To cash out on Robinhood, you sell your investments, wait for the funds to settle, then transfer the cash to your linked bank account. The whole process takes a few days from start to finish, and the steps differ slightly depending on whether you want a standard free transfer or a faster one with a fee.
Sell Your Investments First
Before you can withdraw money, you need to convert your holdings into cash. Open the Robinhood app, tap the stock, ETF, or crypto position you want to sell, and select “Sell.” You can sell all your shares at once or just a portion. If you’re selling everything to close your account entirely, you’ll need to sell each position individually.
After you sell, the cash doesn’t become withdrawable immediately. Stocks and options take one trading day to settle, meaning if you sell on a Monday, the funds typically settle by Tuesday’s close. Trading days exclude weekends and market holidays, so a Friday sale won’t settle until the following Monday at the earliest. Until settlement is complete, the proceeds show up as buying power (you can use them to purchase other investments) but you can’t transfer them out.
How to Transfer Cash to Your Bank
Once your funds have settled, here’s how to move them out:
- Tap the Account icon (person icon), then select Menu (three bars)
- Choose the account you want to withdraw from (Brokerage is the most common)
- Tap Transfers, then Transfer money
- Select the linked bank account you want to send the money to
- Enter the amount you’d like to withdraw
- Review the details and confirm
If you haven’t linked a bank account yet, Robinhood will walk you through connecting one during this process. You’ll need your bank’s routing and account numbers, or you can log in through your bank’s portal directly within the app.
Standard vs. Instant Transfers
Robinhood offers two withdrawal speeds. Standard ACH transfers are free and typically take a few business days to land in your bank account. This is the default option and what most people use.
If you need the money faster, Robinhood offers instant bank transfers for a fee of 1.75% of the withdrawal amount, with a minimum charge of $1 and a maximum of $150. So withdrawing $1,000 instantly would cost you $17.50, while withdrawing $10,000 or more caps the fee at $150. The money arrives in your bank account much faster, often within minutes, but the fee adds up quickly on larger amounts.
Why Your Withdrawal Might Be On Hold
Several situations can temporarily block or reduce the amount you’re able to withdraw. The most common culprits:
Recent deposits haven’t cleared. If you recently deposited money into Robinhood, those funds may still be pending. You’ll need to wait for the deposit to fully clear before you can withdraw that portion.
The 60-day deposit rule. For 60 days after a deposit, Robinhood may require extra verification if you try to withdraw to a different bank account than the one you deposited from. If your original bank account is closed, you’ll need to contact Robinhood support to get the withdrawal routed elsewhere.
Pending orders or collateral holds. Any open buy orders or options positions that require collateral will reduce your withdrawable cash. Cancel pending orders you no longer need, and close or adjust options positions if you want to free up that cash.
Margin requirements. If you use margin investing (borrowing money from Robinhood to trade), you must keep at least $2,000 in your account. To withdraw below that threshold, you’ll need to disable margin investing first through Account, then Menu, then Investing, then Margin investing.
Debit card holds and round-ups. If you use the Robinhood Cash Card, pending transactions or the round-ups feature can tie up small amounts of cash. Unenrolling from round-ups releases those held funds.
Tax Consequences of Cashing Out
Every time you sell an investment for more than you paid, the profit is a capital gain, and it’s taxable. The tax rate depends on how long you held the investment. Positions held for more than a year qualify for lower long-term capital gains rates, while anything held a year or less gets taxed at your ordinary income rate, which can be significantly higher.
If you sell at a loss, that loss can offset gains from other sales, potentially reducing your tax bill. Robinhood reports your trading activity to the IRS and sends you a consolidated tax form (typically a 1099) early in the year following your sales. This form shows your total proceeds and cost basis for each transaction, which you’ll need when filing your return.
Selling a large portfolio all at once can push you into a higher tax bracket for that year. If you’re cashing out a significant amount, spreading sales across two calendar years can sometimes lower your overall tax impact.
Closing Your Account Entirely
If you want to fully cash out and close your Robinhood account, sell all your positions first and wait for everything to settle. Then withdraw your entire cash balance to your bank. Once the balance reaches zero, you can request account closure through the app by going to Account, then Menu, then Settings, then Account Information, and selecting the option to deactivate. Keep in mind that Robinhood will still send you tax documents for any sales made during the calendar year, so don’t lose access to your login until you’ve downloaded those forms.