Why is my Withdrawable Cash $0 on Robinhood?

If you use Robinhood for trading stocks, options, or cryptocurrencies, you may have encountered a situation where you try to withdraw money from your account only to find that your withdrawable cash balance is $0.

This can be frustrating and confusing, especially if you need the money urgently or want to invest it elsewhere. What does this mean, and how can you fix it?

In this article, we will explain the possible reasons why your withdrawable cash is $0 on Robinhood and what you can do to resolve the issue.

Why is my Withdrawable Cash $0 on Robinhood

Reasons Why Your Robinhood Withdrawable Cash is $0

There are several reasons why you may have a $0 withdrawable cash balance on Robinhood, such as the following:

1- Unsettled Funds

One of the most common causes of $0 withdrawable cash is the settlement period. When you sell equities or options in your brokerage or retirement account, the transaction must first “settle” before you can withdraw the funds to your bank account. The settlement period for equities is typically the trade date plus two trading days (T+2), known as regular-way settlement.

This means that if you sell stocks on Monday, the funds will not be available for withdrawal until Thursday. The money from the sale will be in a state of uncertainty during this settlement period, and it will not count toward your withdrawable cash balance. Once the settlement period has passed, the funds will be released and will appear as withdrawable cash.

For options trades, the settlement period is the trade date plus one trading day (T+1). This means that if you sell options on Monday, the funds will be available for withdrawal on Tuesday.

2- Pending Orders

Another reason why your withdrawable cash may be $0 is that you have pending orders in your account. You will not see the money reserved for orders in your withdrawable cash if you have pending orders. You have to cancel the pending orders first before you can withdraw cash. To do this, go to Account (person icon) → Menu (3 bars) or Settings (gear) → Orders → Cancel Order.

3- You Recently Made a Deposit

If you recently made a deposit into your Robinhood account, you may also see a $0 withdrawable cash balance. For pending deposits, you must wait until the deposit completes before you can withdraw it from your account. The deposit completion time may vary depending on the method and amount of deposit. For example, if you use a bank transfer (ACH), it may take up to five business days for the funds to clear in your account. If you use a debit card or instant transfer, it may take up to 30 minutes for the funds to appear in your account.

4- You Have a Negative Balance due to Margin

If you’re using margin investing, which allows you to borrow money from Robinhood to buy more securities, you may also have a $0 withdrawable cash balance. This is because you’ll need to maintain a Robinhood account value of at least $2,000 to meet the minimum balance requirements to borrow from within that account.

You have to turn off Margin investing in Settings → Investing if you want to withdraw less than $2,000. However, this may trigger a margin call, which means that you’ll need to deposit more money or sell some securities to cover your margin debt.

5- You Have Reached the Maximum Daily Withdrawal Limit

Finally, another possible reason why your withdrawable cash is $0 is that you have reached the maximum daily withdrawal limit for your account. Most Robinhood accounts have a maximum daily withdrawal limit of $50,000 for transfers and $5,000 for debit cards. These limits reset at 7 PM ET for transfers and 12 AM ET for debit cards. If you try to withdraw more than these limits in a single day, you will see a $0 withdrawable cash balance until the next day.

What Does a $0 Withdrawable Balance Mean on Robinhood?

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It’s important to note that the cash balance in your account and the value of your securities are not the same things. The value of your securities can go up or down based on market conditions, while the cash balance in your account represents the amount of money you have available to withdraw.

A $0 withdrawable balance means that all of the cash in your account is currently being used to meet margin requirements or is reserved for open orders. This means that you won’t be able to withdraw any money from your account until your cash balance exceeds $0.

However, this does not mean that your account value is $0 or that you have lost all of your money. You can still see the value of your securities in your account, and you can still sell them if you want to. However, if you sell them, you may need to wait for the settlement period before you can withdraw the proceeds.

How to Fix Withdrawable Cash of $0 on Robinhood?

You have to figure out what is making your withdrawable cash $0 on Robinhood first before you can fix it. The most frequent problem is unsettled funds. You need to make sure that you did not sell a stock recently, put money into your account, or have an order open. If you have, you may need to wait a few more days for the funds to settle.

Another issue is that you have a negative balance due to margin. In this case, you should either deposit more money or sell some securities to cover your margin debt and disable margin investing.

A third issue is that you have reached the maximum daily withdrawal limit. In this case, you should wait until the next day for the limit to reset and try again.

If none of these issues apply to you, or if you are still unable to withdraw money after resolving them, it is recommended that you contact Robinhood support so they can determine the issue and help you out.

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