Settlement and buying power | Robinhood (2024)

FAQs

Why is Robinhood saying I don't have enough buying power? ›

Buying power is the amount of money you can use for purchases. Unsettled funds from recent sales are temporarily unavailable in your buying power. After the funds are settled in Robinhood, they'll be added to your buying power.

Your money might be unavailable for a few reasons, including: One of your pending transfers was reversed because of an issue with your bank account. The money from that transfer won't be available in your spending or investing account. One of your pending transfers failed due to a one-time system error.

When you receive buying power does not affect when your funds settle and can be withdrawn. Funds from deposits settle and become available for withdrawal 3 business days after the deposit begins processing.

Your buying power is the money you have available to purchase securities. In a cash account, your buying power is your settled cash. In a margin account, you do not have to wait for cash to settle, and your cash may be leveraged to increase your buying power.

Margin investing enables you to borrow money from Robinhood and leverage your holdings to purchase securities. This gives you access to additional buying power based on the value of certain securities in your investing account.

There are a few reasons why you may be missing the buy or sell button on a stock's Detail page: It's a foreign stock, which we don't support. For details on eligible stocks, check out Investments you can make on Robinhood. It's an over-the-counter (OTC) stock or a warrant that Robinhood doesn't support.

The settlement period for equities and options trades is the trade date plus 1 trading day (T+1), sometimes referred to as regular-way settlement. On the 2nd day, those proceeds will be available as withdrawable cash.

Stocks and options take 1 trading day to settle. In a margin account, you can instantly trade with funds from unsettled stock and option sales. If you have unsettled trades and withdraw cash from your margin account with margin investing enabled, it can lead to margin interest charges.

This means you will only be able to buy securities if you have sufficient settled cash in the account prior to placing a trade.

Why can't I withdraw money from Robinhood? You probably can't withdraw money from Robinhood because your funds are unsettled. You can only withdraw “settled funds”, money that hasn't been transacted with in the last 2 business days. This is known as Robinhood Withdrawable Cash.

Why is my buying power so low? ›

A number of things can affect how much buying power you have, but the basic idea is that you might have cash you've already set aside for another purchase, you might have the ability to borrow money for trades, or you might have some of your buying power tied up in “Margin Requirements”.

The cash value is the total amount of liquid cash in the account, available for immediate withdrawal or use. Purchasing power is the amount an investor has to buy securities, consisting of cash, account equity, and available margin (money they can borrow).

Access Account Menu: Tap on the account icon at the bottom right of the screen (app) or click on your profile (web). Select Transfers: Choose "Transfers" from the menu options. Withdraw Funds: Tap on “Transfer to Your Bank” (app) or “Transfer” and then “To Your Bank” (web).

Robinhood withdrawal rules and limits

Trade settlement: If you're trading in the US, it takes 3 days to settle. Robinhood Gold or Instant users may have instant settlement for quick withdrawals after selling stocks, ETFs, or options. Withdrawal limit: You can make up to 5 transfers per business day.

As of May 28, 2024, the standard for settlement is next business day after a trade, or T+1. The T+1 standard conforms to recent rule amendments from the Securities and Exchange Commission (SEC) and FINRA shortening the cycle by one day from the previous settlement date of T+2.

A number of things can affect how much buying power you have, but the basic idea is that you might have cash you've already set aside for another purchase, you might have the ability to borrow money for trades, or you might have some of your buying power tied up in “Margin Requirements”.

If you lack buying power as an investor, you simply won't be able to place trades on your chosen platform. If you try to execute a trade and lack the buying power, the trade will simply not execute.

If your investing portfolio value (excluding any crypto positions) drops below your margin maintenance requirements, you may have an account deficit. This doesn't necessarily mean that you're in a margin call. Resolve your account deficit by the end of the trading day to avoid margin calls and to open new positions.

You incorrectly placed a stop order: A stop order triggers a market order or a stop limit order triggers a limit order once the stock reaches your stop price. However, if you set a stop order for a stock at its current price, we'll reject your order.