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Robinhood Withdrawal Fee, Terms and How To Transfer Funds Out of Brokerage Account


2019 Robinhood app withdrawal fee, transfer funds to bank options, terms for moving cash, getting money out of brokerage account by ACH, wire transfer, debit card, ATM, or check.



Terms to Withdraw Money From Robinhood


If you need to get money out of a Robinhood account, there are a few methods available to do so. The most common way to move funds out of a Robinhood brokerage account is to use the firm’s mobile platform. For Robinhood customers, this is where all trading activity takes place because the broker-dealer doesn’t have a desktop or browser platform.

To submit a transfer request on the Robinhood mobile app, you first need to tap on the menu icon, which is in the shape of a person, in the upper-left corner of the app. A menu will pop out from the left-side of the screen. Several options are available, one of which is banking. Tapping on this produces a new menu with several selections. The one you want to choose is ‘Transfer to Your Bank.’ Doing so will produce a user-friendly form where you can submit a withdrawal request.


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Robinhood Withdrawal Fee


Robinhood does not charge a fee to withdraw funds out of account unless you use wire transfer service.


Linking an External Account


Before you try to withdraw funds from Robinhood, you must first link an external account to your Robinhood securities account. Under the banking menu that you saw earlier, a choice is available entitled ‘Linked Accounts.’ Tapping on this selection reveals the accounts that are already linked, if any, and the ability to add a new account. Choosing this option produces a list of bank icons, where the routing numbers are already incorporated. Some of the available choices include Wells Fargo, PNC Bank, Chase, Capital One, and Citibank. Robinhood now has many more choices than it did in the past. But if you still can’t find your bank, you can add it with just the account and routing numbers. Once you have the bank linked, making a transfer is a breeze.


Account Balance


To find your account balance on the Robinhood mobile app, you can tap on the menu icon mentioned earlier in the top-left corner. Doing so produces the menu where an ‘Account’ option appears. Tapping on this produces a helpful list of account data, such as buying power and withdrawable cash. This will tell you how much money can be taken out of your Robinhood account.


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Withdrawing Money From Robinhood With ACAT Service


Instead of moving funds out of a Robinhood account, you could just move the entire account to another broker-dealer. Doing so will incur a $75 charge by Robinhood, who apparently has to make money somehow. Transferring the account begins with the receiving broker, and many firms today have a user-friendly online transfer form that makes the process quick and easy.


Comparison


Most other brokers, including Merrill Edge and Fidelity, have more methods of moving funds to external accounts. Robinhood apparently has to trim costs, which reduces its customer service options.


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About Robinhood


A leader in the no-commission investing, Robinhood has disrupted the brokerage industry and sent competitors scrambling to provide their customers with lower pricing. Robinhood does not offer trend analysis tools or interactive graphs, but for unlimited free trades on a decent user friendly platform, it is not hard to see why this app is popular. For those highly experienced day traders who short-sell and trade options, this app will not be the best. But for the average Joe who buys and sells a few times a week or the long term investor, Robinhood makes a sense.

Robinhood is an app-based stock brokerage firm. Robinhood’s business plan is to earn interest on uninvested cash in its user’s accounts rather than earn commissions on each trade its users make. Robinhood is available on both iPhone and Android. The broker is a decent way for amateur investors to get their foot in the door and learn the basics of stock trading, as well as (hopefully) make some money in the process.


Robinhood Pros


The app is free and there is no minimum investment. Robinhood charges no commissions or other trading related fees. Traders have options to invest in a plethora of publicly traded stocks and ETFs. Deposits of up to $1,000 into one’s Robinhood account are immediately available for trading. Robinhood offers many of the same order types as more mainstream brokerage firms. These include: market orders, limit orders, stop loss orders, and stop limit orders.

Robinhood has memberships with FINRA and SIPC. These are important safeguards for investments. They ensure that should a brokerage firm becomes insolvent, it’s customer’s assets are protected. It’s kind of like the “FDIC Insured” sticker seen on bank doors. Remember though, it does not protect the value of your assets, only the ownership of those assets.


Robinhood Cons


Unlike many brokerage firms where individuals trade through dedicated stock brokers, Robinhood trades are transacted solely by the account owner. Robinhood investors will not be able to rely on advice from a professional broker.

There is a three-day hold on funds received from selling stocks. Users may not use these funds to purchase other shares of stock or withdraw the funds until they are cleared.

Robinhood is a terrific brokerage firm with a great app. Both amateur investors as well as more experienced traders will be satisfied. Their no-commission set up will save investors a great deal of money in the long run. The positives far outweigh the few negatives for Robinhood.

Investors looking to get started can learn more at www.robinhood.com.