To suit your investing goals and needs, you can trade with or without margin in your Robinhood brokerage account. The following are some key differences between them.

When you sign up for a Robinhood account, you’ll automatically start with a Robinhood margin account.

• Trade with unsettled funds from stock sales: You don’t have to wait for funds to settle (1 trading day for stocks).
• Margin investing: Subject to eligibility criteria, this option enables you to borrow money from Robinhood and leverage your holdings to purchase securities. This option gives you access to additional buying power based on the value of certain securities in your brokerage account. Risks are described in Disclosures.
• Access Level 3 options trading: If eligible, you can trade multi-leg options, like spreads.

• No trading with unsettled funds from stock sales: Stocks take 1 trading day to settle.
• No options rolling: Non-margin accounts can’t simultaneously close an option and open a new one.

If you want to switch between a margin account and a non-margin account, do the following steps:

1. Select Account (person) → in the app, Menu (3 bars) or Settings
2. Select Investing
3. In Account type, and then select either Switch to margin account or Switch to non-margin account

All investments involve risk and loss of principal is possible. Margin investing involves the risk of greater investment losses. Before using margin, customers must determine whether this type of strategy is right for them given their investment objectives and risk tolerance. For more information, review our Margin Disclosure Statement.