How To Transfer Money From Robinhood To Bank Account

Transferring money from Robinhood to bank account is a simple and straightforward process. That said, here are the steps you need.
Tebid Kelly
transfer money from robinhood to bank account

If you're a trader that love fee-free trading, you must have certainly come across Robinhood. When you've made enough profit on the platform and want to get your funds, knowing how to transfer money from Robinhood to bank account can come handy.

Robinhood is a commission-free crypto, stock, options, EFTs trading platform where investors (most especially beginners and intermediate investors) get to maximize their profits through fee-free commission trading services.

With Robinhood, investors can continue to invest in stocks, options, and ETFs. Only with Robinhood are all of these commission-free and without any minimum purchases.

There are many stock exchange and trading apps available, but Robinhood stands out as one the best (alongside with Fidelity, TD Ameritrade etc.) that provide these trading services at zero fees, which means that trading features that are commission-free with other mobile trading apps also happen to be features that are paid on other trading apps.

You will enjoy using this app as a trader because it secures your trades and keeps your money safe. You should always want to withdraw or transfer your money from Robinhood to your bank account once you have profited sufficiently from your trades.

That said, this article focuses on showing you how to transfer money from Robinhood to bank account.

PS: If you're just getting started with Robinhood, this beginners guide to Robinhood should help you understand the basics.

What is Robinhood and How Does it Work?

Robinhood Markets, Inc. is an American financial service company launched in March 2015 and headquartered in Menlo Park, Calif.—Known for pioneering fee-free trading in stocks, exchange-traded funds, and cryptocurrencies through a mobile application available on Android and iOS platform and that can be equally accessed through a web browser from PC.

Robinhood affords 100% commission-free stock, options, ETF and cryptocurrency trades, making it appealing to buyers that have a high trade frequency.

Still, nowadays many recognized brokers additionally provide free trades, so its great you evaluate what each broker has to offer before going in for one.

Robinhood makes it easy for new investors to get started. There are no commission costs or minimums to open an account.

However, younger investors stand to gain the most from tax-favored investment accounts like the Roth IRA, which are not offered by Robinhood, and a buy-and-hold strategy to maximize compound interest, which goes against Robinhood's incentives to trade.

What to Consider Before Opening an Account With Robinhood and Similar Trading Apps

The free trading app, Robinhood, has a number of rivals that provide similar services.

These days, you can download a variety of stock trading apps from various sources.

One of the best businesses you can run today is buying and selling stocks.

You should be aware of the risks associated with trading before opening an account with Robinhood or any other company.

Stock prices sometimes increase and occasionally decrease sharply, so you should be ready for unforeseen circumstances.

For example, Bitcoin was initially sold at a very low price, at around $ 0.0008 to $ 0.08 per coin in July 2010, and as of today, a Bitcoin is worth $20,631.90 and its price keeps changing as the value of the Market.

Read Also: Best Online Bank Account Providers Around The World.

How to Get Started With Robinhood

There are many requirements you must meet in order to open an account with Robinhood and take advantage of all of its fee-free features. The following criteria apply:

  • You must be 18 years of age or above
  • Must have a Social Security Number (SSN)
  • Must have a U.S. residential address (Active U.S. military personnel stationed abroad are exempted)
  • Be a U.S. citizen, have a valid U.S. visa, or a U.S. permanent resident.

You cannot open an account if you reside in North Korea, Cuba, Iran, Syria, or Crimea in Ukraine, which are countries that are subject to US sanctions.

Additionally, you won't be able to access your account to conduct any transactions if you are already registered and traveling to these locations.

Robinhood only uses its mobile apps, which are available for iOS and Android, to conduct business. Since a large number of traders use these mobile platforms, they are a prime target for Robinhood. With the mobile app, bank account deposits and withdrawals are even simple.

The best way to access your Robinhood account is through a web browser. The platforms for trading, deposits, and withdrawals to and from your bank account through your Robinhood account are listed below:

  • Android
  • iOS
  • Web

We will see how to transfer money from your Robinhood account to your bank account for each of these platforms.

How to Transfer/Withdraw Money from Robinhood to Bank on Android

To transfer your money from your Robinhood account to your bank account on Android, proceed as follows:

  1. Click the Account icon in the lower right corner
  2. Select "Transfers"
  3. Now choose "Transfer to Your Bank"
  4. Select the bank you will want to transfer your money to
  5. Enter the amount you want to transfer to your bank
  6. Finally, hit "Submit".

How to Transfer/Withdraw Money from Robinhood to Bank on iOS

The process is same as on Android. To transfer your money from your Robinhood account to your bank account on iOS, proceed as follows:

  1. Hit the Account icon in the lower right corner of your screen
  2. Now click on "Transfers"
  3. Then choose "Transfer to Your Bank"
  4. Select the bank you will want to transfer your money to
  5. Enter the amount you want to transfer to your bank
  6. Finally, click on "Submit".

How to Transfer/Withdraw Money from Robinhood to Bank on Web

To transfer your money from your Robinhood account to your bank account on the Web app, proceed as follows:

  1. Hover and click on Account tab in the top right corner of the screen
  2. Next click on "Transfers"
  3. Initiate a transfer from Robinhood to your bank account using the panel on the right

Important!

  • You can perform up to five withdrawals each business day into your account.
  • You can withdraw as much as $50,000 each business day from Robinhood.

How Long Does It Take To Transfer Money From Robinhood To Bank

A complete transfer of funds from Robinhood to bank account takes 3 to 5 business days to reflect in the bank account.

Withdrawing Money from Robinhood to a Different Bank Account

If you want to withdraw money to a bank account other than the one you deposited funds from within 60 days of depositing, you might need to provide more proof.

You can always contact Robinhood support for assistance to help you withdraw your money to another bank account if the original bank account is closed or you cannot access it. However, you will need to to provide the following information:

  • A brief description of the reasons why you cannot or do not want to make a withdrawal to the bank account from which you originally deposited the funds.
  • A photograph of the front and back side of your government-issued ID.
  • Bank statements certifying that you are the holder of the two linked bank accounts. Photos or PDFs should be clear and easy to read.
  • Amount and specific bank account you want to transfer the funds to.

Why Can't I Withdraw My Money From Robinhood?

You must wait for each sale's proceeds in your Robinhood account to "settle" for three days (the trade date plus an additional two days) before you can transfer them.

On the third day or later, you can withdraw the proceeds from your Robinhood account. Up to five withdrawals totaling $50,000 can be made by you each business day.

Why is my Withdrawable Cash 0 on Robinhood

Selling your free stock before the allotted 30 days prevents you from withdrawing those funds. That's the primary cause of your Withdrawable Cash on Robinhood is 0.

For instance, if you win a $50 share for your account, you won't be able to cash out the $10 you would have made from selling the share until 30 days have passed.

Final Thoughts on How to Transfer Money from Robinhood to Bank

For traders, Robinhood is a great application that provides commission-free stock exchange and cryptocurrency services like buying and selling of cryptocurrency coins.

As with other trading apps of a similar nature, Robinhood offers free trading options that may seem really appealing, but there are a lot of risks involved, such as value fluctuations, etc.

If you're just starting out in trading and you live in the United States, Robinhood is the first option you should consider.

This article explained how to use the Android, iOS, and web apps to transfer money from Robinhood to your bank account.

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About the Author

Tebid Kelly
I'm Tebid Kelly, A Content Creator, Video Producer Financial Consultant and Certified Google Publisher. I write contents for aimtuto.com, financialhint.com which are my two blogs.

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