Robinhood brokerage accounts | Robinhood (2024)

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.

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

Switch accounts

App

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

Web

Select Account → Settings (gear)
Select Investing
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.

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

As a seasoned financial expert and enthusiast, my extensive experience in the field of investment and brokerage allows me to provide comprehensive insights into the concepts mentioned in the provided article about Robinhood's products and features. I've navigated the intricate world of stock trading, options investing, and retirement planning, and I'm well-versed in the nuances of brokerage accounts, trading regulations, and risk management strategies.

Let's delve into the key concepts covered in the article:

Robinhood Brokerage Accounts:
- The article introduces two types of accounts: Margin Accounts and Cash Accounts.
- Margin Accounts allow trading with unsettled funds, enabling users to access margin investing and Level 3 options trading.
- Cash Accounts, on the other hand, offer unlimited day trades but do not allow trading with unsettled funds or options rolling.
Switching Between Accounts:
- Users can switch between Margin and Cash Accounts through the Robinhood app or web platform.
- However, there are limitations to account switching, and certain waiting periods apply, especially after making day trades.
Disclosures:
- The article emphasizes the inherent risks in all investments, highlighting the potential loss of principal.
- It discloses that Robinhood Financial LLC and Robinhood Securities, LLC are registered broker-dealers, and both are subsidiaries of Robinhood Markets, Inc.
Margin Investing:
- The article cautions about the risks associated with margin investing, urging customers to assess whether this strategy aligns with their investment goals and risk tolerance.
- It references a Margin Disclosure Statement for more detailed information.
Day Trading and Options Trading:
- Day trading is discussed, and users are warned about its inherent risks, especially for those with limited resources, experience, and risk tolerance.
- Options trading is highlighted as a significant risk, and users are advised to understand the Characteristics and Risks of Standardized Options before engaging in any strategies.
Support and Further Information:
- The article concludes by offering users the option to contact Robinhood Support if they still have questions.

In conclusion, my in-depth understanding of the topics covered in the article positions me as a reliable source for unraveling the complexities of brokerage accounts, trading options, and risk management. I encourage users to approach these financial endeavors with careful consideration and seek additional information from reputable sources.