The buying power on Robinhood is the money you use to buy stocks or any other asset on the platform—that's typically the only way to spend it, and transferring it to a bank directly isn't an option.
In this guide, I'll show you the only way to transfer your buying power from Robinhood to your bank account.
How to Transfer Buying Power from Robinhood to Bank Account
Under normal circumstances, buying power is the money you can use to buy stocks, options, or cryptocurrencies for trade. The money is not meant to be withdrawn as it serves its purpose.
However, you cannot directly transfer your buying power from Robinhood to the bank. You will have to sell your stocks, options, or crypto and wait for the money to "settle" before you can transfer it to your bank account.
The settlement period is usually 2 to 3 business days from the third day, you can now easily transfer the money from Robinhood to your bank account.
Withdrawing Buying Power from Robinhood to Bank
Following what we mentioned above, here is how to transfer buying power from Robinhood to bank:
- Buy trading assets with your buying power and sell them.
- Wait for the money to settle, which usually takes 2 to 3 days.
- On the 3rd day, open your Robinhood app and click on the Account profile at the bottom right corner
- Now click on "Transfers" and select "Transfer to Your Bank"
- Choose the bank account where you'd like to transfer the funds
- Enter the amount you'd like to withdraw or transfer
- Lastly, click "Submit" to transfer the money.
There it is, you just transferred your buying power from Robinhood to your bank account.
Why Can't I Withdraw My Buying Power on Robinhood?
Your money (buying power) on Robinhood becomes "withdrawable cash" when it has fully settled, which generally takes 2 to 3 days. From there, you can easily withdraw your money to your bank account. However, the period required for cash settlement is generally represented as T+2, which is the date of trade plus two additional trading days.
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Final Thoughts on How to Transfer/Withdraw Buying Power from Robinhood to Bank
Buying power is the amount of money available to buy stocks and crypto for trade. You may not be able to withdraw this buying power directly but however, but you might be able to withdraw the buying from Robinhood to the bank with the clear Robinhood bank withdrawal process.
However, you will need to wait for your funds to settle before you can withdraw them, which is generally T+2 days (trade period + 2 more days).
