How to Withdraw Buying Power from Robinhood? [Steps]

 

If you are a trader or are looking to deposit money into your bank account, your Buying Power can become a crucial. The Robinhood is known of its ease of use and offering commission-free trading. Robinhood Buy Power is the amount of money that you have to you in the account of your Robinhood account to purchase options, stocks, or cryptocurrencies. But what if you want to move your Buying Power out of Robinhood and into your bank account?

If you want to withdraw some of your purchasing power, press on the "Initiate Transfer" button. To do this, you must specify the amount and the destination prior to looking and then approving. Make sure to be aware that this feature is only applicable for accounts with a positive cash balance, and with no margin. Transfers that are initiated after 7pm ET can be suspended till 3 p.m. ET the next day.

 

What Is Buying Power on Robinhood?

A Robinhood buying power is the amount of money an investor has that could be used to purchase securities, which includes the funds they have in their accounts, as well as money borrowed from margin accounts (if appropriate) as well as the proceeds of previous sales of stock. The term "Buying Power is the amount of cash that are in your Robinhood account that you are able to make use of to buy options, stocks, or cryptocurrency. It is basically the sum of the balance of cash in your account, plus unresolved money from selling stocks. However, buying power cannot be immediately withdrawn as unpaid funds have to be settled or any other margin requirement must be satisfied prior to withdrawal.

 

How to Withdraw Buying Power from Robinhood?

The process of withdrawing your Buy Power from Robinhood is quite easy, however there are some important details to remember. Below mentioned the steps on how to transfer buying power from Robinhood to bank:

·         Open the Robinhood app on your phone or iPhone.

·         On the home screen, you will find you will see your Buying Power listed under your balance on your account.

·         You can find the “Account” icon.

·         Here go to the "Transfers" to start the process of making transfers in your banking account.

·         Under "Transfers" section, choose the option "Transfer to Your Bank."

·         After this enter the amount Buying Power you would like to deposit into your banking account.

·         At last, recheck all the details and hit on the submit.

 

When Does Buying Power Become Withdrawable on Robinhood?

One of the most important aspects of Robinhood's function is that not every Buying Power is instantly withdrawable. The money must satisfy specific requirements before you can transfer them to a bank account. Here is when does buying power become withdrawable Robinhood:

·         If you deposit money in the account of your Robinhood accounts, these funds are accessible as Buying Power immediately. However, the deposits are not immediately withdrawal able. Robinhood will require you to wait for five business days before you are able to withdraw the deposit amount.

·         When you have made a sale of any stock, the proceeds from the sale are deposited into the Buying Power immediately, but they are unsettling for two days. After the T+2 period of settlement is completed, the funds will be readily available to be withdrawn.

·         If you are using the margin offered by Robinhood Gold, the funds of the loans are used to purchase stock, however they cannot be taken out. Only the proceeds of sales are transferable directly to the bank you have.