The Robinhood trading platform is one of the most popular trading platforms for stock traders. Robinhood users may need to withdraw their invested funds for several reasons. They may want to switch to another investment app and can either transfer securities from Robinhood directly into their other account or sell their stocks and crypto and transfer the funds to their bank accounts.
If you own investments through Robinhood’s app and if you need access to funds for any other reason, you may want to consume the funds at some point. Then you might be in a quandary to find a suitable way to withdraw invested funds from your Robinhood account. You can withdraw money from Robinhood using your iOS or Android mobile device, or through the website. When withdrawing cash, you should use the same bank account as you used to fund your account. Otherwise, Robinhood may ask for extra documents to prove that you own the bank accounts mentioned. However, this article will make the process easier for you.
Can I Withdraw Invested Funds From Robinhood?
Anyone who has a Robinhood account can withdraw money. Before you cash out, you need to know a couple of things. You can only withdraw five times a day from your account on a business day. If you’re only planning to cash out once, it might not seem like much, but if you make investment choices throughout the day, it might be a problem. Make sure you withdraw the money to the right account. Another limitation is you can only withdraw $50,000 a day. You can only withdraw a certain amount each day if you’ve been growing your account for a while. That’s why you should plan around it if you have a lot of money to cash out.
Also, withdrawals work a little differently depending on what device you’re using. When you withdraw from your computer, the steps are different than when you withdraw from your smartphone.
Steps To Withdraw Invested Funds From Robinhood Account
Withdrawals are relatively straightforward, but they differ based on whether you’re using a desktop or a mobile device. When withdrawing from your smartphone, the steps will unfold in a specific order. But when withdrawing from your computer, the steps will vary. To withdraw money from Robinhood, both methods are explained here.
iOS or Android phone device
When it comes to withdrawing money from your phone, Robinhood is very straightforward. You can access Robinhood for free on your smartphone by installing the Robinhood app, which is available for free on smartphones. You can use this process irrespective of the device you have, whether it’s an Android or iOS phone. Even though the steps may differ here and there, they are basically the same.
- Step 1 : Opening the Robinhood app is the first step. Next, tap “Account.”. The account icon can be found in the bottom-right corner of the screen.
- Step 2 : Find and tap the “Transfers” option.
- Step 3 : Then select the “Transfer to Your Bank” option.
- Step 4 : On your screen, a list will appear, and you need to locate your bank account in it.
- Step 5 : It is now time to enter the amount that you wish to withdraw from the account. If you need to withdraw the entire amount, you can do so. However, if you only need part of it, you can do so.
- Step 6 : Make sure everything is okay by double-checking and then tapping the “Confirm” option.
On the Computer
Even though the process may differ when you perform the transaction on your computer, it is still straightforward and simple. After you get on the official Robinhood website, you can begin using the service. Here are the steps you need to take:
- Step 1 : Enter the Robinhood website https://robinhood.com/login from the browser. Then Sign in to your account with your username and password.
- Step 2 : Once you are signed in, you will need to find the “Account” option. You can find it in the top-right corner of the screen on the Robinhood website.
- Step 3 : Click on the “Banking” option when you see it.
- Step 4 : On the next page, you will see a panel in front of you. You must enter the amount you wish to withdraw from Robinhood in this panel. You can enjoy your money as soon as it appears in your bank account if you enter the correct amount of money.
How Long Does It Take To Withdraw Invested Funds From Robinhood?
It always takes a while to transfer money. That’s not because of how you initiate the withdrawal on Robinhood’s website, but rather how long it takes for the money to settle. To withdraw money from Robinhood, your funds have to “settle,” which means they have to pass 2 trading days before they become withdrawable.
You may need to provide more information if you withdraw to a different account than where you deposited. They prevent money laundering and fraud through this standard practice. If you have referral stock cash, you can withdraw it after 30 days if it stays in your account. The money will be available as withdrawable cash once this time passes.
Apart from that, bank withdrawals are usually quick and easy, and Robinhood lets you withdraw up to $50,000 a day.
Can I Cancel a Withdrawal?
It is possible to cancel a Robinhood withdrawal if you act quickly enough, allowing you to use those funds for other transactions:
- First, launch the app on your phone.
- Tap the “Account” icon in the bottom right corner.
- Now you will find the “History” option. If you’re using Android, you’ll need to hit the “Menu” icon first, then you will see the History option.
- You should see the pending withdrawal, tap it.
- Then tap on the “Cancel Transfer” option.
But keep in mind that you can only cancel the withdrawal if you can attempt it before it is processed, and this usually happens very quickly. There are three possible cutoff times for canceling a transfer on trading days, depending on when you initiated it. As soon as the cutoff time passes, it won’t be possible to cancel the transfer. You’ll have to wait until it’s complete.
- If you initiate the transfer between 3:00 PM and 7:00 PM ET, then you can cancel until 7:00 PM ET the next day.
- It is possible to cancel a transfer after 7:00 PM ET up until 3:00 PM ET the following day if the transfer was initiated after 7:00 PM ET.
- It is possible to cancel transfers on weekends until 3:00 PM ET the following Monday.
Are There Fees To Withdraw Invested Funds From Robinhood?
Making a withdrawal may sometimes result in fees. The app doesn’t charge much for withdrawals, which is a plus. There are no charges for bank transfers but a wire transfer incurs $25 as a fee. So it’s wise to check carefully if your transaction will incur high fees, especially for international bank transfers and wire transfers. However, there are some restrictions, and you may have to pay a small fee when you withdraw money from your Robinhood account in some areas.
Why Can’t I Withdraw My invested funds From Robinhood?
Robinhood may not let you withdraw money for a variety of reasons. The following are some of the most common:
- You’ve already reached your withdrawal limit.
- There has not yet been a settlement of your investment funds.
- There may be a restriction on your account.
There are times when Robinhood restricts users’ accounts. A negative balance, a reversed bank transaction, suspicion of fraud, or a negative balance can cause an account freeze. It may be impossible for you to withdraw money if your account is restricted. In that case, you must contact Robinhood to withdraw the restriction.
Can I Change The Account I Want To Withdraw And Transfer Money To?
As a convenience, Robinhood uses your depositing account as a withdrawal account. Because Robinhood takes it as your basic account. You can, however, withdraw funds to another account if you wish. In that case, you may have to undergo a security check if you decide to cash out from Robinhood into another account. While it may take a while, remember that it is there to protect your account, your funds, and you.