Whether you are looking to cash in on an investment adjust your investment mix or simply need some cash it’s important to know the process of selling stocks on Robinhood and withdrawing your funds. If you’re wondering how to sell stocks on Robinhood and cash out the steps are simple. There are details and timeframes to keep in mind.
How Do I Sell My Stocks on Robinhood and Cash Out?
The steps of how to sell stocks on Robinhood and cash out allow you to sell share positions within the Robinhood app, convert those investment proceeds into withdrawable cash, and ultimately get that money transferred out to your linked bank account quickly and easily.
Step 1: Review Stocks in Your Portfolio
Before selling any stocks it’s advisable to review your portfolio on Robinhood. This includes understanding your investment distribution unrealized gains and losses cost basis for each position among key metrics. In the app navigate to the Accounts icon > Portfolio section to view all your stock holdings along, with share quantities current trading prices, and total equity values.
Step 2: Select the Stock to Sell
Once you have made up your mind on which stock position to reduce exposure to or sell completely just click on the corresponding stock item to check out the trade ticket. Take a look, at the asking price, your investment and the potential profit or loss before making a decision.
Step 3: Enter Your Sell Order Details
At the bottom of the trade ticket for that stock you’ll find options to “buy” or “sell.” Hit the Sell” button to input your selling order details. Firstly indicate if you want to sell all shares of that stock or only a part of it. If its a sale, specify the number of shares you wish to sell. Next decide between a market” order to sell away at the current market price or a “limit” order to sell only when the stock reaches a specific target price set by you. You can also activate features, like Stop Loss or Trailing Stop Limit orders if you want selling if the price falls to a certain level. Click on the Review Order” button once all selling order details are set up correctly.
Step 4: Confirm and Place the Sell Order
Finally, carefully review all details one last time for your pending sell order on Robinhood, including:
- Stock is being sold.
- Number of shares
- Order type (market, limit, etc.)
- Estimated debit/credit amount +/- fees.
- Order expiration (day, GTC, etc.)
If everything looks correct, tap the bright green “Send Order” button to lock in your sale. Robinhood will execute the order nearly instantly if you choose a market sell order, or else route your limit order to the exchanges to fill when or if the trigger price is reached.
Step 5: Wait for a Trade Settlement
Wait for the trade settlement process to complete. To convert your sold stock proceeds into cash in your Robinhood account you must wait for the trade settlement period as per SEC regulations. All stock (and ETF) trades on Robinhood follow a T+2 settlement cycle meaning the funds from your sell order will be available, for withdrawal or reinvestment two full trading days after the sale is executed.
Step 6: Transfer Cash to Your Bank
Once that two-day trade settlement window has passed, you’ll see your trade proceeds sitting in your Robinhood account displayed as cash buying power. To withdraw those funds to your linked bank account:
- Tap the Transfer icon at the bottom.
- Choose “Transfer to Your Bank.”
- Enter the cash amount you want to withdraw.
- Review and confirm the transfer details.
- Wait 1–3 business days for the withdrawal ACH transfer to complete.
And that’s it! By following these steps, you can easily sell stocks within the Robinhood app, let the trade settle over 48 hours, and then quickly withdraw your cash proceeds to your checking or savings account.
Pro Tips for Efficient Withdrawals
Here are some additional pro tips to keep in mind for selling stocks and cashing out on Robinhood:
- Set price alerts for existing positions to know when to sell.
- Only sell shares that are not currently being used to generate earnings.
Remember, investing involves risk and past performance does not guarantee future results. Always do your own research and consider your financial situation carefully before making investment decisions.
Wrapping Up
Selling stocks on Robinhood is a simple process that can be done in just a few steps. By following the steps outlined in this guide and keeping an eye on market trends, you can successfully sell your stocks and cash out your investments.
FAQs:
Is there a fee for selling stocks on Robinhood?
No, Robinhood does not charge any commission fees for selling stocks.
How long does it take for a sell order to be executed on Robinhood?
Sell orders on Robinhood are typically executed almost instantly for market orders, while limit orders may take longer depending on market conditions.
How to Buy Stock on Robinhood?
To buy stock on Robinhood, you can follow these steps:
- Go to the stock’s detail page on the Robinhood app or website. You’ll find information like the stock’s historical performance, analyst ratings, and company earnings.
- Select Trade and then Buy, or just Buy if you don’t currently own the stock.
- In the Buy In section, choose whether you want to buy in Dollars or Shares.
- Review your order to make sure all details are correct, then select Edit if you need to make changes.
- Once everything looks good, on the app, swipe up to submit your order, or on the web, select Buy to complete the purchase.
Can I sell my entire stock position or only a portion?
You have the option to sell all shares of a stock or just a portion, depending on your preference.
What is the trade settlement period?
The trade settlement period on Robinhood is T+2, meaning it takes two full trading days for the proceeds from a sell order to become available for withdrawal or reinvestment.
Are there any restrictions on withdrawing cash from Robinhood?
Robinhood allows you to withdraw cash to your linked bank account with no restrictions, but it may take 1–3 business days for the withdrawal to complete via ACH transfer.
Can I cancel a sell order on Robinhood?
Yes, you can cancel a sell order on Robinhood as long as it has not been executed yet.
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