About recurring investments
With recurring investments, you can automatically invest in stocks and ETFs with Robinhood Financial and crypto with Robinhood Crypto, all on a schedule you choose. You can use this to help make investing a habit and build your portfolio over the long term. Just remember all investing involves risk, including loss of principal.
For example, let's say you set up a recurring investment to buy $10 of fictional stock MEOW every week on Monday. When Monday rolls around, we’ll automatically purchase $10 worth of MEOW for your brokerage account.
This means if MEOW is currently trading at $40 per share, you’ll receive 0.25 shares of MEOW. If MEOW is trading at $20 per share the following Monday, you’ll receive an additional 0.5 shares, for a total of 0.75 shares.
We only support dollar-based orders on recurring investments, which typically results in fractional shares or fractions of a coin. You can't set up a recurring investment for an order of whole shares or coins.
Instant deposits is money that Robinhood gives you access to so you can invest while your bank transfers are being processed. Every account has an instant deposit limit. To find yours, go to Account → Investing → Instant Deposits Health.
If you fund your recurring investment with a bank account, some of your instant deposits will be used to place the order while the money from your bank is on the move. For example, a $50 recurring investment funded with a bank account will use up $50 of your instant deposits limit.
However, sometimes you might not have enough instant deposits available for a recurring order—you might have used them to place other orders, for example. When that happens, your recurring order will be placed once the transfer from your bank is added to your brokerage account, which can take up to 5 business days.
For example, if your $50 recurring order funded through your bank account is scheduled for today but you don’t have any instant deposits, the bank transfer will start and your order will be placed after the transfer is complete.
Recurring investment orders will typically start to be processed between 11 AM ET and market close on the scheduled date. If your recurring investment order falls on a day that the market is closed, like a weekend or holiday, it will be scheduled for the next trading day.
To fill recurring investment orders, we group them in batch market orders. Typically, we create one batch order for each security but sometimes we need to create multiple batch orders.
Each batch order is converted into one or more share-based orders that are routed to the market for execution. To figure out how many shares you’ll receive for a recurring investment, we divide your investment amount by the weighted average price per share for each batch order. You may end up with fractional shares.
Recurring investment orders are typically filled during regular market hours (9:30 AM to 4 PM ET).
Let’s say you have a weekly investment of $50 for MEOW and the batch order was executed at a weighted average price per share of $5. Then you’ll get 10 shares of MEOW that week.
Your recurring investment might get paused automatically for a number of reasons, including:
A recurring order also might be automatically skipped for these reasons:
Generally, securities that have a share price of over $1 and a market cap of $25 million or more are eligible for recurring investments. However, there are some exceptions.
We currently do not support recurring investments for the following types of securities:
Inverse exchange-traded funds (ETFs) and inverse exchange-traded notes (ETNs) are designed to track the inverse of a set of stocks or underlying indexes—the idea being that when those stocks fall in price, the inverse ETF or ETN will rise in price.
Inverse exchange-traded products are designed for short-term trading. Most of them reset daily or within a short time period and, as a result, are meant to be held and sold on a daily basis.
Leveraged ETFs and ETNs use borrowed funds and other financial products (like options contracts) to try to magnify the returns of the index they track. Because the tools used to create the leveraged ETF or ETN are typically short-term tools (for example, most options contracts have short-term expiration dates), holding one of these products as a long-term investment would have returns that are quite different from the underlying index they track.
Like inverse ETPs, leveraged exchange-traded products are designed to be used as short-term trading vehicles. Most of them reset daily or within a short time period and, as a result, are meant to be held and sold on a daily basis. As a result, Robinhood does not support recurring investments in them.
Volatility ETPs track volatility in the market. Volatility is generally associated with uncertainty or fear because a highly volatile market is often one that is losing value. Many of these products track the Chicago Board Options Exchange’s (CBOE) Volatility Index, also known as VIX or the “fear index.”
Because volatility ETPs reset daily or within a short time period, they’re meant to be held and sold on a daily basis, so Robinhood does not support recurring investments in them.
We currently don’t support recurring investments for pre-IPO instruments because investing in a pre-IPO instrument means you’re taking part in the company’s IPO in the primary market (where securities are created) before the instrument trades on the secondary market (where investors trade the security). If you’d like to set up a recurring investment in a newly-listed stock, wait until the first day of trading to do so.
