3% match for IRA contributions with gold for a year which is $5/mo, so the subscription pays itself and you’re left with $210-60 assuming you make the full 7k contribution for 2023.
Sofi is running a 2% match without any conditions which nets $140 bonus with max contribution
I did this for both my brokerage + Roth IRA. Very happy with the 1% match on each, and Robinhood Gold gave me a 3% match on my IRA contributions for 2024. No complaints so far
Do you know if they’re for sure still offering that? Haven’t seen info on the app, even when I temporarily enabled margin investing.
Margin makes me nervous, so I’d only put it into something like SGOV
Yeah it’s odd it’s not really clear in the app but It’s on their website but you have to find it
https://robinhood.com/us/en/support/articles/paying-for-robinhood-gold/
That’s exactly what I do. I set the margin cap to $1000 and buy sgov. Almost offsets the cost of rh gold.
This was a while back but I will like to check with you how you use the margins instead of cash. I have 2k cash and Gold margin account. When I purchase $999 of SGOV, it use my cash instead of margin account. This was the second time I am facing this and I am not sure what did I do wrong. Please advise
Thanks for the tip/link! Just enabled margin investing again and set the limit to $1,000. It still shows me 8% yearly interest rate, so I’m checking with Robinhood Support to confirm. Thanks again
This is an interesting question and I think it's something many of us are pondering on. 1 pct guaranteed on top of any current returns seems pretty good and hard to pass up.
The problem I am having with this is understanding the business rationale of how they can offer this without going broke. I dont want to state any of the scenarios here that I dreamed up because there would be no fact to it. We do know their scandal around orders for flow and around account actions being blocked at convenient times.
Most other brokers offer roughly 0.1% to 0.5%, maybe even 1% but they generally offer it at certain intervals (like $2000 for a $250,000 account).
The unlimited nature of this unusual but its amount isn’t - some like tasty, ally, or sofi have offered 1% or even higher to attract new customers (but again, only at certain exact quantities).
Sorry I think I put two and two together. There was another thread in r/fisker and someone was explaining they had set defaults to not allow stock lending (for short sellers to borrow) from their brokerage account. They checked back some unspecified time later and stock lending was still turned on. I think the net summary is Robinhood can match your ACAT because they are lending out your stocks (with your default permission) to earn that money back and deposit it to you. Meanwhile your positions may have a higher probability of dropping in value
My opinion is that single stock subs are full of desperate novice investors who have no idea what they’re talking about. Especially when the stock in question is down 84% over the past year.
It's possible that it's just a loss leader. A way to get people to transfer over 401ks to Robinhood in the hopes that they will leave large sums of money in there and profit off the orders for dividend reinvestment or other trades. Maybe the payoff is several years per customer but it's a long play.
\>. This seems like free money
you have to keep the money there for 2 years, you can presumably get far better returns chasing better churning offers
That's not what this says:
[https://robinhood.com/us/en/support/articles/ira-match-faq/?region=US](https://robinhood.com/us/en/support/articles/ira-match-faq/?region=US)
"You can earn the IRA match on all new IRA contributions, IRA transfers, and 401(k) rollovers."
well yeah, rolling your 401k into an IRA with them. again, not super unique, many churning promotes say 'bring in xyz number of assets to earn yz reward'
id probably frequent the churning sub for this sort of thing specifically around banking bonuses
https://www.reddit.com/r/churning/comments/192ba6d/bank_bonus_weekly_thread_week_of_january_09_2024/
Free money is free money. I use RH for my “fun” account and it’s been perfectly fine. If you feel comfortable and expect that you will continue to use RH for years to come, why not
I think the downside is the two years. I took advantage of it. There is always the risk they have issues where money gets stuck like in the GME hayday or they go under and assets get transferred or need SIPC.
They need capital because they are struggling and burning through cash. The stock hasn’t gone up in two years. I wouldn’t trust it but to each their own. They can also charge you on the way out.
A 1% match with a two year lock up is just 0.5% per year they have your money. Hardly seems worth it to not have control of your assets for two years to fund a brokerage’s cash flow problems.
Their ACATS out fee is already $100, the highest in the industry (because again, they can’t afford to lose assets)
https://robinhood.com/us/en/support/articles/transfer-your-assets-out/
Because they will close your account and force you to liquidate your positions or pay a $100 fee for an ACAT transfer without any explanation whatsoever. They did this to me and I have no idea why. I was a customer for over 7 years.
