How to Cash Out on Robinhood: A Complete Guide

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Investing in the stock market can be both exciting and lucrative, but at some point, investors will want to cash out their earnings. If you’re using Robinhood, understanding how to cash out from your investments is crucial. In this guide, we will cover everything you need to know about how to cash out on Robinhood, ensuring a smooth transition from holding stocks to withdrawing funds.
What Does It Mean to Cash Out on Robinhood?
Cashing out refers to selling your stocks, cryptocurrencies, or other securities and transferring the resulting money to your bank account. Whether you’ve made a significant profit or just need access to funds, Robinhood makes the process fairly simple. However, knowing the steps and the associated rules helps you make the most out of the process.
Step-by-Step Guide to Cashing Out on Robinhood

Log in to Your Robinhood Account
The first step is to log in to your Robinhood account through the app or website. Ensure you have an internet connection and access to the device you typically use to manage your Robinhood account.

Navigate to Your Portfolio
Once logged in, locate the „Portfolio” tab. This is where you’ll find a list of the stocks, ETFs, options, and cryptocurrencies you currently own. Take a moment to review your portfolio and decide which assets you want to sell to cash out.

Choose the Stock or Asset to Sell
Now, select the specific stock or asset that you want to cash out. You can do this by tapping on the asset’s name in your portfolio. Robinhood allows you to sell entire positions or partial shares, depending on your needs.

Place a Sell Order
Once you’ve selected the stock, click the “Sell” button. Here, you will be given the option to sell a specific number of shares or the entire holding. Enter the amount and choose between a market or limit order. For a market order, your stock will sell at the current price, while a limit order allows you to set a specific price at which to sell.
Market Orders: Execute immediately at the current market price.
Limit Orders: Execute only if the stock reaches the price you’ve specified.
Confirm the Sale
After placing your sell order, Robinhood will ask you to confirm the transaction. Double-check the details, including the number of shares and the type of order (market or limit), and then confirm. Once your order is executed, the proceeds from the sale will appear in your Robinhood account as “Buying Power”.

Transfer the Cash to Your Bank Account
To cash out completely, you will now need to transfer the money from your Robinhood account to your bank account. Navigate to the „Transfer” option and select „Transfer to Your Bank.” Follow the on-screen instructions to choose the amount of money you wish to withdraw.

Wait for the Transfer to Complete
Robinhood typically processes transfers within 2 to 3 business days. The funds will arrive in your bank account shortly after. For instant transfers, there is a small fee, but standard transfers are free of charge.
Things to Consider When Cashing Out on Robinhood
Settlement Periods
When you sell stocks or other securities on Robinhood, the funds are not immediately available for withdrawal. This is because stock transactions follow a T+2 settlement period, meaning it takes two business days for the sale to be fully processed. After this period, the money will appear as „available to withdraw.”
Transfer Fees and Limits
While standard transfers from Robinhood to your bank account are free, you can opt for an instant transfer for a small fee (typically 1.5% of the total amount). Robinhood also has daily and monthly limits for instant transfers, so keep these in mind if you need access to large sums of money quickly.
Tax Implications
Selling stocks or securities on Robinhood may result in capital gains taxes. If you’ve held the stock for more than a year, you may qualify for long-term capital gains rates, which are generally lower than short-term rates. It’s important to consult a tax professional or use tax software to understand how your stock sales will affect your taxes.
How to Get Brokerage Cash Out of Robinhood?
If you’ve been awarded brokerage cash as part of promotions or dividends, this money is treated just like any other cash balance in your account. To withdraw brokerage cash:
Log in to your Robinhood account.
Navigate to the “Account” tab and select “Cash Management”.
Choose to transfer the funds to your linked bank account.
How to Sell Stock on Robinhood and Cash Out?
Selling stocks on Robinhood is one of the most straightforward ways to cash out. Here’s a quick guide on how to sell and withdraw your profits:
Go to your Portfolio.
Select the stock you wish to sell.
Choose how many shares to sell and what type of order to place.
Confirm the sale and wait for the transaction to process.
Once the funds are available, transfer them to your bank account.
Frequently Asked Questions (FAQs)

Q. How Long Does It Take to Cash Out on Robinhood?
It generally takes 2 to 3 business days for the funds to settle after selling stocks, and an additional 2 to 3 business days for the transfer to your bank account. If you choose an instant transfer, you can receive your money much faster but at a small fee.

Q. Is There a Fee for Cashing Out on Robinhood?
Standard transfers from Robinhood to your bank are free. However, for instant transfers, Robinhood charges a fee of approximately 1.5% of the transferred amount.

Q. Can I Cash Out My Cryptocurrency on Robinhood?

Yes, Robinhood allows you to sell your cryptocurrency holdings and cash out the proceeds. The process is similar to trading stocks: navigate to your cryptocurrency, place a sell order, and transfer the cash to your bank account.

Q. What Happens if I Sell Stocks and Don’t Withdraw?

If you sell stocks on Robinhood but don’t withdraw the funds, the money remains in your Buying Power. You can use this cash to purchase more stocks or transfer it to your bank whenever necessary.

Q. Can I Cash Out from Robinhood During Market Hours Only?
You can place sell orders during market hours (9:30 AM – 4:00 PM ET) or extended trading hours (pre-market and after-hours). However, your sell order will only execute during these hours, and you can transfer the cash at any time after the sale is complete.

Conclusion
Cashing out on Robinhood is a simple process that requires selling your stocks or other securities and transferring the funds to your bank account. By following the steps outlined above, you can easily navigate the cash-out process and ensure you receive your funds without unnecessary delays.

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