Why can’t I withdraw money from Robinhood?
Robinhood is a U.S based financial trading company that trades stocks, ETFs, and cryptocurrencies.
Over time, it is bringing the investment world to everyone’s fingertips who have a smartphone and internet connectivity.
This application does not charge any commission for the trades, which is probably one of the reasons why it has gained so much popularity among cryptocurrency and ETFs traders, within a blink of an eye.
Once a person gets started with the system, they probably wonder about the withdrawal process.
So here is a complete breakdown related to why you can’t withdraw money from Robinhood and all you need to know before withdrawing from Robinhood accounts.
How to Withdraw Money from Robinhood
Robinhood’s withdrawal process is not a rocket science thing, it’s quite easy to do whether you are using an android phone or desktop computer to withdraw your amount.
Withdrawing Money via Smartphone
When you want to withdraw money with a smartphone then the process is quite easy, all you need is a Robinhood app within your smartphone and complete access to it.
To proceed with the smartphone withdrawal:
- Open the Robinhood app and access your account via the available icon at the bottom-right corner of the screen.
- Go to the menu, then select “Transfer”, and then select “Transfer to your bank”.
Menu > Transfer > Transfer to your bank
- Find the bank account in the list and choose it.
- Enter the amount that you want to withdraw, remember that the one-day limit is $50,000.
- Verify that all of your entered details are accurate.
- Tap the Confirm button to proceed with your withdrawal.
Withdrawing Money via Desktop Computers
If you are familiar with desktop computers, the transaction process will be just as easy as on smartphone devices, hence a little bit different.
To proceed with the computer withdrawal:
- Navigate to the Robinhood website and then log in to your account.
- Search the “Account” option in the top-right corner of the website.
- Navigate to the transfer option.
- Fill in the transaction details, and click on the “Review transfer” button.
- Verify that all of your entered details are correct.
- Tap on the “Submit” button to proceed with your withdrawal.
The process seems quite easy but once an investor starts using the Robinhood platform, they can face an issue while withdrawing the money in their starting period, and here a common person’s mind popped up with a question: why cant I withdraw money from Robinhood.
The person gets frightened because the process of withdrawing money is certainly an integral part of any financial trading company.
However, I believe that it is also a process that must be safe and secure to ensure that no funds are getting lost due to errors or hackers.
Why Cant I Withdraw Money from Robinhood?
Robinhood’s client faces the issue while withdrawing the money because the company is taking high-security measures, and that’s the reason they have more than 22.5 Million users registered on their platform, within a very short period.
So, whenever this thought comes into your mind, why can’t I withdraw money from Robinhood?
The answer is it’s because of your own safety measures, and you don’t have to worry about it.
What you have to do is to look out for a few basic rules and regulation that limits how, and when you can withdraw your funds from your Robinhood account.
Rules to Withdraw Your Cash from Robinhood Account
There are several reasons in which your funds get locked and you would not be able to withdraw them from the Robinhood account.
Have Patience Up To 5 Days After Depositing Funds
Robinhood has an “Instant Deposit” policy. It means you can start trading as soon as you transfer the cash into your Robinhood account, from your savings account.
But there is a catch!
When you deposit the amount into your Robinhood account, you cannot withdraw it right away. In order to withdraw the amount, you must have waited for up to 5 business days.
Have Patience During Your Settlement Period
Whenever you sell a stock, cryptocurrencies, or ETF through the Robinhood platform, you must wait for the settlement period to withdraw the profit.
Within the platform, the settlement period is defined as 2 trading days after your trade date.
On the exact 3rd day, your fund will directly appear in your buying power. Once it appears in your account you can withdraw it anytime you want.
Note: If you are Robinhood Gold or Robinhood Instant user, then you don’t need to worry about this policy.
Robinhood Gold Rule
If you are a Robinhood Gold user, then you will have to maintain a brokerage account value of at least $2,000 to meet the borrowing requirement.
If you want to withdraw an amount below $2000, you will need to turn off your margins in Settings.
As a Robinhood Gold user, you don’t need to wait for the settlement period to withdraw your funds. You can simply withdraw your funds right after you sell any stocks, EFTs, or cryptocurrencies.
Have the Patience to Withdraw Funds from “Selling Free Stock”
“Selling free stock” are those you get through the Robinhood Referral program. According to Robinhood policy, you can sell them whenever you want.
If you want to sell them right after you receive them, it’s completely your choice.
You just have to keep the cash that you earn from selling free stock into your Robinhood account, for the next 30 days.
For Example, If you win a share worth $20 to your account, you will not be able to withdraw that $20 by selling the stock until 30 days will pass.
Withdraw Limit for a Single Business Day
You can only make up to five transactions per day, each transaction having a maximum limit of $50,000.
So, if you have grown your Robinhood account for a long period, just remember the rule and have patience while withdrawing the amount!
Robinhood’s Special Rule to Switch Bank Account
When you register yourself with a Robinhood account, you have to connect one of your private bank accounts with a Robinhood account.
It helps you to make quick transactions when required.
Later on, if you want to change that previously linked account with a new account. You will have to go through Robinhood’s security check process.
They can ask you to submit a required document to verify that:
- You are the real owner of that new account,
- The account had never been involved in any fraudulent activities.
They can ask for the below-mentioned documents:
- A brief description about changing your bank account with a valid reason.
- A front and back photo of your passport or national ID card.
- Bank statement showing that you are the real account holder, and your account has never been in any fraudulent activity.
This process is for your own security and it can take up to 60 working days to verify your new account.
This is of course a long period but it’s a security measure to prevent users from using the app for money laundering.
Have Patience if Your Account has been Restricted
You will not be able to withdraw any amount if your account has been restricted.
Robinhood restricts your account only when they caught you doing fraudulent activities or you have any reversed transaction in your bank account, or you have a negative balance in your account, etc.
If this happens with you, then you will have to contact their customer support team. You will have to clarify yourself.
This process takes 2-3 working days to resolve the issue.
How Long Does it Take to Withdraw Money from Robinhood Account?
If you follow all the rules, then a withdrawal can typically take two to three working days. However, this can be more or less than that, depending on the circumstances.
You can also cancel your withdrawals; in case you change up your mind just after initiating a withdrawal.
The world of investment is full of many complex and often contradictory rules.
So instead of wasting your time with issues around withdrawing money from Robinhood, get benefits from the listed rules and be able to easily withdraw your money.
Rules to remember!
- You can only make up to 5 withdrawals within a single business day
- You can only make a withdrawal of up to $50,000 per day.
- You will have to wait up to 5 business days after depositing the funds into your Robinhood account.
- Once you sell a stock, you will have to wait for 3 business days to have your selling amount into your account.
- You will have to wait for 30 days to withdraw the fund from selling the free stock.
- If you want to switch your account, then you will have to follow the company’s guidelines.
- While your account is restricted, you may not be able to withdraw money.
If you follow the right steps, then the process will be trouble-free and you will never have a problem when you withdraw money from Robinhood.