How to Sell Stock on Robinhood: Step-by-Step Instructions
How to sell a stock on Robinhood
To sell a stock on Robinhood, open the app or website, find the stock in your portfolio, tap or click the stock name, and select the sell button. Enter the number of shares you want to sell, choose whether to place a market order (sells at the current price immediately) or a limit order (sells only at a price you set), review the details, and confirm. The cash from the sale lands in your Robinhood account immediately, though the actual transfer to your bank account takes one to three business days depending on your bank.
The process is the same whether you use the Robinhood app on your phone or the website on a computer. You do not need to contact anyone or fill out separate forms — the entire transaction happens inside the app.
Key Takeaways
- Market orders sell your shares at whatever price the stock is trading at right now, while limit orders let you set a minimum price and wait for a buyer.
- Robinhood charges no commission on stock sales, but the bid-ask spread (the difference between what buyers and sellers are willing to pay) is a real cost you pay.
- If you sell a stock you have owned for less than one year, any profit is taxed as short-term capital gains at your ordinary income tax rate, which is usually higher than long-term rates.
- Cash from a sale appears in your Robinhood account right away, but moving it to your bank account takes one to three business days.
- Selling during market hours (9:30 a.m. to 4 p.m. Eastern time on weekdays) gives you better prices than after-hours trading.
Market orders versus limit orders
A market order sells your shares at the best available price right now. If Apple is trading at $150 per share, your market order executes at or near that price within seconds. Market orders are fast and almost always go through, but you do not control the exact price. On a volatile stock, the price could move a few cents between the time you tap sell and the time the order completes.
A limit order lets you set the lowest price you will accept. If you own Apple at $150 and set a limit order to sell at $155, your shares will only sell if the price reaches $155 or higher. If the stock never reaches that price, your order stays open until you cancel it or it expires. Limit orders give you control over price but no may provide the sale will happen.
For most stocks, market orders are simpler and faster. Use a limit order if you are willing to wait for a specific price or if you are selling a stock that does not trade often and you want to avoid a bad price.
Understanding the bid-ask spread and real costs
Robinhood advertises zero commission on stock sales, which is true — you pay no fee to the company. However, you still pay a real cost called the bid-ask spread. The bid is the highest price a buyer will pay right now; the ask is the lowest price a seller will accept. When you place a market order to sell, you get the bid price, which is always slightly lower than the ask price. That gap is money that goes to market makers, not to Robinhood, but it comes out of your pocket.
On a stock like Apple that trades millions of shares per day, the spread might be just one cent per share. On a smaller or less-traded stock, the spread can be 10 cents, 25 cents, or more per share. If you are selling 100 shares of a stock with a 10-cent spread, you lose $10 on the transaction even though Robinhood charged you nothing.
Limit orders can help you avoid a bad spread by letting you set your own price, but they come with the risk that your order will not fill if the stock does not reach your target price.
Tax consequences of selling stock
When you sell a stock for more than you paid for it, you owe capital gains tax on the profit. The tax rate depends on how long you owned the stock. If you held it for one year or less, the profit is a short-term capital gain and is taxed at your ordinary income tax rate — the same rate as your salary or wages. If you held it for more than one year, the profit is a long-term capital gain and is taxed at a lower rate (0%, 15%, or 20% depending on your income).
Robinhood does not withhold taxes from your sale proceeds. Instead, you report the sale on your tax return when you file. At the end of each year, Robinhood sends you a tax document (Form 8949 and Schedule D) that lists all your sales. Keep records of what you paid for each stock (the cost basis) so you can calculate the gain or loss correctly.
If you sell a stock for less than you paid for it, you have a capital loss. You can use capital losses to offset capital gains, and if your losses exceed your gains, you can deduct up to $3,000 of the loss against your ordinary income in that year.
Selling during market hours versus after-hours
The stock market is officially open from 9:30 a.m. to 4 p.m. Eastern time on weekdays (Monday through Friday). During these hours, millions of shares trade every second, so your order will almost certainly fill quickly at a tight bid-ask spread.
Robinhood also allows after-hours trading from 4 p.m. to 8 p.m. Eastern time. During after-hours, far fewer shares trade, spreads are much wider, and prices can be more volatile. If you place a market order to sell after hours, you might get a significantly worse price than you would during regular hours. Limit orders are safer for after-hours trading because you control the price, but they may not fill at all if the stock does not reach your target.
For most investors, selling during regular market hours is the better choice. If you must sell after hours, use a limit order and give yourself a realistic price target based on where the stock was trading at the close.
What happens to your cash after you sell
When your sale completes, the cash appears in your Robinhood account balance right away. You can use this cash to buy other stocks immediately, or you can leave it sitting in your account. However, if you want to move the money to your bank account, the transfer takes one to three business days depending on your bank's processing speed.
Robinhood does not pay interest on cash sitting in your account, so if you are not planning to reinvest the money, moving it to a high-yield savings account or money market account at your bank will earn you interest. Some banks offer rates above 4% on savings accounts, which is real money if you are holding a large balance.
Selling fractional shares
If you own a fractional share of a stock (for example, 10.5 shares of Tesla), you can sell the fractional part just like you would sell whole shares. Robinhood treats fractional shares the same way as whole shares for pricing and execution. You might own a fractional share because you reinvested dividends, because you bought a fractional share to begin with, or because you sold part of a position.
The bid-ask spread applies to fractional shares too, so the same cost considerations apply. There is no extra fee or penalty for selling fractional shares.
Frequently Asked Questions
Can I sell a stock I just bought today?
Yes. There is no holding period — you can buy and sell the same stock on the same day as many times as you want. However, if you are a day trader (buying and selling the same stock multiple times in a week), Robinhood may flag your account as a pattern day trader, which triggers a $25,000 minimum balance requirement.
What if my sell order does not go through?
If you placed a market order, it almost always goes through within seconds during market hours. If it does not, check that you have an active internet connection and that the market is open. If you placed a limit order, it will not fill unless the stock reaches your target price. You can cancel a limit order anytime by opening the order and selecting cancel.
Do I have to sell all my shares at once?
No. You can sell any number of shares you own, from one share to all of them. If you own 100 shares, you can sell 30 today and 70 next month. Each sale is a separate transaction for tax purposes.
What is the difference between selling and transferring stock?
Selling converts your shares to cash inside Robinhood. Transferring moves your shares to another brokerage account without selling them. You would transfer if you want to move your account to a different company but keep the same stocks.
Can I sell stock after the market closes?
Yes, Robinhood offers after-hours trading from 4 p.m. to 8 p.m. Eastern time, but prices are less stable and spreads are wider. Most investors get better results selling during regular market hours (9:30 a.m. to 4 p.m.).