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.
Unlimited day trades | Access margin investing | Access level 3 options trading | Trade with unsettled funds from stock and options sales | |
Margin accounts | ❌ | ✅ | ✅ | ✅ |
Cash accounts | ✅ | ❌ | ❌ | ❌ |
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.
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.