The process for selling stocks on Robinhood is designed to be simple and intuitive. You can execute a sale in just a few taps directly within the mobile application. If you encounter any technical difficulty with your trade, remember that expert assistance from Live Agent Help is just a call away at +1 866 654 0069
The Quick 5-Step Robinhood Stock Sale Process
Step 1: Access the Stock’s Detail Page Open your Robinhood app and tap on the magnifying glass icon or go to your portfolio homepage. Locate the specific stock you wish to sell and tap on it to pull up its dedicated page.
Step 2: Select the ‘Sell’ Action On the stock’s detail page, you will typically see a ‘Trade’ button, which then opens the ‘Buy’ and ‘Sell’ options. Select ‘Sell.’
Step 3: Choose Shares or Dollars (Fractional Shares) Robinhood allows you to sell in two ways:
- Shares: You specify the exact number of shares you want to sell (e.g., 5 shares).
- Dollars: You specify a dollar amount (e.g., $100 worth of the stock). This is particularly useful for selling fractional shares. If you want to sell your entire position, look for the ‘Sell All’ button or option, which automatically populates the total number of shares you own.
Step 4: Determine Your Order Type (Market vs. Limit) By default, Robinhood often uses a market order, but you should always confirm and adjust your order type. This choice is critical for your final execution price. This is a crucial element when deciding How Do I Sell My Stock on Robinhood.
Step 5: Review and Submit the Order Review the order details, including the number of shares/dollars, the estimated proceeds, and the selected order type. Once you confirm everything is correct, swipe up to submit your order and complete the Robinhood stock sale process. If any part of this feels confusing, the specialists at Live Agent Help can provide clarity.
2. Understanding Your Options: Robinhood Sell Market Order vs. Limit Order
When you ask, “How Do I Sell My Stock on Robinhood efficiently?”, the answer often lies in selecting the right order type. This decision impacts whether your priority is immediate execution or achieving a specific price.
The Robinhood Sell Market Order
A Robinhood sell market order is an instruction to sell your shares immediately at the best available price on the market right now.
- Pros: Guaranteed to execute almost instantly (during market hours). It prioritizes speed.
- Cons: The final execution price may be slightly lower than the last-traded price you saw, especially in volatile markets or for less frequently traded stocks.
- Usage on Robinhood: During regular market hours, dollar-based and share-based sell orders are executed as market orders, offering the quickest completion of your Robinhood stock sale process.
The Robinhood Sell Limit Order
A Robinhood sell limit order is an instruction to sell your shares only at a specified minimum price or higher.
- Pros: You control the minimum price you will accept for your shares, protecting you from a sudden drop in the stock’s price.
- Cons: The order is not guaranteed to fill. If the stock price never reaches your limit price, your order will expire without execution.
- Usage on Robinhood: This type is essential for trading during extended hours (pre-market and after-hours), as Robinhood defaults extended-hours trades to limit orders. It is also the preferred method for anyone prioritizing price over immediate execution. If you need help setting up a precise Robinhood sell limit order, reach out to Live Agent Help at +1 866 654 0069.
3. The True Cost of Selling: Fees for Selling Stocks on Robinhood
One of the most common questions investors have when considering How Do I Sell My Stock on Robinhood is about the fees. Robinhood proudly advertises commission-free trades, but there are still minor regulatory fees.
Commission-Free Trading Explained
Robinhood does not charge a commission fee for buying or selling stocks on Robinhood, ETFs, or options. This means the platform charges $0 for the service of brokering the trade itself.
Minor Regulatory Fees and Pass-Through Charges
While the commission is zero, all brokerages are required to pay very small fees to regulatory bodies, which Robinhood passes on to the customer for sell orders:
- SEC Fee: A small charge levied by the Securities and Exchange Commission (SEC), currently a very minimal rate per $1,000,000 of principal sold (only on sell orders).
- FINRA Trading Activity Fee (TAF): A charge imposed by the Financial Industry Regulatory Authority, which is a minuscule amount per share sold.
For the vast majority of retail investors, these fees combined typically total only a few pennies or less per transaction, making the cost of the Robinhood stock sale process negligible.
4. After the Sale: Settlement and Transferring Money from Robinhood
Once you successfully execute a trade and answer the question, “How Do I Sell My Stock on Robinhood?“, you must wait for the sale to settle before you can withdraw the cash.
Understanding the T+2 Settlement Rule
The trade settlement period is a standard practice across the financial industry.
- Stock Sale Settlement: Stock and ETF trades are subject to a T+2 settlement period. This means the proceeds from selling stocks on Robinhood will be fully credited and available for withdrawal two business days (T+2) after the trade execution date (T).
