As a Robinhood user, after a successful trade, you will want to withdraw your money. Some situations arise where you can't withdraw money from your Robinhood account. There are many possible reasons why you can't withdraw money from Robinhood.
Why is my withdrawable cash $0 in Robinhood? If you've been using this platform for a while now, you must have certainly experienced this issue with your account.
Under normal circumstances, you should be able to withdraw your money from Robinhood when the settlement period has ended. They should appear as buying power which you can either withdraw to your bank account or dive into a new trading session. If you see $0 as withdrawable cash after the settlement period, then that therefore means, there is a problem somewhere.
Do not worry, your money is still there. The main issue here is, that your account has some issues that need to be fixed before you can withdraw your money.
That said, in this guide, we have compiled the possible reasons that might have provoked this issue on your Robinhood account and how you can remedy this problem of why is my withdrawable cash $0 on Robinhood.
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What is Withdrawable Cash on Robinhood?
The "withdrawable cash" on Robinhood is the money that must "settle" after a sale before you may withdraw the funds to your bank account.
The trade date plus two trading days (T+2) is the settlement period, which is also known as regular-way settlement. On the third day, those amounts will be added to your buying power and will be available for withdrawal.
Robinhood allows you to make up to 5 withdrawals every business day into your bank account. Additionally, Robinhood allows you to withdraw up to $50,000 every business day.
A deposit into your bank account can take up to 5 business days to complete, and you won't be able to withdraw or spend the money while it's in transit.
What Does "Withdrawable Cash $0 on Robinhood" Mean?
Robinhood is the most popular app in the United States, and it allows users to invest in ETFs, options, and stocks. Robinhood also provides additional financial services such as trading and more, in addition to buying and selling these assets.
However, Robinhood users have reported issues where the withdrawable amount on Robinhood seems to be $0 on many occasions.
There could be a few reasons why your withdrawable cash appears $0 on Robinhood. A possible reason is that you haven't yet deposited any funds into your account.
The profits from the selling of securities are put into your cash balance. The cash balance will be $0 if you have no other securities in your account.
Another option is that you've sold a security but haven't yet taken any of the earnings. Until you withdraw the money, the cash balance will be $0.
Why is My Withdrawable Cash $0 on Robinhood?
There are a few possible reasons why your withdrawable cash appears $0 on Robinhood. The most important thing to keep in mind is that your money is still there just that you can't withdraw it due to some issues related to your account.
What can these reasons be?
Below are 4 possible reasons why your withdrawable cash appears $0 on Robinhood together with solutions to each reason.
1. Funds Have Not Yet Settled
This is one of the major reasons why your withdrawable cash appears $0 on Robinhood. Some users usually ignore this reason but it turns out the be the most commonly known issue that users face when trying to withdraw money from Robinhood.
These funds are restricted to the amount that can be made available for withdrawal after selling stocks, ETFs, and options.
It makes no difference if you had the choice of receiving rewards in exchange for your sale. Robinhood first marks the funds as "Withdrawable Cash" once it is made available for withdrawal. This process can also be referred to as 'Settling of the funds'.
If you don't get any cash when you sell stocks or other linked entities, it's because the funds have not yet settled.
How to Remedy Why is My Withdrawable Cash $0 on Robinhood Due to Funds No Settled Yet
This isn't a major problem, and you shouldn't be doing anything. Simply wait for the settlement period to come to an end which generally takes 2 to 3 days before your funds will be made available in the "Withdrawable Cash" section.
2. Your Account is Restricted
With huge amounts of money being involved, account security becomes extremely important. We're talking millions of dollars being deposited and withdrawn from Robinhood on a daily basis.
Robinhood employs an automatic security system that monitors each account's behavior. Not only is Robinhood fully automated, but it also performs manual account verification and record checks.
If any account is linked to any unethical behavior, Robinhood restricts the account's features, including cash withdrawals.
So, even if your funds are settled, you won't be able to withdraw or transfer your money, therefore this might make withdrawable cash $0 on Robinhood.
How to Remedy Why is My Withdrawable Cash $0 on Robinhood Due to Account Being Restricted
If you've been restricted by Robinhood, it's possible that the automatic system mistakenly flagged you. You can contact the Robinhood support team if you are certain you have not been involved in any fraudulent activity.
According to a statement released by Robinhood, they will assist users who have been restricted by mistake. Simply contact the Robinhood customer service team and inform them of the situation. And, hopefully, your account will be unflagged.
3. Withdrawal Limits Reached
Whether or not a user's account has not been restricted, Robinhood has imposed a withdrawal limit for all platform users. You are not allowed to withdraw more than $50,000 from your Robinhood account on a single day. Robinhood explained, "This limit is in place to prevent money laundering on the platform".
The maximum amount of $50,000 can be withdrawn in a single transaction or in a total of five transactions. Yes, you read that correctly: you can withdraw up to five times per business day.
The cumulative amount of those five withdrawals does not have to be $50,000.
If you've surpassed your limit, you might see withdrawable cash of $0 on Robinhood.
How to Remedy Why is My Withdrawable Cash $0 on Robinhood Due to Withdrawal Limits
You can only withdraw up to $50,000 a day and no more than five times per day. Before making any withdrawals, you should wait at least 24 hours.
There only way to overcome this withdrawal limit reached for the 'withdrawable cash $0' issue on Robinhood is to wait for 24 hours to pass.
4. Selling Referral Stock
If you've used Robinhood for a long time, you've probably heard about their referral program. With their referral program, Robinhood allows users to earn free stocks just by bringing a friend to the platform.
Users who recommend the app and those who download it through a referral link both benefit from the referral benefits.
However, there is a catch — if you sell the amount before 30 days, you will not be able to withdraw any money.
Although Robinhood does not impose any restrictions on selling referral stock, the amount you made on the stocks is only accessible for withdrawal after 30 days.
How to Remedy Why is My Withdrawable Cash $0 on Robinhood Due to Selling Referral Stock
Even if you are a Robinhood Gold member, you will not be able to transfer the selling amount of the stocks you received to a bank account instantly. You'll have to wait 30 days for the cash to settle before you can withdraw them.
How Long Until Cash Is Withdrawable From Robinhood?
Your money on Robinhood becomes "withdrawable cash" when it has fully settle 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 the date of trade plus two more trading days generally represented as T+2.
Final Thoughts on Why is My Withdrawable Cash $0 on Robinhood
Most users have experienced account-related issues some of which are the withdrawable cash appearing 0$ on Robinhood. There are a few reasons why this issue occurs and we have outlined 4 major reasons you might experience this with your account.
No matter the reason why your account got this issue, do not worry about your funds because your money is still there. If your account isn't involved in fraudulent activities then rest assured, because, Robinhood even mentioned they will help account owners restore their accounts if it was mistakenly flagged.
These are our 4 reasons and solutions to answering the question "Why is my withdrawable cash $0 on Robinhood". If you have something to add, let us know in the comments section, we will be more than glad to hear from you.