Therefore, if you are a new user on the Robinhood platform, you must have seen a message from the platform saying that you have unsettled funds. Even though this may seem scary to receive at first, you should not worry about it as it is just a normal procedure. The contents of this article will aim at informing you about what it means to have unsettled funds in your account.
What does it mean by unsettled funds?
When you receive a notification of unsettled funds after conducting a transaction on the Robinhood app, this usually means that there is a waiting period to be conducted before you have access to those unsettled funds. This is thereby a process by which the securities commission has imposed on all stock and cryptocurrency transactions.
While you are waiting for your unsettled funds to clear, do note that there is this period where you do not have access to funds temporarily because the administrators of the Robinhood app would be conducted their security checks before the transaction is allowed to be successfully processed to you.
Unsettled funds usually occur when you have completed a stock transaction. Robinhood does state on its website that its process is normal so if you are afraid or a little nervous, you should not be as your funds will be available to you as soon as the waiting period for the transaction is completed.
How can you get around these funds?
There is currently only one method available to get around unsettled funds. This is by signing up for the gold Robinhood account which you’ll have to pay a monthly fee. Even though there currently is a free account for you to use, the gold membership allows you access to a lot of benefits within the platform and most importantly, if you have a lot of buying power while using the gold membership, you can decrease the likelihood of unsettled funds occurring in your account.
Therefore, even though it makes no difference whatsoever if you have a notification of unsettled funds on your account once you complete a transaction, these funds will be readily available to you in a short time. However, if you are not able to wait a while to receive the unsettled funds, you can purchase a gold Robinhood account which will decrease that chance.
How long does the customer have to wait before the unsettled funds have been cleared?
If you did make a deposit or a stock purchase using a regular Robinhood account, your unsettled funds should take about five working days to clear. However, if you do have a gold Robinhood account as mentioned above, your capital will not be in a settlement phase, and you can immediately use the funds for transactions or withdrawals.
Additionally, if your account is either gold or instant, you are allowed to use limited funds from the unsettled funds to conduct new transactions, but this is not possible with cash only account.
In conclusion, if you do see a notification of unsettled funds in your Robinhood account, you should not worry at all about this message as it is only showing you the process which is taking place once you have completed a transaction. The article mentions that you can get around having unsettled funds if you sign up for the gold Robinhood account, however, you will have to pay a monthly fee to use all its features.
If you do not receive your unsettled funds after five working days, it is recommended that you contact the Robinhood support team so that they can assist you with the situation.
How can you withdraw unsettled funds from your account?
Currently, there is no method available to be able to withdraw those unsettled funds from your account. You can however choose to use those funds to purchase new stock or cryptocurrencies. If your Robinhood account is an instant one, you are given access to up to $1000 of those unsettled funds to use on transactions.
How do you make another transaction if you have unsettled funds in your account?
As you are not able to use the unsettled funds in your account to complete transactions in the mean time, you can use the profit from other stocks to immediately purchase new stock or conduct any sort of new transactions as this cash will be readily available for you.
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