A Complete Guide to Selling Shares, Waiting for Settlement, and Transferring Your Money to a Bank Account
Robinhood makes it relatively simple to buy and sell stocks through its investing platform. However, selling a stock and actually withdrawing the money to your bank account are two separate steps. After you sell shares, the proceeds may need time to settle before they become available as withdrawable cash.
If you are searching for how to sell stock and withdraw money from Robinhood, the process generally involves three stages: selling your investment, waiting for the transaction to settle, and transferring the available cash to your linked bank account.
This guide explains the entire process, including how to sell stock, how long you may need to wait, how to withdraw the money, potential fees, withdrawal limits, and common reasons your money may not yet be available.
How Does Selling Stock on Robinhood Work?
When you sell shares on Robinhood, you are placing an order to exchange your investment for cash. The amount you receive depends on the execution price of the order, the number of shares sold, and the type of order you choose.
Robinhood currently provides several order options. During regular market hours, dollar-based and share-based sell orders are generally market orders. During extended hours, these types of orders are limit orders with a preset limit price.
It is important to understand that a stock’s displayed price is not necessarily the exact price you will receive when using a market order. Stock prices can move quickly, especially during periods of high market volatility.
How to Sell Stock on Robinhood
You can sell a stock through the Robinhood mobile app or website.
Selling Stock Through the Robinhood App
Follow these general steps:
- Open the Robinhood app and sign in.
- Go to the stock you want to sell.
- Open the stock’s detail page.
- Select Trade.
- Choose Sell.
- Select the appropriate order type.
- Enter the number of shares or dollar amount you want to sell.
- Review the order carefully.
- Confirm and submit the order.
Robinhood’s current instructions indicate that users can select Trade → Sell, choose the order type, enter the required details, review the transaction, and submit the order.
Selling Stock Through Robinhood on the Web
On the Robinhood website, open the stock’s detail page and select Sell [Stock]. Enter the order information, review the transaction, and confirm the sale.
Before submitting the order, check the stock symbol, number of shares, order type, and estimated transaction value.
What Happens After You Sell Your Stock?
One of the most important things to understand when you sell stock and withdraw money from Robinhood is that the money from the sale may not immediately become withdrawable.
After an eligible stock or ETF sale, the transaction generally follows a T+1 settlement period. This means the trade settles one trading day after the trade date. Robinhood states that the T+1 settlement rule applies to stocks, ETFs, and options.
For example, if you sell an eligible stock on Tuesday, the proceeds generally settle on Wednesday, assuming Wednesday is a trading day and there is no market holiday.
Once the transaction settles, the proceeds can become part of your withdrawable cash.
Why Can’t I Withdraw the Money Immediately?
There is an important difference between:
- Account balance
- Buying power
- Withdrawable cash
- Unsettled sale proceeds
Money from a recent stock sale may appear in your account while still being unavailable for withdrawal.
Robinhood explains that withdrawable cash can exclude unsettled transactions, pending deposits, cash held for pending orders, and other amounts depending on the account and activity.
Therefore, if you sold a stock today and cannot withdraw the entire amount, the settlement period may be the reason.
How to Withdraw Money From Robinhood
Once your stock sale has settled and the proceeds appear as withdrawable cash, you can transfer the money to an eligible bank account.
The general process is:
- Open Robinhood.
- Select Account.
- Open the menu.
- Select Transfers.
- Choose Withdraw.
- Enter the amount you want to withdraw.
- Select the Robinhood account from which you want to withdraw.
- Select the destination bank account.
- Review the transfer information.
- Confirm the withdrawal.
Robinhood’s current withdrawal instructions use the Account → Menu → Transfers → Withdraw pathway in the app.
How Long Does It Take to Withdraw Money From Robinhood?
The time required depends on the withdrawal method and your bank.
Standard bank withdrawals through ACH do not have a Robinhood withdrawal fee. Robinhood says a standard withdrawal may take about one day on Robinhood’s side, although the receiving bank’s processing policies can make the overall process longer.
Robinhood also offers faster withdrawal methods for eligible users and accounts.
For eligible instant bank transfers, Robinhood says the transfer typically takes around 10 minutes, although the actual timing can vary depending on the bank. Instant withdrawals generally have a 1.75% fee, with a minimum fee of $1 and a maximum of $150 per transaction.
Because fees and eligibility can change, always review the final withdrawal screen before confirming an instant transfer.
Standard Withdrawal vs. Instant Withdrawal
Choosing the right withdrawal method can make a difference.
Standard Bank Transfer
A standard ACH withdrawal can be useful if you do not need the money immediately.
Advantages may include:
- No Robinhood withdrawal fee
- Suitable for larger routine withdrawals
- Money goes to a linked bank account
- Generally lower cost than instant withdrawal
The main disadvantage is that the money may take longer to reach your bank.
Instant Withdrawal
An eligible instant withdrawal can be useful when you need access to your money quickly.
However, Robinhood currently states that eligible instant bank withdrawals carry a 1.75% fee, subject to a $1 minimum and $150 maximum.
For example, if you request a $100 instant withdrawal, the fee would be $1.75 under that fee structure, meaning the amount transferred after the fee could be $98.25.
What Is Withdrawable Cash on Robinhood?
Withdrawable cash is essentially the amount Robinhood currently allows you to transfer out of the applicable account.
It can be lower than your total account value because your account may contain investments that you have not sold, unsettled proceeds, pending deposits, or money reserved for pending orders.
