How to Sign Up for a Robinhood Brokerage Account

What’s Subsequent?

Properly, you’ve simply discovered how one can open a brokerage account with Robinhood.

However because it’s gonna take just a few days to get authorised, now’s most likely an excellent time to analysis any companies you’d like to invest in

You may also take a look at a few of our tutorials on how one can purchase shares of Amazon, Tesla, Microsoft, and different well-liked firms.

And if you wish to get smarter about cash, right here’s an inventory of personal finance books which might be price studying.

Anyway, that’s all for now. Hit the buttons under to share this publish and assist others discover ways to open a Robinhood account.

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Step 4: Fund your account

The corporate says on this web page that there are not any charges for placing cash into, or taking cash out of, your account. There are additionally no minimal deposit quantities.

You possibly can select to fund the account from an inventory of economic establishments. When you do not see your financial institution on this web page (or if you wish to fund the account later), you may click on the “What if I do not see my financial institution on this record” hyperlink on the right-hand facet of the web page after which choose the “click on right here” hyperlink. This can permit you to go on to the following software step and fund the account later via the Robinhood app.


Picture supply: Creator screenshot of Robinhood website.

Cons Defined

  • Robinhood has little in the best way of analysis or instructional sources out there for purchasers. If you’d like greater than the fundamental inventory quotes, you’ll seemingly have to subscribe to Robinhood Gold. Even then, Robinhood lacks sources when in comparison with its rivals’ choices. 
  • Robinhood doesn’t provide any mutual funds or fastened revenue funding merchandise and also you won’t be able to commerce any commodities, foreign exchange, or futures. Furthermore, Robinhood solely helps taxable brokerage accounts. 
  • Cost for order circulation statistics are normally revealed by brokers. It’s the easiest way for traders to check and guarantee correct and well timed commerce executions. Robinhood doesn’t disclose this necessary data to the general public and loses factors for this lack of transparency.

Robinhood Particular Options

Robinhood additionally has a few special features that make it unique

Fractional Share Buying and selling

Robinhood permits traders to purchase fractional shares of an organization. So, if you’re dying to personal Tesla however can’t afford its $500 share worth, you should purchase as little as 1/1000000 of a share, or $0.0005 price of Elon Musk’s enterprise.

Crypto Buying and selling

Robinhood Crypto enables users to buy and sell Bitcoin, Ether, Dogecoin, and different different cash, 24/7 and commission-free. This service is extremely distinctive to Robinhood and is one other distinguishing function.

Margin Buying and selling

Buying and selling on the margin means you may commerce on borrowed money, but additionally lose more cash than you make investments. Margin trading is dangerous, and should you aren’t cautious you may lose severe cash. The Monetary Trade Regulatory Authority requires a $2,000 minimal for margin accounts.

Vary of Choices

Robinhood’s vary of choices is extraordinarily restricted in that it solely provides shares, ETFs, choices, and cryptocurrency buying and selling. Robinhood doesn’t assist mutual funds or fastened revenue merchandise and you’ll’t commerce commodities, foreign exchange, or futures. When you select Robinhood as your dealer, you may spend money on:

  • Shares, lengthy solely. No quick promoting. 
  • Shares price over $1.00 per share with a market capitalization over $25,000,000 are eligible for fractional share orders. The dealer provides each shares and ETFs. 
  • Single and multi-leg choices
  • Cryptocurrency: Bitcoin (BTC), Bitcoin Money (BCH), Bitcoin SV (BSV), Dogecoin (DOGE), Ethereum (ETH), Ethereum Basic (ETC), Litecoin (LTC)
  • As talked about, no mutual funds, no fastened revenue, no futures, no foreign exchange, and no futures choices.

