Robinhood margin rates | Robinhood

Robinhood margin rates

The following interest rates are applied to your full margin balance depending on how much you borrow:

Margin balanceMargin interest rate
Up to $50,0006.25%
$50,000 up to $100,0006.05%
$100,000 up to $1 million5.75%
$1 million up to $10 million5.50%
$10 million up to $50 million5.45%
$50+ million5.20%

Check your settings

You can always check your current margin settings and usage in Account (person icon) → in the app, Menu (3 bars) → InvestingMargin investing.

Rate calculations

Robinhood’s margin interest rate is calculated by adding the Federal Funds Target Rate upper bound and an interest rate, which varies depending on your settled margin account balance, resulting in the rates shown in the table above.

Note

Interest is calculated daily at the end of the day based on settled margin balances.

If you’re a Gold subscriber, the first $1,000 of margin investing is included with your subscription. If you borrow more, you’ll pay interest on any margin used over $1,000.

Example

If you use $3,000 of settled margin, we’ll calculate daily interest as follows:

  • $3,000 settled margin and subject to interest
  • $3,000 * (6.25% / 360) = $0.52 per day

If you’re subscribed to Gold, we’ll calculate daily interest as follows:

  • $3,000 settled margin
  • $1,000 included, leaving $2,000 subject to interest
  • $2,000 * (6.25% / 360) = $0.35 per day

We’ll charge the margin interest to your investing account every 30 days at the end of your billing cycle.

Note

The margin interest rate may change at any time without notice and at Robinhood Financial’s discretion.

How we compare to other brokerages

We selected brokerages for comparison based on their publicly disclosed margin balances as of September 19, 2024. We didn’t compare data with brokerage firms who aren’t publicly traded or who charge commissions.

Our rates correspond to the introductory rate for the minimum margin balance tier offered by Schwab, Etrade, and InteractiveBrokers lite. Competitor rates and offers are subject to change without notice. Services vary by firm.

Competitor Margin rates Sept 25

Disclosures

Margin investing involves interest charges and risks, including the potential to lose more than deposited or the need to deposit additional collateral in a falling market. Before using margin, customers must determine whether this type of trading strategy is right for them given their specific investment objectives, experience, risk tolerance, and financial situation.

Regardless of the underlying value of the securities you purchased, you must repay your margin debt. Robinhood Financial can change their maintenance margin requirements at any time without prior notice. If the equity in your account falls below the minimum maintenance requirements (varies according to the security), you’ll have to deposit additional cash or acceptable collateral. If you fail to meet your minimums, Robinhood Financial may be forced to sell some or all of your securities, with or without your prior approval.

Robinhood Financial charges a variable margin interest rate based on your settled margin balance and the upper bound of the Target Federal Funds Rate, which is set by the Federal Reserve and is subject to change without notice. The formulas used to calculate the margin interest rate are subject to change at Robinhood Financial’s discretion. The margin interest rates shown are as of September 19, 2024 and might change at any time without notice and at Robinhood Financial’s discretion.

For more information, review FINRA’s Investor Alert and Robinhood Financial’s Customer Relationship Summary, Margin Disclosure Statement, Fee schedule, and Margin Agreement. These disclosures contain important information on Robinhood Financial’s products and services, conflicts of interests, lending policies, interest charges, and the risks associated with margin investing enabled accounts.

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All investing involves risk.

Brokerage services are offered through Robinhood Financial LLC, (“RHF”) a registered broker dealer (member SIPC), and clearing services through Robinhood Securities, LLC, (“RHS”) a registered broker dealer (member SIPC).

Cryptocurrency services are offered through an account with Robinhood Crypto, LLC (“RHC”) (NMLS ID: 1702840). Robinhood Crypto is licensed to engage in virtual currency business activity by the New York State Department of Financial Services. Please review a list of RHC's licenses for more information. Cryptocurrency held through Robinhood Crypto is not FDIC insured or SIPC protected.

The Robinhood spending account is offered through Robinhood Money, LLC (“RHY”) (NMLS ID: 1990968), a licensed money transmitter. Please review a list of our licenses for more information.

The Robinhood Cash Card is a prepaid card issued by Sutton Bank, Member FDIC, pursuant to a license from Mastercard® International Incorporated. Mastercard and the circles design are registered trademarks of Mastercard International Incorporated.

Robinhood Gold Card is subject to credit approval and underwriting. Robinhood Gold Card is offered by Robinhood Credit, Inc., and is issued by Coastal Community Bank, pursuant to a license from Visa U.S.A. Inc. Robinhood Credit, Inc. (“RCT”), is a financial technology company, not a bank.

Robinhood Gold is a subscription-based membership program of premium services offered through Robinhood Gold, LLC (“RHG”).

RHF, RHY, RHC, RCT, RHG, and RHS are affiliated entities and wholly owned subsidiaries of Robinhood Markets, Inc. RHF, RHY, RHC, RCT, RHG, and RHS are not banks. Investing products offered by RHF are not FDIC insured and involve risk, including possible loss of principal.

RHY is not a member of FINRA, and products are not subject to SIPC protection, but funds held in the Robinhood spending account and Robinhood Cash Card account may be eligible for FDIC pass-through insurance (review the Robinhood Cash Card Agreement and the Robinhood Spending Account Agreement).

Options trading entails significant risk and is not appropriate for all customers. Customers must read and understand the Characteristics and Risks of Standardized Options before engaging in any options trading strategies. Options transactions are often complex and may involve the potential of losing the entire investment in a relatively short period of time. Certain complex options strategies carry additional risk, including the potential for losses that may exceed the original investment amount.

RO 3846636

Robinhood, 85 Willow Road, Menlo Park, CA 94025.© 2024 Robinhood. All rights reserved.