For questions involving or relating to the use of Robinhood, the service that allows people to invest in publically traded companies and exchange-traded funds through the use of the mobile app of the same name.
Questions tagged [robinhood]
63 questions
15
votes
3 answers
How does Robinhood’s cash sweep achieve 4% interest?
As of February 2023, Robinhood’s Brokerage Sweep Program guarantees its users 4.15% APY (for those who pay $5 a month for Robinhood Gold). Robinhood is sweeping the cash to banks. Do those banks offer accounts with interest rates this high? The best…
asb1230
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14
votes
5 answers
Why can Robinhood offer trading without commissions?
I was wondering why the startup Robinhood can offer free stock trading, while other online stock brokers charge commissions. How is it possible that this is the first initiative that offers this kind of free stock trading? Do you think that this…
Robert Dijkstra
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11
votes
3 answers
Is my cash safe with Robinhood banking?
Just today Robinhood released its own banking with 3% annual yield. The money will be SIPC insured. While I understand that SIPC wont cover my investments losing their value, however the cash in the Robinhood saving account should always be insured…
Nirvedh Meshram
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9
votes
1 answer
Robinhood, daily buying and selling, and cryptocurrencies... What tax concepts to expect?
Robinhood has plenty of docs explaining the tax concepts with trading, and this is not particularly mysterious. But what I am wondering is what sort of documents to expect them to provide come tax time, and how that might vary by your behavior in…
Kai Qing
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5
votes
1 answer
Robinhood Reg T Call, please explain
I receive an email from Robinhood today that I do not understand. (*value's fictional but in ratio)
Our records show that there wasn't a sufficient deposit or liquidation
in your account yesterday to cover your Reg T call, and thus your call
is…
Dustin
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4
votes
1 answer
Is Robinhood's 3% bonus on IRA transfers legit? What's the catch?
As part of their "Hood Week" promotion Robinhood is currently offering a 3% uncapped bonus on IRA transfers. If you transfer a Roth or traditional IRA from another institution, they will immediately pay 3% of the total value transferred into your…
Robert
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4
votes
3 answers
FDIC vs SIPC on Robinhood
I'm really confused how Robinhood insures cash. I am NOT talking about the cash management bank sweep program, where the money is insured by the banks....that is quite trivial.
I'm talking about when you deposit money to Robinhood instant account.…
user98499
- 41
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3
votes
2 answers
How to use full margin (Robinhood Gold) while staying diverse
How is one able to add diversity to one's Robinhood portfolio while utilizing near 100% of Gold (margin)?
I was told in my previous post, as well as reiterated by a Robinhood Rep, that when making a purchase, cash is used first and then margin.…
Dustin
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3
votes
2 answers
If I am buying a stock why don't just I buy an in the money option?
I'm a 15 year stock market investor here who is very new to option trading (two weeks). I have a full understanding of how options work (complicated needless to say) and I have realized their potential.
I have read that is not a good idea to…
lgalico
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3
votes
1 answer
Why is Robinhood a second rate stock broker?
I have heard that Robinhood is not the best fee free stock broker.
The issues I am aware of are that you can't buy fractional shares of stocks, and you can't day trade efficiently.
What other issues does Robinhood have?
Al G Johnston
- 35
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3
votes
3 answers
As a short term trader, do I personally have to keep track of every wash sale for tax purposes?
New to trading, trying to understand how wash sales apply to short term trades that occur in the middle of the tax year. Consider the following scenario:
Day 1: Buy 100 ABC for $10
Day 2: Sell 100 ABC for $5
Day 3: Buy 100 ABC for $4
Day 4: Sell 100…
jimmyd
- 45
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3
votes
2 answers
Discrepancy in P/E ratio of stocks in Robinhood app?
The current price of the Amazon stock is $1673. The latest EPS ratio was $6.04 for Q4 2018. So, the P/E ratio should be $1673/$6.04 ~ 279. But the robinhood app says the P/E ratio of Amazon is 83. What am I missing?
kchanuec
- 41
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3
votes
3 answers
What does Robinhood's account graph represent?
I'm confused at what the Y-axis of Robinhood's account graph represents. It is not labeled.
It's showing $3,000 when hovering over a date well before I ever created an account on robinhood. I would expect this number to be $0.
In May 2018, I…
JoJo
- 672
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2
votes
1 answer
Robinhood covered calls
If i buy 1 call option and then sell 1 call option. Is that classified as covered? I don't actually own the shares, i just own an option to buy them. Robinhood allows me to do this even though i dont have the cash to actually buy the real shares…
rainhamtown
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2
votes
3 answers
What will happen if Robinhood / M1 Finance gets acquired or pivot?
I have subscribed to email newsletter from Capital Minded.
In the latest newsletter, below information was presented regarding Robinhood.
Robinhood is totally fine for fun money, but it's not a mature enough platform for the kind of investing you'd…
vaichidrewar
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