April 24, 2024

In the current landscape of financial markets, the significance of having suitable investment tools cannot be overstated. Fortunately for the public, the proliferation of apps and online platforms has greatly increased the wealth accumulation possibilities for individuals. These digital resources not only help people to stay informed but also enable them to devise more effective investment strategies to navigate market volatility, mitigate risks and seize potential opportunities. With these valuable tools right at their fingertips, investors are better equipped to thrive in the ever-changing financial landscape.

Robinhood stands out against the crowd in many ways when it comes to trading apps. The company has recently made its paid membership, Robinhood Gold, even more enticing to users. Robinhood raised its interest rates in November to 5%. New subscribers now have the opportunity to earn a 5.25% annual percentage yield (APY) on their uninvested brokerage cash with cash sweep. These new subscribers will earn this boosted rate for the first 60 days of their membership and then 5% APY after that. This means that any cash sitting idle in your account will be automatically swept to partner banks where it earns interest. This new rate is 8x higher than the national average savings rate* and 9x the FDIC insurance with coverage up to $2.25 million at partner banks.

With this subscription, users have the ability to make larger instant deposits and gain instant access to up to $50k of their deposited funds. Typically, it takes a few days for deposited funds to become available for investment, but Gold subscribers can bypass this waiting period, allowing them to make opportune investment decisions and seize market opportunities.

Subscribers to Robinhood Gold are also granted access to professional research from Morningstar MORN and Level II market data from the Nasdaq Stock Exchange. Level II data provides investors with a comprehensive view of market activity, including bid and ask prices, market depth and order sizes. This additional information can prove invaluable for investors seeking a deeper understanding of market dynamics to make more informed trading decisions.

Another notable feature of Robinhood Gold is the option for margin investing at a rate of 8%. This feature allows users to leverage borrowed funds, boosting their buying power if eligible. Without a Gold subscription, the margin rate is higher at 12%. As an added bonus, Robinhood Gold subscribers receive a 3% IRA match on eligible contributions to their Robinhood IRA accounts. They simply need to keep Gold for at least one year from the date of the match and keep their funds in their Robinhood IRA for five years.

With a range of advanced tools and benefits, Robinhood Gold enhances an individual's investing knowledge. From higher interest rates on uninvested cash to instant deposits, professional research, access to market data, lower margin rates and the added incentive of a 3% IRA match, Gold subscribers have access to a comprehensive suite of features that cater to a wide gamut of investing needs from short-term investments to long-term retirement planning.

Featured photo by Chris Liverani on Unsplash.

This post contains sponsored content. This content is for informational purposes only and is not intended to be investing advice.


*As of Nov. 2nd, 2023 via Bankrate.

All investments involve risk and loss of principal is possible. Robinhood Gold is offered through Robinhood Financial LLC and is a subscription offering premium services for a fee. The Brokerage Cash Sweep Program is an added feature to your Robinhood Financial LLC brokerage account. 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. As of November 15, 2023, the Annual Percentage Yield (APY) that you will receive is 1.5%, or 5% for Robinhood Gold members. Terms apply. The APY might change at any time at the program banks' discretion. Additionally, any fees Robinhood receives may vary and is subject to change. Neither Robinhood Financial LLC nor any of its affiliates are banks.

Terms apply to the boosted rate promotion. For more information, view our terms and conditions.

Bigger instant deposits are only available if your instant deposit status is in good standing.

Not all users will be eligible to trade on margin. 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 please see our Margin Disclosure Statement.

The 3% matching on contributions requires a subscription with Robinhood Gold (fees apply), must be subscribed to Gold for 1 year after your contribution to keep the full 3% match. You must have compensation (wage income) in order to contribute to an IRA. The funds that earned the match must be kept in the account for at least 5 years to avoid a potential Early IRA Match Removal Fee. For more information refer to the IRA Match FAQ.

Funds being contributed into or distributed from retirement accounts may entail tax consequences. Contributions are limited and withdrawals before age 59 1/2 may be subject to a penalty tax. Robinhood does not provide tax advice; please consult with a tax adviser if you have questions.

The Robinhood IRA is available to any U.S. customer with a Robinhood brokerage account in good standing.

Robinhood Financial LLC (member SIPC), is a registered broker dealer. Robinhood Securities, LLC (member SIPC), is a registered broker dealer and provides brokerage clearing services. All are subsidiaries of Robinhood Markets, Inc. (Robinhood).