Traders can open a Robinhood Instant, Gold, or Cash account. However, there is a settlement period on Robinhood that restricts traders from using their funds until some specified days have elapsed. These specified days do not apply to Robinhood Instant and Gold accounts.
By default, once you open an Instant or Gold account on Robinhood, the instant settlement feature automatically applies to all deposits and trade profits. You can, however, turn off the instant payout on Robinhood.
How Do You Turn Off Instant Settlement On Robinhood?
Once you open a premium account on Robinhood, the instant settlement feature is on automatically. However, if you feel the need to turn it off, you can do so by following these steps accordingly.
Step 1: Through the app, go to your profile on your Robinhood Instant or Gold account.
Step 2: Go to the menu page of the account, and click on Invest Option.
Step 3: Search for Day Trading Option, and click on it.
Step 4: You would be redirected to another page. From there, you should see the turn-off option.
Once you’ve done this, your account becomes a cash account instantly on Robinhood.
Why Am I Unable To Turn Off Instant Settlement On Robinhood?
You will be unable to turn off instant settlement on Robinhood if:
- You have traded three days before the day you plan on turning it off.
- You have unsettled deposits in your account.
- You have unpaid bills in your account.
- You have unsettled or pending transactions in your account.
If you still experience difficulty turning off the feature after taking note of all these, wait for a while before trying it again. You can reboot your phone or restart the app before trying to turn off the feature.
Do You Have To Wait For Funds To Be Settle On Robinhood
After you buy a stock, you typically have to wait two days for the proceeds from the trade to be transferred into your account. During business days, Robinhood transfers your trade proceeds in about 48 hours.
What Happens If You Turn Off Instant Settlement On Robinhood?
If you disable instant settlement, your orders will be placed at the end of the trading day. This means that if you want to buy shares at $100, and another person sells them at $99, you won’t be able to get them until the next day.
Instant settlement is also disabled when your account is restricted or suspended. If this is happening to you, please contact support immediately.
What is an instant settlement on Robinhood?
Instant settlement is a feature of Robinhood that allows users to receive their funds immediately after a trade is made. This means that if you sell a stock, you will receive the money in your bank account immediately. When you turn off instant settlement, the money will be transferred to your bank account at the end of the day.
This feature is useful for people who want to use Robinhood as their primary brokerage because it allows them to get access to their money quickly without having to wait until the end of the day for settlement to complete.
Usually, there is a settlement period on Robinhood that requires users to wait for their trade profit to settle before they can use it. This settlement period usually covers that trade date and two additional trading days. However, the Gold and Instant Robinhood account allows traders to bypass this settlement period and get access to their funds faster.
Frequently Asked Questions
Can You Turn Instant Settlement Back On Robinhood?
Once you’ve switched your account type from Gold or Instant to Cash, you should note that you can only have access to your profit once the funds have settled. This usually takes three to five days (excluding any bank delay that can transpire when trying to transfer or withdraw).
Is Robinhood Instant and Gold Account the same?
Robinhood Instant, once you sign up for this account, you are eligible to deposit funds (up to $1000) and your hour of trading would be extended to cover other time ranges. Robinhood Instant account is a margin account. This doesn’t mean a borrowed account. However, all brokerage users start as an instant account and get to trade unsettled funds and some approved options.
Robinhood Gold, users get to enjoy the same features with a Robinhood instant customer but with additional benefits. As a Robinhood Gold user, you get more buying power, access to borrowed funds, and access to margin investing if allowed.
How long does it take for funds to settle with Robinhood?
If you are using a premium account on Robinhood, you do not have to worry about the settlement period. However, on the Cash account, it takes at least three days (trade date + two additional trading days) for funds to settle on Robinhood. It is important to only count trading days which excludes weekends, public holidays, etc.
Does Robinhood pay you instantly?
Yes, Robinhood does pay instantly if you are using Robinhood Gold or an Instant account. You can easily get access to your trade profit instead of waiting for at least three days on the Robinhood cash account.
Can I trade with Unsettled Funds?
Even though you can not transfer or withdraw your unsettled funds, you can still buy some assets on Robinhood. For this to be possible, you need to have received instant money from selling the previous assets. As such, you can use the unsettled funds to buy another asset on Robinhood, but you must ensure that your unsettled funds are not part of your day trade.
However, Robinhood Instant or Gold users do not have to worry about unsettled funds. They have easier access to it, and also have a deposit fee in their account. As a Gold or Instant user, you can make up to $5000 trades for day trading. This is apart from the fact that Gold or Instant users have extended hours of trading.
How To Get Robinhood Gold
You can either sign up for a Robinhood Gold account or resubscribe to it. It is free for the first thirty days, but subsequently, users are to pay $5 monthly for this account. You can access your next billing date in your account settings.
How to get Robinhood Instant
Robinhood Instant comes at no fee for the account, if you want to open a new brokerage account, you start with a Robinhood Instant account. Here you get access to a deposit fee (up to $1000), unsettled funds, and approved options trading.
It is now clear that you can turn off your instant settlement feature anytime you want on your Gold or Instant account on Robinhood. As such, I hope this article helps you find answers to all questions you hoped to find here.