When buying or trading stocks and bonds, the first step is to be approved by a registered trader.
This approval involves looking into your assets and seeing if they have enough depth to afford this type of trading without running any major risk to yourself or the trade broker.
For big stock trading companies like Hargreaves Lansdown, this involves an in-depth and scrutinized look into your finances and a set waiting period before even getting to look at the stocks available.
For smaller trading parties like Robinhood, this is not the case. However, it is kind of hard to pinpoint exactly how long it will take to approve.
Since these companies tend to deal with fewer resources or less commitment from the person looking to trade stocks, you would think that this process would take less time.
Yet, for some, it becomes a long wait for various reasons. So, for most people, how long does it take to be approved to trade by Robinhood?
And is it worth the wait? In this article, we seek to answer just that question.
How Long Does It Take To Approved On Robinhood?
To start, it should be noted that there are two ways to get approved on Robinhood:
- By having a certain amount of money deposited or invested in their platform (this can range anywhere between $100-$500 depending on what your account size is). The minimum deposit for Robinhood is $25. Once you reach this point, Robinhood will send you instructions on how to open up a new account.
- Via phone call. Simply call their customer service line and ask them to check your account. You must tell them where you live to do so.
So, based on the previous information, you could say that Robinhood takes around 2 business days to check and approve accounts via phone call.
While this may seem short, it is quite lengthy when compared to other smaller platforms out there.
Why is this the case? Well, Robinhood has more than 100 employees working on customer support alone.
They also employ a team dedicated solely to reviewing applications and approving customers.
So, while the exact number and length of how long it takes to be approved depend on many factors, one thing is for sure: It’s going to take longer than most other exchanges out there.
Is Getting Approved On Robinhood Worth It?
While Robinhood may take a bit longer to be approved, once you are, you will feel as though you own part of the company.
With over 10 million users worldwide, Robinhood has become a household name among traders. Not only that, but they offer no commissions either.
This means that no matter how much you buy or sell, you won’t pay anything extra.
This is unlike other brokers that charge fees ranging anywhere from 0.05%-0.15% per transaction. But, if you want to trade stocks, then Robinhood is the way to go.
Trading online is becoming very popular nowadays. Many websites allow you to purchase stocks directly through your computer.
Robinhood allows its users to invest in stocks without paying brokerage fees.
Once approved, users simply log in using their Facebook credentials or email address.
Once logged in, they can begin purchasing shares of a variety of different stocks.
When investing, users can choose to receive alerts regarding price changes or market updates. If interested, users can also follow specific companies.
The site offers real-time prices for all listed securities. Users can also access market data and news about each selected security.
Additionally, Robinhood provides charts displaying historical performance, stock graphs, market depth, and technical indicators.
These tools make trading easier and faster. Robinhood currently offers two types of accounts: Free and Premium. Both provide similar features.
However, with the premium account, users have access to additional features such as margin trading.
Margin trading is used to increase leverage and profit margins. This feature is not available to free members.
Users can easily monitor their portfolios within the app.
This allows investors to track their holdings, see the value of their investments, manage tax liability, and perform other functions.
The app is simple to use and easy to navigate. Even novice investors can easily understand how to operate the system.
Trading on Robinhood is safe because it uses an FDIC-insured bank. All transactions are handled by the Federal Reserve Bank.
Additionally, Robinhood protects user funds by employing multi-signature technology.
This process adds another layer of security to ensure that hackers cannot steal funds from your account.
Reasons For Not Being Approved By Robinhood
To be accepted into Robinhood, applicants must meet certain requirements.
For example, applicants cannot have any outstanding debts or charged-off loans. Also, applicants cannot owe back taxes to the IRS.
As mentioned earlier, Robinhood employs a team of more than 100 people to review applications.
To help them better evaluate potential customers, Robinhood asks applicants to answer a series of questions via email.
The questions range from personal information to what type of investment experience do you have so be prepared with your answers when you receive the email!
When applying for Robinhood, applicants should include copies of their social security card, driver’s license, and proof of residence.
Applicants should also submit proof of income and assets. Finally, applicants should send a copy of their last three federal tax returns.
How To Get Approved On Robinhood
To obtain approval from Robinhood, applicants must prove that they are 18 years old or older. They will then need to show that they live in the USA.
Next, potential customers must fill out the application form and attach the required documents.
After that, applicants will need to wait until Robinhood approves their request. Once this happens, they can start trading on the website.
Once approved, users can access their portfolios on the web and mobile apps. Robinhood charges no fees when transferring money between accounts.
It only charges a fee if users withdraw cash from their checking accounts.
As you can see, it is fairly easy to get approved for Robinhood, as long as you are in the black debt wise.
Unfortunately for most Americans, this is a difficult thing for us to obtain and debt tends to follow most people around due to the circumstances of life in general.
As such, if you plan to open a Robinhood account, we would suggest doing so at the point when the rest of your finances are in perfect order.
If you enjoyed this article, you might enjoy our post on ‘How To Sell On Trust Wallet‘.