Free Guide to Moving Money From Robinhood

Understanding Robinhood Account Transfers and Movement Options

Robinhood is a brokerage platform where people buy and sell stocks, exchange-traded funds (ETFs), options, and cryptocurrencies. If you're thinking about moving money or securities from Robinhood to another brokerage, understanding how the process works is the first step. Robinhood allows account holders to transfer both cash and securities to other financial institutions through standard industry procedures.

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When people talk about "moving money" from Robinhood, they typically mean one of three things: transferring cash from their Robinhood account to a connected bank account, transferring securities (stocks, ETFs, or crypto) to another brokerage, or closing their account entirely and withdrawing funds. Each method works differently and takes a different amount of time. The reason someone might want to move money includes consolidating accounts, switching to a different brokerage with different features or lower fees, or simply withdrawing funds for personal use.

Robinhood has made several changes to its platform over the years. As of 2024, the company offers commission-free trading, which it pioneered in 2015. However, the platform has faced criticism regarding order flow practices, trading restrictions during market volatility, and the types of investments offered compared to larger brokerages. Some users prefer to move their money to traditional brokerages like Fidelity, Charles Schwab, or Vanguard, which offer broader investment options and different account structures.

The transfer process involves Automated Customer Account Transfer Service (ACATS), which is a system used across the financial industry to move securities between brokerages. This is different from simply withdrawing cash. Understanding which method applies to your situation will determine how long the process takes and what steps you need to follow.

Takeaway: Before moving any money, identify what you're moving (cash, securities, or both) and where it's going. This determines which transfer method you'll use and how long to expect the process to take.

Step-by-Step Process for Withdrawing Cash to Your Bank Account

If you want to move cash from Robinhood to your bank account, the process is straightforward and typically the fastest option. Robinhood allows users to link a bank account and transfer money out through what's called an Automated Clearing House (ACH) transfer. Most people can complete this in just a few minutes on the app or website.

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Here's how the process works: First, you'll need to have a linked bank account on file with Robinhood. If you haven't already connected one, you can do this through the account settings or transfer sections of the app. You'll need to provide your bank's routing number and your account number. Robinhood will typically verify the account by depositing small test amounts (usually less than $1 each) which you'll need to confirm.

Once your bank account is verified, navigate to the transfer section and select "Transfer to Your Bank." Enter the amount you want to withdraw—Robinhood allows transfers up to $50,000 per transfer on most accounts. The money will leave your Robinhood account immediately, but it typically takes 1-3 business days to appear in your bank account, depending on your bank's processing speed. Weekends and holidays can extend this timeline.

Important considerations: Make sure you have enough cash in your Robinhood account to withdraw. If you have securities, they must be sold first to convert them to cash. You cannot directly transfer securities this way—that requires a different process. Also, check if your bank charges fees for incoming transfers; while Robinhood doesn't charge to send money out, some banks may charge a fee to receive it. Additionally, keep records of all withdrawals for tax purposes, especially if you've made gains or losses on investments.

Takeaway: Withdrawing cash to a linked bank account is the quickest way to move money from Robinhood, typically taking 1-3 business days. Always verify you have enough cash available and check your bank's policies on incoming transfers.

How to Transfer Securities to Another Brokerage

If you want to keep your stocks, ETFs, or other securities but move them to a different brokerage, you'll use a process called an ACATS transfer (Automated Customer Account Transfer Service). This allows you to move your holdings intact without selling them, which can be important for tax reasons and for avoiding transaction fees.

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To initiate an ACATS transfer, you generally have two options: start the transfer from your new brokerage or initiate it from Robinhood. Most people find it easier to start from the new brokerage because that institution will handle much of the paperwork. When you contact your new brokerage, they'll ask for information about your Robinhood account, including your account number, the assets you want to transfer, and whether you want to transfer your entire account or just specific securities.

The new brokerage will then contact Robinhood to begin the transfer process. Robinhood charges a $75 account transfer fee if you move your entire account. This fee is typically deducted from your account balance at Robinhood. However, if you're only transferring some securities and keeping your Robinhood account open, the fee may not apply—this varies depending on the situation. Some brokerages will reimburse transfer fees if you move a large enough account, so it's worth asking your new brokerage about this.

The timeline for ACATS transfers usually runs 3-7 business days, though it can occasionally take longer. During this period, you won't be able to trade the securities being transferred. They'll be frozen in your Robinhood account. Once the transfer completes, your securities should appear in your new brokerage account with the same cost basis (the price you originally paid), which is important for calculating taxes when you eventually sell them.

One important note: Not all securities can be transferred. Robinhood's cryptocurrencies cannot be transferred via ACATS—you would need to sell them and withdraw the cash, then use that money to repurchase cryptocurrency at your new brokerage if they offer it. Options positions also cannot always be transferred directly.

Takeaway: ACATS transfers let you move stocks and ETFs to another brokerage without selling them, taking 3-7 business days and costing $75 for a full account transfer. Crypto and options require different handling.

Handling Cryptocurrency and Special Asset Transfers

Robinhood offers cryptocurrency trading, including Bitcoin, Ethereum, and other digital assets. However, cryptocurrency transfers from Robinhood work very differently than stock transfers, and this is a critical point many users misunderstand. You cannot directly transfer crypto from Robinhood to another brokerage or crypto exchange using ACATS or standard transfer methods.

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Robinhood does not provide users with private wallet access for their cryptocurrencies. This means Robinhood holds the crypto on your behalf, but you don't control the underlying digital assets directly. Because of this structure, the only way to move crypto from Robinhood is to sell it, withdraw the cash proceeds to your bank account, and then use that cash to purchase cryptocurrency on another platform. This process has tax implications—selling triggers a taxable event where you'll owe capital gains taxes on any profit if the crypto value increased since you bought it.

For example, if you bought Bitcoin at $30,000 and it's now worth $45,000, selling it on Robinhood means you have a $15,000 gain subject to capital gains tax. The tax rate depends on how long you held it: if less than one year, it's taxed as short-term capital gains (same rate as regular income); if more than one year, it's long-term capital gains (usually lower rates). After you pay taxes on the sale, you'd use the remaining proceeds to buy crypto elsewhere.

Some alternative platforms like Kraken, Coinbase, or self-custody wallets do allow direct crypto transfers between platforms, but only if both platforms support that feature. Robinhood's current setup doesn't support this. Additionally, when you eventually sell crypto or use it for purchases, the IRS treats each transaction as a taxable event, so keeping detailed records of all purchases and sales is important.

Options contracts on Robinhood also cannot be transferred via ACATS to many other brokerages. You would typically need to close out options positions at Robinhood before transferring your account, then open new positions at