(Update 8/18/24: Reminder that the $2,000 limit is ending today. Limit is back down to $1,000.)
(Update 5/15/24: Seems that some people are seeing a higher $2,000 limit now in their Robinhood account.)
Yesterday I learned a cool tip from the good folks on Bogleheads forum:
Robinhood Gold costs $6.99 per month or $75 annually. Others pay $5/month or $50/year. One of the benefits of Robinhood Gold is that your first $1,000 in margin loan is completely free. (After that the cost is 8% annually.) See a full list of Robinhood Gold benefits here.
Robinhood Gold members don’t want to invest on margin can still pull out that free $1,000 and invest it somewhere safe to earn some interest.
In order to be able to pull out the $1,000, you’ll need a collateral. For example, if you have $2,000 in regular investments in your Robinhood account you should then be able to pull out the $1,000 margin loan. Also note, in order to use the full $1000 of free margin you can’t have a cash balance. For example, if you have $2000 invested and $1000 in free margin, and then you deposit $100, your margin usage will go down to $900.
To be clear, margin investing is not something I personally do, nor recommend for most people. Taking this free $1,000 from Robinhood and investing it in a risk-free fund like SGOV is an easy way to offset some of the $75 annual cost for Robinhood Gold.
Robinhood Gold is becoming increasingly interesting to a lot of readers in order to gain access to their 3% IRA match bonus offer and their upcoming 3% credit card.
View Comments (165)
I tried doing this and it limited my deposit to 1k, so I was not able to execute.
There is no mention of it ending today, is it a permanent benefit of Gold?
$2K margin interest-free
Increase your buying power with margin investing*
@will @chucksithe might be good to repost for those that increased their margin to $2k to sell stock to get that margin to $1k, since the free $2k ends tomorrow.
Added an update, thx
Now seeing $2,000 interest free margin, without the end date. Made permanent?
false alarm. It went back to $1k after date changed to 8/19
@6 Robinhood is now offering a 1% bonus match on all deposits for Gold, paid out monthly over 24 months: https://robinhood.com/us/en/support/articles/robinhood-gold-deposit-boost/
Posted thx https://www.doctorofcredit.com/robinhood-1-boost-on-deposits-unlimited-cash-bonus/
Anyone have luck requesting the additional $1k margin? I'm still restricted to the first free $1k only.
Also, how is everyone handling the $5 gold fee? I'm thinking I will schedule weekly nominal amounts into the account to cover the $5 automatically. This way I don't eat into the margin usage too much.
Ya I am confused how paying for the $5 gold fee works with margin. From my understanding, in order to use margin you cannot have any cash. But I assume you need cash available for the fee, or would RH automatically sell-off $5 of stock to pay the fee? Very confused
They would only sell off stock to pay the fee if that $5 made you get margin called (doubtful). Otherwise, it just adds to the margin.
From what I've gathered you're correct. To use the margin you can't have a cash balance (otherwise it'll reduce the margin). So when the fee hits it'll push the margin past the free $1k so I think they're banking on this small fee. Which of course most people will likely overlook and forget about until it snowballs.
I was told "Unfortunately the additional $1,000 margin not earning interest offer would not be able to be added to your account. This offer is for specific users that received this promotional offer. Keep in mind that this is a limited time offer for these users and not something that will remaining in perpetuity."
I have the additional margin. Is only good until 8/18/24. Seems like a ploy to get interest from people who forget to go back to $1000
Ha I was just thinking the same thing about the $5 gold membership fee. If it doesn't get paid it'll get added to the margin (i.e. over the $1k). You can't simply pay from a checking account or automate the payment without their credit card.
Looks like the $2k interest free margin was only for those who signed up before 5/20. I activated gold on 5/21 and I don’t qualify
No. I signed up in April and got only $1k in margin. I've been a Robinhood customer for 9 years.
Robinhood increased my free margin to $2k over the weekend.
My limit was still at 1k could not figure out why. Messaged them. Turns out I had set me limit to 1k (back when that's was the max). You have to change that in your settings in order to go up to 2k. Select Account - Select Menu - Select Investing - Select Margin Settings and then Borrowing Limit.
I currently have my margin limit set to $1k as well. Did your gold membership details specifically say you get $2k free? Mine still only says $1k free.
Yes Account - Robinhood Gold
You're one of the lucky ones, just don't forget to scale it back in August
I tried utilizing the free margin but it only showed my buying power as $2K (what I initially deposited) instead of $4K. What gives? @guest_1845485 @guest_1845703
Did you invest your cash?
Have Gold and account has cash (5%).
Day before yesterday signed for margin with $1000 limit.
Yesterday bought JPST on $2.5 K$ but margin funding wasn't used.
Any suggestion?
Also does 5% apply on margin funding?
Don't see the free margin in my account.
I saw where someone else posted a screenshot of their Robinhood Gold page where it's indicated, but mine only says "8.00% margin investing" in that location.
Possibly targeted. I suppose it's possibly because I just enabled margin a few minutes ago. I'll revisit in a few days and see if it's there.
It's showing today. $2k limit until 8/18/24 like everyone else.