Futures enable you to gain exposure to, and trade a variety of different asset classes, such as equities, energy, currencies, crypto, metals, and other commodities.

Trading futures has many unique characteristics, including:

• No pattern day trading (PDT) rules
• 60/40 tax treatment
• Trading with leverage
• Availability to trade 23 hours a day, 5 days a week

Keep in mind, trading futures also carries the risk of losing more than your initial investment and may not be appropriate for all investors.

To apply for a futures account:

1. Search futures trading
2. Select Apply to trade futures and follow the online instructions to apply

If you were previously approved for a Robinhood Derivatives account to trade event contracts, you’re already approved for futures trading.

To apply for a Robinhood futures account, you’re required to have an open individual investing account with either:

• Margin investing enabled, or
• Options trading approved

You can’t apply for futures if your account doesn’t meet the eligibility criteria.

It may take up to 72 business hours to review your application. We’ll notify you via email about the status of your application.

Your futures account is funded through your individual investing account. However, the amount available for trading futures (known as your futures buying power) may be slightly different from what you see in your investing account. This is because futures buying power is calculated differently. You can view your futures buying power in Investing → Buying power.

Instant deposits are also eligible for futures trading, but depending on various factors such as your deposit history, overall investment portfolio, and attempted futures orders, you may not be able to enter certain highly volatile trades using instant deposits. For more details, check out Deposit money into your Robinhood account.

Robinhood doesn’t provide tax advice. For specific questions, consult a tax professional.

You may receive both daily and monthly futures statements, depending on your account activity.

You’ll receive a statement at the end of each month regardless of your account activity. Daily statements will be also generated for each day that you have cash activity, trading activity, open positions, or any futures balance.

When you request a full or partial account transfer (ACATs) to another firm, any futures contract positions you may hold will be liquidated. We currently don’t support transferring futures contracts in-kind.

Futures and options are both derivative instruments in which their value is derived from an underlying asset. Both futures and options have expiration dates on their contracts. However, futures contracts are binding agreements to buy or sell specific assets. As opposed to options where the buyer has the right, but not the obligation to act.

We currently don’t support trading options on futures contracts.

Your Robinhood futures account might be restricted for a number of reasons, including but not limited to the following:

• Futures margin calls
• Your account no longer being eligible (margin investing is disabled or options trading unavailable)
• Incorrect or outdated account information

For more details, review Account restrictions.

As part of Commodity Futures Trading Commission (CFTC) normal market surveillance and large trader reporting of the futures market, Robinhood is required to file certain trading data with the CFTC when accounts hold positions of a certain size. From time to time, the CFTC may reach out to accounts directly to gather additional information and require the account holder to complete CFTC Form 40. The CFTC Form 40 is a critical regulatory document required to be completed. This form helps the CFTC monitor market activities and prevent manipulative practices. Completing Form 40 is not only a regulatory requirement but also a critical component of responsible market participation. We urge you to comply promptly to avoid any restrictions on your trading activities.

Note: The CFTC requires many traders and accounts to complete CFTC Form 40 every year. Having to complete the form does not mean your account is not in good standing nor that you participated in any manipulative practices. The CFTC Form 40 is a way for CFTC to gather more detail about people trading in the futures markets.

If you hold positions above certain reporting thresholds in the futures markets, you will be asked to complete and submit CFTC Form 40. This request typically follows when you have reached or exceeded these thresholds.

It is crucial to respond promptly to the request to complete Form 40. The CFTC mandates that this form be completed and submitted within a specified timeframe, generally less than 30 days from the date of notification.

Failure to submit the form within the required timeframe can lead to significant repercussions, including a Position Closing Only (PCO) restriction. If Form 40 is not submitted by the deadline, we will impose a PCO restriction on your futures & event contracts account. This means you can only close existing positions and not open new ones until compliance is achieved.

1. Create a CFTC login: You can create a CFTC login using the criteria and instructions through the CFTC email you received. It usually takes 1-2 business days for CFTC to create the login
2. Access the form: Once CFTC creates your login, you can access the form through the CFTC website portal using your CFTC login criteria.
3. Information required: You will need to provide detailed information about your trading accounts, the nature of your business, and your market activities.
4. Submission process: Complete the form by following the detailed instructions provided and submit it through the designated channel.

If you encounter any difficulties or have questions while completing CFTC Form 40, contact us. We are here to assist you in ensuring that your submissions are timely and accurate.

Futures, options on futures and cleared swaps trading involves significant risk and is not appropriate for everyone. Please carefully consider if it's appropriate for you in light of your personal financial circumstances.

Please read the Futures Risk Disclosure Statement prior to trading futures products, and please read the Event Contract Risk Disclosure for more information about the risks associated with forecast event contracts.

RHD accounts are not protected by the Securities Investor Protection Corporation (SIPC) and are not Federal Deposit Insurance Corporation (FDIC) insured. RHD is not a bank. Prior to trading virtual currency Futures products, please review the NFA Investor Advisory & CFTC Advisory providing more information on these potentially significant risks.

Futures, options on futures and cleared swaps trading is offered by Robinhood Derivatives, LLC, a registered futures commission merchant with the Commodity Futures Trading Commission (CFTC) and Member of National Futures Association (NFA).