Stock tokens FAQ
The following are some common questions about Robinhood Stock Tokens.
Stock tokens offer many of the same benefits as traditional stocks, but since you do not own the underlying stock, you will not have certain shareholder rights like voting. In addition, unlike with stocks, when you purchase a stock token, you enter into a derivatives contract with Robinhood Europe.
When buying stock tokens, you are not buying the actual stocks—you are buying tokenized contracts that follow their price, recorded on a blockchain.
You can buy, sell, or hold stock tokens—but you cannot send them to other wallets or platforms at this time.
Stock tokens are displayed in USD. When you place a trade, we automatically convert your euros using the current exchange rate, plus a small 0.10% FX fee. You do not need to convert currencies yourself.
Trading stock tokens on Robinhood offers several potential benefits:
You can use the search bar to find available stock tokens by typing the name or ticker symbol. Search results will show crypto, stock & ETF tokens, and perpetual futures (not available in all jurisdictions).
When selling stock tokens, you can always sell them for their value in euros. You cannot send stock tokens to other wallets or platforms at this time.
If you sell stock tokens, the proceeds are available for trading instantly. However, you won't be able to withdraw these funds until the next business day after the sale. This withdrawal hold only applies to EUR proceeds from the sale of stock tokens. If you have multiple sales across multiple days, the proceeds will be available to withdraw based on the next business day after each individual sale. Review Buy and sell stock tokens for more details.
Proceeds from selling a tokenized stock position are available for trading instantly (excluding weekends), but there is a T+1 business day hold on withdrawals until FX settlement clears.
Robinhood Stock Tokens are offered under MiFID II as derivative contracts. The underlying assets are held securely by a US-licensed institution in a Robinhood Europe account. Robinhood Europe issues the contracts and records them on a blockchain. Review Risks below for additional information.
They’re typically treated like other derivative investments but may vary by region. You can request a CSV report of your transactions directly in the app, starting from the date your account was created. Robinhood does not provide tax advice, and you should consult a tax professional for specific guidance.
You can view all the currently available stock tokens in Explore (magnifying glass) and using the search bar. You can review Search stock tokens for more details on finding stock tokens and other available assets.
Corporate actions on the underlying stock can affect your stock token holdings and trading activity. Types of corporate actions include stock splits, reverse stock splits, ticker changes, mergers & acquisitions (M&A), spin-offs, delistings, liquidations, and dividend payments. Trading for affected stock tokens will typically be halted during the processing of a corporate action to ensure safe application. You will receive notifications in the app to inform you about ongoing corporate actions.
For more detailed information, check out Corporate actions for stock tokens.
Investing in financial products like stock tokens involves risks, including the potential loss of invested capital. Before trading, you complete an onboarding process that includes questionnaires to help you understand and evaluate your tolerance for these risks. Review the Description of Services, Financial Instruments and Risks and Key Information Document for additional information regarding the risks of trading stock tokens.
It is essential to fully understand the risks involved before you invest.