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Get 1 Free Stock Worth Up To $200 From Robinhood!
Sign up with Robinhood, deposit any amount and get 1 Free Stock. It takes less than 3 minutes to sign up and claim your Free Stock Bonus.
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Written by Cari Scribner on August 20, 2023
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FTC Disclosure: Some of the links on this site are affiliate links. Read our full disclaimer here.

How Does Robinhood Margin Work For Beginners?

Trading on margin can be risky business, because you are investing with borrowed money.

If the assets you buy with the funds take a nosedive, your losses are multiplied.

On the other hand, if the assets see an increase in value, you can see magnified returns.

It could go either way, but in most cases, it goes south. Margin is not for beginners.

Before trading on margin, it is imperative that you do your own research and understand how it works.

Don't forget to grab your free stock worth up to $200 from Robinhood today!

Limited Time: Robinhood 1% Transfer Bonus

If you transfer an existing brokerage account to Robinhood through January 31st 2024, you can get an Unlimited 1% Transfer Bonus.

Robinhood Transfer Bonus

For example, if you transferred a brokerage account worth $50,000 - that would be a bonus of $500.

In addition, Robinhood offers a free stock for new users as well as a 1% IRA match for retirement accounts.

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What Is Margin Trading?

The idea with margin trading is simple. Investors can increase their buying power by borrowing money from the brokerage.

This is essentially like a personal loan from the bank, except your stocks/assets serve as collateral. 

In the event that you invest and it goes south, the broker can issue a Margin Call.

This requires you to deposit more cash, or your assets can be sold to cover the loan balance.

What Is Robinhood Gold?

Robinhood Gold comes with a number of features:

  • Discounted Margin interest rate
  • First $1,000 of margin included
  • Larger instant deposits
  • Morningstar Research Reports

For $5 a month, you get all the Robinhood Gold premium features, and your first $1,000 of margin is included.

You will be charged $5 every 30 days at the beginning of your billing cycle. If you borrow additional funds beyond the first $1,000, your monthly bill will go up.

In addition, as interest rates change, so do margin rates. Interest rates are generally going up, so margin is expected to be more expensive over time.

Article written by Cari Scribner

Read more

Power Your Investing

Choosing the right product and service is essential for your investing. Here are some of the tools and services to help your portfolio grow.
Robinhood
Robinhood provides an easy-to-use free trading platform for beginner investors. Robinhood has $0 account minimums. Get a free stock when you open an account below.
Try Robinhood
M1 Finance
M1 Finance offers a free investing platform where users can build portfolios of stocks and ETFs. Users can also choose from a variety of pre-built portfolios offered for free.
Try M1 Finance
Fundrise
Passively invest in private real estate deals with as little as $10. Fundrise allows you to own residential and commercial real estate across the U.S. starting at a 1% annual fee.
Try Fundrise
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Get 1 Free Stock Worth Up To $200 From Robinhood!

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