If you’re new to investing and trading, you might be wondering how to sell stock on Robinhood. Robinhood is an online brokerage that allows you to buy and sell stocks, options, cryptocurrencies, and other assets.
In this article, we’ll cover everything you need to know about how to sell stock on Robinhood, from how to place an order to the fees involved.
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Robinhood is a popular stock trading app that has gained immense popularity in recent years due to its commission-free trading, user-friendly interface, and accessibility. It was founded in 2013 and has since become a major player in the stock trading industry.
Robinhood allows its users to buy and sell stocks, options, exchange-traded funds (ETFs), and cryptocurrencies through its app. The platform has become a popular choice for beginner investors, as it is easy to use and does not require a minimum account balance.
Importance of selling stocks on Robinhood: There are several advantages to selling stocks on Robinhood. One of the main benefits is the ease and convenience of the platform. Robinhood allows you to sell stocks quickly and easily from your smartphone, without the need for a computer or traditional broker.
This makes it an excellent option for those who prefer to manage their investments on-the-go or have a busy lifestyle.
Additionally, Robinhood offers commission-free trading, meaning that you won’t have to pay any fees for selling your stocks. This can be a significant advantage compared to traditional brokers, who often charge high fees for each transaction.
By eliminating these fees, Robinhood allows you to sell stocks more frequently, which can be beneficial in certain market conditions.
Furthermore, Robinhood provides real-time market data and analysis, which can be valuable when deciding when to sell your stocks. The platform’s user-friendly interface makes it easy to track your portfolio’s performance and stay up-to-date on market trends. This can help you make informed decisions when it comes to selling your stocks.
To give you some more insight into the importance of selling stocks on Robinhood, let’s take a look at some data:
|Number of Robinhood users||20 million (as of March 2023)|
|Average daily trades per user||6 (as of Q4 2022)|
Brief on the importance of timing when selling stocks: The timing of selling your stocks is crucial, as it can significantly impact your returns. It is important to sell stocks at the right time to maximize profits or minimize losses. There are several factors to consider when timing the sale of your stocks, including market trends, company performance, and personal financial goals.
One important factor to consider is the current market conditions. It is generally best to sell stocks when the market is performing well, as this can lead to higher profits. However, it is also important to consider individual stock performance and company-specific factors. For example, if a company is experiencing financial difficulties, it may be wise to sell stocks even if the market is performing well overall.
Another factor to consider is your personal financial goals. If you have a short-term financial goal, such as buying a house or paying off debt, it may be necessary to sell stocks sooner rather than later. On the other hand, if you have a long-term financial goal, such as retirement, you may be able to hold onto your stocks for a longer period of time.
To help you understand the importance of timing when selling stocks, let’s take a look at some data:
|Average holding period for stocks||6 months to 1 year|
|Average return on stocks sold||5-10%|
Setting Up Your Robinhood Account
First things first, let’s go through the steps to create a Robinhood account:
- Go to the Robinhood website or download the Robinhood app on your smartphone.
- Click on “Sign Up” and enter your personal information, including your name, email address, and desired password.
- Provide your Social Security number or Individual Taxpayer Identification number (if applicable) for identity verification purposes.
- Create a username and customize your profile picture if you like.
- Agree to Robinhood’s terms and conditions.
Once you’ve completed these steps, you’re ready to start trading! However, there are a few more things you should do to get the most out of your Robinhood account.
Completing your profile: Make sure to complete your profile by providing additional information about yourself, such as your employment status, annual income, and investment experience. This information will help Robinhood better understand your financial situation and tailor investment recommendations to your needs.
Funding your Robinhood account: Before you can start buying and selling stocks, you’ll need to fund your account. You can do this by linking a bank account to your Robinhood account and transferring funds. Robinhood supports instant verification with many banks, which means you can start trading right away.
However, it’s important to note that you may be subject to withdrawal limits until your deposit clears.
Choosing a stock to sell: Now that your account is set up and funded, it’s time to start trading. But how do you choose which stocks to sell? One approach is to do some research and look for companies that you believe are undervalued or have strong growth potential. You can also use Robinhood’s tools and features to help you make informed decisions. For example, the app provides real-time market data, news articles, and analyst ratings.
