Over the years, Robinhood has been one of the top brokerage firms that help investors invest their funds in stocks and cryptocurrencies. Since its launch, the platform has seen an influx of users ranging from new traders and seasoned investors who want to invest their funds via the brokerage firm. However, as a Robinhood user, you may notice that your account says “$0” under your withdrawable cash section and you may be wondering what it means, here’s what you should know.
This doesn’t mean your money was taken by Robinhood. There are different reasons why your cash balance says $0 in your Robinhood account. It may be because you haven’t deposited any cash in your account or you sold security and you haven’t withdrawn the proceeds from the sale into your account.
In this piece, I’ll shed more light on what the $0 in your withdrawable cash section means, the reasons why you’re seeing this, and how to solve it so you can get your cash and withdraw it to your bank account. There are several reasons why the withdrawable cash section in your account says $0 so read on to know these reasons.
Why Does My Withdrawable Cash Say $0?
There are different reasons why the withdrawable cash section in your Robinhood account says $0. The most popular, fundamental reason may be that you haven’t deposited any cash into your Robinhood account. If you haven’t added any cash into your Robinhood account, the withdrawable cash will remain at $0 and all other balances on your account will remain at $0.
However, if you have deposited cash, and you’ve performed several transactions on your account, another reason why your withdrawable cash may say $0 is because you don’t have any available withdrawable cash. This may be because you have used the available cash in your account to purchase stocks, securities, or cryptocurrencies. Until you sell any of these assets, you won’t be able to access any cash and your withdrawable cash balance will remain at $0.
When you sell a security, stock, or cryptocurrency, the proceeds from that sale will be moved to your withdrawable cash balance so if you have any of these assets and your withdrawable cash balance reads $0, you’ll need to sell them so the proceeds from the sale will be moved to your withdraw cash balance. If you have no assets, haven’t made any sales, and didn’t make any deposits, your withdrawable cash balance will remain at $0.
If the above fundamental reasons aren’t why your Robinhood withdrawable cash balance is $0, then any of the following reasons may be the cause of this issue:
Whenever you sell a security or any other asset and the proceeds don’t reflect directly in your withdrawable cash balance, then the reason is that your funds haven’t settled just yet. After you sell or trade some stocks or any other assets, you need to wait some time for the funds to settle in your account and reflect in your withdrawable cash account.
All the proceeds that come from selling any assets, either stock, crypto, EFT, options, etc will need some time to settle. Usually, it takes about 3 trading days for the funds to settle but this doesn’t mean it takes exactly the 3 trading days as some users barely need to wait for some hours and the funds will be settled into their accounts. While some people get it easier, some other users may need to wait for the entire 3 trading days before the funds get settled into their bank accounts.
Referral Stock Sale
If you participate in the Robinhood referral program and have referred some people, you would be expecting your cash to show in your withdrawable cash balance. However, this isn’t the case because the referral stock sale proceeds don’t show up immediately in your withdrawable cash balance. This is because you’ll need to wait for 30 days before the referral stock sale proceeds are moved automatically to your withdrawable cash balance.
When your referrals start selling, you may become wary about the proceeds because they do not show up in your withdrawable cash balance. This is because it takes 30 days to process the referrals before the proceeds are moved to your withdrawable cash balance.
Restricted Robinhood Account
Robinhood is quite strict when it comes to its account restrictions as this is one of its security measures to ensure that users comply with the brokerage firm’s rules. A restricted Robinhood account can be due to many reasons which include: money laundering, suspicious activities, being a control person, etc. if your account gets restricted, you won’t be able to make a funds withdrawal and your withdrawable cash balance will be automatically set to $0 until you clear yourself with Robinhood.
Bank Account Withdrawal Limits
If you’ve exceeded your bank account withdrawal limits, you won’t be able to withdraw cash from your withdrawable cash balance and this may lead to the balance being set to $0 by Robinhood. According to Robinhood, you can’t make withdrawals up to 5 times on a single day and the maximum amount for weekly withdrawals is $50,000. If you try to make more than 5 withdrawals on a day, your account may be blocked or restricted.
If you fail to respect these terms, you might be hit with the inability to withdraw cash from your withdrawable cash balance.
How To Solve “Withdrawable Cash Balance Is $0”
To solve the withdrawable cash issue, there are different ways you can do this. Firstly, if it’s one of the fundamental reasons like you not depositing funds into your account, make sure to deposit some money into your account. If you’ve deposited money in your account and you’ve performed different transactions on your account, you may need to sell a security or any of your other assets like crypto, options, or EFT so the proceeds will be sent to your withdrawable cash balance.
If you’re dealing with unsettled funds, to fix this issue and get some cash into your withdrawable cash balance, you need to be patient with Robinhood. For your unsettled funds to be processed, it usually takes about 3 trading days, hence, you need to be patient and wait for this period to elapse. During this period, the proceeds from your sale will be settled into your withdrawable cash balance and you will be able to access it.
Although some people do not need to wait for the entire 3 days, in your case, you may only need to wait for about less than 3 days for your funds to be settled in your account. If after 3 days the process isn’t completed, you can reach out to Robinhood’s support and lay complaints to them.
For the Referral Stock sale, you’ll need to wait for 30 days before your funds are settled into your withdrawable cash balance.
This is because it takes Robinhood 30 days to process each referral and get referees to receive their share from the referral stocks. Hence, all you need to do is to be patient for Robinhood to process the referral stock sale proceeds within 30 days and automatically send the funds to your withdrawable cash balance. If after 30 days you do not get your proceeds, contact Robinhood’s customer support to fix this.
If your Robinhood account is facing any form of restriction, you need to determine why your account is being restricted at first and then, reach out to Robinhood’s customer support to pay your complaints and fix your account. Also, make sure to not exceed the withdrawal limits so your account doesn’t get restricted or blocked again.