How to sell a stock on Robinhood
To sell a stock on Robinhood, open the app, find the stock in your portfolio, tap it, and then tap the sell button. The app will show you the current price and ask how many shares you want to sell. You can sell all your shares at once or just some of them. Once you confirm the order, Robinhood sends it to the market when ready during trading hours (9:30 a.m. to 4 p.m. Eastern time on weekdays).
If you try to sell during market hours, your order usually fills within seconds at or near the price you see on screen. If you sell after hours or before the market opens, your order waits until the next trading session begins. The price you get might be different from what you see when you place the order, because stock prices move constantly.
After you sell, the cash sits in your Robinhood account as "buying power" — you can use it to buy other stocks right away, but it is not yet in your bank account. This is an important distinction: selling a stock and having the money in your bank are two separate steps.
Key Takeaways
- Selling a stock on Robinhood takes seconds during market hours, but the money stays in your Robinhood account as buying power until you transfer it out.
- You must wait for the sale to settle (usually two business days) before you can move the money to your bank account.
- Transfers from Robinhood to your bank take one to three business days, depending on your bank.
- Robinhood charges no fee to transfer money out, but your bank may charge a fee to receive it.
- You will owe taxes on any profit you made when you sell, even if you have not withdrawn the money yet.
Understanding settlement and when you can withdraw
When you sell a stock, the transaction does not finish when ready. Robinhood must wait for the stock exchange to settle the sale, which takes two business days. During those two days, the money is in your account but marked as "unsettled." You cannot withdraw unsettled cash to your bank account yet.
After two business days pass, the cash becomes settled and moves into your regular account balance. At that point, you can transfer it to your bank. This two-day window is a rule set by the stock exchange, not by Robinhood — every brokerage follows the same timeline.
If you sell on a Friday, for example, the settlement clock starts then. Monday and Tuesday count as the two business days, so your cash is settled by Wednesday morning. Weekends and market holidays do not count toward the two-day window.
How to transfer money from Robinhood to your bank account
Once your sale has settled, open the Robinhood app and tap the Account tab at the bottom. Tap "Transfers," then tap "Transfer to Your Bank." The app will show you the bank account you linked when you opened your Robinhood account. Select how much money you want to move out, then confirm.
Robinhood processes the transfer when ready, but your bank takes one to three business days to receive it. Most banks deposit the money within one business day. You can check the status of your transfer in the Transfers section of the app — it will show "pending" until your bank receives it, then "completed."
If you have not yet linked a bank account to Robinhood, you will need to do that first. Tap Account, then Transfers, then "Add a Bank Account." You will need your routing number and account number, which you can find on a check or in your bank's app.
What happens if you sell at a loss or a gain
Whether you made money or lost money on the sale, the mechanics are the same: you sell the shares, wait two days for settlement, and transfer the cash to your bank. The difference is in your taxes.
If you sold for more than you paid, you owe capital gains tax on the profit. If you sold for less than you paid, you have a capital loss, which can offset other gains or reduce your taxable income. Robinhood tracks all your sales and sends you a tax form (Form 1099-B) at the end of the year that lists every transaction. You do not have to do anything right now except know that the tax bill is coming.
The timing of when you withdraw the money does not change your tax obligation. If you sell in January but do not withdraw until March, you still owe taxes on the January sale in April when you file your return.
Selling fractional shares
Robinhood lets you buy and sell fractional shares — meaning you can own 0.5 shares or 2.3 shares of a stock, not just whole numbers. When you sell, you can sell the fractional amount just like you would sell whole shares. The process is identical: tap the stock, tap sell, enter the amount, and confirm.
Fractional shares settle on the same two-day timeline as whole shares. There are no extra fees or delays because your shares are fractional.
Robinhood Gold and when ready transfers
Robinhood offers a paid subscription called Robinhood Gold that includes a feature called "when ready Transfers." With this feature, you can transfer money to your bank account before your stock sale has settled — you do not have to wait the full two business days.
Robinhood Gold costs money each month (the price varies). The when ready transfer feature has a daily limit on how much you can move out, and the limit depends on your account balance and history. If you use when ready transfers frequently, Robinhood may lower your limit temporarily. You can check your current when ready transfer limit in the app under Account settings.
when ready transfers still take one to three business days to reach your bank — the "when ready" part means you can initiate the transfer right away, not that the money appears in your bank account when ready.
Common reasons a sale or transfer might fail
Most sales and transfers go through without a problem, but a few things can block them. If you try to sell during market hours and your internet connection drops, the order may not go through — check your portfolio to see if the shares are still there. If they are, try selling again.
If you try to transfer money to a bank account that is not linked to your Robinhood account, the transfer will be rejected. You can only transfer to the bank account you registered when you opened your account, or to a new account you add in the app. Transfers to accounts at other people's banks will not work.
If your bank account is closed or flagged for fraud, your bank may reject the transfer. In that case, the money returns to your Robinhood account, and you will see a notification in the app. Contact your bank to find out why the transfer was rejected, then try again once the issue is resolved.
Frequently Asked Questions
Can I sell a stock and transfer the money on the same day?
No. You must wait two business days for the sale to settle before you can transfer the money to your bank. You can initiate the transfer on day three, but your bank will not receive it for another one to three business days. If you have Robinhood Gold, you can transfer the money before it settles, but your bank still takes one to three days to process it.
What if I sell a stock but change my mind before the transfer completes?
Once you sell, the transaction is final — you cannot undo it. If you want to own the stock again, you have to buy it back at the new market price, which may be higher or lower than what you sold it for. If you initiated a transfer to your bank but have not received it yet, you can cancel the transfer in the app and the money stays in your Robinhood account.
Do I have to pay taxes on the money I withdraw?
You owe taxes on the profit from the sale itself, not on the act of withdrawing the money. If you sold a stock for a $100 gain, you owe tax on that $100 whether you withdraw it today or leave it in your account for a year. Robinhood will report the sale to the IRS on your 1099-B form.
Why does my transfer say pending for more than three business days?
Most transfers complete within one business day, but some banks take the full three days. If it has been more than three business days, contact your bank to ask if they received the transfer. If they did not, contact Robinhood support through the app and provide the transfer confirmation number.
Can I transfer money to a different bank account than the one I linked?
No. Robinhood only transfers to the bank account you registered when you opened your account. If you want to transfer to a different account, you must add that account in the app first. Tap Account, then Transfers, then "Add a Bank Account," and follow the steps to verify the new account.