Robinhood, the popular commission-free stock trading app, has democratized investing and made it accessible to a broad range of individuals. And now, individuals can easily add, trade, and then withdraw their money easily on Robinhood.
Nevertheless, if you're new to the platform or unfamiliar with the process, it's natural to have questions. And some questions like; what happens to your money after selling stocks on Robinhood is a normal question to ask.
Well, today is your lucky day, since we will be answering that question in this article. We will provide clarity on the timeline and steps involved in accessing your funds after selling stock on Robinhood.
Well, just keep on reading to know how this process works, what to consider and have in mind and also any other thing needed after that.
Table of Contents
I Sold Stock on Robinhood: Where Is My Money?
The first thing to know is that there is a whole lot of process involved when it comes to selling stock and then receiving the cash. Well, just look at what we have provided for you below:
1. Settlement Period:
After selling a stock on Robinhood, your funds do not appear immediately in your account. This delay is due to the settlement period, which is a standard process in the securities industry. In the United States, the settlement period for stock trades is typically two business days.
2. T+2 Settlement:
Robinhood operates on a T+2 (Trade date plus 2 business days) settlement cycle. This means that after selling your stocks, it takes approximately two business days for the proceeds to be available for withdrawal or reinvestment.
For example, if you sell your stock on Monday, the funds will become available in your account for withdrawal or other transactions by Wednesday.
3. Reviewing Your Account:
To check the status of your funds after selling stock on Robinhood, follow these steps:
- Open the Robinhood app on your mobile device or access the website on your computer.
- Tap on the Account tab, typically located at the bottom right corner.
- Navigate to the "Investing" section to view your buying power and balances.
- Look for the pending or settled cash balance to see the funds from the sold stock.
4. Account Verification and Banking Information:
Ensure that your bank account is properly linked and verified within the Robinhood app. This will ensure a smooth and seamless transfer of funds. If your bank account is not verified or if there are any issues with the linked account, it may affect the timing of your funds' availability.
5. Withdrawal or Reinvestment:
Once the funds from your sold stock are settled and available in your Robinhood account, you have the option to withdraw the money to your linked bank account or reinvest it in other stocks or investment options on the platform. You can initiate a withdrawal by following the instructions within the app or website.
Now that you have seen where your money is in your Robinhood account. What else now? Will you want to reinvest it? Or you will want to simply withdraw it and use it as physical cash?
How to Withdraw Money from Robinhood
Well, to withdraw money from your Robinhood account is a very straightforward procedure. And to do that, you can follow these quick steps below:
- Open the Robinhood app on your mobile device or the website on your computer. Then Log in to your account using your account credentials.
- Tap on the Account icon located in the bottom right corner of your screen.
- On the Account screen, select Transfers;
- And under the Transfers tab, choose "Transfer to Your Bank" to initiate a withdrawal.
- Enter the amount you wish to withdraw from your Robinhood account.
- Select the bank account you want to transfer the funds to. If you haven't added a bank account yet, you will need to link one by providing the required information.
- Review the withdrawal details, including the estimated arrival time(for instant or standard transfers).
- Tap on the Submit button to complete the withdrawal process.
Note: Depending on your bank and on your withdrawal method, it may take a few business days for the money to reach your bank account(standard transfers without any fees), or it might come in some few minutes(instant transfer including fees).
Final Thoughts
When you sell stock on Robinhood, it is important to be aware and take note of the settlement period and the time it will take for the funds to become available in your account.
The T+2 settlement cycle means that you can expect your money to be accessible for withdrawal or reinvestment approximately two business days after selling your stock.
Remember to verify your linked bank account and review your account balances to track the status of your funds. By understanding the process and being patient during the settlement period, you can confidently navigate the post-sale steps and access your money on Robinhood.
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