Recently Sold Stock on Robinhood, but I Am Unable to Withdraw Money—What Should

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If you are new to the trading industry, Robinhood can be a good option for you. Robinhood is well known for its easy-to-use interface and commission free trading features. You can use get access to many trade stocks, ETFs, even the cryptocurrencies. However, on thing that may frustrate you is the how to short sell on Robinhood. Also, another problem could withdrawing the money after selling stocks. When you sell a stock on Robinhood, the money from the sale does not become immediately available for withdrawal. This delay is due to the settlement process, which is standard across all brokerage accounts. So, let’s begin and learn more about how to take money out of Robinhood.

What Is the Settlement Period on Robinhood?
The Robinhood settlement period is the time it takes for the money from your stock sale to be officially transfer and available for the withdrawal. Generally, it takes two business days after the trade date for the sale to finalize and for the funds to be settled. For instance, if you sell a stock on Wednesday, the funds from that sale will typically settle by Friday. Only once the settlement period is over only than you can withdraw money from your Robinhood account.

Why Can’t I Withdraw Money from Robinhood After Selling Stock?
Now you know what is the settlement period on Robinhood, you must have understood the reasons why you cannot withdraw money from the Robinhood after selling. If the funds are still in the settlement period, you will not be able to withdraw it. Until the settlement period is complete, the proceeds from your sale are not considered withdrawable cash.

How to Withdraw from Robinhood?
When you see that the settlement period is over, you can then proceed to move funds from your Robinhood account. Here is how to withdraw from Robinhood:
• First, open the Robinhood app on your mobile device or logging into your account on the web.
• Tap on the account icon, usually located at the bottom right corner of the screen.
• In the account menu, select the “Transfers” option.
• Here chooses the option to Transfer to Your Bank
• Specify the amount you wish to withdraw. You can withdraw any amount up to the total available balance.
• At last review the details and confirm the transfer.

What are the Other Reasons You Might Not Be Able to Withdraw Money on Robinhood?
Apart from the settlement period being the main factor due to which you users cannot withdraw money on Robinhood. There are several other reasons behind this issue which are mentioned below:
• Robinhood Withdrawal Limits: There are certain limits which are put in place on Robinhood withdrawals. Your bank may have restrictions on how much money you can transfer in a single transaction.
• Unsettled Funds from Options Trading: If you are engaged in selling options on Robinhood, the settlement process might be different compared to regular stock trades.
• Account Restrictions or Holds: Sometimes Robinhood may impose several restrictions on your account this may also cause issues in withdrawing money. When you engage in any kind of suspicious activity such as making large transactions or other compliance related issues then Robinhood may put temporary ban on your account.
• Pending Bank Transfers: If you have recently initiated a bank transfer (deposit) into your Robinhood account, these funds might not be immediately available for withdrawal.

FAQ
How to get brokerage cash out of Robinhood?
If you want to get brokerage cash out of Robinhood, you need to sell your stocks or options. Also wait for the Robinhood settlement and then transfer money to your linked bank account.

How to transfer money from Robinhood to bank?
If you want to transfer money from Robinhood to your bank, go to the “Transfers” section of the app, select “Transfer to Your Bank,” enter the amount you want to withdraw, and confirm the transaction.

How to sell stock on Robinhood and cash out?
To sell stock on Robinhood, go to your portfolio, select the stock you want to sell, complete the sale, and wait for the settlement period to pass. Afterward, withdraw the funds to your bank account.

How to transfer stocks from Robinhood to Fidelity?
The Automated Customer Account Transfer Service (ACATS) is the option for transferring stocks from Robinhood to Fidelity. You need to share your Robinhood account information, and Fidelity will handle the transfer process.

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