How to Cash out on Robinhood
One of the most popular trading platforms for young investors, but not everyone is happy about it. If you want to switch from Robinhood to other investment apps, you can either transfer your Stocks or crypto into your new account or sell them and use the money to open a new bank account.
It’s easy to withdraw money from the app on your mobile device. If you can, it’s best to use the same bank account you used to fund your account. You may be asked for more documents to prove you own the bank accounts.
Rules
A few rules that limit how and when they can withdraw their cash from their accounts are important to look out for.
- It is possible that you will have to wait up to five business days after depositing funds. Even though you might be able to buy and sell stock with your “instant deposits,” you will not be able to transfer your cash back out of Robinhood right away. You’re usually required to wait up to five business days before you can move money out of your Robinhood account.
- It takes three business days for a trade to “settle”, which means the trade is officially completed. If you’re a Robinhood Gold or a Robinhood Instant user, you may be eligible for instant settlement, which means you can withdraw any proceeds right after you sell stocks, options, or other financial instruments.
- If you’ve already reached the limit, you’ll have to wait until the next business day to make any additional transfers.
- You won’t be able to withdraw more than $50,000 per day if you have a large balance.
- You have to wait 30 days for your funds to be withdrawn from selling free stock. If you want to sell that stock immediately, you have to keep the cash value of that stock in your account for 30 days, otherwise you can’t withdraw it.
- If you’re moving your money into a different bank account, be aware of the special rules. There are special rules that apply to that situation, and that can make it look suspicious. You may be asked to send pictures of your photo ID or bank statements to prove that you are the owner of both bank accounts. If you can get your cash into the same bank account as the one that funded your account, it will be easier to avoid the hassle.
- You might not be able to withdraw money if you have a restricted account. If the user has a negative balance, had a bank account transaction reversed, or is suspected of fraud, that can happen as well. If your account is restricted, you may not be able to withdraw money until you get in touch with Robinhood to clear things up.
Summary
Money can be transferred into your bank account. There are a few attempts. Money can’t be taken out until five business days after you’ve transferred it. You have to wait three business days before you can withdraw the money from the sale.
The “Account” button on the bottom right of the screen is similar to a cartoon person. Click “Account” in the top right and then click “Transfers” to begin.
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