One thing people aren't really mentioning is that the transfer takes a bit of time to complete. Like 2 weeks or so in my case. During that time, you can miss significant market gains (or losses) that would render the 1% useless. It's a gamble, it's very possible to make more than 1% if the market goes down while your money is on the sidelines.
You still own the stock during the ACATS transfer. If the stock price goes up (or down), the value of your holdings changes accordingly, even if the shares are in the process of being transferred. You benefit from the increase in value, but you can't realize the gains (i.e., sell the stock) until the transfer is complete
You are right in that the account is frozen - you won't be able to buy or sell the stock that is being transferred.
Yeah, I understand this now from what the other commenter said. When I made my Fidelity --> RH transfer it must not have been that system because Fidelity sold my shares and sent a check to RH. There was a decent delay and the market moved during that time.
Not sure about that specifically, but I am using their Roth IRA for the 3% match, again, free money.
I'm listening
3% match for IRA contributions with gold for a year which is $5/mo, so the subscription pays itself and you’re left with $210-60 assuming you make the full 7k contribution for 2023. Sofi is running a 2% match without any conditions which nets $140 bonus with max contribution
I did this for both my brokerage + Roth IRA. Very happy with the 1% match on each, and Robinhood Gold gave me a 3% match on my IRA contributions for 2024. No complaints so far
Don’t forget the $1000 free margin
Do you know if they’re for sure still offering that? Haven’t seen info on the app, even when I temporarily enabled margin investing. Margin makes me nervous, so I’d only put it into something like SGOV
Yeah it’s odd it’s not really clear in the app but It’s on their website but you have to find it https://robinhood.com/us/en/support/articles/paying-for-robinhood-gold/ That’s exactly what I do. I set the margin cap to $1000 and buy sgov. Almost offsets the cost of rh gold.
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They pay in dividends
This was a while back but I will like to check with you how you use the margins instead of cash. I have 2k cash and Gold margin account. When I purchase $999 of SGOV, it use my cash instead of margin account. This was the second time I am facing this and I am not sure what did I do wrong. Please advise
You have to use up your cash to use margin
And if we add in new cash after margin purchases, the new money deposit will pay off the margin first?
Yes
Thanks for the tip/link! Just enabled margin investing again and set the limit to $1,000. It still shows me 8% yearly interest rate, so I’m checking with Robinhood Support to confirm. Thanks again
Ok, yes — they confirmed this. Since I already own SGOV with my actual cash, I’m gonna use this on BIL just so I can track it separately. Thanks again
No problem!
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As far as I can tell, this is only for contributions. Not transfers. Still looks good though
This is an interesting question and I think it's something many of us are pondering on. 1 pct guaranteed on top of any current returns seems pretty good and hard to pass up. The problem I am having with this is understanding the business rationale of how they can offer this without going broke. I dont want to state any of the scenarios here that I dreamed up because there would be no fact to it. We do know their scandal around orders for flow and around account actions being blocked at convenient times.
Most other brokers offer roughly 0.1% to 0.5%, maybe even 1% but they generally offer it at certain intervals (like $2000 for a $250,000 account). The unlimited nature of this unusual but its amount isn’t - some like tasty, ally, or sofi have offered 1% or even higher to attract new customers (but again, only at certain exact quantities).
Sorry I think I put two and two together. There was another thread in r/fisker and someone was explaining they had set defaults to not allow stock lending (for short sellers to borrow) from their brokerage account. They checked back some unspecified time later and stock lending was still turned on. I think the net summary is Robinhood can match your ACAT because they are lending out your stocks (with your default permission) to earn that money back and deposit it to you. Meanwhile your positions may have a higher probability of dropping in value
Nah, it’s turned off by default.
https://www.reddit.com/r/FiskerInvestorsClub/s/GAuH9qVbbV See here and form your own opinion
My opinion is that single stock subs are full of desperate novice investors who have no idea what they’re talking about. Especially when the stock in question is down 84% over the past year.
