How to Transfer Brokerage Cash from Robinhood [Step by Step]

 

Robinhood is a popular brokerage platform that allows users to trade stocks, options, and cryptocurrencies with ease. While the platform is user-friendly, transfer brokerage cash from Robinhood to your bank account can sometimes be confusing. This comprehensive guide will walk you through the steps to successfully transfer your funds, address common issues, and provide tips for the fastest and most efficient way to access your money.

How to Transfer Brokerage Cash from Robinhood to a Bank Account

Transferring brokerage cash from your Robinhood account to your bank account is a straightforward process. Follow these steps to ensure a smooth transfer:

1. Open the Robinhood App: Launch the Robinhood app on your mobile device and log in to your account.
2. Navigate to the Account Tab: Tap on the account icon located at the bottom right corner of the screen.
3. Select Transfers: In the account menu, choose the "Transfers" option.
4. Choose Transfer to Your Bank: Select the option to transfer funds to your linked bank account.
5. Enter the Transfer Amount: Input the amount of money you wish to transfer from your brokerage account to your bank account.
6. Confirm the Transfer: Review the details and confirm the transfer. The funds will typically be available in your bank account within 1-3 business days.

How to Transfer Brokerage Cash from Robinhood

If you need to transfer brokerage cash within the Robinhood platform, such as moving funds from one Robinhood account to another, follow these steps:

1. Ensure Both Accounts Are Verified: Make sure that both the source and destination Robinhood accounts are verified and linked to your identity.
2. Initiate a Transfer Request: Contact Robinhood support through the app or website to request the internal transfer of funds.
3. Provide Necessary Information: Be prepared to provide details about both accounts and the amount you wish to transfer.
4. Await Confirmation: Robinhood support will process your request and confirm the transfer. This process may take a few business days.

Why Can't I Withdraw Money from Robinhood After Selling?

After selling stocks or other securities on Robinhood, you may notice that the funds are not immediately available for withdrawal. This delay is due to the "settlement period." Here's why:

• Settlement Period: The standard settlement period for stocks and ETFs is T+2, which means the transaction will be settled two business days after the trade date. During this time, the proceeds from your sale are not yet considered "available cash" for withdrawal.
• Withdrawal Restrictions: Ensure that there are no restrictions on your account, such as account holds or pending deposits, which may prevent withdrawals.

Fastest Way to Transfer Money from Robinhood to Bank

For the quickest way to transfer money from Robinhood to your bank account, consider the following tips:

1. Use Instant Transfers: Robinhood offers an instant transfer option for eligible accounts. This service allows you to transfer funds to your bank account instantly for a small fee.
2. Ensure Bank Account Verification: Make sure your bank account is fully verified in the Robinhood app to avoid delays.
3. Transfer Early in the Day: Initiate transfers early in the business day to maximize the chances of same-day processing.
4. Avoid Weekends and Holidays: Transfers initiated on weekends or holidays may be delayed due to non-business days.

Robinhood Withdrawable Cash

Withdrawable cash refers to the amount of money in your Robinhood account that is available for withdrawal to your bank account. This includes:

• Settled Funds: Proceeds from the sale of securities that have completed the settlement period.
• Cash Deposits: Funds that you have deposited into your Robinhood account, once they have cleared.

To check your withdrawable cash balance:

1. Open the Robinhood App.
2. Navigate to the Account Tab.
3. Select Transfers.
4. View Available Cash: The available cash for withdrawal will be displayed.

Transfer Brokerage Account to Robinhood

If you are looking to transfer your brokerage account from another brokerage to Robinhood, follow these steps:

1. Initiate a Transfer Request: Log in to your Robinhood account and navigate to the "Transfers" section.
2. Select Transfer Brokerage Account: Choose the option to transfer an external brokerage account to Robinhood.
3. Provide Account Details: Enter the details of your existing brokerage account, including the account number and the name of the brokerage.
4. Submit the Transfer Request: Follow the prompts to submit your transfer request. Robinhood will handle the rest, including contacting your existing brokerage to facilitate the transfer. This process can take 5-7 business days.

I Sold Stock on Robinhood, Where is My Money?

After selling stock on Robinhood, you may wonder where your money is and when it will be available for withdrawal. Here's what you need to know:

• Settlement Period: As mentioned earlier, stock transactions on Robinhood follow a T+2 settlement period. This means the funds from your sale will be available two business days after the trade date.
• Pending Status: During the settlement period, the proceeds from your sale will appear as "pending" in your account.
• Available Cash: Once the settlement period is complete, the funds will move from "pending" to "available cash" and can then be withdrawn.

Can You Transfer Stocks from One Robinhood Account to Another Robinhood Account?

Currently, Robinhood does not support the direct transfer of stocks between two Robinhood accounts. If you need to move stocks, you would need to:

1. Sell the Stocks: Sell the stocks in the original Robinhood account.
2. Transfer the Proceeds: Transfer the cash proceeds from the sale to your bank account.
3. Deposit the Funds: Deposit the funds into the second Robinhood account.
4. Repurchase the Stocks: Use the deposited funds to repurchase the stocks in the new account.

While this method involves additional steps and potential tax implications, it is currently the only way to transfer stocks between Robinhood accounts.

In conclusion, transferring brokerage cash from Robinhood to your bank account is a manageable process with the right knowledge. Understanding the settlement period, utilizing instant transfer options, and knowing the steps for internal and external transfers will ensure that you can access your funds efficiently and without unnecessary delays.