Recently Sold Stock on Robinhood, but I Am Unable to Withdraw Money—What Should I Do?
If you are
new to the trading industry, Robinhood can be a good option for you. Robinhood
is well known for its easy-to-use interface and commission free trading
features. You can use get access to many trade stocks, ETFs, even the
cryptocurrencies. However, on thing that may frustrate you is the how
to short sell on Robinhood. Also, another problem could withdrawing the
money after selling stocks. When you sell a stock on Robinhood, the money from
the sale does not become immediately available for withdrawal. This delay is
due to the settlement process, which is standard across all brokerage accounts.
So, let’s begin and learn more about how
to take money out of Robinhood.
What Is
the Settlement Period on Robinhood?
The Robinhood settlement period is the
time it takes for the money from your stock sale to be officially transfer and
available for the withdrawal. Generally, it takes two business days after the
trade date for the sale to finalize and for the funds to be settled. For
instance, if you sell a stock on Wednesday, the funds from that sale will
typically settle by Friday. Only once the settlement period is over only than
you can withdraw
money from your Robinhood account.
Why Can’t
I Withdraw Money from Robinhood After Selling Stock?
Now you know
what is the settlement period on Robinhood, you must have understood the
reasons why
you cannot withdraw money from the Robinhood after selling. If the
funds are still in the settlement period, you will not be able to withdraw it. Until
the settlement period is complete, the proceeds from your sale are not
considered withdrawable cash.
How to
Withdraw from Robinhood?
When you see
that the settlement period is over, you can then proceed to move funds from
your Robinhood account. Here is how
to withdraw from Robinhood:
·
First,
open the Robinhood app on your mobile device or logging into your account on
the web.
·
Tap
on the account icon, usually located at the bottom right corner of the screen.
·
In
the account menu, select the “Transfers” option.
·
Here
chooses the option to Transfer to Your Bank
·
Specify
the amount you wish to withdraw. You can withdraw any amount up to the total
available balance.
·
At
last review the details and confirm the transfer.
What are
the Other Reasons You Might Not Be Able to Withdraw Money on Robinhood?
Apart from
the settlement period being the main factor due to which you users cannot withdraw
money on Robinhood. There are several other reasons behind this issue
which are mentioned below:
·
Robinhood Withdrawal Limits: There are certain limits which are put in place on Robinhood
withdrawals. Your bank may have restrictions on how much money you can transfer
in a single transaction.
·
Unsettled Funds from Options Trading: If you are engaged in selling options on Robinhood,
the settlement process might be different compared to regular stock trades.
·
Account Restrictions or Holds: Sometimes Robinhood may impose several restrictions on your
account this may also cause issues in withdrawing money. When you engage in any
kind of suspicious activity such as making large transactions or other
compliance related issues then Robinhood may put temporary ban on your
account.
·
Pending Bank Transfers: If you have recently initiated a bank transfer (deposit)
into your Robinhood account, these funds might not be immediately available for
withdrawal.
FAQ
How to
get brokerage cash out of Robinhood?
If you want
to get brokerage cash
out of Robinhood, you need to sell your stocks or options. Also wait
for the Robinhood settlement and then transfer money to your linked bank
account.
How to
transfer money from Robinhood to bank?
If you want
to transfer money from Robinhood to your bank, go to the “Transfers” section of
the app, select “Transfer to Your Bank,” enter the amount you want to withdraw,
and confirm the transaction.
How to
sell stock on Robinhood and cash out?
To sell
stock on Robinhood, go to your portfolio, select the stock you want to
sell, complete the sale, and wait for the settlement period to pass. Afterward,
withdraw the funds to your bank account.
How to
transfer stocks from Robinhood to Fidelity?
The
Automated Customer Account Transfer Service (ACATS) is the option for transferring
stocks from Robinhood to Fidelity. You need to share your Robinhood
account information, and Fidelity will handle the transfer process.
Comments
Post a Comment