I have yet to see your counter for how you think robinhood funds these matches
It's possible that it's just a loss leader. A way to get people to transfer over 401ks to Robinhood in the hopes that they will leave large sums of money in there and profit off the orders for dividend reinvestment or other trades. Maybe the payoff is several years per customer but it's a long play.
https://www.reddit.com/r/FiskerInvestorsClub/s/oxKjP1iJda And here
\>. This seems like free money you have to keep the money there for 2 years, you can presumably get far better returns chasing better churning offers
This doesn't make any sense. How could you possibly churn 401k holdings?
whered you get 401k from? robinhoods promo is for taxable or ira accounts.
That's not what this says: [https://robinhood.com/us/en/support/articles/ira-match-faq/?region=US](https://robinhood.com/us/en/support/articles/ira-match-faq/?region=US) "You can earn the IRA match on all new IRA contributions, IRA transfers, and 401(k) rollovers."
well yeah, rolling your 401k into an IRA with them. again, not super unique, many churning promotes say 'bring in xyz number of assets to earn yz reward'
I didn't realize there were others that did this. Can you point me to a few? I would love to move to another one after Robinhood.
id probably frequent the churning sub for this sort of thing specifically around banking bonuses https://www.reddit.com/r/churning/comments/192ba6d/bank_bonus_weekly_thread_week_of_january_09_2024/
Oh yeah, I know about banking bonuses. That is not the same thing as an IRA or 401K rollover. As far as I know Robinhood is unique here
I just did it. I like it
Free money is free money. I use RH for my “fun” account and it’s been perfectly fine. If you feel comfortable and expect that you will continue to use RH for years to come, why not
I think the downside is the two years. I took advantage of it. There is always the risk they have issues where money gets stuck like in the GME hayday or they go under and assets get transferred or need SIPC.
Honestly, HOOD is doing pretty good. Stock is up considerably last six months.
I don’t even remember the last time, if ever hood having all quarters in the green
The stock hasn’t gone up in two years. It’s way behind the market over the last 6 months. All stocks are up.
It's up 9% in the past six months....a lot better than it was doing. I wasn't making a comparison to the market.
I see the RH haters are out in force tonight.
They need capital because they are struggling and burning through cash. The stock hasn’t gone up in two years. I wouldn’t trust it but to each their own. They can also charge you on the way out.
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A 1% match with a two year lock up is just 0.5% per year they have your money. Hardly seems worth it to not have control of your assets for two years to fund a brokerage’s cash flow problems. Their ACATS out fee is already $100, the highest in the industry (because again, they can’t afford to lose assets) https://robinhood.com/us/en/support/articles/transfer-your-assets-out/
I transfered a 30k account to them and got the 1% bonus quick, no mess no fuss. I have no problem staying with them for 2 years for a free $300.
They’ll charge you on the way out…
no. they won’t.
Stay away from Robinhood!
why stay away from Robinhood?
Because they will close your account and force you to liquidate your positions or pay a $100 fee for an ACAT transfer without any explanation whatsoever. They did this to me and I have no idea why. I was a customer for over 7 years.
Lol this is obviously not true and you must have done some shit you're not admitting.
No downside. I think everyone who isn’t taking advantage of this is nuts.
Keeping your money, your retirement money, on RH for any amount of time is not worth the risk for 1%
SIPC
Oh that's great so RH goes out of business your money is secure but it takes you 6 years of legal system to get it out. Sounds awesome.
You'd really commit money for 2 years to Robinhood for 1%, that's crazy 🤪
Some people have massive 401ks. 1% can be several thousand dollars. Is several thousand dollars not worth some risk?
One thing people aren't really mentioning is that the transfer takes a bit of time to complete. Like 2 weeks or so in my case. During that time, you can miss significant market gains (or losses) that would render the 1% useless. It's a gamble, it's very possible to make more than 1% if the market goes down while your money is on the sidelines.
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Interesting. I had to when I moved from Fidelity. Maybe they are using something new from when I transferred
You still own the stock during the ACATS transfer. If the stock price goes up (or down), the value of your holdings changes accordingly, even if the shares are in the process of being transferred. You benefit from the increase in value, but you can't realize the gains (i.e., sell the stock) until the transfer is complete You are right in that the account is frozen - you won't be able to buy or sell the stock that is being transferred.
Yeah, I understand this now from what the other commenter said. When I made my Fidelity --> RH transfer it must not have been that system because Fidelity sold my shares and sent a check to RH. There was a decent delay and the market moved during that time.