Why can’t I withdraw money from Robinhood? How to fix in 2024

Robinhood is a U.S.-based financial trading company that trades stocks, ETFs, and cryptocurrencies. Over time, it is bringing the investment world to everyone’s fingertips who has a smartphone and internet connectivity.

This application does not charge any commission for the trades, which is probably one of the reasons why it has gained so much popularity among cryptocurrency and ETF traders, within a blink of an eye. 

Once a person gets started with the system, they probably wonder about the withdrawal process. So here is a complete breakdown related to why you can’t withdraw money from Robinhood and all you need to know before withdrawing from Robinhood accounts. 

How to Withdraw Money from Robinhood?

Robinhood’s withdrawal process is not rocket science thing, it’s quite easy to do whether you are using an Android phone or desktop computer to withdraw your amount. 

 

Withdrawing Money via Smartphone

When you want to withdraw money with a smartphone then the process is quite easy, all you need is a Robinhood app within your smartphone and complete access to it. 

To proceed with the smartphone withdrawal: 

1. Open the Robinhood app and access your account via the available icon at the bottom-right corner of the screen. 
2. Go to the menu, then select “Transfer”, and then select “Transfer to your bank”. 

Menu > Transfer > Transfer to your bank

1. Find the bank account in the list and choose it. 
2. Enter the amount that you want to withdraw, remember that the one-day limit is $50,000. 
3. Verify that all of your entered details are accurate. 
4. Tap the Confirm button to proceed with your withdrawal.

 

Withdrawing Money via Desktop Computers

If you are familiar with desktop computers, the transaction process will be just as easy as on smartphone devices, hence a little bit different. 

To proceed with the computer withdrawal: 

1. Navigate to the Robinhood website and then log in to your account. 
2. Search the “Account” option in the top-right corner of the website.
3. Navigate to the transfer option.
4. Fill in the transaction details, and click on the “Review transfer” button.
5. Verify that all of your entered details are correct. 
6. Tap on the “Submit” button to proceed with your withdrawal.

The process seems quite easy but once an investor starts using the Robinhood platform, they can face an issue while withdrawing the money in their starting period, and here a common person’s mind pops up with a question: why cant I withdraw money from Robinhood? 

The person gets frightened because the process of withdrawing money is certainly an integral part of any financial trading company. However, I believe that it is also a process that must be safe and secure to ensure that no funds are getting lost due to errors or hackers.

 

Why Can't I Withdraw Money from Robinhood?

Robinhood’s client faces the issue while withdrawing the money because the company is taking high-security measures, and that’s the reason they have more than 22.5 Million users registered on their platform, within a very short period. So, whenever this thought comes into your mind, why can’t I withdraw money from Robinhood?

The answer is it’s because of your safety measures, and you don’t have to worry about it. What you have to do is to look out for a few basic rules and regulations that limit how, and when you can withdraw your funds from your Robinhood account.   

 

Rules to Withdraw Your Cash from a Robinhood Account

There are several reasons in why your funds get locked and you would not be able to withdraw them from the Robinhood account. 

 

Have Patience Up To 5 Days After Depositing Funds

Robinhood has an “Instant Deposit” policy. It means you can start trading as soon as you transfer the cash into your Robinhood account, from your savings account. But there is a catch! When you deposit the amount into your Robinhood account, you cannot withdraw it right away. To withdraw the amount, you must have waited for up to 5 business days.

 

Have Patience During Your Settlement Period

Whenever you sell a stock, cryptocurrencies, or ETF through the Robinhood platform, you must wait for the settlement period to withdraw the profit.  Within the platform, the settlement period is defined as 2 trading days after your trade date. On the exact 3rd day, your fund will directly appear in your buying power. Once it appears in your account you can withdraw it anytime you want.

Note: If you are a Robinhood Gold or Robinhood Instant user, then you don’t need to worry about this policy.  

 

Robinhood Gold Rule

If you are a Robinhood Gold user, then you will have to maintain a brokerage account value of at least $2,000 to meet the borrowing requirement. If you want to withdraw an amount below $2000, you will need to turn off your margins in Settings. As a Robinhood Gold user, you don’t need to wait for the settlement period to withdraw your funds. You can simply withdraw your funds right after you sell any stocks, EFTs, or cryptocurrencies. 

 

Final Notes

The world of investment is full of many complex and often contradictory rules. So instead of wasting your time with issues around withdrawing money from Robinhood, get benefits from the listed rules and be able to easily withdraw your money.