For example, imagine your Robinhood account contains:
- $5,000 in stocks
- $1,000 in settled cash
- $500 in unsettled stock-sale proceeds
Your total account value could be approximately $6,500, but that does not necessarily mean you can withdraw $6,500.
The stocks would need to be sold first, and the $500 in unsettled proceeds would generally need to complete settlement before becoming withdrawable.
Why Is My Robinhood Withdrawal Not Available?
Several issues can prevent you from withdrawing the amount you expect.
1. Your Stock Sale Has Not Settled
This is one of the most common explanations. Stock and ETF transactions generally use T+1 settlement, meaning the proceeds generally settle one trading day after the transaction.
2. You Have Pending Deposits
Recently deposited money may not yet be available for withdrawal. Robinhood notes that pending deposits can affect withdrawable cash.
3. Cash Is Reserved for Pending Orders
If you have open orders, some cash may be held for those transactions. Robinhood indicates that you may need to cancel pending orders before that cash becomes available for withdrawal.
4. Your Account Has a Restriction
An account restriction can prevent withdrawals. If this happens, check the Robinhood app for instructions or contact Robinhood Support.
5. You Have Reached a Transfer Limit
Withdrawal limits vary by account and transfer type. Robinhood provides current limits through the Transfers section of the account.
6. You Are Trying to Withdraw to a Different Bank
Robinhood may require additional verification when you attempt to withdraw money to a different source account, particularly following a recent deposit.
What If You Use Robinhood Margin?
Margin investing can make the withdrawal situation more complicated.
If margin investing is enabled, Robinhood states that you generally need to maintain at least $2,000 in account value to meet the minimum balance requirements for borrowing. If you want to withdraw below that amount, you may need to disable margin investing.
Investors should also be careful about withdrawing unsettled funds while using margin because doing so can potentially result in margin interest charges.
Are There Taxes When You Sell Stock?
Selling stock can create a taxable capital gain or loss in a taxable brokerage account.
For example, if you bought shares for $2,000 and later sold them for $3,000, you generally have a $1,000 gain before considering applicable adjustments and tax rules.
The tax treatment can depend on factors such as:
- Your purchase price
- Sale price
- Holding period
- Tax lot
- Capital gains and losses
- Your overall tax situation
Withdrawing the money from Robinhood is not what creates the capital gain. The taxable event generally occurs when you sell the investment. Therefore, withdrawing your cash later does not normally create a second capital gain simply because you transferred the money to your bank.
For personal tax circumstances, consider consulting a qualified tax professional.
Can You Sell All Your Stock and Withdraw Everything?
Yes, you can generally sell your investments and withdraw available cash, subject to settlement periods, account restrictions, transfer limits, pending transactions, and other applicable requirements.
If you are planning to close your Robinhood account, however, it is usually better to make sure all trades have settled and that pending transactions have been resolved before attempting to withdraw the remaining cash.
Tips for Selling Stock and Withdrawing Money
Before you sell stock and withdraw money from Robinhood, consider the following tips:
- Check the stock price: Market prices can change quickly, so review the order carefully.
- Understand the order type: A market order does not guarantee the exact displayed price.
- Wait for settlement: Do not assume that sale proceeds are immediately withdrawable.
- Check withdrawable cash: Look at the amount Robinhood specifically identifies as available for withdrawal.
- Review fees: Standard ACH withdrawals generally have no Robinhood fee, while eligible instant withdrawals can have a 1.75% fee.
- Verify your bank account: Make sure the destination account is correct before confirming the transfer.
- Consider taxes: Selling investments in a taxable account can create capital gains or losses.
- Keep records: Save your transaction history and tax documents for your financial records.
Frequently Asked Questions
How do I sell stock and withdraw money from Robinhood?
First, sell the stock through the stock’s detail page by selecting Trade → Sell. After the transaction settles, go to Account → Transfers → Withdraw, enter the amount, choose the destination account, review the details, and confirm the transfer.
Can I withdraw money immediately after selling stock?
Usually, you need to wait for the stock sale to settle before the proceeds become withdrawable. Stock and ETF trades generally settle on a T+1 basis.
Does Robinhood charge to withdraw money?
Standard ACH withdrawals have no Robinhood fee. Eligible instant withdrawals can have a 1.75% fee, subject to minimum and maximum charges.
Why does Robinhood say I have cash but cannot withdraw it?
The cash may be tied to an unsettled stock sale, pending deposit, pending order, account restriction, or another withdrawal limitation.
How long does a Robinhood withdrawal take?
Standard withdrawals may take about one day on Robinhood’s side but can take longer depending on the receiving bank. Eligible instant transfers can typically arrive much faster.
Final Thoughts
Learning how to sell stock and withdraw money from Robinhood is straightforward once you understand the difference between selling an investment and withdrawing settled cash.
The basic process is simple: sell your shares, allow the transaction to settle, check your withdrawable cash, and then initiate a transfer to your linked bank account. The key point is that the value shown in your Robinhood account is not necessarily the amount immediately available for withdrawal. thetradeinfo
For most stock and ETF sales, the T+1 settlement period is especially important. Once the proceeds settle and become withdrawable, you can use Robinhood’s Transfers section to move the money to your bank. Standard ACH withdrawals generally avoid Robinhood’s withdrawal fee, while eligible instant options can provide faster access at a fee.
Because transfer limits, fees, eligibility requirements, and platform features can change, review the information displayed in your Robinhood account before completing a transaction. StubHub
