Robinhood Markets : Launches the Lowest Margin Rates Among Leading Brokerages

Robinhood's new margin rates vary based on a customer's margin balance, with rates ranging from 5.7% to 6.75%

Robinhood is making a major shift in how we offer margin investing to better serve our customers on their financial journey. Today, we're excited to launch the lowest margin rates among leading brokerages,* now offering rates ranging from 5.7% to 6.75%. Customers will now receive a single low rate based on their total margin balance. Here are the rates customers will receive at Robinhood:

• 6.75% for up to $50K
• 6.55% starting at $50K and up to $100K
• 6.25% starting at $100K and up to $1M
• 6% starting at $1M and up to $10M
• 5.95% starting at $10M and up to $50M
• 5.7% starting at and above $50M

"We're always looking to upend the status quo on behalf of our customers," said Steve Quirk, Chief Brokerage Officer at Robinhood. "Whether someone has a balance of a few thousand dollars, or millions, they automatically have access to the lowest margin rates among leading brokerages with absolutely no haggling required."

More Tools for Advanced Traders

For the last 10+ years, we've grown up right alongside our customers, and as we expand our platform's suite of products and services to provide better tools for more advanced investors, it's time to change the way we approach margin lending at Robinhood. Our customers have different needs, varying levels of investment experience, and different financial goals, which means the one-size-fits all approach to margin investing simply no longer makes sense.

Unlike other brokerages, there are no closed-door negotiations required. Once a customer is approved to trade with margin, their rate is automatic based on the margin balance of their account. As customers consolidate their finances from other brokerages into Robinhood, they can take advantage of our new margin rate structure to access better rates and even more buying power.

Margin investing allows customers to borrow money from Robinhood and leverage their holdings to purchase securities. This gives them access to additional buying power based on the value of certain securities in their investing account. Margin can be a useful investing tool that provides flexibility if a customer sees an opportunity in the market and wants to invest more right away without needing to make a deposit from their bank. Margin investing access isn't automatic-customers must apply and will only have access if they meet eligibility requirements. Margin investing is risky and it's not appropriate for everyone. Customers can learn more by visiting our Help Center.

Offering an industry-leading* tiered margin structure is the latest example of how Robinhood is committed to providing the best user experience for our more advanced customers. Over the last several years, we've launched a number of tools for more seasoned investors including 24 Hour Market, Advanced Charts, Options Trading in Cash Accounts, Stock Lending, Shareholder Q&A, Options Rolling, and more.

Get more with Gold

Robinhood Gold subscribers also get their first $1,000 of margin with no interest. Plus, coming soon they will also receive a 1% unlimited deposit boost on all eligible incoming brokerage deposits, with no cap.** This is in addition to all the other benefits that come with a Gold subscription:

• 5.0% APY on uninvested cash, one of the best interest rates available in the country.***
• Up to $2.25 million FDIC insurance offered at a network of partner banks, higher than any one bank.
• 3% match on Robinhood Retirement IRA contributions, the first and biggest IRA match on the market.****
• Professional research from Morningstar and Level II market data from Nasdaq.
• Bigger instant deposits-up to $50K per day.

Availability

It takes just a few minutes to open an account at Robinhood or initiate a margin balance transfer from another brokerage. There are no forms or documents to mail-in and no phone calls required. These new rates are now available for all customers who apply and are approved to trade on margin.

Disclosures:

*Lowest margin rates among leading brokerages is based on published rates for Interactive Brokers, Charles Schwab, and E*Trade (Morgan Stanley) as of April 24, 2024. Competitors are selected based on publicly disclosed margin balances. Note that firms not publicly traded do not always make all of their data available to the public so are not included. Rates are subject to change at any time.

**Deposit boost is divided into 24 monthly payouts. To earn your full boost, hold or invest your brokerage deposits for 2 years. If you cancel Gold, you'll lose future payouts you haven't earned yet. Does not apply to IRAs.

***The Brokerage Cash Sweep Program is an added feature to your Robinhood Financial LLC brokerage account. Interest is earned on uninvested cash swept from your brokerage account toprogram banks where it becomes eligible for FDIC insurance up to $2.25 million or $250,000 per program bank, inclusive of any other deposits you may already hold at the bank in the same ownership capacity which may impact how much is covered. Robinhood is not responsible for monitoring the amount of your deposits in any program bank, whether these deposits are made through the brokerage cash sweep program or otherwise, to determine whether the amount on deposit exceeds the limit of available FDIC insurance. Please note that until funds are swept to a program bank, they are held in your brokerage account which is protected by SIPC. Once funds are swept to a program bank, they are no longer held in your brokerage account and are not protected by SIPC. However, these funds are eligible for FDIC insurance through the Program Banks subject to FDIC insurance coverage limits. Please see theIntraFi Sweep Agreement for more information on how the sweep program works and how we treat your uninvested cash balance. Program banks pay interest on your swept cash, minus any fees paid to Robinhood. As of May 8, 2024, the Annual Percentage Yield (APY) that you will receive is 0.01%, or 5% for Robinhood Gold members. Terms apply. The APY might change at any time at the program banks' discretion. Additionally, any fees Robinhood receives may vary and is subject to change. Neither Robinhood Financial LLC nor any of its affiliates are banks.

****Based on match dollars awarded to an IRA. The 3% matching on contributions requires a subscription with Robinhood Gold (fees apply), must be subscribed to Gold for 1 year after your contribution to keep the full 3% match. You must have compensation (wage income) in order to contribute to an IRA. The funds that earned the match must be kept in the account for at least 5 years to avoid a potential Early IRA Match Removal Fee. For more information refer to theIRA Match FAQ.

Margin investing involves the risk of greater investment losses. Before using margin, customers must determine whether this type of strategy is right for them given their investment objectives and risk tolerance. For more information please see ourMargin Disclosure Statement.

Robinhood Gold is offered through Robinhood Financial LLC and is a subscription offering premium services for a fee.

Bigger instant deposits are only available if your instant deposit status is in good standing.

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