Are you a keen investor? Then, you must be aware of Robinhood, an exclusive trading platform that makes investing easy. However, many of you have a common doubt as to how to withdraw money from Robinhood?
Trading and Investing in stocks and cryptocurrencies are trending these days. Various platforms such as Robinhood have made it convenient to trade in stocks and cryptos. Now you probably must be wondering how to withdraw money from Robinhood. We are here with a complete guide on how you can proceed with withdrawing the money you have earned via trading online.
Robinhood is said to be one of the names that have recently gained popularity, because of its amazing features and the wide range of rewards it offers. Setting a competition for all the other trading platforms, Robinhood is moving ahead of time by offering its customers and potential users some great benefits. For all the crypto investors and crypto-enthusiasts, Robinhood came up with dealing in cryptocurrency as well, in the year 2018. Hence, making it a platform that offers everything an investor is looking for.
In this article, we will be learning about what is Robinhood and how to withdraw money from Robinhood. We look forward to addressing all the doubts and queries you have regarding Robinhood as a trading platform.
What is Robinhood?
Do have a thing for trading? Well, then we have the perfect platform for you, where you can choose to trade on. Robinhood is the platform that will cater to all your requirements and expectations from an exchange platform and will offer complete and hassle-free trading. It is indeed without a doubt one of the best platforms available, as it offers its users a free hand to trade and take a leap forward in the trading game.
Robinhood Markets Inc. is an American Financial Service company headquartered in California, that aims to provide its users a commission-free trade of stocks, exchange-traded funds, and dealing of cryptocurrency via a mobile app. The company’s revenue comes from three main sources, interest earned on customers’ cash balances, and selling order information to high-frequency traders (a practice for which the SEC opened an investigation into the company in September 2020). As of 2021, Robinhood has 31 million users and 1.6 million people on a waitlist for its cryptocurrency waitlist.
It provides a web- and mobile-based financial services platform that allows users to invest in and trade stocks, exchange-traded funds options, and American Depository Receipts(ARDs). It also allows users to invest in certain cryptocurrencies based on their geographic location.
Robinhood makes money through payment for order flow, premium membership fees, stock loans, interest on uninvested cash, interchange fees related to its debit card, and other smaller revenue streams. Robinhood faces significant competition from other discount brokerages, new and established fintech companies, banks, cryptocurrency exchanges, asset management firms, and technology platforms.
Pros of Cons of Trading in Robinhood
There are various reasons why people choose to trade on Robinhood, some reasons could be because of its stable market, no fraudulent controversies, and easy trading. However, there are people who choose not to use Robinhood as a means of trading because of its weal customer help services, and less information available on the internet for trading.
We have listed for you the Pros and Cons of Trading with Robinhood that will help you choose the right trading platform.
|PROS OF ROBINHOOD||CONS OF ROBINHOOD|
|Free US stock and ETF(exchange-traded fund) trading||Limited range of products to offer to the public and its users|
|It is indeed a great mobile and web-trading platform||With gaining such popularity in the market Robinhood lacks behind in its customer support service|
|It is quick and comes with a fully digital account opening||Less educational material available on the internet to access it|
How to Withdraw Money From Robinhood?
For you to understand how to withdraw money from Robinhood, here is a simple guide to help you withdraw money conveniently. Open Robinhood app> Find and click transfers> Select transfer to your bank> Find and choose your bank account> Enter the amount you wish to withdraw> Tap Confirm
How to Withdraw Money From Robinhood on Your Phone
If you’re using your smartphone, then the process is very easy. All you need is your phone, the Robinhood app, and access to your account.
Step – 1 Open the Robinhood app on your phone and access your account via the icon at the bottom-right corner of the screen.
Step – 2 Find the “Transfers” menu, then select “Transfer to Your Bank.”
Step – 3 Find your bank account in the list and choose it.
Step – 4 Enter the amount that you want to withdraw.
Step – 5 Check that all of your details are correct, then tap “Confirm.”
There you have it, a straightforward way to withdraw money from Robinhood through your mobile app into your bank account and enjoy trading.
How to Withdraw Money From Robinhood on Your Computer
If you are accustomed to using computers, the transaction process will be just as simple as on mobile devices, if a little different.
Here are the following steps of how to withdraw money from Robinhood on your Computer:
Step – 1 Navigate to the Robinhood website and log in to your account.
Step – 2 Once logged in, search for the “Account” option in the top-right corner of the website.
Step – 3 Click the “Banking” option. Locate the withdrawals section and enter the amount that you want to withdraw.
Step – 4 Confirm the transaction and wait for the money to appear in your bank account.
While the menus are similar, it’s normal to be a little confused if you switch from one platform to another.
How Long Does It Take To Withdraw Money From Robinhood?
Some people may be disappointed to see that the money from their Robinhood account doesn’t instantly transfer to their bank account.
However, this isn’t Robinhood’s fault. Bank transfers just inherently take a long time.
This is because there are many steps that your transfer goes through to reduce the possibility of fraud. It’s essentially a security feature that helps to protect your bank account.
In most cases, a withdrawal from Robinhood should take no more than two to three days. This is about the average amount of time it takes for a regular bank transfer, but you might occasionally see much faster times.
It is thus recommended to be prepared for a reasonable wait until your Robinhood funds reach your bank account.
This was a full-fledged guide on how to withdraw money from Robinhood and how Robinhood is a better and easier platform to perform trading on. We anticipate that we lived up to the doubts and queries you had in mind regarding the procedure of how to withdraw money from Robinhood. Furthermore, if you have anything to ask about with regards to this article or anything else, feel free to drop your queries in the comment section.
Frequently Asked Question
1. Are there any risks with Robinhood?
Robinhood is safe. Your funds on Robinhood are protected up to $500,000 for securities and $250,000 for cash claims because they are a member of the SIPC. Furthermore, Robinhood is a securities brokerage, and as such, securities brokerages are regulated by the Securities and Exchange Commission.
2. How much is Robinhood’s monthly fee?
$5 is Robinhood’s monthly fee
Your brokerage account will be charged the $5 monthly fee every 30 days at the beginning of each billing cycle. If you have access to margin investing and use more than $1,000 of margin, you’ll pay 3% yearly interest on the settled margin amount you use over $1,000.
3. How does Robinhood work with taxes?
Only investments you’ve sold are taxable, so you won’t pay taxes on investments you held throughout the year. You can deduct up to $3,000 from your taxable income as long as you sell any duds by the end of the year.