Robinhood Charges

You possibly can learn extra about Robinhood’s pricing on its fee schedule

PaymentQuantity
Buying and selling and fee charges Shares, ETFs, crypto, and choices: $0 (there could also be charges tacked on to shares on world exchanges via ADRs)
Account minimal for brokerage and buying and selling companies $0 
Annual price $0 
Account upkeep price for brokerage and buying and selling companies $0 
Inactivity, knowledge charges $0
Wire transfers$0 
Account closing price / ACATs (automated buyer account switch service),outgoing No closing price, however $75 to switch funds out of your account
Gold pricing (in-depth analysis reviews, Stage II knowledge, entry to margin) For 30 days (plus $1,000 of margin): $5Margin for $1,000+: 2.5%

Prime function you’ll love

Intuitive cell app

Whereas traders also can use the web-based interface to commerce, Robinhood is a mobile-first firm, and so its most recognizable buying and selling platform is the cell app. The app is stripped-down, making it easy to navigate, particularly when you perceive how the app’s icons perform. You possibly can rapidly transfer from screen-to-screen, investigating stocks and inserting orders.

From a handy search bar on the high of the display you may pull up a inventory’s chart. It features easily and immediately, so that you’re not hanging round ready for it to load. You’ll get the inventory’s important statistics – its highs and lows, market cap and dividend yield. It additionally gives a information feed, a composite of analysts’ rankings, and a quick profile. When you’re prepared to purchase or promote, a commerce button scrolls with you down the web page, permitting you to submit an order at any second.

A easy order entry permits you to kind within the variety of shares or choices contracts you need and exhibits how a lot shopping for energy you have got. From there, simply swipe as much as place the commerce. You possibly can place market orders, limit orders and stop orders and a pair different sorts.

Past inserting trades, it’s also possible to rapidly maneuver across the app to seek out your portfolio, account worth and entry quite a lot of account administration choices.

Step 1: Arrange an account

First, navigate to Robinhood’s sign-up page. Right here you will present some primary data like your title and e-mail handle. You will additionally create a username and password for the account. On the backside of the web page, Robinhood asks whether or not or not you have got a cell machine working iOS or Android (Trace: In case your cellphone or pill is not made by Apple, then it is fairly seemingly that it is an Android machine). 

The corporate asks you this query as a result of the entire buying and selling completed on Robinhood is completed on a cell machine. Briefly, do not join a Robinhood account if you wish to make investments utilizing your laptop computer or desktop laptop, since you will not be capable to do it.

You possibly can, nonetheless, arrange the account in your laptop first and then log in to the Robinhood app in your cellphone to start investing. We’ll stroll via establishing the account on-line, after which present you how one can entry your Robinhood account in your cell machine for this how-to.


Picture supply: Creator screenshot of Robinhood website.

Find out how to Mitigate Danger on Robinhood

The least dangerous method of buying and selling on Robinhood is to not do any margin buying and selling.

When you’re useless set on margin buying and selling, follow the following advice to mitigate your risk:

  • Be sure you have sufficient money in your account. When you ever have a margin name the place Robinhood must cowl your losses, it is going to pull out of your money reserves. This fashion you received’t need to promote any shares to cowl the decision.
  • Know the inventory’s Upkeep Base Requirement. If the margin upkeep requirement is about at 30% and also you personal $10,000 price, you could have a minimum of $3,000 in account fairness backing the funding.
  • Try to be extraordinarily assured within the anticipated worth of your funding to even take into account margin. The anticipated return ought to far outweigh the price of curiosity on the mortgage.
  • Repay the curiosity incurred on the margin quantity you used. Robinhood prices its customers 5% yearly curiosity on the settled margin quantity above $1,000.

Investing is unforgiving. Be sensible, play the long-term sport, and spend money on high quality belongings.

