To cash out stock on Robinhood, sell your shares through the app's trading interface, then withdraw the proceeds to your linked bank account. The funds settle in 2 business days after the trade date, and are available for withdrawal once settled.
Selling stock on Robinhood begins with going through to the "Positions" tab, selecting the stock you want to sell, and choosing "Sell." You can sell all shares or a specific quantity. Once confirmed, the trade executes at the current market price. The transaction settles in T+2 (two business days after the trade date), during which time the money is pending. After settlement, the cash appears in your account balance and can be withdrawn.
Robinhood does not charge commissions on standard stock trades, but settlement delays apply. Funds from a sale are not immediately available. Attempting to withdraw before settlement results in a failed transfer. For example, selling 10 shares of Apple at $180 each on Monday generates $1,800. That amount appears as "pending" until Wednesday. Only after Wednesday is the money accessible for withdrawal.
When you sell stock on Robinhood, the platform acts as a broker-dealer. The trade executes through the National Securities Clearing Corporation (NSCC), which handles clearing and settlement. The trade date (T) is when the sale occurs. Settlement happens on T+2, meaning two business days later. During this period, the funds are held in a "pending" state.
After settlement, the cash becomes "available" in your account. You can then initiate a withdrawal to your linked bank account. Transfers typically take 1-3 business days to arrive. A $0 withdrawal fee applies, but banks may charge their own fees. If you attempt to withdraw before settlement, the request fails and you receive an error message.
For example, on a Friday, you sell 50 shares of Rivian at $65 per share. The total sale value is $3,250. The trade settles on Tuesday. On Wednesday, the funds appear in your account. You can then click "Withdraw" and choose your bank. The money arrives in your checking account by Thursday or Friday.
You must have a funded Robinhood account with a verified identity and a linked bank account. Verification requires a government-issued ID and a valid U.S. address. Without verification, you cannot sell or withdraw funds.
Robinhood supports standard stock trades, options, and ETFs. You cannot sell fractional shares unless they were purchased via a fractional trade. To sell a fractional position, you must first convert it to whole shares or sell the fraction directly. Fractional sales are processed at the current market price.
For instance, if you hold 0.75 shares of Roblox stock robinhood, you can sell the entire fraction. The proceeds are added to your cash balance. The system calculates the payout based on the last traded price at the time of execution. No minimum sale size applies.
Many users assume that funds from a stock sale are instantly available. This is false. Robinhood follows SEC Regulation T, which mandates a two-day settlement window. Withdrawing before settlement causes the transfer to fail. The app displays a "Pending" status until the funds clear.
Another common error is confusing "cash balance" with "available funds." Your cash balance includes unsettled proceeds. Available funds refer only to money that has settled. You can spend available funds immediately. Unsettled funds are restricted.
A lesser-known rule: if you sell a stock and buy another within the same day, the trade counts as a day trade. Robinhood flags accounts with more than three day trades in five business days. Exceeding this limit triggers a pattern day trader (PDT) restriction, limiting further trades until the account holds $25,000.
There are three primary sale types: market, limit, and stop-loss orders. Market orders execute at the current market price. Limit orders set a maximum purchase price or minimum sale price. Stop-loss orders trigger a sale when the stock hits a specified price.
| Sale Type | Execution Speed | Price Guarantee | Best For |
|---|---|---|---|
| Market | Immediate | No | Quick exit at current price |
| Limit | Delayed | Yes | Setting a minimum sale price |
| Stop-Loss | Delayed | Yes (trigger only) | Protecting against losses |
For withdrawals, Robinhood offers two methods: instant and standard. Instant withdrawals are available for up to $500 per day and take 1-2 hours. Standard withdrawals take 1-3 business days and have no daily cap. Instant withdrawals incur a 1.5% fee on amounts over $500.
I once sold 20 shares of Rivian stock robinhood using a limit order set at $70. The stock dropped to $68.50, so the order didn't execute. I waited two days, then changed the order to market. It executed at $69.20. The $1,384.00 appeared in my balance on Tuesday. I withdrew it via standard transfer on Wednesday. It arrived in my bank account on Friday.
If a stock is delisted, such as a company filing for bankruptcy, you may still be able to sell it. However, trading volume drops sharply. If no buyers exist, the stock may remain unsold. In such cases, the shares stay in your portfolio and are marked as "untradable."
For delisted stocks, Robinhood provides a "Sell" button only if the stock is still listed on a major exchange. If not, the option disappears. You cannot sell shares that are no longer traded. If you try, the app returns an error: "This security is not tradable."
After the sale settles, go to the "Cash" tab in the Robinhood app. Tap "Withdraw," select your bank, enter the amount, and confirm. The system validates your bank details and sends the transfer. You'll receive a notification when the funds leave your account.
Withdrawals are processed between 9 a.m. and 5 p.m. Eastern Time on business days. Weekends and holidays delay processing. If you withdraw on a Friday, the funds leave your account on Monday and arrive in your bank account on Tuesday or Wednesday.
Once withdrawn, the money is no longer under Robinhood's control. You can use it freely. If you're selling a large position, consider spreading the sale over multiple days to avoid market impact. Selling all shares at once may affect the price if the stock is illiquid.
Understanding how to cash out stock on Robinhood prevents delays and errors. Always wait for settlement before withdrawing. Check your account balance after the trade to confirm the sale completed. If the funds don't appear after T+2, contact Robinhood support. They can verify the settlement status and resolve discrepancies.