By Danny O'Keefe
Danny O'Keefe
Contributor
Danny is a financial consultant and fintech copywriter who specializes in NFTs, cybersecurity, and digital ledger technology. He has a legal degree and a master's degree in computer science.
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Robinhood took over the mobile stock investing scene in 2018 when it launched its sleek, easy-to-use application and commission-free trading.
While it makes depositing and investing simple, how to withdraw from Robinhood is a little more challenging.
It’s designed this way on purpose.
Robinhood makes money when you have money in your account – why would they make it easy to pull money out of Robinhood?
That’s why I put this article together.
Here’s how to withdraw money from Robinhood.
Ready for a new broker?
Invest in stocks, treasuries, crypto, ETFs, and alternative assets on Public.
In my opinion, it’s as easy to use as Robinhood, but for serious investors.
Can Money Be Withdrawn from Robinhood?
Yes, you canwithdraw money from Robinhood.
There are 2 ways to withdraw cash from Robinhood: By debit card or by bank account.
Both methods are outlined in more detail below, but here’s a quick summary of the Robinhood withdrawal limits and fees for each:
1. Robinhood Withdrawal by Debit Card
The main advantage of a Robinhood debit card withdrawal is speed, though you’ll pay a small fee for the convenience.
Speed: 30 minutes
Daily limit: $5,000
Fee: 1.5%
Personally, I wouldn’t pay the fee to get my money a few days early unless I desperately needed the cash. An Albert cash advance is probably the better way to go, allowing you to get up to $250 with no fees.
2. Robinhood Withdrawal by Bank Account Transfer
You can withdraw from Robinhood for free with a bank account transfer, though it will take several business days to complete.
Speed: Up to 5 business days
Daily limit: $50,000
Fee: n/a
Let’s dive into how to transfer money from Robinhood to bank account using your phone or your computer.
By the way, if you’re looking for a great bank, check out our Chime review.
How to Withdraw Money from Robinhood on Your Phone
Withdrawing money from the Robinhood app is a 7-step process which is identical for both iOS and Android applications.
Here are the steps to follow to withdraw money from Robinhood to bank account on your phone:
- Tap “Account”
- Tap “Transfers”
- Select “Transfer to your bank” (or “Transfer to debit card”)
- Select your bank account (or debit card)
- Enter the amount you’d like to withdraw
- Confirm the amount and details
- Tap “Transfer”
How to Withdraw Money from Robinhood on Your Computer
To withdraw money from Robinhood online, follow these steps:
- Click “Account” (top-right corner)
- Click “Transfers”
- Select “Transfer to your bank” (or “Transfer to debit card”)
- Select your bank account (or debit card)
- Enter the amount you’d like to withdraw
- Confirm the amount and details
- Click “Transfer”
Need a New Broker?
If you’re a fan of Robinhood’s easy-to-use interface but have had a bad experience with Robinhood or need a broker that was made for more serious investors, check out Public.
You can invest in stocks, ETFs, crypto, alternative assets, and treasuries, all in one simple app.
Get started on Public
Common Questions: Withdrawing Money from Robinhood
How to Cancel a Robinhood Withdrawal
You can also cancel a withdrawal but you have to do so before it’s processed:
Go to “Account” → “Menu” → “History” → Select the pending withdrawal→ “Cancel Transfer”
Depending on when you initiate the withdrawal, you will have between 1-24 hours to cancel the transaction.
How Long Do Robinhood Transfers Take?
Robinhood transfers by bank account transfer usually take between 2-5 business days. This applies to both transfers into and withdrawals out of your Robinhood account.
That said, most Robinhood accounts have Instant Deposit which allows users instant access to $1,000 when depositing $1,000 or more. This does not apply to withdrawals.
After depositing funds into your Robinhood account, you will typically need to wait 2 days for the funds to “settle” before they’re ready to be invested (or withdrawn). This is what leads to “Withdrawable Cash” being less than the total cash in your account.
Robinhood Withdrawable Cash = Settled Funds – Unsettled Funds
If you need to access your funds quickly, Robinhood allows debit card withdrawals that typically take between 30-60 minutes. For the speed and convenience, however, Robinhood charges a 1.5% fee on these transfers.
If you earned referral stock upon signing up or referring a new user, you will need to wait 30 days until these funds will be available for withdrawal.
Remember, Robinhood withdrawal limits are $5,000 for debit cards and $50,000 for bank transfers each day.
Are There Fees to Withdraw Money from Robinhood?
If you withdraw money via bank transfer, there is no fee. However, this process typically takes between 2-5 business days to complete.
If you need immediate access to the funds or would like to withdraw to your debit card, there is a 1.5% fee.
Are There Fees to Transfer Money from Robinhood to Another Brokerage?
Yes, Robinhood charges a fee to transfer funds into another brokerage.
The securities in your Robinhood account can be transferred to other brokerages using the Automated Customer Account Transfer Service (ACATS). This is done at a flat cost of $100, whether it is a full or partial transfer.
If you request a full transfer, Robinhood will automatically sell any crypto holdings and send the cash proceeds to the outside brokerage in a residual transfer.
To avoid fees, you can sell all of your positions, wait for the funds to settle, transfer the cash to your bank account, then deposit from your bank account into your new brokerage account.
Final Word: How to Withdraw Money from Robinhood
Hopefully I’ve answered how to cash out on Robinhood.
