Robinhood Unsettled Funds (5 Things You Should Know)

Jason Andrews

Updated & Verified: May 19, 2021

Unsettled Funds in Robinhood (How to Access)

Do you have unsettled funds in your Robinhood account?

When I first started using Robinhood, one of the first things I wondered was what are unsettled funds and how long does it take for them to settle.

In general, you can think of unsettled funds in Robinhood much like you would with pending transactions in your bank account. They are funds that simply haven't cleared yet. As a good rule of thumb, unsettled funds in Robinhood will take between 3 and 5 business days to settle. 

At this point, you're probably wondering if you can do anything with these funds or do you have to wait until they settle first? What about crypto - do you need to wait the same length of time for funds from selling crypto to settle?

The answers might surprise you.

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As of 2020, Robinhood had an impressive 13 million users with around 3 or 4 million new users joining the platform annually.

It's no surprise then that some are confused about what it means to have unsettled funds and exactly what you can do with them.

Why Do I Have Unsettled Funds in Robinhood?

Many people wonder why they have settle funds - especially when new (or newer) to trading on Robinhood. Don't worry, you didn't do anything wrong.

In general, if you have unsettled funds in your Robinhood account, it’s typically because you just transferred money from your bank account to your Robinhood account or because you just sold stock in Robinhood and the funds are still processing and haven't settled yet. 

It is very common to have at least some unsettled funds associated with your Robinhood account at various times depending on how frequently you trade or transfer money from your bank account.

The bigger question is typically what can you use the unsettled funds for?

Can I Trade With Unsettled Funds in Robinhood?

Your ability to trade and the amount you can use with unsettled funds in Robinhood really depends on what type of Robinhood account you have.

If you have a standard Robinhood account (aka Robinhood Instant), you can instantly trade with up to $1,000 without having to wait for those funds to settle first.

If you’ve upgraded your account to Robinhood Gold, then you are able to trade instantly using unsettled funds for up to $5,000. (1)

Where Can I See Unsettled Funds in Robinhood?

There isn't a specific place within Robinhood where you can go to see the exact total amount of unsettled funds that you currently have associated with your account.

Instead, you can see the status of individual deposits and withdrawals by clicking on the account icon in the bottom right corner of the app and then clicking the hamburger menu icon in the top right corner and then clicking on "transfers". 

Then you can click on the individual transfers to see the status for each.

Do Funds from Crypto Sales Have to Settle First?

Unlike normal transactions in Robinhood, you don't need to wait a period of time for funds from crypto sales to settle.

You can use those funds to buy additional crypto, stock or withdraw them to your bank account immediately.

Why is Robinhood Saying I don’t Have Enough Buying Power?

The reason Robinhood is saying that you don’t have enough buying power is because you either don’t have enough funds in your account to purchase the stock you are trying to purchase or the funds are unsettled and currently unusable.

If the funds are unsettled, you can upgrade your Robinhood account to Robinhood Instant or Robinhood Gold to trade with them without having to wait for them to settle.

In Closing

Having unsettled funds in your Robinhood account is a relatively normal thing and can dictate how much buying power you have with your Robinhood account.

What you can or can’t do with your unsettled funds ultimately depends on what type of Robinhood account you have and what exactly you are trying to do with the unsettled funds. 

No matter what, however,  you won’t be able to withdraw unsettled funds to your bank account until they first settle which typically takes about 5 business days.

References

1. Robinhood - https://robinhood.com/us/en/support/articles/settlement-and-buying-power/

2. Robinhood - https://robinhood.com/us/en/support/articles/withdraw-money-from-robinhood/

About the Author

Jason is a journalist who specializes in covering credit repair, banking, and other areas of personal finance. In addition to a passion for personal finance, Jason also enjoys storm chasing and has seen over 60 tornadoes since 2006. He lives in Omaha, Nebraska with his wife and two children.

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