This week is “Investing Week” at I Love Making Money, and we had many requests on how to get started with Robinhood. When you're a beginner, the right brokerage account can be helpful in your trading success. We're putting together a review of all the brokerage firms here.
Not only are we reviewing each brokerage, we're using their services and testing their trading apps / mobile apps.
How to Create Your Robinhood Account
What You Need to Get Started with Robinhood Investing
To open an account with Robinhood, you need to meet the following requirements:
- Be 18 years or older
- Have a valid Social Security Number (or Tax ID Number)
- Have a legal United States residential address.
- Be a U.S. Citizen, Permanent Resident or Have a Valid U.S. Visa
Step 1: Create Your Account
The first step is to create your account with Robinhood. Click here to create your free account. You'll be asked a series of questions to provide your mailing address, social security and citizenships questions. That's easy.
Step 2: Connect Your Bank Account
The second step – Robinhood will ask you to connect your bank account. They will not withdraw any money from it. This is just a verification, plus when you're ready you can easily deposit money into your Robinhood account.
Step 3: Pick Your Free Stock
Click on the Robinhood logo in the upper left corner to return to your main dashboard. Scroll down to locate the CLAIM YOUR FREE STOCK. When you press that link, you'll be presented with three stocks behind yellow cards like this:
Within seconds, you'll be notified in your messages what stock you got. Look in the top menu under messages or click portfolio to view your stocks in real time.
How to Trade inside Robinhood
Now that you have your bank account connected and your account setup with a portfolio, you're ready to start investing. Robinhood provides the top 100 picks as well as recommendations / news on the main page. (see image below for 100 most popular link)
When you are ready to trade, click on the symbol. Let's say it's Apple. You'll click on Apple and it looks like this. Look to the right of the charts and you will see the “buy AAPL” box with a buy/sell buttons as seen in the pic below.
For this example, I'm investing $1,000 into Apple. I entered $1,000 and clicked the BUY button. And it allows you to review the order and buy/sell and they automatically added $1,000 worth of Apple to my portfolio.
Now, take a look at the image again. Do you see the “Trade AAPL Options”?
How to Trade Options Inside Robinhood?
Click this “trade options” button and you can unlock the options panel inside Robinhood. It's very easy. When you click that button, you'll reach this page.
Click Here to Claim Your Free Stock – This is through our partner link and we earn $4 when you signup through our account. When you click the link, you'll reach Robinhood's Claim Your Free Stock page.
Robinhood will ask you a series of questions to make sure you have experience with trading options. If you need additional help, I recommend taking a course on how to trade options by Danny Devan. Click here to learn how to trade options.
Once you pass their screening, you'll reach a congratulations page like this:
Minimum Deposits at Robinhood
There is no minimum deposits to open an account with Robinhood. If you choose to upgrade to Robinhood Gold, you have to deposit a minimum of $2,000.
What to Expect When Opening an Account
First: Click Here to Open Your Account
Second: You'll receive an email within one trading day either confirming your application's been approved (or asking for more info). Because everything checked out with my questionnaire like citizenship, social security, address, I was approved within 5 minutes and the free stock was in my account within 30 minutes.
Lastly: If you've been approved, you're ready to go. If they ask for more info, just upload your documents using the instructions in the email.
Looking for examples / demos of the app? These are pictures of how Robinhook looks on your phone.
How to Download the App
Once you've setup your account (and claimed your free stock here), then you can easily download the Robinhood Investing / Trading App in the marketplace.
Robinhood is available for iPhone and Apple Watch on the App Store. You can also download for Android on the Google Play Store. And Robinhood supports Chrome, Safari, Firefox and Edge for both PC's and Mac's.
- Best Online Brokerages
- Robinhood Review
- Learn Options with Danny Devan
- Learn to Trade Stocks with Ricky Gutierrez
- The Best Investing Books for Beginners
Frequently Asked Questions About Robinhood
Robinhood generates income on uninvested cash that isn't swept to the Cash Management network of program banks, primarily by depositing this cash in interest-bearing bank accounts. Plus, they also make money when users upgrade Robinhood Gold.
Yes. Buy and sell Bitcoin, Ethereum, Dogecoin, and other cryptocurrencies 24/7 and commission-free with Robinhood Crypto.
Robinhood is regulated by the Securities and Exchange Commission (SEC) and has several safety measures in place to protect users' money and data. In addition, money on Robinhood is protected up to $500,000 for securities and $250,000 for cash claims, ensuring investors can trade with peace of mind.
You cannot trade OTC penny stocks on Robinhood. Robinhood only has access to the NYSE and NASDAQ currently, and as such, you do not have access to 95% of penny stocks, since most are found on the OTC (because they do not meet the financial requirements to be listed on the “real” exchanges).
Robinhood has quickly reached 10,000,000 users by giving free stock just signing up. When you open a brokerage account, you get a free stock valued up to $200. You can refer your friends and family and get another free stock valued up to $200. Click here to claim your free stock.
You can contact Robinhood's customer service here.
Yes. You can also trade options directly from your app. Here's how:
Tap the magnifying glass in the top right corner of your home page.
Search the stock you’d like to trade options for.
Tap the name of the stock you’re looking for.
Tap Trade in the bottom right corner of the stock’s Detail page.
Tap Trade Options.
You'll always be able to login to your Robinhood account regardless if you close it to view your tax documents. Here's how:
Download the app and log in using your Robinhood username and password.
Tap the Account icon on the bottom right corner of your screen.
