Can You Use PayPal on Robinhood in 2024? The Complete Guide

ByCharles Scott Last Update on

As a financial services expert with over 7 years of experience, one of the most common questions I‘m asked is: can I use my PayPal account with Robinhood?

In 2024, the answer is yes, but not as directly as in the past. However, with 58 million active PayPal users in the US, and over 22 million Robinhood users, clearly a lot of people want the convenience of linking these two financial apps.

Here’s my complete 2023 guide to using PayPal on Robinhood, with statistics, expert advice, pros and cons, and alternative options to consider.

Linking PayPal and Robinhood in 2024: Quick Summary

Feature2023 Status
Directly link PayPal as funding sourceNo longer works
Deposit into Robinhood from PayPalYes, indirectly
Withdraw from Robinhood into PayPalYes
Fees for transfersNone typically
Support stock/ETF tradingRobinhood only

Depositing into Robinhood from your PayPal Balance

As recently as 2021, you could directly add your PayPal account and routing details into Robinhood to fund your investment account. However, in 2024 Robinhood explicitly blocks PayPal account links to combat fraud.

So what can you do instead? Here are the best options I recommend to deposit PayPal money into Robinhood:

  • Bank Transfer: The easiest method is to transfer money from your PayPal balance to your bank (free transfer), then initiate a standard ACH transfer from your bank into your Robinhood account. Takes about 5 business days, but simple process.

  • PayPal Debit Card: Order a fee-free PayPal debit card, which draws directly from your PayPal balance. Then, use the card details to link the "bank account" into Robinhood and initiate transfers. Money is taken instantly from your card.

I personally recommend the bank transfer route for larger dollar amounts given fraud protections. But the PayPal debit card offers more convenience and flexibility.

Deposit Method Comparison

MethodSpeedFeesLimitsSecurity
Bank transfer5 daysNoneHigh limitsHigh security
PayPal CardInstantNoneLow daily limitsPotential fraud risk

Withdrawing Funds from Robinhood into PayPal

The good news is withdrawing money from your Robinhood investment account straight into your PayPal balance remains simple.

Just link your PayPal account details from within Robinhood‘s withdraw page. Manual bank pulls take 3-5 days on average.

Note: You cannot instantly withdraw funds from Robinhood. Sales of stocks/ETFs must settle for withdrawal eligibility.

Expert Tips for Using PayPal on Robinhood

As a long-time user of both PayPal and Robinhood myself, here are my top 4 expert tips:

  • Use bank transfers for large, planned funding – less risk and faster transfers
  • Use PayPal card for small or immediate funding needs
  • Withdraw to PayPal to access money faster vs traditional bank
  • Track cost basis yourself for capital gains taxes

Let me know if you have any other questions!

Charles Scott is a dynamic professional whose academic and career achievements demonstrate a strong commitment to excellence in the retail and consumer service industry. Graduating with an MBA from New York University in 2013, Charles has built a diverse and impressive career portfolio. He has held significant roles as a manager, advisor, and marketer, showcasing his multifaceted skills and deep understanding of the industry.

Beyond his direct professional engagements, Charles has made a notable mark as the head writer and founder of ExpertBeacon.com. This platform stands as a testament to his dedication to consumer empowerment and education. ExpertBeacon.com is a resource designed to assist consumers in addressing their persistent questions about products, services, and companies. Under Charles's leadership, the site provides in-depth, well-researched, and accurate information, all structured in easy-to-follow guides and articles. His work here not only highlights his expertise in the field but also his commitment to providing valuable, actionable information to the public.

Charles's approach is centered on a keen understanding of consumer needs and market dynamics, making him a respected voice in the industry. His contributions through ExpertBeacon.com and his professional roles reflect a blend of strategic thinking, practical knowledge, and a genuine desire to enhance consumer experiences in the retail and consumer service sectors.

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