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Robinhood Gold is a $75 a yr premium subscription from Robinhood that gives perks you gained’t see wherever else.
In a world by which brokerages are discovering methods to cost you much less, is Robinhood making an attempt to be the Costco of brokerages?
On this publish, we break down every perk of Robinhood Gold, from most interesting to least, that can assist you determine whether or not it’s price it for you.
📔 Fast Abstract: Robinhood Gold is price it when you intend to make the most of the three% IRA match. It’s the one noteworthy perk however one the place the profit (when you contribute close to the restrict) simply outpaces the annual payment. The opposite advantages are good however they’re not something particular.
Desk of Contents
3% IRA Match
That is, by far, the perfect perk of Robinhood Gold.
The Roth IRA contribution restrict for 2024 is $7,000 ($8,000 for these ages 50 and older). In the event you contribute the utmost, your Roth IRA truly will get $7,210 added in a yr.
That’s an additional $210, offsetting the $75 per yr payment.
⭐ 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 important to preserve Robinhood Gold for at the least a yr and preserve your funds within the account for 5 years.
5.00% APY on Money
Meh. The cash in my brokerage account needs to be invested and never sitting in idle money. I might need a bit of money, from distributions or dividends, however I’m not trying to go away a big lump sum there.
That stated, brokers sometimes 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 typical profit.
Prompt Deposits (As much as $50,000)
Once you deposit funds into Robinhood, it might probably take a number of days for them to get there.
In the event you’re switch standing is in good standing, you may get a perk referred to as “Prompt Deposits” which is often restricted to $1,000. For Robinhood Gold, you’ll be able to stand up to $50,000.
Different brokers provide 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 on the spot 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 Knowledge & Morningstar Insights
Personally, I believe Nasdaq Degree 2 information is de facto enjoyable to take a look at as a result of it offers you better perception into how the market appears. Figuring out the present worth of a inventory is nice however whenever you see the order e-book, it gives 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 Price It?
In the event you intend to place your IRA there, particularly a Roth IRA, then Robinhood Gold’s 3% match is purpose sufficient to get this perk. In the event you contribute the utmost, the match far exceeds the subscription payment… and the match doesn’t rely in the direction of your contribution restrict.
In the event 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 dropping the match.
Past the match, the opposite perks are good however nothing noteworthy.
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