Robinhood Improves Margin Trading Rates

Robinhood has lowered its margin rates, now ranging from 5.7% to 6.75%, depending on a customer’s margin balance.

The prominent neo broker stated that the traditional approach to margin lending needed an update to better accommodate customers’ diverse needs, varying investment experiences, and different financial goals, making a one-size-fits-all model obsolete.

Simplified Access to Low Margin Rates

Steve Quirk, Chief Brokerage Officer at Robinhood, explained, “We aim to challenge the norm for our customers. Whether someone has a balance of a few thousand dollars or millions, they can access the lowest margin rates among leading brokerages without any negotiation.”

Customers will benefit from a straightforward rate based on their total margin balance. The new rates at Robinhood are as follows:

– 6.75% for up to $50K
– 6.55% starting at $50K and up to $100K
– 6.25% starting at $100K and up to $1M
– 6% starting at $1M and up to $10M
– 5.95% starting at $10M and up to $50M
– 5.7% starting at and above $50M

Robinhood emphasized that there are no hidden negotiations. Approved customers automatically receive a rate based on their margin account balance.

Leverage Your Investments with Robinhood

Margin investing enables customers to borrow money from Robinhood to purchase securities, increasing their buying power based on the value of securities in their account. This can be a valuable tool for those looking to seize market opportunities quickly without needing to deposit funds from their bank.

Access to margin investing is not automatic; customers must apply and meet eligibility requirements. It’s important to note that margin investing carries risks and may not be suitable for everyone.

Robinhood has also introduced several tools for experienced investors, including 24-Hour Market, Advanced Charts, Options Trading in Cash Accounts, Stock Lending, Shareholder Q&A, and Options Rolling.

Robinhood Gold subscribers receive their first $1,000 of margin with no interest. Soon, they will also get a 1% unlimited deposit boost on all eligible incoming brokerage deposits.