Robinhood is open to U.S. residents aged 18 and older with a valid Social Security number

Robinhood lets individual investors buy and sell stocks, options, cryptocurrencies, and other securities through a brokerage account. You do not need to be a professional trader or have a certain amount of money to start. The main requirements are that you are a U.S. citizen or permanent resident, at least 18 years old, have a valid Social Security number, and can pass Robinhood's identity verification process.

Robinhood does not trade on your behalf. You make every buy and sell decision yourself through the app or website. The company acts as the broker — the middleman between you and the financial markets — but you control what happens in your account.

Key Takeaways

  • You must be 18 or older, a U.S. resident, and have a valid Social Security number to open a Robinhood account.
  • Robinhood offers trading in stocks, options, cryptocurrencies, and certain other securities, but not all investment types are available to all account types.
  • Your account type determines what you can trade — a basic account has fewer options than an account that meets the pattern day trader threshold.
  • Robinhood uses clearing firms to settle your trades, so your money and securities are held by those firms, not directly by Robinhood.
  • You must pass identity verification and agree to Robinhood's terms before you can fund or trade in your account.

What you need to open an account

The sign-up process asks for your legal name, date of birth, address, and Social Security number. Robinhood verifies this information against public records and runs a background check. The company also asks about your investment experience and financial situation — this is not to reject you, but to comply with securities regulations that require brokers to know their customers.

You will need a bank account to fund your Robinhood account. You can link a checking or savings account and transfer money electronically, or deposit by check in some cases. Robinhood does not charge account maintenance fees, but your bank may charge for transfers depending on your account type.

Once your account is open and funded, you can place trades when ready during market hours. Market hours for stocks are 9:30 a.m. to 4 p.m. Eastern time on weekdays when the stock exchange is open. Cryptocurrencies trade 24 hours a day, seven days a week.

Account types and what each one lets you trade

Robinhood offers different account structures, and your choice affects what you can trade. A standard individual account is the most common. A joint account lets two people trade from the same account. An IRA account is designed for retirement savings and has tax advantages but restricts when you can withdraw money without penalty.

Within these account types, your trading permissions depend on your account level. A basic account lets you buy and sell stocks and cryptocurrencies. To trade options — contracts that give you the right to buy or sell a stock at a set price — you must request options permission and meet Robinhood's requirements, which usually include having some trading experience and a minimum account balance.

If you make more than three day trades in five business days, your account is flagged as a pattern day trader account. This requires a minimum balance of $25,000 and comes with additional rules about how many trades you can make. If your balance falls below $25,000, you lose day trading privileges until you bring it back up.

How Robinhood settles your trades

When you buy or sell a security on Robinhood, the trade does not settle when ready. Stocks typically settle in two business days — meaning the money or securities change hands two days after you place the trade. During those two days, your account shows the trade as pending. Cryptocurrencies settle faster, usually within minutes or hours.

Robinhood uses clearing firms to handle the actual settlement of trades. This means your cash and securities are held by those clearing firms, not by Robinhood itself. If Robinhood were to fail, your account would be protected up to $500,000 through the Securities Investor Protection Corporation (SIPC), which covers cash up to $250,000 and securities up to $500,000 per account.

You can see the settlement date for any trade in your transaction history. If you try to sell securities before they settle, Robinhood will reject the order or use a margin loan to cover the sale, which may trigger interest charges or margin call rules.

Restrictions on who can trade certain securities

Robinhood does not offer every security. You cannot trade mutual funds, bonds, or penny stocks under $1 through Robinhood. You also cannot trade certain restricted securities or foreign stocks directly, though you can trade American Depositary Receipts (ADRs), which represent foreign company shares.

Some securities are restricted based on regulatory requirements. For example, if you are under 21, you cannot trade options on Robinhood, even if you meet the other requirements. If you have a history of certain financial violations, Robinhood may deny you an account or restrict your trading permissions.

Robinhood also restricts trading during certain corporate events. If a company is in bankruptcy or delisting from the exchange, Robinhood may halt trading in that stock. These halts come from the exchange itself, not from Robinhood, but Robinhood enforces them.

What happens if you break Robinhood's rules

If you violate Robinhood's terms — such as by making trades that violate securities law, depositing money you do not have access to, or engaging in fraud — Robinhood can freeze your account, close it, or report you to regulators. The company is required by law to report suspicious activity to the Financial Crimes Enforcement Network (FinCEN).

If you owe Robinhood money — for example, because a check you deposited bounced or you sold securities before they settled and the price moved against you — the company can pursue collection. This may include reporting the debt to credit agencies or taking legal action.

Robinhood also monitors for patterns that suggest market manipulation or insider trading. If your trading activity looks suspicious, the company may freeze your account while it investigates.

Frequently Asked Questions

Can I trade on Robinhood if I am not a U.S. citizen?

You must be a U.S. citizen or permanent resident with a valid Social Security number. If you are on a visa or are a temporary resident, you generally cannot open an account. Some visa holders may be able to trade if they have a Social Security number and meet other requirements, but you should contact Robinhood directly to confirm your status.

What is the minimum amount of money I need to start trading?

Robinhood does not require a minimum deposit to open an account. However, if you want to trade options or day trade, you must meet higher balance requirements. Day trading requires $25,000 in your account. Options trading requirements vary by level but typically start at $500 to $2,000.

Can I trade if I have a criminal record or bad credit?

Robinhood does not automatically reject applicants based on criminal history or credit score. The company runs background checks to comply with anti-money-laundering rules, but this is different from a credit check. If you have been convicted of securities fraud or money laundering, you will likely be denied. Otherwise, your chances depend on the specific circumstances.

What happens to my money if Robinhood goes out of business?

Your cash and securities are protected by SIPC up to $500,000 per account ($250,000 for cash). This protection covers you if Robinhood fails. Your securities would be transferred to another broker, and your cash would be returned. This protection does not cover losses from bad trades or market downturns — only losses from broker failure.

Can I trade on Robinhood from outside the United States?

You must be a U.S. resident to open and maintain a Robinhood account. If you move outside the U.S., you should contact Robinhood to discuss your account status. Trading while abroad may violate the terms of service, and Robinhood may close your account if you become a non-resident.