What Are Unsettled Funds in Robinhood?
The Robinhood brokerage firm has quickly become one of the most reliable platforms where users are able to withdraw funds, buy stocks and open a trading account for different operations.
Nonetheless, there’s something called the “settlement period” and it takes place right after you sell stocks.
The “unsettled funds” in Robinhood message can be scary for some, but worry not - it’s actually pretty normal.
If you are just getting started with Robinhood investing and the unsettled funds message appears, then it’s important for you to understand why it is happening.
Read further to learn more about:
- What are unsettled funds in Robinhood?;
- Different types of unsettled funds in Robinhood;
- How long does it take Robinhood to settle funds?
- How to solve the unsettled funds problem in your Robinhood account.
What Are Unsettled Funds in Robinhood?
First, it’s fundamental to understand Robinhood unsettled funds.
Think of unsettled funds as “pending transactions” on your Robinhood account.
These Robinhood unsettled funds will eventually come to you, but the pending proceeds need to be completed before you gain access to your funds again.
The Securities and Exchange Commission ( SEC) imposes that all stock purchases, whether we talk about Robinhood markets or other financial markets, need to complete a waiting period.
Thus, this money will be considered “unsettled funds” until then.
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Unsettled Funds from Bank Account Deposits
If, after selling stocks, the funds are not immediately available for withdrawals, then worry not - you will receive funds sooner than later.
Still, the funds settle in up to five days.
Robinhood permits a withdrawal limit of $50,000 every business day, but if you really want to withdraw money, then it’s utterly important to wait for Robinhood unsettled funds to get settled.
Unsettled Funds from Stock Sales
Worry not - if you have a Robinhood cash account, which is the most basic one of them all, it’s totally normal to face unsettled funds in your margin account if you have sold a stock.
This is stated on Robinhood’s Official Website.
Needless to say, the unsettled funds will be available sooner than you imagine.
Unsettled Funds Robinhood: What You Need to Know
Now that you know what unsettled funds are, it’s time to understand other relevant things regarding these funds.
There are five fundamental factors to take into account that will help you to comprehend the reasons and the solutions behind unsettled funds in Robinhood.
Read Also: Is your Robinhood Account Restricted from Purchasing? Margin accounts can face this inconvenience due to many different factors.
If you are having this issue, then read our related article on our website so you can learn how to solve it once and for all.
How To Check Unsettled Funds in Robinhood?
Unsettled funds will be shown on your main screen.
As soon as you log in to your Robinhood account, the funds will appear there.
Naturally, bank deposits and stock sales are the two things that trigger this problem.
So, depending on what you did on your Robinhood account, the funds will be there for at least one day.
Robinhood Instant, Robinhood Gold and Buying Power
There are different types of Robinhood accounts.
A Robinhood Gold account requires you to pay a monthly fee to have it, while Robinhood Instant is free, but there are some requirements before obtaining it.
Robinhood instant account holders can make instant deposits of up to $1000 without waiting.
Instant accounts are pretty helpful for an instant settlement.
On the other hand, Gold Accounts set something called “buying power” to determine the likelihood of unsettled funds happening.
If you have enough buying power on Gold Accounts, which is determined at the moment you create your profile, then you will have access to more stock purchases without waiting for the settlement time.
Pro Tip: When you sign up for a Gold or Instant account, the platform will ask you for your Social Security Number.
Learn more about this matter by reading our Robinhood SSN blog post.
How Long Does It Take for Funds to Settle Robinhood?
It entirely depends on the transaction you have done.
For instance, if you made a deposit from your Robinhood Cash Account to your bank account, it can take up to five days to receive the funds.
On the other hand, if you used a Robinhood Gold account to purchase a stock, then the funds won’t settle at all.
However, if you don’t have a Gold Account, then two days will be more than enough for the funds to be unsettled.
Can You Withdraw Unsettled Funds?
No. You can’t Withdraw Money from Robinhood to your bank account until the funds get unsettled.
Therefore, if you want to withdraw unsettled funds, just have some patience.
Please, don’t panic - your money will be there soon enough.
It’s normal to get desperate, but Robinhood is a really trustable platform, and they follow financial laws in order to ensure the safety of all your assets.
Can I Access Trading Options with Unsettled Funds Robinhood?
Only Instant and Gold users can use unsettled funds for trading purposes, but always with a limit that must be respected.
If you have a cash profile, then no, you won’t be able to touch the funds until they get unsettled - as simple as that.
We know that unsettled funds might be a headache for some, but they are there for a reason.
Robinhood is one of the most reliable online brokers out there, so your money is safe and sound!
Unsettled Funds Robinhood FAQ
Why Are Unsettled Robinhood Funds Not Unsettling?
In case more than three or five days have passed, and your funds are still unsettled, then you need to contact Robinhood’s Support Team as soon as you can.
They should be able to help you with this inconvenience in no time.
Steve specializes in cryptocurrency and finance. As a born researcher, he won’t leave any stone unturned when it comes to topics he covers.