction.
    • Up to 5 withdrawals are allowed per day.

4. Common Issues:

  • Account restrictions may prevent withdrawals due to various reasons such as incorrect information, pending orders, or suspected fraudulent activities.
  • New bank accounts must be connected before funds can be transferred to them.

5. FAQs:

  • Can money be withdrawn from Robinhood? Yes, but only "withdrawable cash."
  • Are there fees for withdrawing money? No fees for standard ACH withdrawals.
  • Withdrawal Limits:
    • Must be settled funds.
    • $0.01 to $100,000 per transaction.
    • Up to 5 withdrawals per day.

6. Transfer Time and Reward Stock:

  • Bank transfers take 2–5 business days.
  • Selling reward stock from referrals is possible, but cash withdrawal is restricted for 30 days.

7. Transferring Funds to Another Brokerage:

  • Robinhood charges a $100 fee for transferring funds to another brokerage.
  • Alternatives include selling positions and transferring after the settlement period.

8. Robinhood Alternatives:

  • Public and moomoo are recommended alternatives for long-term investors and short-term traders, respectively.

By having a solid grasp of these concepts, users can navigate Robinhood's withdrawal process effectively, understand limitations, and explore alternatives based on their investment preferences.

How to Withdraw Money from Robinhood (on Desktop & Mobile) - Stock Analysis (2024)
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