Robinhood broker Accounts

Robinhood Account Type

Robinhood offers two main types of brokerage accounts:

1. Margin Accounts:

• Automatically assigned upon account creation.
• Allows trading with unsettled funds from stock sales, meaning you do not have to wait for the funds to settle (1 trading day for stocks).
• Subject to pattern day trading regulations; making 4 or more day trades within 5 trading days may flag you as a pattern day trader.
• Provides access to margin investing, which can enhance buying power.

2. Cash Accounts:

• No trading with unsettled funds; stocks take 1 trading day to settle.
• Unlimited day trades without being subject to pattern day trading regulations.
• Cannot simultaneously close an option and open a new one.

Robinhood Broker Account Opening Process

To open a brokerage account with Robinhood, follow these steps:

1. Set Up an Account:

• Navigate to Robinhood’s sign-up page.
• Provide your name, email address, and create a password. Confirm if you have a mobile device (iOS or Android).

2. Enter Your Contact Information:

• Input your home address and phone number.
• Answer questions about employment in the financial industry.

3. Verify Your Identity:

• Provide your Social Security number, date of birth, and citizenship status.

4. Fund Your Account:

• Link your bank account to fund the brokerage account. No minimum deposit is required.

5. Submit the Application:

• Review and accept the account agreement, then submit your application.

6. Download the App:

• After submission, download the Robinhood app to start investing.

7. Log In to the App:

• Use your credentials to log in and fund your account to begin trading.