Why Can’t I Withdraw my Money From Robinhood?
Withdrawing money from Robinhood is generally straightforward.
However, some users may encounter difficulties when they try to withdraw money from their Robinhood accounts.
9 Reasons Why You Can’t Withdraw Money From Robinhood
There are several possible reasons why you can’t withdraw money from Robinhood, depending on your account type, status, and activity. The most common reasons include:
1- Transfer Limits
Robinhood imposes certain limits on how much money you can transfer in and out of your account per day, per month, or per year. These limits vary depending on your account type, such as cash, instant, gold, or crypto. To check your transfer limit, go to Transfers → Transfer limits in the app or on the website.
2- Account Restrictions
If your Robinhood account has a restriction, such as a pattern day trading (PDT) violation, a margin call, or a risk check, you may be unable to withdraw funds until you resolve the issue. If you have any questions or need help with removing the restriction, you can contact Robinhood’s customer support.
3- Your Deposit is Still Clearing
When you deposit money into your Robinhood account, it may take some time for the funds to clear and become available for withdrawal. The clearing time depends on the method of deposit and your bank.
According to Robinhood’s website, standard bank deposits can take up to 5 business days to complete, but withdrawals could be shorter depending on your bank.
4- Your Trade Hasn’t Settled
When you buy or sell stocks or options on Robinhood, there is a settlement period before the trade is finalized and the funds are available for withdrawal. The settlement period for equities is the trade date plus 2 trading days (T+2), sometimes referred to as regular-way settlement. The funds will be withdrawable on the 3rd day.
For options trades, the settlement period is the trade date plus 1 trading day (T+1).
5- Options Collateral
If you trade options on Robinhood, you may need to maintain a certain amount of collateral in your account to cover your potential obligations in case of assignment or exercise.
Depending on the options strategy you use, Robinhood may hold stocks or cash as collateral until the options contract expires or is closed. This means that you may not be able to withdraw those funds until then.
6- Withdrawing to a Different Source
For security reasons, Robinhood requires you to verify your identity and source of funds when you withdraw money from your account.
You may have to verify your withdrawal source for up to two months after a deposit if it is different from the account you normally withdraw to. To do so, you may need to provide a bank statement or other documents.
7- Pending Debit Card Transactions
If you have a spending account with Robinhood and use their Cash Card feature, you may have funds held for pending debit card transactions.
When you spend money using your Robinhood Cash Card, a hold is put on the transaction to hold the funds until it settles. This means that those funds may not be available for withdrawal until then.
8- Margin Accounts
If you have a margin account with Robinhood and use their Gold feature, you can borrow money from them to invest in stocks or options. However, this also means that you have to meet certain requirements and maintain a minimum balance in your account.
According to Robinhood’s website, you need to have at least $2,000 in your account to use margin investing. If you want to withdraw below $2,000, you need to disable margin investing.
9- There is an Issue With Your Bank
The only other reason why you can’t withdraw money from Robinhood may be your bank itself. Sometimes, banks may reject or delay transfers due to their own policies or technical issues.
If this happens, you may need to contact your bank and ask them why they are not processing your withdrawal request.
How to Learn More About Trading Stocks
We hope that this article has helped you understand why you can’t withdraw money from Robinhood and how to resolve the issue. Additionally, you may want to check out our article about why your withdrawable cash is $0 on Robinhood for more information.
However, if you want to learn more about trading stocks and other financial instruments, you may want to join a community of like-minded traders who can help you improve your skills and knowledge.
One such community is HaiKhuu Trading, which is one of the largest and most active stock trading communities online. HaiKhuu Trading has over a quarter-million retail traders in its communities and offers access to resources, educational seminars, daily trading alerts, and hands-on help from professional traders.
Related Educational Articles
Can Robinhood Legally Block Stocks?
How to Delete Your Robinhood Account
Selling Covered Calls on Robinhood
Selling Cash-Secured Puts on Robinhood
