How Long Does It Take To Withdraw Money From RobinHood?
Nowadays, it seems like many younger investors are using RobinHood to access the stock market. But how easy is it to access your money? And, how long does it take to withdraw your money from RobinHood? Here’s everything you need to know.
What Is RobinHood?
RobinHood has changed the way the average person invests. Rather than going through a personal broker or firm, people now have direct access to the stock market. Thanks to this online brokerage platform, you can now buy and sell stocks, securities, and crypto without the trading commission fee. It has become the primary platform for novice investors. Not only because it’s easy to use, but also because you can conveniently access it right from your phone.
To get started, all you need to do is create your account and sign in. After you link your account(s), you can begin purchasing and trading stocks. In addition to being free, you also get one free stock just for joining. And, you will also have the opportunity to earn more free stocks when you refer family and friends.
Even if you are a first-time investor, RobinHood can help you learn the ropes. It provides plenty of resources to learn about the stock market, and its help center can teach you all the basics about investing through its platform.
How Do You Withdraw Money?
When you decide that it’s time, RobinHood also makes it easy to withdraw your money. However, the process is slightly different for iOS and Android users. No matter which device you’re using though, the process follows nearly the same steps:
- Sign into your account and then tap the “Account” icon in the bottom right corner of the screen.
- Find and select “Transfers” to view your available transferable funds.
- Choose the icon to transfer money and withdraw it to your bank account.
- Select the account and enter the amount.
- Confirm the transaction.
Although simple, you should be aware that the transfer is not immediate. And, if you are transferring the money to another brokerage account, there is a $75 fee.
How Long Does It Take to Withdraw Money from RobinHood?
When it comes time to cash out, how long does it take to withdraw money from RobinHood? Once again, the answer depends on several factors, including the type of stocks you’re dealing with and which account you use.
Pending Status of Deposits
When you sell stock through RobinHood, you can withdraw the money to your account. However, deposits can take time to complete. You may have to wait up to five business days for the money to hit your account. Once the deposit is complete, then you can make a withdrawal from your transferable funds.
The Settlement Period
After a sale, the transaction also needs time to “settle” before a withdrawal. The settlement period is two business days following the trade date. But by the third day, the money will be in your account and available for withdrawal.
Different Bank Accounts
In a best-case scenario, it should only take a few days to process your transaction. But, if you want to withdraw money to a different bank account, it could take longer. When you use another account that isn’t the one you used to originally fund it, you will be required to verify additional information.
They will ask you the reason for changing accounts, photos of a government-issued ID, copies of bank statements to verify that both accounts are linked to the same person, and clarification on the amount and specific account you want to transfer the funds to. The RobinHood support team can help you with this, but they will need personal information to complete the withdrawal.
Are There Any Rules or Restrictions?
RobinHood allows you up to 5 withdrawals per business day to your personal account. However, there is a maximum withdrawal limit of $50k per day.
For those whose accounts have restrictions, you should also note that you may not be able to withdraw any funds. Each situation is different. So if you have questions, you will need to contact RobinHood’s help center to fix the problem and remove any restrictions on the account.
As mentioned above, you get a free stock for signing up and referring people. Unfortunately, you can’t turn around and immediately sell it off for profit. You’ll have to wait 30 days to sell or access the funds from your referral stocks.
What Happens If You Made a Mistake?
Before you submit your request to withdraw funds, you should always review your information. However, mistakes happen. If you realize that you made a mistake after confirming the transaction, you have a limited time frame to cancel it.
Canceling a Transaction
If you made a mistake and need to cancel your pending withdrawal, you can do it within the mobile app.
- Touch the “Accounts” icon in the bottom right corner of the screen.
- Go to your “History” and select the pending withdrawal.
- Choose “Cancel Transfer” to stop the transaction.
While the option to cancel exists, there are time limitations and cutoffs for when you can cancel. If you are past the cutoff time, you’ll have to wait for the transfer to complete before you can take further action.
- If you made the transfer between 3-7 p.m. EST, you have until 7 p.m. the same day to cancel.
- For transactions after 7 p.m. EST, you have until 3 p.m. the following day to cancel your transfer.
- Any transactions done over the weekend can be canceled until 3 p.m. EST on the following Monday.
Even when you need to correct a mistake, it should only take a matter of days to get your money. Although it does take time, once you understand the necessary steps to authorize the withdrawal, it’s an easy and smooth process.
- Why Are People Investing in RobinHood?
- How Robinhood Traders Are Changing the Way We Invest
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Jenny Smedra is an avid world traveler, ESL teacher, former archaeologist, and freelance writer. Choosing a life abroad had strengthened her commitment to finding ways to bring people together across language and cultural barriers. While most of her time is dedicated to either working with children, she also enjoys good friends, good food, and new adventures.