Knowing when to sell: Finally, it’s important to know when to sell your stocks. One approach is to set a target price or profit margin and sell when you reach it. You can also use stop loss orders to automatically sell your shares if the price falls below a certain threshold. And of course, keep an eye on your investments and stay up-to-date on any news or events that could impact their value.
|Creating a Robinhood Account||Go to the Robinhood website or download the app, provide personal information, and agree to terms and conditions.|
|Completing your profile||Provide additional information about yourself, such as employment status, annual income, and investment experience.|
|Funding your Robinhood account||Link a bank account and transfer funds. Robinhood supports instant verification with many banks.|
|Choosing a stock to sell||Research companies, use Robinhood’s tools and features, and look for undervalued or growth potential stocks.|
|Knowing when to sell||Set target price or profit margin, use stop loss orders, and stay up-to-date on news or events that could impact stock value.|
Understanding the Selling Process on Robinhood
When it comes to selling stocks on Robinhood, there are a few basics you need to know. Let’s start with the order types available on Robinhood.
Order Types on Robinhood : Robinhood offers a variety of order types that you can use when selling your stocks. Here are some of the most common order types:
- Market Order: A market order is an order to buy or sell a stock at the best available price. When you place a market order, your trade will be executed immediately.
- Limit Order: A limit order is an order to buy or sell a stock at a specific price or better. When you place a limit order, you set the maximum price you are willing to pay to buy a stock or the minimum price you are willing to accept to sell a stock.
- Stop Order: A stop order is an order to buy or sell a stock when the price reaches a certain level. When you place a stop order, you set the price at which you want the trade to be executed.
Now that you understand the order types, let’s dive deeper into how to set up a limit sell order and a stop loss sell order.
Setting a Limit Sell Order : A limit sell order is used to sell a stock at a specific price or better. This means that if the stock reaches the price you’ve set, your sell order will be executed.
To set up a limit sell order on Robinhood, follow these steps:
- Open the Robinhood app and navigate to the stock you want to sell.
- Tap on the “Sell” button.
- Select “Limit Order” as your order type.
- Enter the price at which you want to sell your stock.
- Tap “Review” to double-check your order details.
- If everything looks good, tap “Submit Order” to place your limit sell order.
Here’s an example of how to set up a limit sell order:
|Stock||Current Price||Limit Price||Number of Shares|
In this example, we want to sell 10 shares of AAPL at a limit price of $135.00. Once the stock reaches $135.00 or higher, our sell order will be executed.
Setting a Stop Loss Sell Order : A stop loss sell order is used to sell a stock when the price drops to a certain level. This means that if the stock reaches the price you’ve set, your sell order will be executed.
To set up a stop loss sell order on Robinhood, follow these steps:
- Open the Robinhood app and navigate to the stock you want to sell.
- Tap on the “Sell” button.
- Select “Stop Order” as your order type.
- Enter the stop price at which you want to sell your stock.
- Tap “Review” to double-check your order details.
- If everything looks good, tap “Submit Order” to place your stop loss sell order.
Here’s an example of how to set up a stop loss sell order:
|Stock||Current Price||Stop Price||Number of Shares|
In this example, we want to sell 10 shares of AAPL if the price drops to $130.00 or lower. Once the stock reaches $130.00 or lower, our sell order will be executed.
Monitoring Your Stock Sale
In this section, we’ll cover some important aspects of monitoring your stock sale, such as checking your order status, cancelling a pending sell order, and troubleshooting common issues with selling stocks on Robinhood.
Checking Your Order Status When you sell stocks on Robinhood, it’s important to keep track of your order status. You can do this by logging into your account and checking the order history. This will show you the status of your orders, including whether they have been filled, partially filled, or cancelled. It’s important to check your order status regularly to ensure that your orders are going through as expected.
Here’s an example of what your order history might look like:
In the above table, you can see that two orders have been filled, while one order is still pending. By checking your order history regularly, you can stay informed about the status of your orders and take action if necessary.
