Robinhood is an online brokerage platform where you can buy and sell stocks, cryptocurrencies, and other securities without paying a trading commission. Robinhood is a popular platform for new investors due to its free stock trading option.
Customers can use Robinhood to buy and sell stocks and cryptocurrencies without paying a trading commission. It is now a preferred location for investors because it offers free stock trading in addition to cryptocurrency.
So, how do you withdraw money from Robinhood? You may have completed profitable trades and wish to withdraw funds to use elsewhere other than the platform. The process is simple, just like starting a Robinhood investment.
In this article, we will discuss how long it takes to receive and withdraw money from Robinhood.
Table of contents
About Robinhood
Robinhood is a trading platform to trade stocks, exchange-traded funds (ETF), virtual currencies, and options; there are no commission fees or additional costs.
Robinhood is among the few brokers that have offered free trades for a long time. However, towards the end of 2019, other major online brokers decided to eliminate trade commissions and fees.
Despite this slight setback, Robinhood remains one of the best options available. Customers interested in trading cryptocurrencies can use Robinhood as a broker.
Robinhood is accessible via the web and mobile because it has platforms for both devices. Some customers may be dissatisfied with the two platforms’ lack of sophisticated design and the absence of some account options and tradable securities. Robinhood stands out as a cryptocurrency exchange platform offering simplified and free trading services.
Robinhood has numerous applications, some of which are Individuals’ tax-exempt accounts that hold digital assets for margin.
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How Long Does It Take To Withdraw Money From Robinhood?
How long it takes to withdraw money from your Robinhood account is influenced more by the type of funds than by the time it takes for the transfer to complete.
In a nutshell, it takes these long days to withdraw or receive money on Robinhood
- Withdrawal of Cash from Deposits – up to 5 working days
- About Instant Transfers – 10 minutes for paid. 4-5 working days for free option
- Transferring Money To A Different Bank Account – 60 days
- Settling Funds – 3 days after the trade
- Withdrawing Referral Stock – 30 days
#1 Withdrawal of Cash from Deposits
A pending deposit on Robinhood may take up to five trading days to complete. You will be unable to use or withdraw these funds during this time.
It is critical to keep track of your finances and understand how much money you have. With Instant Deposits, you can get up to $1,000 without waiting and even more if you have Robinhood Gold.
On the other hand, transferring funds from your bank account can take up to five business days.
#2 Withdrawing Referral Stock
Robinhood offers stock incentives for referring users to the platform, but you must wait 30 days before accessing the sale proceeds. If you sell the stock before the 30 days are up, the money must remain in your account until the 31st day, when all restrictions are lifted.
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#3 Settling Funds
It takes time for funds from a sale made through your Robinhood account to settle before they can be transferred to your bank account. Typically, this stage of the process lasts two trading days.
As a result, you can withdraw funds from a Robinhood transaction on the third day after the trade.
You can withdraw up to five times per day from Robinhood if the total is $50,000 or less.
#4 Transferring Money To A Different Bank Account
You may be required to verify additional information for up to 60 days after a deposit if you wish to withdraw funds to an account other than the one from which you deposited.
If your primary bank account has been closed, or you are unable to access it, our customer service representatives can help you initiate a withdrawal to another bank account.
Be aware that you may be asked to share the following information:
- A brief explanation of why you are unable or unwilling to withdraw funds from the bank account into which they were deposited.
- A photo of the front and back of your government-issued ID.
- Bank statements that show you own the two linked bank accounts. Images and PDFs must be clear and easy to read.
- The amount and bank account to which you wish to transfer funds.
How long does it take to receive money from Robinhood from a different account?
It can take up to 60 days.
You should read this: How To Transfer Money from Robinhood to Your Bank Account
Margin Investing
If you use the margin investing feature, you must keep your brokerage account at least $2,000 to meet the minimum balance requirements to borrow money (net of any crypto positions).
To withdraw less than $2,000 from your account, you must disable Margin Investing in Settings Investing.
Is It Possible To Cancel A Withdrawal?
You may cancel a withdrawal made during a specific window unless not completed by the specified cutoff time.
- You can cancel a transfer that started between 3:00 and 7:00 p.m. EST until 7:00 p.m. EST.
- You can cancel a transfer that started after 7:00 p.m. EST until 3:00 p.m. EST the following trading day.
You have until 3:00 p.m. EST on Monday to cancel a transfer you started over the weekend. The withdrawal can be canceled using a mobile phone app, which is fairly simple.
To Cancel
- Select the Account option.
- If you’re using an Android device, tap the Menu icon.
- Choose History.
- Here you can view the pending transfer. Feel it.
- Finally, click “Cancel Transfer” to exit.
The withdrawal will be canceled if you begin the cancellation process within the specified time frame. It is best to consider each one carefully to avoid making a quick decision.
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About Instant Transfers
By selecting the Instant transfers option, you can transfer money more quickly.
An instant transfer usually takes 10 minutes, whereas the free option takes 4-5 business days (sometimes longer, depending on your bank).
If your bank supports real-time payments (RTP) and you’ve linked your bank account with Plaid, you’ll see the Instant transfers option when withdrawing money from your Robinhood account.
Not all banks have access to the RTP. You can check the RTP Network Participating Financial Institutions to see if yours is one of them.
The fee is 1.5% of the withdrawal amount, which is deducted from the requested amount when transferred, just like a debit card.
See How Robinhood Debit Card Works.
You can make up to $50,000 in standard transfers (ACH) and $5,000 in instant daily transfers to a linked bank account from your Robinhood account.
If we do not hear back from your bank within 24 hours of your request, any incomplete instant transfer withdrawal will expire without incurring fees. However, you must repeat the withdrawal procedures.
FAQS On How Long Does It Take To Receive Money From Robinhood
You may cancel a withdrawal made during a specific window if it is not completed by the specified cutoff time.
You can cancel a transfer that started between 3:00 and 7:00 p.m. EST until 7:00 p.m. EST.
You can cancel a transfer that started after 7:00 p.m. EST until 3:00 p.m. EST the following trading day.
How long it takes to withdraw money from your Robinhood account is influenced more by the type of funds than by the time it takes for the transfer to complete.
Transferring Money To A Different Bank Account – 60 days
About Instant Transfers – 10 minutes for paid. 4-5 working days for free option
Withdrawal of Cash from Deposits – up to 5 working days
Settling Funds – 3 days after the trade
Withdrawing Referral Stock – 30 days
In Conclusion
How long does it take to receive money from Robinhood? It depends on the withdrawal method you use.
Robinhood provides convenient cancellation options and provisions for both, whether you want to transfer the funds to your primary account or a different bank account.
Withdrawing money from Robinhood is quick and simple once you understand the procedures required to authorize a withdrawal. The recommendations above will ensure a simple withdrawal process regardless of your device.
References
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