Investors who use Robinhood for trading may occasionally come across a situation where they try to withdraw cash from their account, only to find that their withdrawable cash balance is $0.
This can be frustrating and worrying, but there are a few reasons why this might occur.
Keep on reading to learn what might be causing this, or watch my full Robinhood tutorial below!
Robinhood is a popular "all-in-one" investing app.
While they are most well-known for their commission free stock trading, they've recently shaken up the Retirement Investing World too.
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Here's what you need to know:
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The most common reason behind $0 withdrawable cash is the settlement period.
When you sell equities in your brokerage account, the transaction must first "settle" before you can withdraw the funds to your bank account.
For equities (a.k.a. stocks), the settlement period is typically the trade date plus two trading days (T+2), known as regular-way settlement. Keep in mind, Saturday, Sunday and holidays do not count as trading days.
This means that if you sell stocks on Monday, the funds will not be available for withdrawal until Thursday.
During this settlement period, the funds will not be included in your withdrawable cash balance.
Once the settlement period has passed, the funds will be released and will appear as withdrawable cash.
At this point, you can transfer the funds to your bank account if you wish.
Another reason why your withdrawable cash balance may be $0 is that you simply do not have any money in your account.
If you have recently made withdrawals or have had trades that resulted in losses, it is possible that your account balance has dropped to $0.
In this case, you will not be able to withdraw any funds until you have deposited more money into your account.
In conclusion, if you find that your withdrawable cash balance on Robinhood is $0, it is likely due to a settlement period or a lack of funds in your account.
Keep in mind that it may take a few days for funds to become available for withdrawal, and if you have any concerns, it is always a good idea to reach out to Robinhood customer support for assistance.
If you want to learn more about Robinhood, check out our full beginner's guide about how Robinhood works here.
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