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.
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.
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:
Menu > Transfer > Transfer to your bank
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:
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.
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.
There are several reasons in which your funds get locked and you would not be able to withdraw them from the Robinhood account.
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.
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.
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.
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.
“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.
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!
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.