Most Robinhood users will want to withdraw their funds after a lucrative trade. In some cases, users will see their withdrawable cash $0 on Robinhood.
Then, they wonder; why is my withdrawable cash $0 in Robinhood? If you've been using this platform for a while, you must have experienced this account-related problem at some point.
When the settlement period must have ended, you should typically be able to withdraw your funds from Robinhood.
They should show up as buying power that you can then move to your bank account. If you see $0 as withdrawable cash following the settlement period, something is obviously wrong.
Your money is still there, so don't worry. The main problem here is that you need to fix your account's issues before you can withdraw any money from the platform.
That being said, in this guide, we've compiled a list of potential causes that could have led to this problem with your Robinhood account and guidelines on how to fix it.
Read Also: A Beginners Guide to Investing in Robinhood.
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What is Withdrawable Cash on Robinhood?
On Robinhood, the cash that must "settle" following a sale before you can withdraw the funds to your bank account is referred to as "withdrawable cash."
The settlement period, also referred to as regular-way settlement, is the trade date plus two trading days (T+2). Those sums will be included in your buying power on the third day and will be accessible for withdrawal.
You are allowed to withdraw up to five times per business day from Robinhood into your bank account. Furthermore, Robinhood allows withdrawals of up to $50,000 per business day.
You cannot withdraw or use the funds while they are being deposited into your bank account, which could take up to 5 business days.
What Does "Withdrawable Cash $0 on Robinhood" Mean?
Robinhood is one of the most used trading apps in the United States that lets users buy stocks, options, and exchange-traded funds (ETFs).
Robinhood users have indicated issues where the withdrawable amount frequently appears to be $0.
There could be a few causes for why your withdrawable cash on Robinhood show as $0 at all times. You might not have yet made any deposits into your account, for example.
You receive the proceeds from the sale of a security in your cash balance. If you don't have any other securities in your account, the cash balance will be $0.
Another reason is that you've sold a security but haven't yet taken any of the earnings. Until you withdraw the money, the cash balance will be $0.
Why is My Withdrawable Cash $0 on Robinhood?
There are a few possible reasons for why your withdrawable cash shows $0 on Robinhood. The most important thing to remember is that your money is still there; but you can't withdraw it because of account-related issues.
What could these causes be?
The four reasons why your withdrawable cash is $0 on Robinhood, along with each of their respective solutions, are mentioned below.
1. Funds Are Not Yet Settled
This is one of the main reasons why your withdrawable cash appears $0 in Robinhood.
Although some users tend to disregard this factor, it actually turns out to be the most well-known problem that users encounter when attempting to withdraw money from Robinhood.
The amount that can be withdrawn from these funds is limited to what is left over after selling stocks, ETFs, and options.
Whether you had the option to receive rewards in exchange for your sale has no bearing on the situation.
Once the money is made available for withdrawal, Robinhood first designates it as "Withdrawable Cash." This process is also known as "settling of the funds."
When you sell stocks or other related assets, if you don't receive any money, it's because the funds have not yet settled.
How to Fix Why is My Withdrawable Cash $0 on Robinhood Due to Funds No Settled Yet
Since this is not a serious issue to fix since you aren't required to do anything. To access your funds in the "Withdrawable Cash" section, simply wait for the settlement period to end, which usually takes 2 to 3 days.
2. Your Account is Restricted
When significant sums of money are at stake, account security becomes vital. Every day, millions of dollars are deposited into and withdrawn from Robinhood.
A automatic security system is used by Robinhood to keep an eye on each account's activity. Robinhood not only runs entirely automatically, but it also manually verifies accounts and checks records.
Robinhood limits account features, including cash withdrawals, if an account is connected to any unethical behavior.
Therefore, even if your funds have settled, you won't be able to withdraw or transfer them, which could result in the withdrawable cash is $0 on Robinhood.
How to Fix Why is My Withdrawable Cash $0 on Robinhood Due to Account Being Restricted
It's possible that the automatic system accidentally flagged you if Robinhood restricted you.
If you are certain you have not engaged in any fraudulent activity, you can get in touch with the Robinhood support staff.
In a statement, Robinhood said that they would help users who had unintentionally been blocked.
Simply inform the Robinhood customer service team of the circumstance by contacting them. Your account will hopefully be unflagged as well.
3. Withdrawal Limits Reached
Robinhood has imposed a withdrawal cap for all platform users, regardless of whether or not a user's account has been restricted.
A single day's withdrawal from your Robinhood account cannot exceed $50,000. This limit is in place to stop money laundering on the platform, according to Robinhood.
You can withdraw up to $50,000 in a single transaction or over the course of five transactions. You read that right: you are permitted up to five withdrawals each business day.
There is no requirement that the total of those five withdrawals equal $50,000.
You might notice that your withdrawable cash is $0 on Robinhood if you've reached your withdrawal limit.
How to Fix Why is My Withdrawable Cash $0 on Robinhood Due to Withdrawal Limits
There is a daily withdrawal cap of $50,000 and a daily withdrawal cap of five withdrawals. You should hold off on any withdrawals for at least 24 hours.
Waiting 24 hours is the only way to get around Robinhood's "withdrawable cash $0" issue's withdrawal limit being reached.
4. Selling Referral Stock
You've probably heard of Robinhood's referral program if you've used the service for a while. By referring a friend to the platform, users of Robinhood's referral program can receive free stocks.
The referral rewards apply to both users who recommend the app and users who download it using a referral link.
There is a catch, though: You won't be able to withdraw any money if you sell the amount before 30 days have passed.
Although selling referral stock is not subject to any restrictions on Robinhood, the profit you made from the stocks is only available for withdrawal after 30 days.
How to Fix Why is My Withdrawable Cash $0 on Robinhood Due to Selling Referral Stock
You won't be able to instantly transfer the selling price of the stocks you received to a bank account, even if you are a Robinhood Gold member.
You must wait for the cash to settle for 30 days before you would be able to withdraw the funds.
How Long Until Cash Is Withdrawable From Robinhood?
When your Robinhood account has fully settled, which typically takes 2 to 3 days, your money becomes "withdrawable cash."
You can quickly withdraw your money to your bank account from there. However, the time required for cash settlement is the trade date plus two additional trading days, or T+2.
Final Thoughts: Why is My Withdrawable Cash $0 on Robinhood
The majority of users have encountered account-related problems, some of which include withdrawable cash 0$ on Robinhood.
There are a few possible causes for this problem, and we've listed the top 4 here in case it happened to your account.
Whatever the cause, you shouldn't be concerned about your money because it is still in your account.
If your account was mistakenly flagged for fraud but isn't, you can rest easy knowing that Robinhood will assist account owners in restoring their accounts.
Those were our 4 reasons and solutions answering the question "why is my withdrawable cash $0 on Robinhood".
Got something to add? Let us know in the comments section, we will be more than glad hearing out from you.