How To Withdraw Money From Robin Hood

Robinhood is an American financial company with headquarters in Menlo Park, California, US. The company is the first to offer commission-free trades of stocks, cryptocurrencies, and exchange-traded funds via a mobile app. The platform was officially launched in March 2015. It is FINRA-regulated as a broker-dealer and registered with the US Securities and Exchange Commission. Once you do all the trading, you can then withdraw your money to a bank account. But how long does it take to withdraw money from Robinhood?

Advertisements For your information, Robinhood is a member of the Securities Investor Protection Corporation. Robinhood's revenue is mainly from three primary sources. They include interest from customers' cash balances, sales of order information done to high-frequency traders, and margin lending. As of early 2021, Robinhood had 31 million users on its platform, which must have increased by now. Once you open an account with the platform, you should keep a balance of between $500 to $5,000.

Since Robinhood operates online, you have to open an account online with a smartphone or a computer. Once you sign up, you get your first stock for free; however, certain limitations and fees apply. Giving out free stock is a way of attracting more customers to their platform. Other companies compete with Robinhood across the USA, and that is why the company must have something unique to lure more people on their side.

How to open a Robinhood account

To open your Robinhood account, you have to visit Robinhood sign-up page online to get started. You will begin by entering your first and last names as they appear in your government identification document. You will then enter a valid email address and choose an appropriate password.

The email address will be useful to receive essential updates. You must also be living in the United States to successfully apply for the account. The platform does not accept applications from outside the United States.

Once you click continue, you will get more details on what to do next. After completing your application, you will receive an email address confirming your application or requesting more information to complete your account registration.

Robinhood may request you to provide more details on which they will give you guidelines on how you will upload them on their websites. After that, Robinhood reviews your account and then communicates with you within seven days. You will even have a chance to queue one deposit that will reflect once your account is approved.

You can add money to your Robinhood account from your bank account. There are also other ways you can use to add money to your account. You will learn how you can add money to Robinhood without a bank account shortly.

Why should you join Robinhood?

how long does it take to withdraw money from robinhood

There are various reasons why Robinhood stands out compared to similar trading platforms. First of all, Robinhood offers commission-free trades in funds, stocks, and other options with Robinhood Financial. You can therefore take that advantage and get an account with the institution.

Secondly, Robinhood is a member of SIPC. That means securities in your account have protection up to $500,000. That means that your funds are secure so that in case Robinhood collapses, you will not lose your funds. You can find more details about the protection at sipc.

.Moreover, Robinhood allows you to stay informed when you set up customized news plus notifications. That way, you can be on top of your assets the way you like. So now, controlling information and news updates is up to you.

How to add money to your Robinhood account

For you to trade at the platform, you have to avail money in your account. You can add money to your trading platforms in the following ways.

i) Use PayPal

PayPal is an online financial company that allows you to move money from one person to another. You can use PayPal to add money to your Robinhood account if you have the PayPal Cash Card. Robinhood accepts the PayPal debit card but not the PayPal itself.

ii) Use Netspend

Like the PayPal Cash Card, Robinhood works with the Netspend prepaid debit cards, and you can easily add funds to trade. There are other prepaid cards that Robinhood accepts too, and you can confirm with the customer care agent to see if you're prepaid or debit card can work with Robinhood.

iii) Skrill

Skrill is an online money transfer company just like PayPal. When you want to top up your Robinhood account, you can choose Skrill as the source of funds. You will then be guided to log into your Skrill account and add funds to your Robinhood account.

iv) Use a bank account

We have seen that you can add money to your Robinhood account without a bank account. However, the majority of Robinhood customers use bank accounts to top up their Robinhood accounts.

A bank account is helpful since it will also help you withdraw your earning for use in various ways. You can follow the procedure below when using your bank account to add money to your Robinhood account.

Hit the person icon, the account tab when using an iPhone or Menu located in the top corner when using an android phone.
Tap on Transfers
Select transfer to Robinhood
Choose the account to transfer from
Enter and review the deposit, then hit Submit

Bank transfers can take approximately five business days to complete, and you have to initiate the transaction with that in mind to time different types of markets. If you have been a reputable user of Robinhood for some time, the duration may become shorter.

v) Use direct deposit

Robinhood accepts direct deposits. If a company or government parastatal employs you, you can easily provide your Robinhood account details to be receiving money from the employer directly into your Robinhood account. You can also set up direct deposits to receive government deposits such as unemployment benefits and tax returns.

How do you withdraw money from Robinhood?

Once you have made some profits in your trading, you can then withdraw money in your bank account that you use for depositing money to Robinhood. You need to understand how to transfer money from Robinhood to a bank account to successfully carry out the whole process. One has to link their bank account to their Robinhood account to get started. The following is the process of withdrawing money from your bank account. Have a look.

Hit on the Account icon at the bottom.
Tap Transfers.
Hit Transfer to Your Bank.
Select the bank account you'd like to transfer to.
Enter the amount to transfer to your bank.
Hit Submit.

It is possible to withdraw money up to $50,000 per business day. Robinhood does not charge withdrawal fees whatsoever.

You can also withdraw money to a different bank account other than the one you deposited money with. In such a scenario, you have to contact the support team.

That can happen if you cannot use the original bank since you have closed it or due to other unavoidable circumstances. You need to provide the following details to the support team.

A description of why you are moving funds to a new bank account and not the one you deposited funds from
A front and back photo of your Identification card
Bank statements to prove that you own both accounts
The bank account you want to move the funds to
The amount to transfer

How long does it take to withdraw money from Robinhood?

If you have a pending deposit on Robinhood, you cannot withdraw or spend on the funds. However, if you make a sale at Robinhood, the funds have to settle first so that you can move them to your bank account.

The funds take an average of two trading days to settle, after which you can transfer. That means you will be able to initiate the transfer on the third day of your transaction. When transferring money out of Robinhood to a bank account, you can make up to five withdrawals per day as long as they total less than $50,000.

If you have a Robinhood Gold account or a Robinhood Instant user, you can make instant withdrawals. For the funds you get from selling free stocks, you must keep the cash in your account for 30 days to withdraw to your bank account.

Can you cancel a Robinhood transaction?

You can easily cancel a withdrawal made within the cutoff time. The following are the transfers you can cancel.

A transfer initiated between 2 a.m. – 3 p.m. EST can be canceled up to 3 p.m. EST.
A transfer initiated between 3 p.m. – 7 p.m. EST can be canceled up to 7 p.m. EST.
A transfer initiated after 7 p.m. EST can be canceled up to 2 a.m. EST the next trading day.

For a transfer initiated over the weekend, you can cancel it at 2:00 a.m. EST on Monday. The following is the procedure to cancel a transaction.

Navigate to your account icon.
Tap the Menu icon for Android users or the person icon for iPhone users.
Hit on History.
Tap on the pending transfer.
Tap "Cancel Transfer."

Bottom line

Robinhood is an American financial company with headquarters in Menlo Park, California. The company offers commission-free trades of stocks, cryptocurrencies, and exchange-traded funds.

You can open a Robinhood account online as long as you live in the US and have the necessary documents. To top up your Robinhood account, you can use your bank account, PayPal, Skrill, or Netspend. Once you make sales in Robinhood, you can withdraw money to your bank account.