Scroll down and tap Account Statements or Tax Documents.
Your cryptocurrency assets aren’t part of your Robinhood Financial account. Your brokerage account is with Robinhood Financial LLC and allows trading of stocks, ETFs and options, while cryptocurrency trading is done through an account with Robinhood Crypto, LLC.
For these reasons, you can trade cryptocurrencies on Robinhood with a Cash, Instant, or Gold account. Your cryptocurrency assets are held in your Robinhood Crypto account, not your Robinhood Financial account, so they’re treated as non-marginable, with a maintenance requirement of 100%. This means your cryptocurrencies need to be backed entirely by cash, and can’t serve as collateral for equities positions.
You can login to Robinhood here.
All of your tax documents for 2020 will be ready in mid-February 2021. Keep in mind: you may not receive tax documents from us, but we’ll still let you know if you don’t have any.
Please wait until mid-February to file your taxes to avoid having to refile. By then, Robinhood will have finalized your Form 1099 tax documents.
You can access your consolidated Form 1099 in your mobile app:
Tap the Account icon in bottom right corner
Tap Statements & History
Tap Tax Documents.
Cash Management is a feature offered through your brokerage account that lets you use Robinhood¹ to spend and earn interest on your cash. You’ll also get a debit card issued by Sutton Bank. You can use your debit card and routing and account numbers to buy groceries, pay bills, send checks, and more. Your cash is swept to our network of program banks where it starts earning 0.30% annual percentage yield (APY)³.
You can transfer up to $50,000 per business day into your account. You'll receive instant $1,000 available while the settlement times will be up to 5 business days.
You can set up automatic transfers into your Robinhood account on your mobile app:
Tap the Account icon in the bottom right corner.
Tap Automatic Deposits.
Choose your schedule.
Weekly: We’ll initiate this deposit every Monday.
Twice Monthly: We’ll initiate this deposit on the 1st and 15th of every month.
Monthly: We’ll initiate this deposit on the 1st of every month.
Quarterly: We’ll initiate this deposit on the 1st of January, April, July, and October.
Enter the amount you want to deposit each time.
The first step in signing up is to setup an account. First, navigate to Robinhood's signup page here. You'll enter your contact information and verify your identity. When you're ready to fund your account, you'll want to link your bank account to get a free stock valued up to $200. It usually takes 24 hours before they accept your application. Once they approve your application, then you can download the app and start trading.
Once you’ve setup your account (and claimed your free stock here), then you can easily download the Robinhood Investing / Trading App in the marketplace.
Robinhood is available for iPhone and Apple Watch on the App Store. You can also download for Android on the Google Play Store. And Robinhood supports Chrome, Safari, Firefox and Edge for both PC’s and Mac’s.
Fractional Shares is a new concept that allows you to invest in ANY company while getting a fraction of the share. Choose how much you want to invest and Robinhood converts that amount to parts of a whole share (a fractional share).
This allows you to customize your portfolio with pieces of different companies to help diversify and reduce risk.
When you buy and then, sell the same stock within a single trading day, you’ve made a day trade. If you executive 4 or more trades within a 5 day period, you’ll be considered a pattern day trader. If you plan to day trade like this, you’ll need a minimum account balance of $25,000.
This is known as the PDT rule. It simply means that if you have less than $25,000, you are limited to three trades or less in a five day period. The $25,000 must be your cash + stocks + options to meet the threshold to become an unlimited day trader.
Buy and sell Bitcoin, Ethereum, Dogecoin, and other cryptocurrencies 24/7 and commission-free with Robinhood Crypto.
Robinhood is a member of the Financial Industry Regulatory Authority (FINRA) and the Securities Investor Protection Corporation (SIPC), which protects members up to $500,000, including $250,000 for claims for cash.
Keep in mind that this does not include crypto protection. Crypto is not protected by FDIC, FINRA or SIPC. If you’re comparing online brokerages, check out alternatives to Robinhood here.
Robinhood charges $0 for trading called commission-free trading. That refers to the $0 commission for Robinhood’s self-directed individual cash or margin brokerage accounts. This $0 fee includes trading stocks, trading ETF’s and trading options via the app or the website.
Download their fee schedule report for 2020 here.
“Extended hours trading” means trading outside of “regular trading hours.” “Regular trading hours” generally means the time between 9:30 a.m. and 4:00 p.m. Eastern Standard Time.
Traditionally, the markets are open from 9:30 AM EST – 4 PM EST during normal business days. With extended-hours trading, you’ll be able to trade during pre-market and after-hours sessions.
Pre-Market opens 30 minutes earlier, starting at 9:00 AM EST
After-Hours trading continues for 2 hours, until 6:00 PM EST
That’s an extra two and a half hours of market access, every single day.
Here’s the breakdown:
Pre-Market Hours: 9 AM to 9:30 AM EST
Regular Market Hours: 9:30 AM to 4 PM EST
After Hours: 4 PM to 6 PM EST
During the extended-hours session, the price displayed on a stock’s Detail page is the stock’s real-time price. Orders made outside market hours and extended hours trading are queued and fulfilled either at or near the beginning of extended hours trading or at or near market open, according to your instructions.
Bookmark This Setup:
Please bookmark this page to come back to it at anytime. I'll be updating this page with additional training on how to get started with Robinhood. If you know someone who needs this info, please share this with them. We rely on word of mouth marketing to advertise our business.
I just signed up with Robinhood. It’s very straightforward.