Investments you can make on Robinhood | Robinhood (2024)

FAQs

Investments you can make on Robinhood | Robinhood? ›

There are two main ways to make money on Robinhood: Buy and sell stocks or other assets at a higher price than you bought them for. This is known as capital gains. Earn dividends on stocks you own.

There are two main ways to make money on Robinhood: Buy and sell stocks or other assets at a higher price than you bought them for. This is known as capital gains. Earn dividends on stocks you own.

Our Instant Deposit feature gives you immediate access to up to $1,000 after you initiate a deposit. With Robinhood Gold, you can get even bigger Instant Deposits—up to $50,000 depending on your individual investing account balance and status.

Is Robinhood a good broker for beginners? Robinhood is a good fit for beginner investors, and the company made our list of the best brokers for beginners. The app offers a streamlined, approachable and easy-to-navigate trading platform, plus extremely low costs, which beginner investors tend to prioritize.

The theoretical max gain is unlimited. Since the underlying stock price could theoretically rise forever, there's no limit to how much the call option could potentially be worth.

Cons Explained

Limited research: Research tools and information at Robinhood don't measure up to competitor standards, making it difficult for traders to get the most out of the platform. There are no stock or ETF screeners available at all, and other research tools are rudimentary at best.

For everyday investors, it means any amount of money -- even $500 -- can be the perfect amount to get started or add to your existing portfolio.

You can only withdraw funds that are settled, which Robinhood refers to as “withdrawable cash.” Your withdrawal amount must be between $0.01 and $100,000 per transaction. You can only make up to 5 withdrawals per day.

To make $1,000 per month on T-bills, you would need to invest $240,000 at a 5% rate. This is a solid return — and probably one of the safest investments available today. But do you have $240,000 sitting around? That's the hard part.

How much money do you need to start day trading on Robinhood? ›

This is called the margin minimum. If you're flagged as a pattern day trader, you must have $25,000 in portfolio value (minus any crypto positions) before you can continue day trading.

Your securities and cash are protected by SIPC

Robinhood Financial LLC and Robinhood Securities, LLC are both members of SIPC, which protects securities for customers of its members up to $500,000 (including $250,000 for claims for cash) for each investing account, including IRAs.

Yes. Anytime you give out your personal information to a third-party, there is always a risk that the information will be stolen or leaked. Robinhood has a good track record of protecting users' Social Security numbers, though, so providing yours is as safe as giving it to most reputable financial apps.

But, can you get rich trading options? The answer, unequivocally, is yes, you can get rich trading options. If you're like most people reading this article, this is probably the answer you were hoping for.

There are many reasons why your Robinhood account could face restrictions, but any account restriction may result in you being unable to withdraw funds from Robinhood. You should contact Robinhood ASAP to resolve any account restrictions.

Robinhood is considered safe for investors. It's a member for the Securities Investor Protection Corp. (SIPC), is regulated by the SEC, and has additional financial protection per customer up to certain amounts for cash and securities.

Robinhood pros & cons

Doesn't require a monthly fee or account minimum to open or maintain a brokerage account (except for Gold account). Easy to use. No foreign transaction, inactive account, transfer or card replacement fees. Offers commission-free crypto trading with no markups and markdowns.

"Growth in interest-earning assets and higher short term interest rates" drove the gain, the company said. Outlook: Analysts expect the first annual profit in 2024, of 30 cents per share. Robinhood, the upstart online brokerage which made its public debut in 2021, has an inconsistent history of quarterly profits.

"We delivered significant revenue growth and margin expansion in Q1 as we remain focused on driving another year of profitable growth in 2024,” said Jason Warnick, Chief Financial Officer of Robinhood.