Free Online Broker
Free Trades Using RobinHood
By Devin Simmons
When you’re looking to get started in the stock market one of the first things that you’ll notice is that you will need to choose a stock broker to make your trades through. Once you start to look you’ll start to learn that these brokers will charge you fees per trade. Well that brings a whole new meaning to the term you have to spend money to make money, wouldn’t it be nice if there was a free broker to trade with?
Have no Fear, RobinHood is here!
RobinHood is a new style of trade broker that is only used through an app for mobile phones. This app is free and can be downloaded from the Apple App Store, or from the Google Play Store on Android. This revolutionary app opens up a whole new audience to investing, and has changed the playing field as we know it. By allowing anyone to trade for free, now younger investors with less money can get started with trading with ease. The app also provides graphs, new feeds, and many other features to help you with trading.
Ready to Learn how to use RobinHood?
Now that you know what RobinHood is, it’s time to download the app and we’ll dive into all the tasty features it offers.
The first thing you’ll be greeted with when starting the app is creating a login, you’ll need to create your account, and then link it to your bank account to get started with trading on the app.
If you need help doing this, you shouldn’t be trading stocks 🙂
RobinHood Account Types
The RobinHood App has 3 main account types that it allows you to use for trading stocks through their brokerage. These three types of accounts are as follows:
RobinHood Cash Account:This account type is the standard account when you sign up with RobinHood. When you deposit to a cash account it will take around 3 days for your money to post to your account. Also, when you sell on a cash account it will take 3 days for your funds to be available for trading again. Cash accounts do not have any restrictions for day trading, which is a benefit of using.
RobinHood Instant Account: A RobinHood Instant account is a free upgrade that you can apply for on your trading account. When your account is approved for instant you will no longer have to wait 3 days for your funds to be available. The account technically is margin account, so you will now have to watch the amount of day trades you are doing.
RobinHood Gold Account: A RobinHood Gold account is a Margin Account through RobinHood. This type of account will give you margin benefits for a set monthly price. With this account you will be able to get a loan for a small amount of money for you to invest with, but we recommend as a new trader you stay clear of this. It’s better to lose your own money, then to lose theirs and have to pay it back. With this account you also gain instant benefits, so you’ll not have to worry about wait times for your funds.
The Account Tab
Now that you’re greeted with the main screen, the first tab we will be exploring is the Account tab. In this tab at the top you’ll see your Portfolio Value. This is the total value of your account, this includes you holdings (stocks), cash in the account, and other various values associated with your account. You’re even greeted with a little diagram showing you how your portfolio is divided up.
Down below this, you’ll then notice the buying power section of the account tab. Your buying power is the total amount of money that you’re able to spend on purchasing stocks at this moment. This will include your Withdrawal Ready Cash, your deposits, and money still in your account. If you’re using a RobinHood Gold account you will also see the amount of margin you can spend.
Next up we have the Withdrawable Cash section. This section will show you the amount of cash in your account that is available to be withdrawn at this time. After you sell a stock your money will be placed in a 6-day hold before it is able to be withdrawn, so don’t fret if your funds aren’t showing right away.
Lastly on this page is the Day Trades Section. If you’re a RobinHood Instant, or RobinHood Gold account holder you will have this section showing your current Day Trades. A Day Trade is when you buy and sell, or sell and buy shares of the same stock during the same day. If you’re account value is under $25,000 you will be limited to 3 Day Trades per trading week. This rule is created by the SEC, so good luck getting around it. Day trades are great for volatile stocks, so don’t waste them too soon!
The Banking Tab
The Banking Tab is pretty simple to use, this tab holds the main functions for transferring money in and out of your RobinHood account. You can setup instant monthly deposits, instant deposits, and so forth. This tab is pretty self-explanatory so I’ll leave it at that
Pretty self explanatory, this tab shows you the history of all your trades.