Robinhood UK customers join the Brokerage Cash Sweep Program at onboarding (by default) with their Robinhood brokerage account. This sweep service is an added feature for holding eligible uninvested cash. Until funds are swept to a program bank, they’re held in your individual investment account which is protected by SIPC.

No, you’ll start earning interest on your first cent. When your account is enrolled in the brokerage cash sweep program, your money is held at one or more of the banks in our program. These banks pay interest rates that are determined in part by the federal funds rate, which moves up and down as mandated by the Fed.

Robinhood Strategies Review 2025: Pros, Cons & How It Compares

Neither Robinhood Financial LLC nor any of its affiliates are banks. Interest is earned on uninvested cash swept from your brokerage account to program banks. Program banks pay interest on your swept cash, minus any fees paid to Robinhood Securities, LLC. The brokerage cash sweep is an added feature to your Robinhood Financial, LLC individual investment account. If you carry a margin beyond technical analysis debit balance, you won’t earn interest through the cash sweep program because you need a cash balance.

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If you have general questions about Robinhood or its accounts, chances are you’ll find the answer you’re looking for there. You can also send direct messages via Twitter to @AskRobinhood. Robinhood Gold costs $5 per month, which includes the first $1,000 of margin. Customers that invest on margin pay an additional 8.00% yearly interest on margin use above $1,000. Brokerage cash for some may be categorized as found cash—that surprise stash that piled up as you weren’t watching. Others might carefully nurture it, monitoring assets from stock sales, dividends, and transfers.

If a change is made, we’ll let you know in advance. Let’s say you have a $260,000 cash balance that is eligible to be swept. You’ll have the first $248,000 swept into a bank on the program bank list, and the next $12,000 will be swept into another bank on the program bank list (subject to any capacity considerations at the banks). This is the third time this year that Robinhood has raised the interest rate on its cash sweep account for Gold customers.

Buy More Stocks, Bonds, ETFs

I can argue every point you pushed in your first post, but why. I don’t like them either, but only because it’s a crappy app. I’ve been investing for about 6 years (I’m 24) and have basically just been purchasing various ETF shares on a regular basis. It’s the value investing community on Reddit, and is for more advanced folk. Robinhood support how to identify supply and demand zones is available via phone or email. To reach support, navigate through the mobile app to send a message and choose whether to receive an email response or phone call.

For more details about Atomic Invest, please see the Form CRS, Form ADV Part 2A, the Privacy Policy, and other disclosures. Every business day, Investopedia tracks the rate data of more than 200 banks and credit unions that offer savings accounts to customers nationwide. We determine daily rankings of the top-paying savings accounts. To qualify for our lists, the institution must be federally insured (FDIC for banks, NCUA for credit unions), and the savings account’s minimum initial deposit must not exceed $25,000. Other financial technology companies have implemented similar models for depositing their customers’ uninvested cash in a network of banks.

• I realize Robinhood had a problem with the meme stock craze and the c-word we dare not utter.
• And brokerage cash, as it’s labeled in the Robinhood app, isn’t necessarily available to spend at that moment.
• We determine daily rankings of the top-paying savings accounts.
• He is the founder of the award-winning blog, Family Money Adventure, and host of the Family Money Adventure Show podcast.

What’s the Difference Between Brokerage Cash and Buying Power?

• Robinhood Credit, Inc. (“RCT”), is a financial technology company, not a bank.
• Your uninvested brokerage cash in the program banks is available for withdrawing and investing through your non-retirement, investing account and the cash balance is visible in your account.
• Technology services may be provided by AtomicVest, Inc.
• Keep in mind that you can find much higher rates at some of the best online savings accounts.
• All accounts managed by Robinhood Strategies also get a 4% Annual Percentage Yield (APY) on uninvested cash that is swept to the banks in our program.

I make attempts to link the new bank account to Robinhood and it asks me to provide a bank statement for the new account. I send the bank statement with the name my name, and later received an email saying it was declined because the name did not match the Robinhood account name. They don’t ask for middle name when making an account so I did not provide one. I resubmit my statement reassuring them my account name is correct. Later that day the automated system restricts my entire account preventing me from using any features including bank transfers or my card. I check an email and says that I should contact Robinhood.

Who benefits from a Robinhood Cash account?

The Federal Reserve Bank (or the Fed) and market conditions are factors in APY fluctuations. Changes in fees or charges that Robinhood receives from program banks can also cause the APY to fluctuate. So you’ve piled up a bit of cash in your brokerage account. Maybe you bought low and sold high, transferred funds from a bank, or haven’t reinvested your dividends. While Robinhood Strategies offers access to actively managed portfolios, clients do not have access to meet with the team that is doing the management or get personalized advice.

If this makes you uncomfortable (it should, imo), then you should look into other brokerages and find one that doesn’t do this. They profit off of your trades by selling your data to hedge funds like Citadel which uses this information to execute more intelligent trades. And depending on your trade you could still lose a little to slippage on top of that? Or do you think the entire process should just somehow be free? Because PFOF was a driving factor in eliminating most commissions.

I’d argue some broker business models create a similar dynamic. Robinhood upended the self-directing investment universe with an app that simplifies trading to a few clicks and a swipe. In the process, it attracted millions of first-time investors. Over the past year, its information capabilities and guardrails have improved.

I agree if someone is just buying ETFs at Robinhood they’ll do the job just fine, but understand you are dealing with a crappy company. Robinhood brokerage accounts offer features not found with some online brokers, like the ability to buy fractional shares and no commission fees on cryptocurrency. If that’s something xm group review of interest to you, check out Robinhood.

Robinhood Strategies is available today to all Robinhood Gold members, and will begin rolling out to all customers in April. For a limited time through May 30, Gold members can get a 1% transfer boost of up to $500 and non-Gold members can get a 1% deposit boost of up to $250. As of lately I have literally been logging into my Robinhood app at least 7 times a day or more.

When you’re starting out and playing with smaller amounts, fees become even more important and erode gains if not managed. For me, I didn’t like what happened with the meme stocks. I see both sides of it, but it still isn’t right. Similar to those who get a credit card and always pay the amount back in full and pay no interest, can get rewards, purchase protection and only pay for the items when their card statement is paid. The business model could be argued to be predatory, but those who are smart and have self discipline end up getting a good deal.

You might be using an unsupported or outdated browser. To get the best possible experience please use the latest version of Chrome, Firefox, Safari, or Microsoft Edge to view this website. The interest earned is considered US-sourced income and will be reported on your annual IRS Form 1042-S. To downgrade from Robinhood Instant to Robinhood Cash, Robinhood says to get in touch with the support team to request the change. If you’re using a Robinhood Gold account and you want to downgrade, open the Robinhood app. Tap the Account icon in the bottom-right corner of the screen and click the three bars in the top-right corner of the screen.