Getting started
Explore products and features
Invite friends, pick stock
Robinhood brokerage accounts
No commission crypto trading
Options investing
My account and login
Spending
Investing
Retirement
Robinhood Wallet
Bank transfers and linking
Documents and taxes
General questions
IPO Access
Report a loss
< Explore products and features
Help Center > Getting started > Explore products and features

Robinhood brokerage accounts

To suit your investing goals and needs, you can trade in a margin account or a cash account. There are some key differences between the two. Check out the table below to compare and see which is best for you.

Copy link to clipboard

Margin accounts

Margin accounts

  • Trade with unsettled funds from stock and option sales. You don’t have to wait for funds to settle (2 trading days for stocks, 1 for options).
  • Access margin investing. If eligible, you can enable margin investing and get more buying power.
  • Access Level 3 options trading. If eligible, you can trade multi-leg options, like spreads.
  • Pattern day trading regulations. If you make 4 or more day trades within 5 trading days in a margin account, you may be flagged as a pattern day trader. Review Pattern day trading for more information.
Copy link to clipboard

Cash accounts

Cash accounts

  • Unlimited day trades. Cash accounts aren’t subject to pattern day trading regulations.
  • No trading with unsettled funds from stock and options sales. Stocks take 2 trading days to settle, and options take 1.
  • No options rolling. Cash accounts can’t simultaneously close an option and open a new one.
Unlimited day tradesAccess margin investingAccess level 3 options tradingTrade with unsettled funds from stock and options sales
Margin accounts❌✅✅✅
Cash accounts✅❌❌❌
Copy link to clipboard

Switch accounts

Switch accounts

App
  1. Select Account (person) → Menu (3 bars) or Settings (gear)
  2. Select Investing
  3. Scroll down to Account type, and then select either Switch to margin account or Switch to cash account
Web
  1. Select Account → Settings (gear)
  2. Select Investing
  3. Select Account type, and then select either Switch to margin account or Switch to cash account
Note

You can’t switch accounts more than once each trading day. Also, if you made a day trade before switching to a cash account, you have to wait 5 trading days after that trade to switch back.

Copy link to clipboard

Disclosures

Disclosures

All investments involve risk and loss of principal is possible.

Brokerage accounts are offered through Robinhood Financial LLC (member SIPC), which is a registered broker-dealer. Robinhood Securities, LLC (member SIPC) is a registered broker-dealer and provides brokerage clearing services. Both are subsidiaries of Robinhood Markets, Inc. (‘Robinhood’).

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.

Robinhood does not promote day trading. Day trading can be extremely risky. Day trading is generally not appropriate for someone of limited resources, limited investing experience, and low risk tolerance.

Options trading entails significant risk and is not appropriate for all investors. Customers must read and understand the Characteristics and Risks of Standardized Options before engaging in any options trading strategies. Customers should consider their investment objectives and risks carefully before investing in options. Supporting documentation for any claims, if applicable, will be furnished upon request.

Was this article helpful?
Reference No. 2946999
Still have questions? Contact Robinhood Support
Follow us on
DEMOCRATIZE FINANCE FOR ALL™
PARTICIPATION IS POWER™

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 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. The Robinhood spending account is offered through Robinhood Money, LLC (RHY) (NMLS ID: 1990968), a licensed money transmitter. A list of our licenses has more information. The Robinhood Cash Card is a prepaid card issued by Sutton Bank, Member FDIC, pursuant to a license from Mastercard®. Mastercard and the circles design are registered trademarks of Mastercard International Incorporated. RHF, RHY, RHC and RHS are affiliated entities and wholly owned subsidiaries of Robinhood Markets, Inc. RHF, RHY, RHC and RHS are not banks. Products offered by RHF are not FDIC insured and involve risk, including possible loss of principal. RHC is not a member of FINRA and accounts are not FDIC insured or protected by SIPC. 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.

Commission-free trading of stocks, ETFs and options refers to $0 commissions for Robinhood Financial self-directed individual cash or margin brokerage accounts that trade U.S. listed securities and certain OTC securities electronically. Keep in mind, other fees such as trading (non-commission) fees, Gold subscription fees, wire transfer fees, and paper statement fees may apply to your brokerage account. Check out Robinhood Financial’s Fee Schedule for details.

© 2023 Robinhood. All rights reserved.
Follow us on

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 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. The Robinhood spending account is offered through Robinhood Money, LLC (RHY) (NMLS ID: 1990968), a licensed money transmitter. A list of our licenses has more information. The Robinhood Cash Card is a prepaid card issued by Sutton Bank, Member FDIC, pursuant to a license from Mastercard®. Mastercard and the circles design are registered trademarks of Mastercard International Incorporated. RHF, RHY, RHC and RHS are affiliated entities and wholly owned subsidiaries of Robinhood Markets, Inc. RHF, RHY, RHC and RHS are not banks. Products offered by RHF are not FDIC insured and involve risk, including possible loss of principal. RHC is not a member of FINRA and accounts are not FDIC insured or protected by SIPC. 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.

Commission-free trading of stocks, ETFs and options refers to $0 commissions for Robinhood Financial self-directed individual cash or margin brokerage accounts that trade U.S. listed securities and certain OTC securities electronically. Keep in mind, other fees such as trading (non-commission) fees, Gold subscription fees, wire transfer fees, and paper statement fees may apply to your brokerage account. Check out Robinhood Financial’s Fee Schedule for details.

© 2023 Robinhood. All rights reserved.