Published On : October 20, 2021 by: Miti Sharma/Category(s) : Internet
If you want to set your mark in the trading world then the best platform that you can start with is Robinhood. It was established in 2013. The best thing about this platform is that it features commission-free trading and other useful specifications via mobile applications. It has set off as the most reliable and used platform for the millennial generation. You will get to know everything in this Robinhood guide.
Details About Robinhood-
What is the first thing you would need to start with the Robinhood? It’s your bank account that holds just $1 and here you go with the trading process. Apart from being the very first commission-free platform, it’s also the first one to have no minimum account balance. Hence, you are good to invest the money as much you need to no matter what its share price is. In addition, it allows you to trade options for cryptocurrencies and contracts.
Robinhood Mobile App-
It has the most beneficial mobile application which makes every process easier and faster. If you are a beginner in the trading field then this application is just right for you. As it’s convenient to handle and proceed with the procedures. Beginners can have basic experience which would help them in long term.
Now you are done with the basic information let get deeper into the trading concept of Robinhood in this Robinhood guide. This guide includes how you can create or set up your account, fees, and what you can trade.
The process of setting up an account on Robinhood is super convenient. It will just take around five minutes to complete the entire process. You are given all the steps to set up your account on Robinhood-
What Can Be Invested In Robinhood?
As a user, you are offered the ability to invest in stocks, cryptocurrency, Exchange Traded Funds- ETFs, gold. The things that you can not invest in- bonds, mutual funds. Futures, and stocks that are traded on U.S. exchanges.
What Are The Fees Of Robinhood?
If you consider opening an account then it’s free of cost, you can set up your account on Robinhood without paying anything. Also, there are no fees that are charged for unlimited trades of stocks, cryptocurrencies, ETFs, and options. In case of buying and selling gold, you need to pay $5 per month as a fee of Robinhood.
You can quickly make a trade on Robinhood. Out of many experiences, people call it ‘’Gamification’’ others call it ‘’great user experience’’. You are allowed to make limit orders, market orders, and stop orders. Follow these steps-
Cryptocurrency investing is commission-free for the users who reside in 46 out of 50 states that are mentioned by Robinhood. The cryptocurrencies that are ready for trading are Dogecoin, Bitcoin, Litecoin, and Ethereum. You can buy them by following this way- tap on the magnifying glass or the search option, and type the name of the company. Click on the option ‘’Buy’’. The steps to make the trade are given above in the article. Robinhood can be a great way if you want to get into the crypto world. The best part about Robinhood is that the trades can be placed in small quantities however on other platforms they need some minimums to proceed with the trading.
When it comes to starting to trade in Robinhood you first need to enable the trading option given by Robinhood. Follow these steps mentioned below-
You are now ready to start the trading options, the types of trades are as follow-
|Buying calls and puts|
|Selling covered calls|
|Selling cash covered puts|
In order to play options trade, you need to follow these steps correctly-
What Do You Need To Know About The Robinhood Gold?
The basic version of the Robinhood platform is free of any cost however the premium trading platform upgrade which is recognized as ‘’Robinhood Gold’’ is a paid one. You get to use various advanced features with the gold like Level II market data, the professional value that starts at $5,000 and the maximum is $50,000 instead of the standard amount which is $1,000.
If your account is approved for the margin trading by Robinhood then you would be allowed to trade the gold on margin. In simple means, you will be eligible to use the money of Robinhood in order to make the payment of higher-value investments along with the securities your account hold as collateral for the loan. The Robinhood gold can be used for free for 30 days and once this time period is over you will be charged $5 per month by the platform.
Is Robinhood Safe To Use?
The answer is an absolute yes. It is operated by the SEC- Securities ad Exchange Commission and it is also a registered member of the SIPC- Securities Investor Protection Corporation and FINRA- Financial Industry Regulatory Authority in the U.S.
You can close your account in two ways, choose either one of them. The first way is to sell all of the Robinhood assets and further transfer the balance to your bank account through ACH. After that, you need to do these steps to deactivate your Robinhood account-
You have to transfer the assets to another brokerage. For this, contact the other brokerage and get the initiation process done. Remember this thing, that the fee to transfer the assets from Robinhood you will be charged $75, partial or full, with no exceptions.
If you need extra information then you can visit the Help Center -> My Account & Login -> Transferring Stocks in/ out of Robinhood -> Transferring Stocks out of Robinhood.