Robinhood investing accounts | Robinhood (2024)

FAQs

Is Robinhood a good place to invest money? ›

Robinhood is best for active traders who place commission-free trades in stocks, options, ETFs, and cryptocurrencies. The brokerage account has no minimum size requirements for most of its investments, but you'll have to make minimum opening deposits for its fractional shares and margin trading offerings.

To suit your investing goals and needs, you can trade in a margin account or a cash account.

You can fund your Robinhood account with as little as $1. Depositing money in your account is as simple as linking a bank through Plaid. You can choose to fund the account from a list of financial institutions.

Robinhood is primarily a platform to buy and sell stocks, ETFs and cryptocurrencies. Its research information is limited but includes detailed quotes and reports for Robinhood Gold members. Platform features include: Real-time market data and earnings information.

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.

Why can't I withdraw money from Robinhood? You probably can't withdraw money from Robinhood because your funds are unsettled. You can only withdraw “settled funds”, money that hasn't been transacted with in the last 2 business days. This is known as Robinhood Withdrawable Cash.

If your account is a Pattern Day Trader account, and you meet the $25,000 requirement, you may be eligible to use “Day-Trading Buying Power.” A customer's “Day-Trading Buying Power” (also referred to as “Day Trade Limit”) means the equity in the customer's account at the close of business # 1 Page 2 Robinhood Day ...

Your account will be flagged for pattern day trading if you make 4 or more day trades within 5 trading days, and the number of day trades represents more than 6% of your total trades in that same 5 trading day period.

Robinhood Gold costs $5 monthly or $50 yearly after a 30-day free trial. There is no monthly fee for the normal Robinhood account. If you're strategic with your Robinhood Gold benefits, you could earn enough to cover the subscription fee (or even a little extra).

After you complete a full ACATS transfer, we'll put your account on hold. We charge a $100 fee for a partial or full ACATS out of Robinhood. Currently, fractional security shares with RHF and crypto held with RHC aren't transferable to other brokerages.

Is there a monthly fee for Robinhood? ›

We don't charge you fees to open or maintain your account. However, the following regulatory organizations charge Robinhood fees for trading that we do pass on to you to cover our costs: The Financial Industry Regulatory Authority (FINRA) charges a regulatory transaction fee and trading activity fee for sell orders.

Yes, it's fairly safe to enter your bank account login info in the Robinhood app. Many people are alarmed that Robinhood asks for your bank login info when you attempt to link a bank account, and they wonder if it's safe to give Robinhood this information. The information, however, is not being requested by Robinhood.

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.

If you're interested in investing in Robinhood, or in any other individual stock, consider keeping the amount to a small portion of your overall portfolio, financial advisors suggest 5% to 10%. It's also a good rule of thumb to invest only an amount you won't need for the foreseeable future, say five years.

Getting started with Robinhood

Don't worry, we've gathered all the essential details to help you make the right decision. The good news is that Robinhood is in fact perfect for beginners. As a Broker Analyst at BrokerChooser, I'm dedicated to providing data-driven insights that simplify the world of investments.

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.

Get the opportunity to earn income on stocks you already own—just by turning on Stock Lending. Robinhood Wallet is your self-custody home for crypto, NFTs, dapps, and more. Sign up for Robinhood or refer a friend to choose your free fractional share in companies you love. Certain limitations apply.

Robinhood is safe for the beginner investor. They are regulated by the Securities and Exchange Commission (SEC), similar to other popular brokers. In addition to their individual account security measures, Robinhood is also a member of the SIPC, so securities are protected up to $500,000 (up to $250,000 for cash).

Getting started with Robinhood

Curious about trading costs at Robinhood or how user-friendly its platform is? Don't worry, we've gathered all the essential details to help you make the right decision. The good news is that Robinhood is in fact perfect for beginners.