How to Withdraw Money From Robinhood: All Costs and Accepted Payment Methods
The growing popularity of Robinhood continues to baffle both Wall Street and Main Street. Today, the trading platform is the preferred option for millions of, mainly, young, traders. After signing up and making some cash, the question now becomes: How do I withdraw from Robinhood? Or, ‘what payment methods does Robinhood accept?’
If you’re one of these people looking to get a share of the lucrative stock markets, sit back and enjoy this five-minute read. Learn how to configure your Robinhood accounts for safe and speedy withdrawals. The post discusses all the transaction charges you’ll incur when withdrawing.
Robinhood ReviewWhat is Robinhood
The U.S registered company started operations in 2013. In 2019, the brokerage saw a net loss of $278 million. According to the SEC, Robinhood generated a revenue of $959 million in 2020.
38% of that revenue came from Options Trading accounts. Cryptocurrency trading accounted for 17% while Equities accounts netted the company 25%.
Successful IPO
In January 2023, Robinhood (NASDAQ: HOOD) filed for its highly anticipated IPO. Before the initial public offering, the rapidly growing company had $80 billion in assets. Its current valuation is at $20 billion.
As of 2023, the U.S trading platform has over 18 million clients accounts. That figure marked a 151% uptick in the number of funded accounts the previous year, according to CNBC.
The brokerage firm aimed to raise $100 million with the NASDAQ debut. The IPO deal was underwritten by titans of industry like JPMorgan, CitiGroup and, Goldman Sachs. The IPO remains one of the biggest success stories of 2023 from Wall St.
Services Offered
Robinhood, like their rival Webull, specializes in cash management accounts, free stock trades, equity, options, ETFs, and, cryptocurrency trading, include Bitcoin, Dogecoin and other. Robinhood is a good choice for long-term investing and day trading.
Now, let’s focus on how to withdrawal.
Topping up your trading account and withdrawing are actually simple processes. Here’s a step-by-step guide on how to go about it. We’ll also detail the costs of doing business with this profitable broker.
How to Make Robinhood Withdrawals
The most popular transfer option on the platform is via bank transfers. It usually takes around 1 business day for your money to be processed and debited to your accounts.
Unlike other brokerages, this platform doesn’t accept withdrawals over e-wallets or debit/credit cards.
Here are the steps for withdrawing from Robinhood:
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Log in to account
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Select ‘Withdrawal funds’ from the drop-down menu
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Choose your preferred withdrawal method or destination account
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Key in the amount you wish to withdraw. You may be prompted to give a brief description
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Submit your withdrawal request
It’s important to note that you to make withdraws to bank accounts not registered under your names.
How Much Does it Cost Per Withdrawal on Robinhood?
Robinhood users don’t usually pay a dime to top up their accounts. They only pay, minimal amounts for withdrawals. Basic withdrawal from Robinhood are also free. Local transfers aren’t as expensive as international transactions. Wire transfers are also quite pricey.
Here are the withdrawal rates at Robinhood
It costs $25 to execute wire transfers. ACH withdrawals are completely free.
Robinhood charges $50 for an international bank withdrawal. This price is slightly higher than that of its closest competitors namely WeBull and SoFI Invest.
Withdrawing Robinhood using Android or iOS
Withdrawing via Android or iOS is quite straightforward. Here’s the basic process to go about it.
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Head to the bottom-right corner of your Robinhood app. Tap on the ‘Account’ option.
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Hit the ‘Transfers’ button
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Navigate to the ‘Transfer to Your Bank’ option
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Click your preferred account
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Enter the sum you wish to withdrawal to your checking account
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Confirm your transaction
Canceling Your Robinhood Withdrawal
Let’s say you hurriedly made a withdrawal, but upon second thought, you decide to leave the money in your Robinhood account a little longer. If that’s you, here’s how you proceed.
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Click on your ‘Account’
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If you’re on your Android, navigate to the ‘Menu’ icon and click on ‘History’
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Here, you’ll see the pending transaction or withdrawal options. Click on it.
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Hit the ‘Cancel Transfer’ option and you’re done.
Of course, you’re only allowed to cancel the withdrawals that are yet to be fully processed. So, you need to be quick before the small cancellation window closes.
How Long Do Withdrawals Take on Robinhood?
Robinhood operates on a two-day waiting period policy. That means you have to wait at least 2 trading days after receiving money in your accounts to make withdrawals.
The brokerage may request extra information if you’re withdrawing from a different account other than the one you deposited from. This authentication step causes slight delays in your process.
In stark contrast with other brokerages that have a daily withdrawal limit, Robinhood allows its users to take out up to $50,000 per day.
Does Robinhood Close Accounts?
This brokerage doesn’t usually close your accounts without a valid reason. The only instance you face closure is when your balance hits $0. If you want to take a break from the money markets, go to the ‘Account Information’ option and search for the ‘Deactivate my Account’ link.
Summary
Robinhood’s success rests on all the excellent trading options and services offered. This platform makes it easy and cheap to manage your investment portfolios. Robinhood allows free deposits. The withdrawal speed and rates are consumer-friendly.
Normally, you don’t pay to transfer earnings to your linked bank accounts. There are absolutely no mark-ups or hidden fees. What’s more, this app operates on secure 2-F authentication protocols. It uses your biometrics as well. These features help to prevent security breaches.
If your withdrawals take longer than the stipulated period, or you experience any difficulties with attaching your bank account, feel free to contact their reliable customer care.
FAQs
How to withdraw funds from Robinhood
You can only withdraw funds through a bank wire transfer
Are credit cards supported?
No, Robinhood does not support withdrawals to credit cards or e-wallets.
How long does it take to withdraw?
Processing time is 1 business day.
Are there any withdrawal fees?
Yes. The broker charges a $25 fee for withdrawals through a US bank and $50 fee for withdrawals to an international bank
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Team that worked on the article
Johnathan M. is a U.S.-based writer and investor, a contributor to the Traders Union website. His two primary areas of expertise include finance and investing (specifically, forex and commodity trading) and religion/spirituality/meditation.
His experience includes writing articles for Investopedia.com, being the head writer for the Steve Pomeranz Show, a personal finance radio program on NPR. Johnathan is also an active currency (forex) trader, with over 20 years of investing experience.
Olga Shendetskaya has been a part of the Traders Union team as an author, editor and proofreader since 2017. Since 2020, Shendetskaya has been the assistant chief editor of the website of Traders Union, an international association of traders. She has over 10 years of experience of working with economic and financial texts. In the period of 2017-2020, Olga has worked as a journalist and editor of laftNews news agency, economic and financial news sections. At the moment, Olga is a part of the team of top industry experts involved in creation of educational articles in finance and investment, overseeing their writing and publication on the Traders Union website.
Olga has extensive experience in writing and editing articles about the specifics of working in the Forex market, cryptocurrency market, stock exchanges and also in the segment of financial investment in general. This level of expertise allows Olga to create unique and comprehensive articles, describing complex investment mechanisms in a simple and accessible way for traders of any level.
Olga’s motto: Do well and you’ll be well!
Mirjan Hipolito is a journalist and news editor at Traders Union. She is an expert crypto writer with five years of experience in the financial markets. Her specialties are daily market news, price predictions, and Initial Coin Offerings (ICO). Mirjan is a cryptocurrency and stock trader. This deep understanding of the finance sector allows her to create informative and engaging content that helps readers easily navigate the complexities of the crypto world.