Regardless of what you invest in, there comes a time when you need to withdraw money from your brokerage account. This may be slightly different from what you are used to. Unlike a bank account, withdrawing money from this type of investment account can sometimes require additional steps. The main reason is that your money is supposedly invested and not available as cash.
Fortunately, mastering this process is not so difficult. Once you learn how to withdraw money from trading account, you will be able to access your funds whenever you need it.
Step-by-step withdrawal guide
Withdrawing funds from a brokerage account is not as easy as withdrawing money from your bank account. In most situations, having to sell shares or other investments to raise the necessary cash can require additional time and effort.
If you want to withdraw money from a brokerage account, here’s how to do it:
- Log in to your account on your broker’s website.
- Visit the transfers page. Where you find this option depends on the broker you’re using, but it’s usually on the main navigation bar.
- Choose the amount and withdrawal method. You can transfer money to a bank account, transfer it, or request a physical check. Most brokers charge a fee for wire transfers. This sort of transfer is faster than a standard wire transfer.
Since it is an ordinary bank transfer we can only withdraw fiat currencies. If you want to withdraw more than you have in cash, you must first sell shares or other investments.
Keep in mind that once you have sold shares, you must wait until the trade is completed before you can withdraw money from your brokerage account. This usually takes two business days. Once your trade has been settled, you can follow the withdrawal process above to receive your money.
One last thing to note is that if you have a margin account, your broker may allow you to withdraw cash before your trades are settled. However, you may be charged margin interest for the period between the time a withdrawal request is submitted from the brokerage account and the time the funds are credited to your account. Always check with your broker before making an automatic withdrawal to make sure you don’t end up with interest payments or other fees by rushing.
Plan ahead for a smooth withdrawal process
Withdrawing money from a brokerage account is not as quick and easy as getting money from your bank account. If you need to finish some trades, it will take a couple of days. You will also need to wait for the funds to be transferred to your bank account after you make a withdrawal unless you pay extra for the money transfer.
This means that it is best to give yourself time to withdraw money from your trading account. No regulated brokers freeze your funds from being withdrawn for no reason, but this is not a process that can be rushed.