Most traders who enjoy fee-free trading have probably heard of Robinhood. When you have made a sufficient profit on the site, you may wish to transfer funds from Robinhood to a bank account.
In layman's words, Robinhood is a commission-free crypto, stock, options, and EFTs trading platform that allows investors to optimize their earnings through fee-free commission trading services.
Investors can continue to invest in stocks, options, and ETFs on Robinhood. All of these commission-free services are exclusively available through Robinhood.
There are other stock exchange and trading applications available, but Robinhood stands out as one of the top (along with Fidelity, TD Ameritrade, and others) that provide these services for free. This means that trading features that are commission-free on other mobile trading applications are also paid features on other trading apps.
As a trader, you will undoubtedly love using this software because it secures your trade and keeps your money safe. When you have enough gains from your trade, you should transfer money from Robinhood to your bank account to increase the flexibility of your cash.
Do you want to transfer funds from Robinhood to a bank account? Then this is the article for you because I will show you how to do it quickly.
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What is Robinhood and How Does it Work?
Robinhood Markets,Inc is an American financial services firm founded in March 2015 with offices in Menlo Park, California. It is well-known for pioneering fee-free trading in equities, exchange-traded funds, and cryptocurrencies through a mobile application available on the Android and iOS platforms, as well as a web browser from a PC.
This financial platform offers 100% commission-free stock, options, ETF, and cryptocurrency trades, making it ideal for traders with a high trade frequency.
New investors can easily get started with Robinhood because there are no commission fees or account minimums.
However, tax-favored investment accounts such as the Roth IRA, which Robinhood does not offer, and a buy-and-hold strategy to maximize compound interest, which goes against Robinhood's trading incentives, promise to benefit younger investors the most.
What to Consider before Opening an Account with Robinhood and Similar Trading Apps
Robinhood is just one of many apps that offer free trading, therefore it has many competitors who offer comparable services. You may now download a choice of stock trading apps from a variety of sites.
Buying and selling stocks is without a doubt one of the best businesses you can run these days.
Before opening an account with Robinhood or any other organization, you must be informed of the dangers connected with trading.
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You must be prepared for any unforeseen circumstances, as stock prices occasionally rise and occasionally fall sharply, causing you to lose some of your assets.
Bitcoin, for example, was initially offered at a relatively low price, ranging from $0.0008 to $0.08 per coin in July 2010, but today, a Bitcoin is worth $20,632.90, albeit its price fluctuates.
How to Get Started With Robinhood
There are various prerequisites that you must complete in order to open an account with Robinhood.
The following are the requirements for applying:
- You must have a Social Security Number
- You Must be 18 years and above of age
- You must be a U.S citizen, have a valid U.S Visa or a U.S Permanent resident
- Must have a U.S. residential address (Active U.S. military personnel stationed abroad are exempted).
Some nations, such as North Korea, Cuba, Iran, Syria, or Ukraine, are sanctioned by the United States, and you will not be able to establish an account if you live in one of these countries.
Furthermore, if you are already registered and traveling to certain countries, you will be unable to access your account in order to conduct any transactions.
Robinhood only conducts transactions via its mobile apps, which are available for both iOS and Android. Because many traders use these mobile platforms, they are a primary target for Robinhood. Depositing and withdrawing funds from bank accounts is significantly easier with the mobile app.
The best way to access your Robinhood account is via web browser, and the platforms accepted for trading, deposits, and withdrawals to and from your bank account are listed below.
- iOS
- Android
- Web
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Keep reading because I'll teach you how to transfer money from Robinhood to a bank account on each of these sites.
How to Transfer/Withdraw Money from Robinhood to Bank on Android
Follow the steps below to transfer money from Robinhood to your bank account on Android:
- Click the Account icon in the lower right corner
- Select "Transfers"
- Now choose "Transfer to Your Bank"
- Select the bank you will want to transfer your money to
- Enter the amount you want to transfer to your bank
- Finally, hit "Submit".
How to Transfer/Withdraw Money from Robinhood to Bank on iOS
The process is similar to that of Android, and to transfer money from your Robinhood account to your bank account on iOS, follow the steps below:
Hit the Account icon in the lower right corner of your screen
- Now click on "Transfers"
- Then choose "Transfer to Your Bank"
- Select the bank you will want to transfer your money to
- Enter the amount you want to transfer to your bank
- Finally, click on "Submit".
How to Transfer/Withdraw Money from Robinhood to Bank on Web
To transfer funds from Robinhood to a bank account via the online app. You can do so by following the instructions below:
- Navigate and Tap on Account tab in the top right corner of the screen
- Next click on "Transfers"
- Launch a transfer from Robinhood to your bank account using the panel on the right.
You should be aware that you can make up to five withdrawals from your account per business day. Robinhood also allows you to withdraw a maximum of $50,000 every business day.
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How Long Does it Take to Transfer Money from Robinhood to Bank
It takes 3 to 5 business days for a complete transfer of funds from Robinhood to bank account to reflect in the recipient's bank account.
Withdrawing Money from Robinhood to a Different Bank Account
If you want to withdraw money from a bank account that is not the one from which you placed cash within 60 days after depositing, you will need to provide additional verification.
If the original bank account from which you made the deposit has been closed or you are unable to access it, you can always contact Robinhood support for assistance in withdrawing your money.
The following information is required before you can withdraw money from Robinhood to a separate bank account:
- Amount and specific bank account you want to transfer the funds to.
- A photograph of the front and back side of your government-issued ID.
- a succinct explanation of why you are unable to or do not wish to withdraw money from the bank account that you originally deposited it into.
- Bank statements certifying that you are the holder of the two linked bank accounts. Photos or PDFs should be clear and easy to read.
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Why Can't I Withdraw My Money From Robinhood?
It is required that you wait for the proceeds of each sale in your Robinhood account to settle to 3 days, which is the trade date, plus an extra 2 days before transferring them. You will be able to withdraw the proceeds from your Robinhood account once this time period has passed.
Frequently Asked Questions on How to Transfer Money from Robinhood to Bank Account
Why can't I withdraw my money from Robinhood?
You may not be able to withdraw money while your account is restricted. Robinhood sometimes restricts users' accounts. That can happen if the user has a negative balance, had a bank account transaction reversed, if the user is suspected of fraud, or for a few other reasons.
Is there a fee for transferring money from Robinhood to bank?
There is not a fee for transferring money between a bank and your brokerage account. Card replacement fees: If your card is lost, stolen, or damaged, Robinhood will mail you a new card free of charge.
Conclusion on How to Transfer Money from Robinhood to Bank
Robinhood is a fantastic trading platform that provides commission-free stock exchange and cryptocurrency services such as coin buying and selling.
The free trading options provided by Robinhood, like those provided by other trading applications of a similar type, may sound extremely appealing, but they come with a number of risks, including price volatility and other things.
If you're new to trading and live in the United States, the first option you should consider is Robinhood.
This post explained how to use the web, Android, and iOS apps to transfer money from Robinhood to your bank account.