There are several different reasons why a security may not be tradeable. For example, the security might be in a trading halt, might be undergoing a corporate action, might be illiquid (meaning it’s hard to find a buyer or seller), might be delisted (meaning it no longer trades anywhere), or might have a wider spread during extended hours.
Recurring investments use dollar-based orders to automatically purchase fractional shares of a stock or ETF. However, fractional trading is not available for certain securities, so we can’t offer recurring investments in those securities. Fractional trading is also sometimes temporarily unavailable for certain securities because of things like corporate actions, which are events that a company initiates that change its stock somehow. You can track the most recent corporate actions in the Corporate actions tracker.
Securities that are position-closing only can’t be bought on Robinhood. Securities are set to position-closing only for a number of reasons based on the situation. For example, a security might be set to position-closing only in response to operational changes or government action.
Crypto recurring investment orders are typically processed around 2:30-4 PM ET each day.
To fill recurring crypto orders in a fair way, our system aims to place all recurring crypto orders for a certain coin at around the same time.
To figure out how much crypto you’ll receive for your recurring investment, divide your investment amount by the price per coin at the time your order executed.
If Robinhood Crypto customers have set up 4,000 recurring investments in fictional crypto HET, then our system would send all 4,000 HET orders to market at around the same time. We do this in hopes of ensuring that all Robinhood Crypto customers who created a recurring investment for HET get their orders filled at around the same price.
To help protect against dramatic price moves, crypto recurring orders are placed as limit orders collared up to 1% above the last trade price. This means that your order may fill for less than your chosen dollar amount. When that happens, the difference is returned to your crypto buying power.
If the price of the crypto moves more than 1% higher than its price when your order is placed, your order won’t fill and will be skipped. In the following example, this would happen if HET was trading at $10.11 at the time your order would have executed. Robinhood Crypto will let you know when this happens and you’ll never be charged more than your chosen dollar amount.
Imagine that fictional crypto HET is trading at $10 per coin, and you have a crypto recurring investment for $10 of HET each week. To protect against situations where the price of HET increases significantly between order placement and order execution, we’ll send your recurring order as a limit order for 0.99 HET at a price of $10.10 per coin. In short, this means that your recurring HET order won’t execute for more than $10, but it may execute for less than $10. If HET is still trading at $10 when your order executes, you’ll receive 9.90 HET. The remaining $0.10 will be returned to your crypto buying power.
There are several reasons why your crypto recurring investment might get paused automatically:
A recurring order also might be automatically skipped for these reasons:
Yes, you can create a recurring investment for all the coins offered on Robinhood Crypto.
First, try making sure your app is updated with the latest version.
Otherwise, this happens when you live in a state where Robinhood Crypto is not available. Robinhood Crypto is currently available in every US state and the District of Columbia, except for Hawaii and Nevada. Robinhood is working to hopefully make crypto available in those states in the future.
All investments involve risk and loss of principal is possible. Investors should consider their investment objectives and risks carefully before investing.
Recurring investments do not ensure a profit or guarantee against loss. Not all securities on Robinhood are eligible for recurring investments. Recurring investments may result in a purchase of fractional shares or coins. Fractional shares of equities are illiquid outside of Robinhood and not transferable. For a complete explanation of conditions, restrictions and limitations associated with fractional shares, see our Customer Agreement.
Investors should consider the investment objectives, risks, and charges and expenses of any ETF before investing. The prospectus and, if available, the summary prospectus contain this and other information about the ETF and should be read carefully before investing. Customers can visit the relevant ETF’s details page to access a link to the prospectus.
This is not investment advice or a recommendation of any security or crypto, transaction, account type, investment strategy involving securities or crypto, or order.
Securities trading is offered through Robinhood Financial LLC, Member SIPC, a registered broker-dealer, and a subsidiary of Robinhood Markets, Inc. (“Robinhood”).
Crypto trading is offered through an account with Robinhood Crypto. Robinhood Crypto is not a member of FINRA or SIPC. Crypto is not a security, and your crypto investments are not FDIC insured or SIPC protected.
Trading in crypto comes with significant risks, including volatile market price swings or flash crashes, market manipulation, and cybersecurity risks. In addition, crypto markets and exchanges are not regulated with the same controls or customer protections available in equity, option, futures, or foreign exchange investing. Several federal agencies have also published advisory documents regarding the risks of virtual currency. For more information, see the Robinhood Crypto Risk Disclosure, the CFPB's Consumer Advisory, the CFTC’s Customer Advisory, the SEC’s Investor Alert, and FINRA’s Investor Alert.