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Robinhood Gold is a $75 a 12 months premium subscription from Robinhood that provides perks you received’t see anyplace else.
In a world wherein brokerages are discovering methods to cost you much less, is Robinhood attempting to be the Costco of brokerages?
On this publish, we break down every perk of Robinhood Gold, from most interesting to least, that will help you resolve whether or not it’s price it for you.
📔 Fast Abstract: Robinhood Gold is price it in case you intend to benefit from the three% IRA match. It’s the one noteworthy perk however one the place the profit (in case you contribute close to the restrict) simply outpaces the annual charge. The opposite advantages are good however they’re not something particular.
Desk of Contents
3% IRA Match
That is, by far, the most effective perk of Robinhood Gold.
The Roth IRA contribution restrict for 2024 is $7,000 ($8,000 for these ages 50 and older). In case you contribute the utmost, your Roth IRA really will get $7,210 added in a 12 months.
That’s an additional $210, offsetting the $75 per 12 months charge.
⭐ For a restricted time, till April thirtieth, 2024, Robinhood is providing a 3% match on new qualifying contributions and transfers to a Robinhood IRA when you may have Robinhood Gold. It’s important to preserve Robinhood Gold for a minimum of a 12 months and preserve your funds within the account for 5 years.
5.00% APY on Money
Meh. The cash in my brokerage account must be invested and never sitting in idle money. I may need just a little money, from distributions or dividends, however I’m not seeking to depart a big lump sum there.
That stated, brokers usually have cash market accounts that pay a excessive yield. At Vanguard, it’s the VMFXX and it has a aggressive yield (5.26% as of this writing with a 0.11% expense ratio).
At first look, it’s an interesting headline however it’s a regular profit.
On the spot Deposits (As much as $50,000)
Once you deposit funds into Robinhood, it may possibly take a number of days for them to get there.
In case you’re switch standing is in good standing, you will get a perk often known as “On the spot Deposits” which is generally restricted to $1,000. For Robinhood Gold, you may rise up to $50,000.
Different brokers supply this too, which I couldn’t work out how a lot my restrict was at Vanguard. I do know I’ve transferred in near $10,000 and had immediate entry to it.
Decrease Margin Charges
With Robinhood Gold, your $1,000 or margin borrowing is free after which they cost you 8%. With out gold, the margin charge is 12%.
I don’t commerce on margin so margin charges don’t matter to me.
Nasdaq Stage 2 Information & Morningstar Insights
Personally, I believe Nasdaq Stage 2 knowledge is admittedly enjoyable to have a look at as a result of it offers you larger perception into how the market seems to be. Understanding the present worth of a inventory is nice however while you see the order e book, it supplies a bit extra readability into the place the market is round a inventory.
That stated, I first noticed it over on thinkorswim, earlier than it was acquired by Charles Schwab, and it was included within the base service.
As for Morningstar profit, it’s entry to the inventory analysis studies which covers round 1,700 shares. It doesn’t look like full entry to Morningstar Investor, which prices $249 a 12 months.
Is Robinhood Gold Value It?
In case you intend to place your IRA there, particularly a Roth IRA, then Robinhood Gold’s 3% match is cause sufficient to get this perk. In case you contribute the utmost, the match far exceeds the subscription charge… and the match doesn’t rely in direction of your contribution restrict.
In case you had been in a position to benefit from the switch bonus, it’s much more interesting as a result of you may switch in a big sum, get the three% match, after which cancel Gold after one 12 months. As soon as you retain your money in there for 5 years, you’re free to do no matter you need with out shedding the match.
Past the match, the opposite perks are good however nothing noteworthy.
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