Robinhood brokerage accounts

Brokerage cash is a top-line cash total in your investing account. It’s the cash amount before stripping out items like unsettled trades and collateral. Buying power is the bottom-line amount of cash available to you immediately. It might be called “cash available for withdrawal” or some variant on that.

  1. Our evaluations and opinions are not influenced by our advertising relationships, but we may earn a commission from our partners’ links.
  2. Robinhood does offer advanced charting, helping you to identify trends using technical indicators such as volume, moving averages, and the relative strength index (RSI).
  3. But this means that you must open a brokerage account with Robinhood to access its cash management account.
  4. Examples are hypothetical, and we encourage you to seek personalized advice from qualified professionals regarding specific investment issues.

The company also uses multiple industry-standard measures to protect your account and your information. That includes hashing your account passwords using the industry standard BCrypt hashing algorithm and encrypting sensitive information before it is stored. Meanwhile, both mobile and web applications provide secure communication using the Transport Layer Security (TLS) protocol.

The company is arguably one of the best when it comes to making the market more accessible and is commission-free with most trades. But it does lack the customer support and investor resources of more traditional brokerages that a beginner may need. Robinhood offers commission-free trades of stocks, options, ETFs, and cryptocurrencies. When you purchase foreign stocks on U.S. stock markets, also known as American Depositary Receipts (ADRs), there may be a fee of $0.01 to $0.03 per share. Robinhood offers customer service, but options are somewhat limited. Through the app, customers can walk through myriad questions before choosing to receive email or phone support for their issue.

We’ll announce these changes so you’re aware before it happens. Robinhood spending accounts also come with some unusual features, such as an opt-in program that lets users get their direct deposit paychecks up to 2 days early. It also offers an opt-in feature whereby users can have their debit card transactions rounded up to the next dollar, with the extra change mobile app developer job description invested in stocks or funds. This round-up feature is similar to the round-up investing tactics made famous by robo-advisors Acorns and Stash. Although Sutton Bank issues the Robinhood debit card, it’s not a program bank in our brokerage cash sweep program. Your money won’t be swept to Sutton Bank for the purposes of earning interest while you wait to invest.

If you’d rather not keep extra money in the account, there’s no requirement to do so. Keep in mind, other fees such as trading (non-commission) fees, Gold subscription fees, wire transfer fees, and paper statement fees may apply to your brokerage account. Your uninvested brokerage cash in the program banks is available for withdrawing, spending, and investing through your brokerage account and the cash balance is visible in your brokerage account. Customers who open a cash management account elect to participate in a deposit sweep program.


If the equity in your account falls below the minimum maintenance requirements (varies according to the security), you’ll have to deposit additional cash or acceptable collateral. If you fail to meet your minimums, Robinhood Financial may be forced to sell some or all of your securities, with or without your prior approval. If you’re trading an options spread, your long leg should cover your short leg. However, you may have an account deficit if the short leg of your options spread is assigned prior to the expiration date. When you’re assigned early on a short leg in general, before you exercise the long leg of your spread, your buying power will decrease and you may have an account deficit.

How Robinhood Stacks Up

It also allows investors access to OTC stocks and IPOs (although IPOs are not available in IRAs), and allows trades any time between 8 p.m. Robinhood is a good platform for active trading and provides commission-free trades on all investments. But it’s lacking in some areas, such as the number of accounts it offers and the fact it doesn’t let you invest in certain popular asset classes such as bonds and mutual funds. Robinhood is seemingly perfect for those looking to delve into stock trades, exchange-traded funds (ETFs), and crypto trading, all on one platform. It has an easy-to-use mobile app and fee-free service, and is frequently ranked as one of the best online brokers. Until funds are swept to a program bank, they’re held in your brokerage account which is protected by SIPC.

What’s uninvested brokerage cash?

However, these funds are eligible for FDIC insurance through the Program Banks subject to FDIC insurance coverage limits and any capacity limitations at the banks. Review the IntraFi Network Deposit Sweep Program Agreement for more information. No, your Robinhood Cash Card and spending account are separate from your brokerage account. That means you can put your money to work, even if you’re not currently investing it. These FDIC insured program banks then pay interest on those deposits, minus any fees paid to Robinhood, which you receive as part of the brokerage cash sweep program.

Robinhood Gold members have access to more advanced research, but it is a premium program that comes at a cost (see description below). It has a rating of 4.2 out of five stars among 4.1 million iOS users on The App Store, and 4.1 out of five stars among 472,000 Android users on Google Play. Robinhood does offer advanced charting, helping you to identify trends using technical indicators such as volume, moving averages, and the relative strength index (RSI). Our evaluations and opinions are not influenced by our advertising relationships, but we may earn a commission from our partners’ links. This content is created independently from TIME’s editorial staff. For example, if the last day of the month is a Sunday, that month’s interest will be paid on the preceding Friday, along with what you would earn on Saturday and Sunday.

What are good alternatives to Robinhood?

This means a broker can offer an advanced trading platform, but if it is clunky to use or the process of opening an account is unnecessarily arduous, that will be reflected in their score. Mutual funds and bonds aren’t supported, which can help build a diversified, long-term portfolio. Robinhood does, however, offer access to more than 650 foreign companies via American Depository Receipts. It also offers exchange-traded funds, including index and bond ETFs.

Who should choose Robinhood?

Keep looking in your account and you’ll find the true bottom line, the amount you can spend immediately. Yes, customers can send checks to vendors through Robinhood’s Pay by Check service. Cash management accounts also come with an ACH account number and routing number, allowing you to use online vendor bill pay options too. This review provides an overview of Robinhood’s cash management account, its features and how it compares to the competition. Robinhood’s Cash Management account, offered through Robinhood Financial, is one of the many offerings available through the online brokerage firm.

Options trading entails significant risk and isn’t appropriate for all investors. Customers should consider their investment objectives and risks carefully before investing in options. Supporting documentation for any claims, if applicable, will be furnished upon request.

Robinhood provides a very detailed FAQ page that can generally answer most questions. More advanced tools are available if you participate in Robinhood Gold. That plan offers professional research from Morningstar, as well as Level II market data from NASDAQ in real time.


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