Cancelling a Pending Sell Order If you have a pending sell order that you want to cancel, you can do so by logging into your account and navigating to the order history. Find the pending order that you want to cancel and click on it. This will take you to the order details page, where you can cancel the order.
Here’s an example of how to cancel a pending sell order on Robinhood:
In the above table, you can see that there is a pending order for 100 shares of GOOG. To cancel this order, simply click on the “Cancel” button in the “Action” column. This will cancel the order and remove it from your order history.
Troubleshooting Common Issues with Selling Stocks on Robinhood Selling stocks on Robinhood is generally a straightforward process, but sometimes issues can arise.
Here are some common issues that you may encounter when selling stocks on Robinhood, along with some troubleshooting tips:
Issue: Order not filling Solution: If your sell order isn’t filling, it could be because the price has dropped below your limit price. In this case, you can try adjusting your limit price to a more competitive price. Alternatively, you can try selling your shares at market price.
Issue: Account restricted Solution: If your account is restricted from selling stocks, it could be because you have violated one of Robinhood’s policies. Contact Robinhood support for more information on how to resolve the issue.
Issue: Incorrect order details Solution: If you notice that there is an error in your order details, such as the wrong number of shares or the wrong order type, you can try cancelling the order and placing a new order with the correct details.
Taxes and Fees When Selling Stocks on Robinhood
When you sell your stocks on Robinhood, you may be required to pay taxes and fees to the government and the brokerage firm. These taxes and fees can have a significant impact on your overall profit, so it’s important to understand what they are and how to minimize them.
Capital Gains Tax when Selling Stocks on Robinhood : When you sell stocks on Robinhood, you may be subject to capital gains tax. Capital gains tax is a tax on the profit you make from selling an investment, such as stocks. The amount of capital gains tax you owe depends on how long you held the stock and your income tax bracket.
The table below shows the capital gains tax rates for 2021:
|Income Tax Bracket||Short-term Capital Gains Tax Rate||Long-term Capital Gains Tax Rate|
|10% – 15%||10%||0%|
|25% – 35%||15%||15%|
Short-term capital gains are profits made from selling stocks that you have held for less than a year. They are taxed at your ordinary income tax rate, which is typically higher than the long-term capital gains tax rate. Long-term capital gains are profits made from selling stocks that you have held for more than a year. They are taxed at a lower rate than short-term capital gains.
Other Taxes and Fees when Selling Stocks on Robinhood : Apart from capital gains tax, there are other taxes and fees that you may have to pay when you sell stocks on Robinhood. These include:
- Brokerage Fees: Robinhood charges a commission fee for each trade you make. The fee ranges from $0 to $5, depending on the type of account you have and the size of the trade.
- SEC Fees: The Securities and Exchange Commission charges a fee on all securities transactions. The fee is currently $22.10 per $1,000,000 of principal.
- State Taxes: Depending on where you live, you may have to pay state taxes on your capital gains. The rates vary by state, so you should check with your state’s tax department to find out what they are.
The table below shows the brokerage fees for different types of Robinhood accounts:
|Robinhood Account Type||Commission Fee per Trade|
|Robinhood Gold||$5 per month|
How to Minimize Taxes and Fees when Selling Stocks on Robinhood : Now that you understand the taxes and fees involved when selling stocks on Robinhood, let’s look at some ways to minimize them.
- Hold Stocks for Long-term: As mentioned earlier, long-term capital gains are taxed at a lower rate than short-term capital gains. So, if you hold stocks for more than a year before selling them, you can reduce your tax liability.
- Use Tax-loss Harvesting: Tax-loss harvesting is a strategy that involves selling losing investments to offset gains in other investments. By doing this, you can reduce your capital gains tax liability. Robinhood offers a tax-loss harvesting feature to its customers.
- Invest in Tax-efficient Funds: Some funds are more tax-efficient than others. For example, index funds and ETFs are typically more tax-efficient than actively managed funds. By investing in tax-efficient funds, you can minimize your tax liability.
In conclusion, selling stocks on Robinhood can be a lucrative investment strategy, but it’s important to understand the taxes and fees involved. By holding stocks
Throughout this article, we have covered a number of important points related to stocks and investing. We’ve discussed what stocks are, how they work, and why people choose to invest in them. We’ve also looked at some of the different factors that can impact stock prices, such as company performance, economic indicators, and global events.
