To withdraw your Robinhood buying power and transfer it to your bank, you need to follow a few simple steps. First, you should know that Robinhood's buying power includes all funds available for trading. This may include deposits, sales proceeds, or margin if you own a Robinhood Gold Account. You must sell your securities before you can convert your purchasing power into cash. This generates cash that becomes available two days after the standard settlement time (T+2).
Go to the "Transfers' section of the Robinhood App once the funds have been settled and are reflected in your account as cash. Choose to send funds to your bank, enter the transfer amount, and confirm the transfer. Ensure your bank account has been linked and verified in Robinhood to ensure a smooth transfer. Depending on your bank, the process could take five business days. So, let’s begin and learn more about Robinhood buying power to bank.
What is Buying Power in Robinhood?
The total amount you must spend on securities such as stocks, ETFs and options are your buying power. It is made up of:
• The money that you deposit into your Robinhood Account.
• The money from selling securities can be immediately used to trade new securities.
• You can borrow additional funds if you have a Robinhood Gold Account.
• You can use buying power to make trades. However, sometimes you want to convert that purchasing power into cash to transfer to your account.
How to Transfer Buying Power from Robinhood to Bank
Here is how to transfer buying power from Robinhood to bank:
Step 1: Sell Your Securities
Sell any securities that you own. Here is how:
• Login to your Robinhood Account using the Robinhood website or app.
• You can navigate to your portfolio by clicking on the "Portfolio". This will show you all your holdings.
• Click the security you wish to sell.
• Click the "Sell" Button, enter the number of shares you wish to sell and confirm the sale.
Step 2: Await the settlement period
After selling your securities, you must wait until the settlement period has passed. In the U.S., the standard settlement time is two business days (T+2). The funds will be available for withdrawal two business days following the transaction.
Step 3: Transfer funds to your bank account
You can then transfer the money to your account. Here is how:
• To access the Account Menu, click on the Account icon at the bottom-right corner of the App.
• Click "Transfers, " then choose "Transfer to Your Bank."
• Enter your desired amount.
• Select the bank account to which you wish to transfer funds.
• Review all the details and confirm the transfer.
Step 4: Await the transfer to complete
The transfer may take five to seven business days, depending on your bank. Robinhood will inform you when the transfer has been completed.
FAQ
Why is my Robinhood buying power not withdrawable?
The Robinhood buying power is not withdrawable, as it contains funds that have yet to be settled from recent sales and pending deposits. These funds must clear before the money can be withdrawn.
When does buying power become withdrawable on Robinhood?
You can withdraw your buying power after two days of business (T+2) or after the deposits have cleared, which is usually five days.
How do I transfer my buying power to my bank on Robinhood?
You can sell your securities and convert them to cash to transfer your buying power to your bank account. Then, after the funds have settled, initiate a transfer from the Robinhood App's "Transfers".
Why can't I use all my buying power on Robinhood?
If you have pending deposits, unresolved funds, or margins that cannot be used for certain transactions, your purchasing power may be limited.