First and foremost, Robinhood is an American financial company that is based in Menlo Park, California, US. It was one of the first financial companies to offer commission-free trade of cryptocurrencies, stocks, and exchange-traded funds through a mobile app. As a result, this online brokerage platform has become a go-to option for many investors. Since its inception in March 2015, this platform has had many investors doing business on it. The good news is that it is FINRA-regulated and registered with the US Securities and Exchange Commission. Once you trade on this platform, you will be at liberty to withdraw your money to a bank account. However, most investors have been wondering how long it takes to withdraw money from Robinhood? In this article, we shall take an in-depth look at this duration as well as other related facets.
How Does Robinhood Work?
Simply put, this online brokerage platform works just like any other investment platform. However, investors here do not need to pay any fees. When using this platform, you will be free to purchase and sell stocks the way you please. Since Robinson operates online, you need to create an online account with either a computer, tablet, or smartphone.
During the signing-up process, you will only need to submit your basic information, and you will be good to go. Unlike other online investment platforms, this one does not require you to deposit any money when opening an account.
After creating an account, your application has to be reviewed. In case everything is okay, you will be up and running within minutes. For you to trade on this platform, you have to transfer money to your account and then start investing.
Once you open an online account, you can opt to either access your account on the web or use the Robinhood mobile app. Both options usually have a great user interface. As a result, you will not experience hiccups whenever you want to access and use your account. However, most people prefer to use the Robinhood mobile app as this one can easily be installed on a mobile device.
Robinhood comes with many features, including instant deposits. Once you fund your account, you will be able to have an instant access of up to $1000. Here, you will not have to wait for the money to be transferred to your account. In fact, as soon as your account clears, you will be free to start investing. Once you open an account with this platform, ensure that you maintain a balance of between $500 and $5000.
Generally, this platform is beginner-friendly and offers a plethora of benefits to different investors. Early this year, Robinhood had 31 million users. With the insurmountable benefits offered by this platform, this number is bound to rise in the coming years.
How Do You Withdraw Money From Robinhood?
After making some profits on this platform, time is ripe for you to withdraw money from your Robinhood account to your bank account. Here, you need to transfer money from the Robinhood account to your bank account. However, you have to ensure that your bank of choice is linked to your Robinhood account for you to have a seamless transaction.
When it comes to making withdrawals from a Robinhood account to a bank account, there are two methods that can help you get started. Here, you can either consider the following alternatives:
- Use the Robinhood mobile app
- Do it online.
Withdraw money from the Robinhood account using the Robinhood mobile app
Whether you are using an Android or iOS device, be sure that you can readily use the Robinhood app to withdraw money from your Robinhood account to your bank account. Here are the steps that you should follow:
- Launch the app on your mobile device
- Once you launch the app, you will see a number of options, including the ‘Account’ icon. You will see this icon at the bottom-right corner of your screen. Tap this icon and move to the next step.
- Once you tap the ‘Account’ icon, tap the ‘Transfers’ button that you will see on your screen.
- Thereafter, choose the ‘Transfer to your Bank’ option.
- By choosing the option mentioned above, you will see a number of bank accounts on your screen. Choose your preferred one and then move to the next step.
- Key in the amount you want to withdraw from your Robinhood account
- Review the amount and then click ‘confirm’
Withdraw money from Robinhood online
Besides using the Robinhood mobile app, you can now withdraw money from your Robinhood account to your bank account online. If you opt to use this method, you will need to have a laptop or a computer and a good internet connection. After that follow these steps:
- Visit the official Robinhood’s website
- Log in to your account by entering your valid username and password
- Check and see if you will see the ‘Account’ option. You will see this option at the top-right corner of your screen. Click it.
- Thereafter, click the ‘Banking’ option
- You will see a panel where you need to enter the amount of money you want to withdraw from the Robinhood account to your bank account.
- Review the amount and then click the ‘confirm’ button.
