Fix: Robinhood Not Enough Buying Power
Robinhood users often find themselves with a wide variety of options inside the platform.
Investors can buy stocks, perform crypto purchases, and participate in different stock trading features.
Cryptocurrency trading is made through Robinhood Crypto, and stock market participation is made through a brokerage account.
Nonetheless, whether you want to purchase or trade securities, crypto, and other stocks, there’s an issue that some investors face: the “Not Enough Buying Power” error message.
If you are having issues while purchasing stocks, securities or more, then this blog post is for you.
Continue reading to get more information about:
- How to fix “Robinhood Not Enough Buying Power”;
- Understanding the reasons behind this error message;
- Things you need to know about stocks and crypto buying power.
Understanding Required Buying Power on Robinhood
Each brokerage firm must determine the investing and value potential of their customers before allowing them to use cash in the operations.
Robinhood isn’t the exception. As a consequence, “purchasing power” is defined as the amount of money that a customer can use to buy stocks, crypto, and more.
Buying power affects you regardless of the account type you have.
A Margin or a Brokerage Account can face buying power limitations for trading and buying a stock, while the crypto buying power is related to your Robinhood app crypto profile.
Long story short: buying power determines whether you can place a market order or a limit order for a set price.
Pro Tip: The “Not Enough Buying Power” error is not the same as having your Robinhood Account Restricted from Purchasing.
They are two entirely different issues that require specific solutions.
Why Does the Not Enough Buying Power Error Happen?
You can’t buy a stock if you don’t have its total value plus 5%.
For example, if a stock is worth $100, you must have $105 on your account.
Following the previous example, it is safe to mention that crypto funds are not considered collateral by Robinhood.
Therefore, if the price of a crypto exceeds the amount of cash you hold, you don’t have the required buying power to go through with the purchase - as simple as that.
How to Fix Robinhood Not Enough Buying Power
If you can’t trade nor purchase inside the platform because you are facing the buying power limitation, then you must know that there are a couple of ways in which you can solve this problem on your account.
Read Also: If you have a Robinhood Instant or Gold Account, you might be flagged a Pattern Day Trader if you exceed your weekly trading limit on Robinhood.
Learn to Remove Pattern Day Trader on Robinhood by reading our related blog post!
1. Load More Money into Your Robinhood Account
First and foremost, the main solution to the buying power issue is transferring money from your bank account to your Robinhood profile.
Doing so will most likely erase all limitations related to cash on your account.
Nevertheless, remember the buying power rule: you must have the total money value + 5%.
Try doing this and you will get rid of the buying power notification before you realize it!
Keep in mind that the money might not be immediately available on your account, though.
Pro Tip: If you want to withdraw funds from Robinhood, then it’s imperative to wait for the funds to settle.
Unsettled Funds on Robinhood can’t be withdrawn until the settlement period is finally over.
2. Sell or Liquidate Some of Your Positions
Stock sale is yet another efficient solution that you could take advantage of.
Selling some of your positions will result in an immediate buying power boost.
Therefore, if your buying power increases as it should, then you will be able to make a purchase back again.
Just keep in mind that the final price of the sale must match the purchase price as well.
3. Contact Robinhood Financial Support Team
If you have tried everything but nothing seems to work to solve this issue, then you can get powerful insights by contacting Robinhood Support Team.
In any case, before you do so, it’s important to check whether you are complying with the rules stated by the platform or not.
Otherwise, they will just tell you to add more money to your account or sell stocks in order to increase your power, just as we told you right here in this article.
That’s all you need to know about this message! If you need to learn more about Robinhood, we are here for you.
Robinhood Not Enough Buying Power FAQ
Why is the Robinhood App Asking for My SSN?
Users must provide their SSN to Robinhood during the account application process.
If you fail to provide all the personal information they need, the platform might as well reject your application in no time.
Is Investing in Robinhood Crypto Safe?
There’s always a risk when it comes to trading, even in Robinhood Crypto.
Of course, you might get good profits out of certain operations, but that doesn’t mean that you will always win.
You must do your own research before investing your money anywhere.
Karen is a senior technical writer and copywriter at Hypegrowth. Her area of expertize are social media apps and new media.