Robinhood was founded in 2015 by two Stanford graduates who wanted to create a better way to invest.
They offer commission-free trades, no minimum deposit, and no fees.
You can sell anything from clothes to electronics to books to cars. In fact, they even accept donations.
All you have to do is upload pictures of your items, and you’ll receive a fair price.
You don’t need to own any stock or make any investments. Just open an account, upload your items, and start selling.
In this article, we will be discussing how you can withdraw and cash out from your Robinhood account.
Where Can You Withdraw From?
You can easily withdraw your money from your Robinhood account from the Robinhood website, or their iOS and Android apps.
It is recommended that you withdraw your funds into the same bank account that you used to supply funds to your Robinhood account with.
If you want to withdraw your money into another bank account that the website or apps don’t recognize, then you may be asked to provide various documents to prove that you do own that second bank account.
Before Withdrawing Your Money
There are a couple of rules that you must follow when it comes to withdrawing your money from your account.
These rules can limit when and how you can withdraw your money from your account.
Waiting Up To 5 Business Days
Robinhood is known to have an instant deposit policy.
This means that for certain customers, they can start trading almost immediately, as long as they have moved their money into their Robinhood account.
However, you may be able to sell and buy stocks with your instant deposits.
Yet you can’t cash that money out of your Robinhood account straight away.
Once you have put money into your Robinhood account, you are then asked to wait up to 5 business days, before you are allowed to move the money back out.
Wait For Trade To Settle
When you sell or buy either ETFs or stocks in America, it can then take up to 3 business days for the trades to settle.
This means that the trade is actually completed officially.
If you are a Robinhood Instant User or have a Robinhood Gold account, you may be able to get instant settlement.
Then you will be able to withdraw your money straight away after you have sold your ETFs or stocks.
Withdrawal Limit
You are limited to how many withdrawals you can make every business day.
Every business day you can only make up to 5 withdrawals, so if you have already reached the limit, you must wait for the next business day before you can start to make any more withdrawals or transfers.
Alongside that, you can only withdraw a certain amount of money a day. You can only withdraw $50,000 every business day.
So, if you have quite a large balance which goes over that amount, you will have to withdraw your money in batches.
Selling Free Stock
If you gain any money from selling free stock, then you have to wait 30 days before you can withdraw that money.
Switching Bank Account
If you want to withdraw your money into a different account, this will look suspicious to Robinhood.
As a result, if you want to do this, then Robinhood has a set of special rules for this scenario.
They have been known to ask for images of documents to prove that you are the owner of both bank accounts.
However, to avoid all the hassle, it is recommended that you withdraw your money into the same account that you used to fund your Robinhood account with.
Restricted Accounts
Sometimes Robinhood will restrict an account. This is known to happen for various reasons, such as:
- Negative Balance,
- Bank Account Transaction Reversed,
- Suspected Fraud.
As a result, if your account is restricted then you are not allowed to withdraw any of your money, until the issue with your account has been fixed. The best way to do this is to get into contact with Robinhood.
Withdrawing Money On iOS
- Step 1. Search for the account icon found in the bottom-right corner.
- Step 2. Now click on the three lines, which is also found in the top right corner
- Step 3. Click on transfers and click on transfer money.
- Step 4. Enter the amount you wish to withdraw and select enter. Now you can transfer the money over.
Withdrawing Money On Android
- Step 1. In the bottom right-hand corner, look for the account icon.
- Step 2. Tap on the three horizontal lines, which can be found in the top right corner.
- Step 3. Select Transfers.
- Step 4. Now click on transfer to your bank.
- Step 5. Enter the amount you want to withdraw to your bank account and then hit transfer.
Withdrawing Money From the Robinhood Website
- Step 1. Click on the account tab, found on the top right-hand corner. Then follow the list down until you come across a transfer.
- Step 2. Fill in all your transfer details, including the to and from section. Then add the amount. Click review transfer.
- Step 3. As long as everything is correct, that you have put down, you can hit submit. It may then just take a couple of days for your money to make it into your account.
Conclusion
It is actually quite easy to withdraw your money from your Robinhood account into your bank account.
As you can see above, there are a couple of rules that must be followed when trying to cash out your account, such as waiting 5 business days after transferring money or waiting 3 days after selling EFTs or stocks etc.
You have three ways in which you can try to withdraw your money, on the apps or on the Robinhood website.
As long as you follow the rules, then you should have no issues in cashing out your money from your Robinhood account.
