Robinhood Gold + Cash Management

You can get even more out of Robinhood Gold with Cash Management. If you’ve enabled Margin Investing, you can turn on Margin Spending to use margin for day-to-day spending and withdrawals.

Here’s an example of how you can use margin investing and Cash Management together:

• You have $5,000 of uninvested cash in your account

• You buy $5,000 of marginable MEOW stock

• You use your Robinhood debit card to buy a $1,000 computer

Since you didn’t have any cash left in your account, when you used your debit card, you bought the computer using margin. In other words, you borrowed $1,000 against the $5,000 of MEOW stock in your portfolio to complete the purchase and have a $1,000 margin balance.

If you’re a Gold subscriber and you don’t borrow money by spending on margin, you’ll earn interest on your uninvested cash that’s swept to our network of program banks. If you borrow money by spending on margin, you won’t have any uninvested cash left in your account to sweep to banks, so you won’t earn any interest. In that scenario, since you’re borrowing money, you’ll pay interest on any money you borrow over $1,000.

Yes! Using your debit card to make purchases works similarly to withdrawing money from your brokerage account. If you turn on Margin Spending, you can use margin for day-to-day spending too. For this reason, you might notice your debit balance or “Margin Used” increases when your transactions are processed, similar to the way it would increase if you were borrowing cash to purchase stocks. You’ll be charged 2.5% interest monthly on any amount you borrow over $1,000.

If you’re borrowing money, we’ll generally decline transactions that would take your account below the $2,000 minimum. An exception to this is if you have a transaction that results in a different amount than initially authorized (such as a tip at a restaurant or a gas purchase that exceeds the hold placed by the gas station). If this is the case, your account could fall below the $2,000 minimum, potentially resulting in a margin minimum call.

We’ll generally deny any authorization that would put your account into a margin call. An exception to this is if you have a non-authorized transaction (such as a tip that exceeds the amount authorized). If this is the case, it could result in a margin call.

Margin calls can also happen for a variety of reasons—a decline in the value of your holdings, ACH reversals, or options assignments—causing your portfolio value* to fall below your margin maintenance requirement. If you get a margin call, you need to bring your portfolio value* back up to your minimum margin maintenance requirement or you risk Robinhood having to liquidate your position(s) to bring your portfolio value* back above your margin maintenance requirement.

*When calculating margin maintenance requirements, your portfolio value does not include any cryptocurrency held by our affiliate, Robinhood Crypto, LLC.

No. Your intraday spending transactions and withdrawals don't affect your day trade limit, which is issued at the beginning of each day. Only trading activity will affect your day trading limit.

No. Instant Deposits aren’t withdrawable, so they aren’t available to use with your Robinhood debit card.

Your spending will always be deducted from your cash first. If your spending exceeds the amount of available cash, your debit balance or “Margin Used” will increase when your transactions are processed, similar to the way it would increase if you were borrowing cash to purchase stocks. You can find your debit balance in the Margin Investing section of your Robinhood Gold settings.

Keep in mind that you'll be charged 2.5% interest on any amount you borrow over $1,000.

Cash Management is an added feature to your Robinhood Financial LLC brokerage account. APY might change at any time at the program banks’ discretion. Interest is earned on uninvested cash swept from the brokerage account to the program banks. Neither Robinhood Financial LLC nor any of its affiliates are banks. The debit card is issued by Sutton Bank, Member FDIC, pursuant to license from Mastercard® International Incorporated.

Margin borrowing increases your level of market risk, as a result it has the potential to magnify both your gains and losses. Before using margin, customers must determine whether this type of strategy is right for them given their investment objectives and risk tolerance. Regardless of the underlying value of the securities you purchased, you must repay your margin loan. 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.

For more information, please see FINRA’s Investor Alert and Robinhood Financial’s Customer Relationship Summary, Margin Disclosure Statement, 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.

Robinhood Gold is an account offering premium services available for a $5 monthly fee. Not all investors will be eligible to trade on margin. Margin involves the risk of greater investment losses. Additional interest charges may apply depending on the amount of margin used. The margin interest rate charged by Robinhood Financial is 2.5% as of December 21, 2020. The rate might change at any time and at Robinhood Financial’s discretion.

Examples listed are for illustrative purposes only. They are not a recommendation of a security or investment strategy.

Cryptocurrency trading is offered through an account with Robinhood Crypto. Robinhood Crypto is not a member of SIPC or FINRA. Cryptocurrencies are not stocks and your cryptocurrency investments are not protected by either FDIC or SIPC. For more information see the Robinhood Crypto Risk Disclosure.