If you’re a PayPal and Robinhood user that wants to link accounts, you might want to know: can you use PayPal on Robinhood?
If so, keep reading to learn all you need to know about PayPal and whether you can connect your Robinhood account to it, along with other related facts!
Can You Use PayPal on Robinhood in 2023?
PayPal doesn’t officially support transfers to Robinhood, and it’s no longer as easy as it once was to move money between these two services in 2023. However, it’s still certainly possible, but it requires some extra steps. Although it is possible to move money between PayPal and Robinhood, it’s much easier if you have a regular bank account.
Do you want to know more about if PayPal works with Robinhood and how you can connect your accounts? If so, read on to learn what we’ve found out!
Can You Transfer Money to Robinhood Using PayPal?
You can transfer money to Robinhood from PayPal using a PayPal card. However, you cannot link it as a bank account as you once could.
If you try linking your Robinhood account with your PayPal account and routing number, it will allow it to go through at first, but will eventually decline and send the money back to PayPal.
Can You Transfer Money to PayPal from Robinhood?
You can transfer money from Robinhood to PayPal, just as you would from PayPal to Robinhood, which requires a PayPal card.
Does PayPal Charge to Transfer Money to and from Robinhood?
PayPal doesn’t charge for transactions to and from Robinhood or any other similar site.
However, you could incur charges by transferring your PayPal balance to your bank via instant transfer.
Does Robinhood Charge to Transfer Money to and From PayPal?
Robinhood doesn’t charge you when making transactions, such as depositing or withdrawing funds.
Can You Invest in Stock with PayPal?
PayPal isn’t a stock trading platform and doesn’t provide a means to buy and sell stocks such as sites like Robinhood.
How Do You Get Money from PayPal When Using Robinhood?
After you transfer your money from Robinhood to PayPal, it will be sitting in your PayPal balance.
You can transfer this money to a regular bank account instantly for a fee, or through an ACH, which is free but could take a few days.
To use this money, you can also request a PayPal debit card, which works just like a regular bank debit card.
With this card, you can even withdraw money from your PayPal balance at an ATM machine.
Can You Pay with PayPal Using Your Robinhood Balance?
Many people want to know if they’re able to make purchases using their Robinhood balance.
Well, this isn’t possible even with PayPal, as Robinhood is an investment site and is not designed to function as a bank account.
Therefore, if you wish to use the funds in your Robinhood account, you will need to first sell the amount of money you wish to transfer.
Once it’s available, you can send the funds to your bank or PayPal account. Keep in mind this is not instant and could take several days to complete.
What Other Methods Can You Use to Deposit in Robinhood?
The “normal” way to transfer money to Robinhood is through an ACH transfer directly from a regular bank account.
This will even allow you to schedule transfers into your Robinhood account at regular intervals.
What Other Ways Can You Cash Out Your Robinhood Account?
The easiest way to take money out of your Robinhood account is by transferring directly to your bank account.
This will keep it from getting held up in a potential PayPal hold or cause problems accessing funds later.
Does PayPal Report Your Robinhood Transactions to the IRS?
PayPal reports transactions (for goods and services) to the IRS, but there’s no clear indication of whether the company will report from sites like Robinhood.
However, this is irrelevant because Robinhood does report your investment gains to the IRS, so you’ll want to plan accordingly before withdrawing money from Robinhood.
What Can You Use Instead of Robinhood?
Robinhood has received much scrutiny lately because of what some consider shady practices.
This has highlighted a bigger problem with financial companies like Robinhood, which are not nearly as safe as they make themselves out to be.
Therefore, instead of using sites like Robinhood that prey on retail investors, move up to bigger and more trustworthy brokers like TD Ameritrade, Vanguard, or Fidelity.
While none of these are perfect, they’re much more regulated, which means your money is in better hands.
PayPal funds can be sent to Robinhood, and money from Robinhood can be sent to a PayPal account with relative ease. Additionally, you will not need a PayPal debit card in order to transfer money between these two accounts.