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Here Is The Robinhood Guide For You If You Are Into Trading

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.

How Can You Set Your Robinhood Account?

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- 

• Let’s begin the process. Either you can install the Robinhood application or you can visit its official website- Sign up | Robinhood. Choose what’s convenient for you.
• After getting on its home page, find the option ‘’Sign up’’. Click on this option.
• There will be an option that reads ‘’Claim your free stock now’’. Every new user is offered a free share of stocks. 
• Provide your full name, email address, and password.
• Now type your phone number, and address. 
• Fill in your Social Security Number, date of birth, and country of citizenship. 
• There are multiple-choice questions that you need to answer. The questions are Are you employed? Your investment experience? 
• Enter your employment details. 
• Now you will be asked ‘’If you are a senior executive or 10% shareholder at a company that is publicly traded. Answer this question.
• Answer whether you or any of one of your family members work for any other brokerage?
• If you are done with the above details then tap on the option ‘’Submit’’.
• You will receive an email right away as a sign of confirmation of the submission of your application. 
• Now you have to link up your bank account with the account on Robinhood. However, you have the option to do this later on as well.
• Right after you are done with linking your bank account you will be allowed to trade up to $1,000 once the account has been linked and funded. 

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. 

How Can You Make Trades On 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- 

• Click on the magnifying glass icon, the search option. Type the name of the company you are looking for. 
• Tap on the option ‘’Buy’’. 
• Enter the amount you would like to invest.
• Tap on the option ‘’Review’’.
• Now simply swipe up to submit at last. 

How Can You Trade Crypto On Robinhood?

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. 

Where Are The Options Of Trading On Robinhood?

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- 

• Tap on the section ‘’Account’’ or the icon that looks like a person.
• Click on the option ‘’Investing’’.
• Now scroll down a little and tap on the option ‘’Get options trading’’.
• Next click on the ‘’Sign up’’ option.
• Tap ‘’Continue’’. 
• You have to give the answer to this question that will appear next ‘’Do you offer any investment advice as to your part-time job’’?
• The next question that you will need to answer is ‘’Are you registered with any financial regulator’’?
• Now there is a yes/no answer that you need to put up, ‘’since when have you traded options’’?
• The multiple-choice question- ‘’Do you know how can you enter an option spread’’?
• When you will be done answering all the questions click on the option ‘’Confirm’’. 
• You can review your investment profile by click on ‘“Review’’ option.
• Tap on the option ‘’I Agree’’ to proceed further. 
• Hit the ‘’Continue’’ button. 

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

Exercising options

In order to play options trade, you need to follow these steps correctly-

• You can locate the magnifying glass and then tap on it. 
• Type the name of the stock that you would want to trade options for.
• Click on the option ‘’Trade’’.
• Then tap on the ‘’Trade Options’’.

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.

What To Do If You Want To Close Your Account?

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- 

• Go to the ‘’Account’’ option or person-like icon. 
• Click on the ‘’Settings’’.
• Tap on the ‘’Account Information’’.
• Scroll down and click on the option ‘’Deactivate Account’’.
•  The steps will close all the positions along with withdrawing your balance that is still left. 
• After your balance is $0 and the positions are closed off you are ready to confirm the deactivation. 

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.