When you’ve decided it’s time to sell an investment, Robinhood makes withdrawals easy whether you’re using a desktop or a mobile device.
The platform lets you quickly transfer funds from your brokerage account to a bank account or debit card, but as with any financial transaction, it’s essential to know key details like timelines, fees and any potential issues.
This guide will walk you through what you need to know about how to withdraw money from Robinhood.
How Do Withdrawals Work with Robinhood?
There are two primary methods of making a withdrawal: standard bank transfers, and instant withdrawals to a debit card or bank account. While bank transfers are fee-free, instant withdrawals can incur a 1.75% fee (minimum of $1 and maximum of $150 per transaction).
Standard bank transfers typically take three to five business days for the funds to appear in your account, while an instant withdrawal will complete the process within minutes.
You can withdraw funds directly through the Robinhood app on your phone or via the desktop platform. Both methods follow a similar process.
How to Withdraw from Robinhood on Your Phone
Follow these steps to withdraw funds from the Robinhood app.
- On your app, tap on the Account (person icon).
- Select Transfers from the menu and click on Withdraw.
- Enter the amount you wish to withdraw.
- Choose the Robinhood account you wish to withdraw from.
- Select your linked bank account or debit card. If your account qualifies, an “Instant transfers eligible” label will appear next.
- Review the withdrawal details, including any fees for instant withdrawals.
- Tap Transfer to complete the withdrawal.
How to Withdraw from Robinhood on Desktop
If you prefer to withdraw funds from Robinhood on a computer, follow these steps:
- Log in to your Robinhood account on a web browser.
- Click on the Account (person icon).
- From the drop-down menu, select Transfers.
- Click Transfer Money.
- Enter the amount you want to withdraw.
- Choose the account you’d like to withdraw from and select your linked bank account or debit card.
- Review the transfer details to ensure everything is correct, including any fees for instant transfers.
- Click Submit to finalize the transaction.
What if You Can’t Withdraw Money After Selling?
There are a few reasons why you may not be able to get your money out right after you’ve made a trade.
Cash Held for Pending Orders
Funds are tied to the pending orders in your account and cannot be withdrawn. To access this cash, you will have to cancel the pending orders.
Referral Stock
The cash value from a referral stock is required to stay in your investing account for at least 30 days. If you sell the stock before the 30-day period, the proceeds won’t be available in your withdrawal cash until the holding period ends.
Options Collateral
If you engage in an options strategy, Robinhood may hold certain stocks or cash as a collateral to cover your position.
Pending Debit Card Transactions
Users with spending accounts may have funds temporarily held for the pending Cash Card transactions. An authorization hold is placed until the transaction settlement.
Regulatory Guidelines
If the stock is sold before the end of the settlement period (generally T+1, signifying one business day post-transaction), you may encounter withdrawal restrictions. Robinhood must comply with Financial Industry Regulatory Authority (FINRA) and Securities and Exchange Commission (SEC) regulations, which mandate the proper settlement of transactions before funds are accessible.
Account Limitations
In some cases, the account might face restrictions due to security verifications, account verification requirements, or potential breaches of trading policies (such as pattern day trading). When restrictions are in place, the platform may temporarily halt withdrawals until these issues are resolved.
Margin Trading Implications
If you’ve engaged in margin trading, you have to maintain at least $2,000 in your account to meet the minimum balance requirements to borrow from the account. If margin balances are outstanding, the proceeds may remain inaccessible until those obligations are settled.
Round-Ups
If you’re enrolled in Robinhood’s Round-Ups program, spare change from Cash Card transactions is held before investment orders are placed. To withdraw these funds, you’ll need to un-enroll from the program.
How to Cancel a Pending Withdrawal
If you’ve already made a withdrawal request and want to cancel it, here’s how to do it:
- Go to your account by clicking on the person icon.
- Select Menu and click on history.
- In Pending, choose the pending bank withdrawal you want to cancel.
- Select Cancel transfer.
Your Path to Smooth Withdrawals
Robinhood aims to simplify the trading experience, making it both accessible and intuitive for investors at all levels. A key feature of the platform is its smooth withdrawal process, allowing you to effortlessly access your funds.
The user interface is designed for clarity, guiding investors through each withdrawal step while transparently communicating any applicable fees or processing times. Users can anticipate prompt processing of their withdrawals, often within just a few business days, allowing them to manage their finances with minimal delays.
Frequently Asked Questions
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Funds deposited into Robinhood through standard bank transfers generally require five business days before they become available for withdrawal. However, users can take advantage of instant deposits to start trading immediately; these funds will only be eligible for withdrawal once the usual waiting period has passed.
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Your ability to withdraw funds from Robinhood might be restricted due to unsettled trades or your use of margin, which necessitates maintaining a specific equity level. Furthermore, pending transactions or any issues with account verification could also hinder access to your funds.
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At the moment, Robinhood functions as a brokerage platform and doesn’t provide savings or checking accounts. However, the company has plans to offer private banking services to qualified customers in the near future.