In addition, we’ve explored the advantages of using a platform like Robinhood to buy and sell stocks. These include features like commission-free trades, real-time market data, and easy-to-use mobile apps. We’ve also touched on some of the risks and challenges associated with stock trading, such as market volatility and the potential for losses.
Advantages of Selling Stocks on Robinhood : One of the biggest advantages of using Robinhood to sell stocks is the platform’s commission-free trading model. Unlike traditional brokerages that charge fees for every trade, Robinhood lets you buy and sell stocks without any fees or commissions. This can save you a significant amount of money over time, especially if you’re an active trader who makes frequent transactions.
In addition, Robinhood offers a range of other features that can make stock trading more accessible and convenient. These include:
- Real-time market data: Robinhood provides up-to-the-minute information on stock prices and market trends, so you can make informed decisions about when to buy and sell.
- Mobile apps: Robinhood’s mobile apps are user-friendly and intuitive, allowing you to monitor your portfolio and make trades on the go.
- Fractional shares: With Robinhood, you can buy fractional shares of stocks, which can be a good option if you don’t have enough money to buy a full share.
Overall, Robinhood can be a great option for investors who want to buy and sell stocks without paying high fees or dealing with complex trading platforms.
While Robinhood offers many advantages for stock traders, it’s important to remember that investing always carries risks. Stock prices can be unpredictable, and even the most well-informed investors can experience losses. Therefore, it’s crucial to do your own research and make sure you have a solid understanding of the companies and industries you’re investing in.
In addition, it’s a good idea to diversify your portfolio by investing in a range of different stocks, rather than putting all your eggs in one basket. This can help reduce your overall risk and improve your chances of earning consistent returns over time.
Overall, Robinhood can be a powerful tool for investors who are looking to buy and sell stocks in a cost-effective and user-friendly way. By taking the time to learn about the markets and make informed decisions, you can potentially earn significant returns on your investments while minimizing your risks.
Can you immediately sell a stock on Robinhood?
Yes, you can sell a stock immediately on Robinhood. The app allows for real-time trading, so you can buy and sell stocks as soon as the market opens until it closes.
How long does it take to sell shares on Robinhood?
The time it takes to sell shares on Robinhood can vary, depending on market conditions and the type of order you place. In general, it should take only a few seconds to complete a trade on Robinhood.
When can I sell my Robinhood stock?
You can sell your Robinhood stock at any time when the market is open. Robinhood allows for real-time trading, so you can sell your shares as soon as the market opens until it closes.
Why can’t I sell my stock on Robinhood?
There could be several reasons why you’re unable to sell a stock on Robinhood. One common reason is that the stock’s trading has been halted by the stock exchange, which would prevent any trades from being executed. Another reason could be that you have placed a limit order at a price that is too high or too low compared to the current market price.
Why can’t I withdraw my money from Robinhood?
There are several reasons why you may be unable to withdraw money from Robinhood, such as unsettled funds or pending orders. Additionally, Robinhood may require additional information from you, such as a tax form or government-issued ID, before allowing you to withdraw funds.
How do I get my money out of Robinhood?
To withdraw money from Robinhood, you can go to your account settings and select “Transfer.” From there, you can initiate a transfer to your linked bank account. It may take a few days for the funds to appear in your bank account.
Does Robinhood charge fees for selling stock?
No, Robinhood does not charge any fees for selling stock. However, there may be regulatory fees associated with selling certain types of securities.
How much does Robinhood tax when you withdraw?
The amount of tax you will pay when you withdraw funds from Robinhood will depend on your tax bracket and other factors, such as the length of time you held the investment. It’s important to consult a tax professional to get an accurate estimate of your tax liability.
Can you actually make money with Robinhood?
Yes, it is possible to make money with Robinhood. However, investing always carries risks, and it’s important to do your own research and make informed decisions about your investments. While Robinhood offers a user-friendly platform and commission-free trading, it’s important to understand the risks involved and make sure you’re comfortable with the potential for losses.