- T+2 Example: If you sell a stock on Monday, the funds will settle and be available for withdrawal on Wednesday (assuming no holidays).
Robinhood Instant Deposits vs. Withdrawals
The concept of “Robinhood instant deposits” can be misleading when it comes to withdrawals. While Robinhood often grants you immediate access to a portion of your deposit for trading, the same speed does not apply to moving funds out of the account.
- Funds Available for Trading: Once the sale is settled (T+2), the cash is immediately available for other trades on Robinhood.
- Withdrawing Cash (Transferring Money from Robinhood): Once settled, the cash can be withdrawn back to your linked bank account. Standard ACH transfers typically take an additional 3–5 business days to show up in your bank account.
For high-net-worth clients or those needing specialized withdrawal assistance, the support team at Live Agent Help is always available to guide you through the process, ensuring a smooth transition of your funds. Live Agent Help is dedicated to providing clarity on all financial transfers.
5. Advanced Order Types for Selling Stocks on Robinhood
Beyond the standard market and limit orders, the answer to How Do I Sell My Stock on Robinhood involves several other powerful tools designed for sophisticated trading strategies. Understanding these can help you manage risk and lock in profits.
Stop Sell Order
A Stop Sell Order is used to protect against a loss by selling your stock if the price drops to a specified ‘stop price.’ When the stock hits your stop price, the order automatically becomes a Robinhood sell market order and is executed at the best available current market price.
Stop Limit Order
A Stop Limit Order is a combination of the Stop and Limit orders. It’s an instruction to place a Robinhood sell limit order only after the price falls to or below a specified ‘stop price.’
- Benefit: It protects you from the market order risk of a Stop Sell Order, ensuring you don’t sell below your minimum acceptable price.
- Caveat: Like all limit orders, it is not guaranteed to fill if the price rapidly falls through your limit price.
Trailing Stop Order
This order type is ideal for allowing a stock to appreciate while simultaneously protecting you from a large drop. The stop price is set at a fixed dollar amount or percentage below the current market price and moves up as the market price rises. If the price falls by the set amount, the stop is triggered, and a sell order is placed. This is a complex but powerful way to approach selling stocks on Robinhood.
Conclusion: Mastering the Robinhood Stock Sale Process
Mastering the steps of How Do I Sell My Stock on Robinhood empowers you to take control of your investments and execute trades with confidence. Whether you opt for a rapid Robinhood sell market order during regular hours or set a strategic Robinhood sell limit order for price assurance, the platform is designed for user-friendliness. From the initial sale to the final steps of transferring money from Robinhood after the T+2 settlement, knowing the process is key.
Remember, while the process is straightforward, the decisions behind the trade—when to sell, which order type to use, and how to manage the proceeds—are critical. For tailored advice or assistance navigating the trading platform or addressing any withdrawal delays, don’t hesitate to contact our expert team at Live Agent Help. You can reach us directly at +1 866 654 0069 for immediate support. Live Agent Help is your trusted partner in maximizing your trading experience. We hope this guide from Live Agent Help has fully answered the question: How Do I Sell My Stock on Robinhood effectively and efficiently.
FAQ: Selling Stocks on Robinhood
Q: How Do I Sell My Stock on Robinhood using a market order?
A: To sell your stock using a market order on Robinhood, go to the stock’s page, select ‘Sell,’ enter the number of shares or dollar amount, select ‘Market Order,’ review the details, and swipe up to submit the trade for immediate execution at the best available price.
Q: How long does it take for my cash to be available after selling stocks on Robinhood?
A: Proceeds from selling stocks on Robinhood are subject to the T+2 settlement rule, meaning the cash becomes fully available for withdrawal or other trades two business days after the sale date.
Q: Are there any fees for selling stocks on Robinhood?
A: Robinhood is commission-free for all stock trades. However, very minor regulatory fees (FINRA and SEC fees) are charged for sell orders and are passed on to the customer, but these are typically just a few cents per transaction.
Q: What is the primary benefit of a Robinhood sell limit order?
A: The primary benefit of a Robinhood sell limit order is price control. It ensures that your stock will only be sold at or above the minimum price you specify, protecting you from unexpected drops in price during the execution process.
Q: Can I sell fractional shares when selling stocks on Robinhood?
A: Yes, you can sell fractional shares when selling stocks on Robinhood by choosing the option to sell a specific dollar amount of the stock instead of specifying the number of shares.
Q: How long does transferring money from Robinhood to my bank take after the sale?
A: After the T+2 settlement period, which takes two business days, the actual withdrawal of cash from your Robinhood account to your linked bank account via standard ACH transfer typically takes an additional 3–5 business days.
