Stocks were introduced on Cash App in October 2019, and since then, it has been one of the lucrative ways to earn money on the platform, allowing users to trade with as little as $1.
Of course, trading here includes buying and selling of stocks, and if you're looking to sell your stocks on Cash App, I'll show you the steps you need to take.
Can You Sell Stocks On Cash App?
Yes, you can sell the stocks you hold on Cash App.
I believe you know how stocks work on Cash App, right?
Well, if you didn't know until now, just know that Cash App does not directly manage the stocks on the platform on its own. It does so through many brokers and, of course, relies on the market activity to determine what time your funds should reach your balance after a sale.
Another thing I think you should know is that you can't directly withdraw stocks to your bank account. So if you believe your funds will be deposited into your bank account directly after a stock sale, you've got it all wrong. You'll first have to sell the stocks, wait for it to reach your Cash App balance, and from there, you should be able to cash out the proceeds to your bank account.
But Before You Sell Your Stocks
We know how the stock market works, right? It is constantly changing, and no values there remain fixed.
This is an investment you made on Cash App, and you don't want to lose when selling your assets. That is why you need to consider a couple of things before deciding to sell your stocks.
1. Market Conditions
One of the most important things you need to consider when selling your stocks, be it on Cash App or any other broker, is the market conditions, and this includes the current stock price and your investment goals. You need to make sure this one plays in your favor and that you're not losing because selling at a loss might not be ideal.
2. Amount to Sell
You shouldn't just sell everything you hold as stock, even if you need to quit the stock market. Do you know about the proverb that says "one never knows tomorrow"? I believe you do, and if you really do, you wouldn't sell all your stocks unless there's really an emergency that requires the funds.
Who knows, the market can play in your favor tomorrow, and you'll be earning big as profit.
How To Sell Stocks On Cash App
It is more than time we get to the process, and if you're looking to sell your stocks on Cash App, you may want to follow these steps:
- Open Cash App and go to the Money tab on your Cash App home screen.
- Tap on the Stocks Tile.
- Scroll down to Stocks Owned.
- Select the company whose stock you want to sell.
- Tap "Sell".
- Select an amount or tap … to enter a custom amount.
- Confirm with your PIN or Touch ID.
After you're done with the aforementioned steps, the sale proceeds should be deposited into your Cash App balance as soon as they are available.
How Long Does it Take to Cash Out Stocks on Cash App?
There's no typical or precise time that Cash App takes to sell your funds because the entire process relies on the market activity. However, it should take from a few minutes or hours to a day for your sale proceeds to be deposited in your account balance, according to Cash App.
Once the funds reflect in your account balance, it should take a few minutes (if you select the instant deposit option) or up to 3 business days (if you select the standard deposit option) for you to cash out the proceeds from your Cash App balance.
How to Transfer Stocks from Cash App to Bank Account
As earlier mentioned, you can't transfer stocks from Cash App to your bank account. It doesn't even make sense when you come to think of it because it would have only been possible if you were dealing with the broker directly and not through Cash App.
The only way to transfer stocks from Cash App to your bank account is to first sell the stocks on Cash App, and when the proceeds arrive in your account balance, you can withdraw them directly to your linked bank account. It is a two-way process and can take up to 4 business days for the transfer to complete, depending on the deposit option you chose.
Why Can't I Sell My Stock On Cash App?
There's just a handful of reasons why you are unable to sell stocks on Cash App and in most cases, investors aren't always the cause. However, it is good you consider every possible reason so you'll be able to tackle the issue.
1. You're Selling Out of Trading Hours
There are trading hours in the stock market, and every investor is required to respect these hours. Cash App Investing works according to the U.S. stock market and is open Monday through Friday at the following time zones:
- Eastern time: 9:30 AM – 4 PM
- Central time: 8:30 AM – 3 PM
- Mountain time: 7:30 AM – 2 PM
- Pacific time: 6:30 AM – 1 PM
It isn't only about trading hours, but also holidays and you won't be able to sell your stocks on any of the days mentioned below.
- New Years Day (January 1)
- National Day of Mourning (January 9)
- Martin Luther King, Jr. Day (January 20)
- President's Day (February 17)
- Good Friday (April 18)
- Memorial Day (May 26)
- Juneteenth National Independence Day (observed on June 19)
- Independence Day (July 4)
- Labor Day (September 1)
- Thanksgiving Day (November 27)
- Christmas Day (observed on December 25)
Stock Market Half-Days (Open from 9:30 AM - 1PM EST):
- The Thursday before Independence Day (July 3)
- Day after Thanksgiving Day (November 28)
- Christmas Eve (December 24)
While you can't typically sell stocks these days, you can always schedule your sale 24/7 on Cash App.
2. You Are Facing Trading Halts
This isn't something common, but is it at times one of the reasons why many investors out there aren't able to trade stocks. A trading halt is a situation where stock exchanges halt trading for a specific time, and it never lasts for long, so the best you can do here is just wait for the period to pass.
3. Stock Selling Limits
Cash App lets you trade with as little as $1, and that includes both buying and selling of stocks.
This means that the minimum you can sell as stocks should be greater than or equivalent to $1 and shouldn't be more than 98% of the total amount that you are selling.
There's another rule that implies when you're selling a considerable percentage of your stocks; if you try selling 98% or more of the stocks you own on Cash App, you'll have to choose to sell either all of the stocks you own or an amount less than this 98%.
So let's say you own $48 in stock and you want to sell $47.5, you'll either have to sell all $48 or something between $1 and $46.
That's just how the selling limit works.
4. You're Facing Day Trading Limit
Day trading occurs when you buy and sell (or say trade) the same stock on the same day. Usually, the maximum day trades you have should be 4 for most brokers like Robinhood, and Cash App caps 3 day trades for a rolling 5-day trading period, and if you try going beyong this day trading limit, you'll be flagged as a pattern day trader and you won't be able to buy or sell stocks on the platform.
5. Your Cash App Account is Facing Limitations
If your account faces limitations, either because of verification or a flag for violating the Terms of Service, you might not be able to sell your stocks.
In this case, you'll want to check with Cash App what's actually going wrong and possibly resolve the issue before you'll be able to fully trade stocks.
Final Thoughts
Cash App Investing has come as a front-runner in the market and is even competing with some of the top brokers like Robinhood as it allows you to start trading with as little as $1, so you can have a glimpse of what the stock market is, especially if you have never traded before.
This guide compiles the steps you need to take when looking to sell your stocks on Cash App, and even if you are unable to sell your stocks, I've mentioned the possible reasons and how you can easily tackle the issue.