Robinhood In comparison with Others

RobinhoodTD AmeritradeVanguard
Kinds of investing accounts Self-directed brokerage and buying and selling Self-directed brokerage and buying and selling, IRAs and different retirement accounts, managed accounts Self-directed brokerage and buying and selling, IRAs and different retirement accounts, faculty and schooling financial savings plans  
Charges $0 buying and selling fee charges; different charges could apply$0 buying and selling fee charges on on-line trades for shares, ETF, and choice trades; different charges differ  $0 buying and selling fee charges on on-line trades for shares, ETFs, and Vanguard mutual funds; different charges differ  
Account charges No annual price No annual price $20 annual price, mutual-only account charges: $20 if below $10,000 
Index funds Over 2,000 ETFs Over 2,300 ETFsGreater than 100 Vanguard index funds 
Cellular app Robinhood is primarily an investing app Investing app out there Investing app out there 
Customer support Buyer assist out there 24/7 through cellphone (request on the app)Account assist out there 24/7 through cellphone Reps out there through cellphone 8 a.m. to eight p.m. EST. weekdays 

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Robinhood Overview

Free stuff is nice, however certainly you wish to hear extra about Robinhood earlier than you sign-up…

…Robinhood is a free-trading app that permits you to commerce shares with out paying commissions.

As a substitute of throwing $8 to your brokerage per transaction, you may commerce 100% freed from cost.

With Robinhood, you should purchase and promote the next forms of securities:

We’ve been utilizing Robinhood for over 5 years now and have by no means as soon as had a difficulty.  In 2014 we opened a Robinhood account, related it to our checking account, and transferred in $500.  We bought our free share as promised.  We then made just a few trades, referred our buddies, bought extra shares without spending a dime, then offered just a few shares, after which transferred cashback to our checking account.  No issues.  No delays.  Labored like a appeal.

Since then, we now have added extra cash, and we now have revamped 200 trades–no worries.

With Robinhood, you should purchase shares of inventory with out worrying about transaction charges.

There are not any arbitrary account minimums – so you do not want 1000’s of {dollars} to speculate.  You possibly can open your account with simply $10.

And keep in mind, the sooner you begin investing, the higher off you may be sooner or later.

How can You Commerce for Free?

Are you skeptical about how an organization can provide free inventory buying and selling?

We had been skeptical, too.

So, how can Robinhood presumably provide free trades?

First, Robinhood makes cash by charging a month-to-month price should you improve your account to a Robinhood Gold account.  With Robinhood Gold, those that improve can make investments as much as double their money.  Additionally they get entry to “after-hours” buying and selling.  Briefly, Robinhood Gold is just like a margin account. A margin account permits you to borrow cash to speculate.  Nonetheless, if you’re new to investing (or have by no means heard of a margin account), you most likely mustn’t borrow cash to speculate!

Second, Robinhood additionally doesn’t pay curiosity in your account stability which represents one other method for the corporate to earn money.

So, is that this enterprise mannequin sustainable? Solely time will inform!  However with 10,000,000 clients, the reply has bought to be YES!  Additionally, take note the corporate is backed by a few of the greatest Enterprise Capital funds on the West Coast, so that they have loads of entry to funding.

But when the corporate had been to exit of enterprise, you’d be capable to switch your shares or money out as a result of the accounts, like all financial institution accounts, are insured by the U.S. authorities for as much as $500,000.

So, it doesn’t matter what Robinhood does – you might be good!

Backside line: Robinhood buying and selling is free (in each sense)!

Associated phrases

  • Shares: You should buy stocks on exchanges just like the NASDAQ and NYSE. These investments signify shares of possession inside public firms. You possibly can usually trade shares via on-line brokerages, automated advisors, and different funding platforms.
  • ETFs: These funding funds are comprised of a mix of shares, bonds, commodities, and different securities. Like shares, you may simply trade ETFs in the course of the inventory trade’s common buying and selling hours. Nonetheless, ETFs are usually much less dangerous than shares.
  • Choices: Inventory choices are contracts that permit you to purchase or promote a safety at a sure worth inside a set period of time. Some funding apps like Firstrade cost you $0 per choices contract, however most on-line brokerages cost between $0.50 and $0.65 per choices contract. 
  • Cryptocurrencies: Cryptocurrencies are digital belongings that depend on blockchain expertise for decentralized transactions. This implies cryptocurrency holders can trade these belongings with out a centralized establishment like a financial institution. 

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