Robinhood Gold is a $5 monthly 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 determine whether or not it’s price it for you.
📔 Fast Abstract: Robinhood Gold is price it should you intend to make the most of the three% IRA match. It’s the one noteworthy perk however one the place the profit (should you contribute close to the restrict) simply outpaces the annual price. The opposite advantages are good however they’re not something particular.
Desk of Contents
3% IRA Match
That is, by far, the very best perk of Robinhood Gold.
The Roth IRA contribution restrict for 2024 is $7,000 ($8,000 for these ages 50 and older). When you contribute the utmost, your Roth IRA truly will get $7,210 added in a yr.
That’s an additional $210, offsetting the $5 monthly price.
⭐ 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’ve gotten Robinhood Gold. It’s a must to preserve Robinhood Gold for not less than a yr 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 somewhat money, from distributions or dividends, however I’m not trying 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 but it surely’s a normal profit.
Immediate Deposits (As much as $50,000)
While you deposit funds into Robinhood, it might take a couple of days for them to get there.
When you’re switch standing is in good standing, you may get a perk referred to as “Immediate Deposits” which is generally restricted to $1,000. For Robinhood Gold, you’ll be able to stand up to $50,000.
Different brokers supply this too, which I couldn’t determine how a lot my restrict was at Vanguard. I do know I’ve transferred in near $10,000 and had prompt 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 price is 12%.
I don’t commerce on margin so margin charges don’t matter to me.
Nasdaq Degree 2 Information & Morningstar Insights
Personally, I believe Nasdaq Degree 2 knowledge is absolutely enjoyable to have a look at as a result of it provides you larger perception into how the market appears. Realizing the present value of a inventory is nice however whenever you see the order e book, it offers 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 stories which covers round 1,700 shares. It doesn’t look like full entry to Morningstar Investor, which prices $249 a yr.
Is Robinhood Gold Value It?
When you intend to place your IRA there, particularly a Roth IRA, then Robinhood Gold’s 3% match is cause sufficient to get this perk. When you contribute the utmost, the match far exceeds the subscription price… and the match doesn’t depend in direction of your contribution restrict.
When you had been in a position to make the most of the switch bonus, it’s much more interesting as a result of you’ll be able to switch in a big sum, get the three% match, after which cancel Gold after one yr. 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.
