How to Sell Stock on Cash App?

Selling stocks on Cash App is a straightforward process that you’ll get the hang of very quickly.  First, navigate to the ‘Investing’ tab, where you’ll find an extensive view of your investments. From there, select the specific stock you wish to liquidate to set the process in motion. 

A few taps and confirmations later, your sale will be complete, and the proceeds will be credited to your Cash App balance. But before you engage, consider a few essential details that will make a significant difference in your trading.

How to sell my stock on Cash App: key steps

Follow these steps to learn how to sell your stocks on Cash App:

1. Open the app, then find and navigate to the Investing tab.
2. You will see a list of all the stocks you own on Cash App (assuming you own multiple, of course). Select the stock you wish to sell by tapping on it.
3. Once you’re on the stock’s detail page, you’ll see options to buy or sell. Tap ‘Sell’ to proceed.
4. Choose the amount you want to sell. You can either select a preset amount or tap the three dots for a custom sale. Bear in mind that you have to sell in the amount of no less than $1.
5. Confirm the transaction with your PIN or Touch ID. Please note that if you sell more than 98% of your holdings in a single transaction, you’ll need to sell all shares.

When deciding on your sale amount, consider the market value of the stock, keeping in mind that your final sale price may be different from the last-traded price due to market order execution.

Don’t forget that market hours and holidays affect the execution of trades. If you sell outside of market hours, the proceeds won’t be available in your Cash App balance until the trade can be completed during the next market hours.

When you sell your stock, the funds won’t show up in your Cash App balance right away. The sale typically takes about 2 business days to process, and only after this period will you have the money available in your Cash App balance.

Receiving sales proceeds

When you sell stocks on Cash App, the proceeds of the sale are directed into your Cash App balance for you to use freely. This means you can reinvest, spend, or withdraw the funds to your linked bank account.

Typically, the sales proceeds are deposited into your balance within one business day after the execution of the trade during market hours. However, in some cases, market activity might cause a delay of up to two business days. Keep an eye on your Cash App balance after a sale, as it’s distinct from your investment account balance.

You have complete control over the funds received from stock sales and can use them as you see fit. The proceeds from selling stocks are automatically transferred to your Cash App balance, allowing you to access the cash whenever needed.

There are no restrictions on how you can use the sales proceeds, ensuring you can manage your money efficiently.

Can I transfer stocks from Cash App to my bank account?

In a way, yes, but not directly. You can’t transfer stocks from Cash App to your bank account per se, but you can sell the stocks for funds, then transfer those funds.

Here’s how it works:

• Selling stocks: To access funds in your bank account, you first need to sell your stocks within the Cash App. After selling, the proceeds from the sale will be deposited into your Cash App balance.
• Transfer to bank Aaccount: Once the funds are in your Cash App balance, you can transfer them to your linked bank account. Cash App offers two types of transfers: standard transfers (which may take 1-3 business days) and instant transfers (which incur a small fee and are processed immediately).
• Fees for stock transfers: If you are looking to transfer stocks to another brokerage (not directly to a bank account), Cash App charges a $75 fee for outbound stock transfers, which is processed through the Automated Customer Account Transfer Service (ACATS).
   

The reverse is also possible of course – you can transfer funds to your Cash App. It will require you to find your account number as well as a routing number.

How to make money with stocks on Cash App?

Well, isn’t that a million dollar question (potentially even literally)? 

There can never be a 100% guarantee, but if you follow these tips, it will increase the likelihood of taking profits from Cash App stocks:

• Do your research: Thoroughly research any stocks or ETFs you are considering investing in. Look at the company’s fundamentals, growth potential, and competitive position. Use resources outside of Cash App like financial news sites and stock screeners to find promising investment ideas.
• Start small and diversify: Begin with a small amount of money to get comfortable with the platform. Invest in small amounts in multiple stocks or ETFs to diversify your risk. Aim to build a diversified portfolio over time by investing in stocks across different sectors and industries. There is an option to borrow money from Cash App directly if you want access to more funds, but exercise caution if doing this.

• Use limit orders: Use limit orders (referred to as “Custom Orders” on Cash App) to buy stocks at your desired price rather than market orders. This helps control your entry price. Set limit sell orders to automatically sell stocks if they hit your target price or stop loss.
• Be patient and disciplined: Avoid the temptation to frequently buy and sell stocks. Holding stocks for the long-term is more likely to generate consistent returns. Stick to your investment strategy and don’t make emotional decisions based on short-term price movements.
• Reinvest dividends: Many stocks pay dividends which you can automatically reinvest to buy more shares. This can boost your long-term returns.
• Track your investments: Monitor your stock positions and the overall market using Cash App’s charts and alerts. Review your investment performance periodically and make adjustments as needed.

The keys are to start small, diversify, do thorough research, and have patience. Avoid frequent trading and emotional decisions. Consistently investing small amounts over time is more likely to generate returns than trying to “get rich quick.”

Potential tax implications

Selling stocks on Cash App can trigger capital gains taxes, so you’d do well to understand the holding period and associated tax implications to avoid unforeseen liabilities.

As an account holder, you bear the responsibility for tracking and reporting your capital gains and losses. Different jurisdictions impose varying tax rates on capital gains. It’s not a bad idea to consult a tax advisor .

Long-term capital gains, which occur on assets held for more than a year, are typically taxed at a lower rate than short-term gains, which are taxed on assets held for a year or less.

When selling stocks, keep in mind that losses incurred can potentially offset gains for tax purposes. This reduces your overall tax liability. You can strategically manage your stock sales to minimize taxes.

Don’t wait until tax season to understand the implications. Be proactive and educate yourself on applicable tax laws.

The bottom line

Congratulations on successfully selling your stocks on Cash App! Hopefully, the stock sale resulted in a nice profit. If you want to learn more about Cash App, make sure to take a look at our article explaining the Cash App bank name and address.