Why Can’t I Withdraw Money From Robinhood?

Why Can't I Withdraw Money From Robinhood

Why Can’t I Withdraw Money From Robinhood? There is no doubt that trading and cryptocurrency have become highly popular, with many individuals actively managing their finances using platforms like Robinhood. Nevertheless, owing to the sensitive nature of handling money and financial transactions, Robinhood has implemented various security protocols and limitations. So, there might be situations where users find difficulties in withdrawing funds from their Robinhood accounts. Understanding the reasons behind fund lockouts and knowing how to address them is crucial. 

In this article, we have aimed to know most of the common reasons why you’re not able to withdraw funds on Robinhood, and we’ve discussed the working solutions as well.

 

So without any late, let’s get started.

 

Reasons why withdrawal fails?

To be honest, there are multiple reasons for the same, but here are the most common reasons that we’ve mentioned for better understanding. In this section, we have discussed five primary reasons that might prevent you from withdrawing money from your Robinhood account. However, if you find the root cause, then that will save you time.

  • Settlement Period: You must be aware of the settlement period, which is defined as the trade date plus two trading days. After the third day, when the final trading day concludes, your funds will be available for withdrawal. Patience is essential during this period as the money needs to settle to reflect in your buying power.
  • Different Bank Account: If you wish to transfer funds to a new bank account, you will need to verify it again, even if your previous bank account was already verified. Robinhood will require all necessary documents for the new Account. After verification, it may take one or two business days for your new Account to be approved.
  • Pending Withdrawal: Pending withdrawals on Robinhood can take up to five trading days (or business days) to be processed. This delay is in place to safeguard against fraud and suspicious activity. You must wait for the specified time for the withdrawal to be completed.
  • Withdrawal Limit Exceeded: Robinhood allows up to five withdrawals within the same business day, and the maximum withdrawal amount is $50,000 for the same period. Ensure that you do not exceed these limits, as the platform will cancel any excessive funds transfer.
  • Account Restriction: In some cases, your Account may be restricted, and the ability to withdraw funds might be blocked by the support team. If you encounter this issue, it is crucial to promptly contact customer service for assistance. 

So these were the most common reasons why you might not be able to withdraw the funds from Robinhood. 

 

In the above section, we talked about the reasons and in the description, we have mentioned how you can get rid of these issues. Now, you must have heard somewhere people talking about the cut-off time in Robinhood; let’s know that as well.
Learn how to withdraw money from your Robinhood account and access your funds with our step-by-step guide: How To Withdraw Money From Robinhood.

 

What is the cut-off time in Robinhood?

In Robinhood, cut-off times refer to the specific deadlines for certain actions, especially related to transactions and account activities. These times determine when a particular action must be completed or initiated to take effect on the same day or within a specific timeframe.

For example, if you want to cancel a transfer of funds which is started between 2:00 p.m. and 6:00 p.m. ET, you must do so before 6:00 p.m. ET on the same day. If the transfer was initiated after 6:00 p.m. ET, you have until 2:00 p.m. ET on the following trading day to cancel it.

 

Similarly, transfers can also be cancelled on weekends until 2:00 p.m. ET on the following Monday. Cut-off times are essential to ensure that transactions are processed accurately and promptly according to the market and regulatory requirements. Failing to meet these cut-off times might result in the action being processed on the next trading day or according to the platform’s policies.

 

So after you know about the Cut-off times, it’s time to know:

 

How to cancel a withdrawal in Robinhood?

See, to cancel a withdrawal on Robinhood using your mobile app, follow these steps:

  • Access your Account by tapping on the bottom right corner.
  • Open the main Menu by clicking on the 3 lines icon.
  • Choose the History button.
  • And then select the pending withdrawal.
  • Click on the “Cancel Transfer” button.

Keep in mind that you must pay attention to cut-off times when cancelling a Robinhood withdrawal. If you attempt to cancel the withdrawal after the cut-off time, you won’t be able to stop the transfer. It’s essential to act before the specified cut-off time to successfully cancel the withdrawal.

 

I hope this section was helpful for you in understanding the cut-off timing and how you can cancel the withdrawal request.

 

Before we move to the conclusion:

 

Here are a few important points to know before you withdraw:

  1. You are allowed to make a maximum of 5 withdrawals within a single business day.
  2. The withdrawal amount is capped at $50,000 per day.
  3. After depositing funds into your Robinhood account, you might have to wait for up to 5 business days before they become available for withdrawal.
  4. When you sell a stock, the selling amount will typically take three business days to reflect in your account.
  5. If you receive a free stock and wish to withdraw the funds from selling it, you’ll have to wait for 30 days.

Now, let’s move to the conclusion.

 

Conclusion

In this article, we have written about why you may not be able to withdraw the funds, and along with the reasons, we have discussed the solutions. If you’re a Robinhood user and don’t know about some rules, then we have mentioned that as well. Overall, once you follow the rules, you can easily withdraw the funds without any hassle.

 

Frequently Asked Questions

 

Q: Can I cancel the withdrawal?

Yes, you can cancel a withdrawal. To do so, use your mobile app, go to “Account,” access the main menu, select “History,” choose the pending withdrawal, and click on “Cancel Transfer.”

 

Q: What is the wait time of withdrawal in Robinhood?

Withdrawal wait times in Robinhood vary depending on different factors. Generally, it takes up to five business days for deposited funds to become available for withdrawal and three business days for selling proceeds to be accessible.

 

Q: Can I withdraw multiple times in a day?

Yes, you can withdraw multiple times in a day on Robinhood, but there are limitations. You are allowed to make up to five withdrawals within a single business day.

 

Q: What to do if nothing works?

Well, in that case, you need to get in touch with Robinhood Customer Support Team and let them know that you’re not able to work with the app, and then they will assist some working solutions to you.

About Robert Fuller

Avatar photoRobert Fuller is a tech writer who simplifies complex concepts and helps readers stay up-to-date with the latest technology trends

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