Get started with a futures account
Futures offer you the ability to gain exposure to, and trade a variety of different asset classes, such as equities, energy, currencies, crypto, metals, and other commodities.
There are also many unique characteristics to trading futures including: No pattern day trade (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.
Open an account
To apply for a futures account:
- Search “futures trading”
- 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 and will gain access soon as we phase rollout, likely through the end of February.
If you can’t find the Apply to trade futures link, you can reach out to us to request early access. We’ll be rolling out access to all customers by the end of February.
Eligibility
Eligibility to apply for a Robinhood futures account requires you 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.
What is my application status?
It may take up to 72 business hours to review your application. We’ll notify you via email about the status of your application.
Funding my account
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.
Bank holidays may impact your deposit timeline.
How are futures taxed?
Futures positions that are open at the end of each tax year will be ‘marked to market’ (MTM). This means you'll recognize a gain or loss based on the fair market value (FMV) at the end of the tax year compared to your original cost basis. This gain or loss may be subject to potential taxes. Furthermore, the MTM process resets your cost basis to the FMV (higher or lower) for the following tax year. All gains or losses will be included in your consolidated 1099. This rule applies to all futures trading.
In the US, futures contracts are generally taxed under the 60/40 rule. This means that 60% of any gains or losses are taxed as long-term capital gains, regardless of how long the position was held. The remaining 40% are taxed as short-term capital gains, which are taxed at the same rate as ordinary income.
Futures contracts are generally exempt from wash sale rules.
Futures tax information is included as part of your consolidated 1099 in Section 1256. For details, check out taxes and forms.
Robinhood doesn’t provide tax advice. For specific questions, consult a tax professional.
Statements
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.
Account transfers
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 vs options contracts
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.
Restrictions
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.
Disclosures
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).