How Long Does It Take To Withdraw Money From Your Robinhood Account To Your Bank Account ?
If you want to withdraw money from your Robinhood account to your bank account, a number of rules normally apply. First, if you have a pending deposit on this platform, you will not be able to withdraw or even spend the money.
This is because a deposit can take up to 5 trading days for it to complete. Therefore, it will remain in flight for those days. However, once it is marked as ‘complete.’ be sure that you will be able to withdraw and use it.
In case you have made a sale on this platform, the funds have to settle first before you can withdraw them. It is imperative to note that the settlement period can take about two trading days. Once these days are over, you will be at liberty to make your withdrawals. As far as the withdrawal limits are concerned, it is important to note that you can only make up to 5 withdrawals in a day as long as they are less than $50000.
Individuals with Robinhood instant user or Robinhood Gold accounts can now make instant withdrawals. If you have sold free stocks on this platform, you must allow the cash to remain in your account for about 30 days before you can withdraw them to your bank account.
Is It Possible To Withdraw To A Different Bank Account ?
Besides withdrawing to your own bank account, you can still withdraw money from your Robinhood account to another bank account and still access your funds. Most people normally opt for this method due to bank account closure or when they are unable to access their bank account.
If you want to withdraw funds to a different bank account, you need to contact Robinhood’s customer care support team so that they can help you initiate the fund transfer. However, there are a number of details that you need to share with the customer support team. Since money laundering and fraud have become rampant nowadays, you have to be asked a number of details by the support team. These include:
- A brief description of why you want to withdraw money to a different account other than the one you originally deposited money from.
- A photo of your government-issued ID. Here you should send photos of the front and back side of your ID
- Bank statements showing that you are an account holder of the other bank account. If you choose to send photos or PDFS, ensure that they are easy to read.
- The amount of money you want to transfer from Robinson account and the specific bank you want to transfer the money to.
Is It Easy To Cancel A Robinhood Transaction ?
Yes. It is now easy to cancel a Robinhood transaction. However, this depends on the timelines in which you initiated it. For instance, if you want to cancel a withdrawal made on this platform, it has to be within the cutoff time. After the cutoff time has elapsed, you will not be able to cancel the transfer anymore. Instead, you may have to wait for it to complete. To put this into perspective, here are the finer details about the transfers you can cancel:
- If you initiate a transfer between 2.00 AM and 3.00 ET, you have up to 3.00 PM ET to cancel it.
- If you initiate a transfer after 7.00 PM ET, you have up to 2.00 AM ET (the following trading day) to cancel this transaction.
- In case you initiate a transfer between 3.00 PM and 7.00 PM ET, you can only cancel it until 7.00 PM ET on the same day.
- Transfers that have been initiated over the weekend can only be canceled up until 2.00 AM EST on Monday.
To cancel a transaction, here are the steps that you should follow:
- Launch the app on your mobile device
- If you are using an Android device, tap the ‘Menu’ icon. However, if you are using an iOS device, tap the ‘Person’ icon.
- After that, tap on the ‘History’ option
- Once you are done, tap on the ‘Pending transfer’ option
- Tap the ‘Cancel transfer’ option
How Do I Zero Out My Balance On Robinhood?
First and foremost, Robinhood will not close your account unless your balance is $0.If you want to close or deactivate your account, you should first close all your trades and then withdraw any balance left. After that, you can visit the ‘Account’ section on your Robinhood mobile app or site and then tap ‘Account information’. Look for the ‘Deactivate Account’ option and you will be good to go.
The process of transferring money from your Robinhood account to your bank account is generally easy and straightforward. However, you can’t withdraw money to your bank account immediately after transferring it to your Robinhood account. This is because deposits take about 5 days to complete. Also, if you have sold ETFs, stocks, or options on this platform, you have to wait for at least 3 business days for you to withdrawal your money. Consider the ideas we have mentioned above, and you will have an easy time transferring money from your Robinhood account to your bank account.