Current Robinhood Gold trading account margin interest rates on loaned funds.

Robinhood Margin Interest Rates

Debit Balance Margin Rate
above $50,000 5.00%
below $50,000 $10/month for every $2,000 borrowed


M1 Finance Margin Rates

Debit Balance Margin Interest Rates
$0,01 - $24,999 4.00%
$25,000 - $49,999 4.00%
$50,000 - $99,999 4.00%
$100,000 - $249,999 4.00%
$250,000 - $499,999 4.00%
$500,000 - $999,999 4.00%
$1,000,000 + 4.00%


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Robinhood Gold

The broker also recently launched a modified version of a margin account called Robinhood Gold. Instead of a percentage of every dollar borrowed, the firm charges a flat $10 per month for the ability to borrow up to $2,000. Going up another $2,000 tacks on an additional $10 fee. Above $50,000, the broker switches to the regular percentage-based system. Currently, it's 5.0%.

Robinhood Gold also gives members extended trading hours and instant access to fund transfers. As one of the few advanced features on the app, this service gives an investment edge to frequent traders that was not previously available through the platform.

Robinhood: What Assets You Can and Cannot Invest In

While the universe of investment offerings at Robinhood is not as robust as that of some other brokers, it includes most major U.S.-listed stocks and ETFs that would be needed to build a well-diversified portfolio. Below is a complete list of what types of securities you can and cannot invest in on Robinhood, along with a brief discussion of how each is often used by investors.

Supported InvestmentsNot Supported
U.S. Exchange-Listed StocksForeign-Listed Stocks & ETFs
U.S. Exchange-Listed ETFsSelect OTC-Listed Stocks
Options for U.S.-Listed Stocks & ETFs Preferred Stocks
Major Cryptocurrencies Mutual Funds
Most ADRsBonds
Futures

U.S. Exchange-Listed Stocks

Robinhood allows you to trade common stocks that are listed on the major U.S. exchanges (like the NYSE, NASDAQ, & AMEX). These exchanges offer investors access to some of the world’s largest, most established, and most heavily traded public companies, such as the tech giants Apple, Amazon, and Facebook. These stocks form the backbone of most domestic equity portfolios.

U.S. Exchange-Listed ETFs

Robinhood covers most U.S.-listed ETFs. These instruments trade just like stocks, but are actually powerful tools giving investors cost-effective exposure to both diversified markets and very specific, niche bets. You can use a single ETF to gain exposure to an entire index, like the S&P 500, to gain exposure to a specific country, like Japan, or to track the price of a commodity, like gold. This category also includes many inverse ETFs, which allow you to bet against whatever the ETF tracks. The popularity and number of ETFs on the market keeps growing as investor demand for the ability to express their unique views through their portfolios rises.

Options for U.S.-Listed Stocks & ETFs

Options on U.S.-Listed Stocks and ETFs are a relatively new offering on the Robinhood platform, and can be a great way for investors to both hedge existing positions and to increase their market exposure without requiring additional capital. Trading options inherently involves more risk than stocks since you are trading the option to purchase/sell a financial instrument at a fixed price during a fixed time period, and if market conditions don’t develop in your favor the option can easily expire worthless.


Robin Hood Margin Rates


Cryptocurrencies

Robinhood recently added the ability to trade cryptocurrencies to its platform. The app currently offers Bitcoin, Bitcoin Cash, Ethereum, and Litecoin to users in about half of the U.S. states as of October 2019, with plans to continue expanding the platform to the rest of the country. The cryptocurrency market is still a very young and volatile market, and accordingly investors should make sure they fully understand its risks before trading these assets.

American Depository Receipts (ADRs)

ADRs are U.S.-listed stocks that represent ownership in a foreign public company. Many large foreign corporations, whose primary stock listing is in their home country’s stock market, also have ADRs listed on the U.S. exchanges in order to reach a larger investment audience. ADRs should track the performance of the company’s primary stock, including the effect of the local listing currency, and are a great way for U.S. investors to invest in foreign companies without needing to directly access foreign markets. ADRs are an especially useful tool on the Robinhood app since it doesn’t allow you to trade foreign-listed stocks directly.


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