Robinhood is a great place to begin your investing journey, but most investors quickly grow out of it and need a more powerful brokerage. Head over to pros and cons of Robinhood to determine if it’s the right platform for you.
If you find yourself in this position (hence the need to learn how to withdraw money from Robinhood), consider eToro or these 7 other Robinhood alternatives.
eToro is fast, reliable, secure, and powerful. It’s also one of the leaders in social investing, a combination of social media and investing that enables nearly 30 million users all over the world to communicate with and trade alongside each other.
Plus, as of December 19, 2023, eToro is offering a $10 bonus* for U.S. residents who open and fund a new account.
$10 bonus for a deposit of $100 or more.Only available to U.S. residents. Additional terms and conditions apply.
eToro securities trading is offered by eToro USA Securities, Inc. (“the BD”), member of FINRA and SIPC. Cryptocurrency is offered by eToro USA LLC (“the MSB”) (NMLS: 1769299) and is not FDIC or SIPC insured. Investing involves risk, and content is provided for educational purposes only, does not imply a recommendation, and is not a guarantee of future performance. https://www.wallstreetzen.com is not an affiliate and may be compensated if you access certain products or services offered by the MSB and/or the BD.
Hit the link above to grab your bonus and start investing in stocks, cryptocurrencies, and ETFs on eToro.
FAQs:
How long does it take to withdraw money from Robinhood?
It takes 2-5 business days to withdraw money from Robinhood via bank account transfer.
Bank account transfers are slow but free. Robinhood also offers the option to transfer via debit card which takes between 30 and 60 minutes but will cost a 1.5% fee.
How long does it take to get money from Robinhood?
It takes 30-60 minutes to get money from Robinhood via debit card transfer, though you’ll pay a 1.5% fee for the speed.
To avoid the fee and transfer for free, use a bank transfer. Transfers via bank account take between 2-5 business days.
When can you withdraw money from Robinhood?
You can withdraw money from Robinhood at any time, provided the funds are settled.
Robinhood Withdrawable Cash refers to the funds that are settled and available for transfer and withdrawal. Unsettled funds are any money you’ve transacted with in the last 2 business days.
Why can’t I withdraw money from Robinhood?
You probably can’t withdraw money from Robinhood because your funds are unsettled.
You can only withdraw “settled funds”, money that hasn’t been transacted with inthe last 2 business days. This is known as Robinhood Withdrawable Cash.
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About the author
Danny O'Keefe
Contributor
Danny is a financial consultant and fintech copywriter who specializes in NFTs, cybersecurity, and digital ledger technology. He has a legal degree and a master's degree in computer science.
As a financial consultant and fintech copywriter with a legal degree and a master's degree in computer science, I bring a unique blend of expertise to the topics of NFTs, cybersecurity, and digital ledger technology. My qualifications underscore a deep understanding of the intersection between finance, technology, and legal aspects, positioning me as a credible source in the field.
Now, diving into the article by Danny O'Keefe on withdrawing money from Robinhood, let's break down the key concepts discussed:
-
Robinhood Overview:
- Robinhood gained prominence in 2018 with its user-friendly mobile application and commission-free trading.
- The article suggests that withdrawing money from Robinhood is intentionally designed to be more challenging as the platform earns when users keep money in their accounts.
-
Withdrawal Methods and Limits:
- There are two methods to withdraw cash from Robinhood: by debit card or by bank account.
- Debit card withdrawals offer speed (30 minutes) but come with a fee of 1.5%, with a daily limit of $5,000.
- Bank account transfers are free but take up to 5 business days, with a daily limit of $50,000.
-
How to Withdraw from Robinhood:
- The article provides step-by-step instructions for withdrawing money from Robinhood using both the mobile app and the desktop platform.
- It outlines the process, including selecting "Account," choosing "Transfers," and specifying the withdrawal method and amount.
-
Withdrawal Cancellation:
- Users can cancel a withdrawal by navigating to "Account" → "Menu" → "History" → selecting the pending withdrawal → "Cancel Transfer." The timeframe for cancellation is 1-24 hours, depending on when the withdrawal is initiated.
-
Transfer Times:
- Bank account transfers typically take 2-5 business days, while debit card withdrawals offer speed but come with a 1.5% fee.
-
Withdrawable Cash and Settlement:
- Robinhood Withdrawable Cash is defined as settled funds minus unsettled funds.
- Settled funds are available for withdrawal or investment, and the article explains that after depositing funds, users may need to wait 2 days for them to settle.
-
Withdrawal Limits and Fees:
- Daily withdrawal limits are $5,000 for debit cards and $50,000 for bank transfers.
- There is no fee for bank transfers, but a 1.5% fee applies to debit card withdrawals for speed and convenience.
-
Transferring Money to Another Brokerage:
- Robinhood charges a flat fee of $100 for transferring securities to another brokerage using the Automated Customer Account Transfer Service (ACATS).
- The article provides insights into avoiding fees by selling positions, waiting for funds to settle, and then transferring cash to a bank account before depositing it into a new brokerage.
-
Recommendations and Alternatives:
- The article suggests that investors may outgrow Robinhood and recommends alternatives for more serious investors, such as eToro.
-
FAQs:
- The FAQs section addresses common queries, including withdrawal times, fees, reasons for being unable to withdraw, and recommendations for investing.
In summary, this article by Danny O'Keefe serves as a comprehensive guide on how to withdraw money from Robinhood, covering various aspects, including methods, limits, fees, and alternatives for investors looking to explore other platforms.