Is Robinhood Gold Worth It?

For just $5 per month, Robinhood Gold promises a suite of enhanced benefits, including higher interest on uninvested cash, a 3% IRA contribution match and access to advanced research tools.

However, with the monthly fee in mind, you might wonder: is Robinhood Gold truly worth the cost?

This article will dive deep into the core features of Robinhood Gold, analyzing whether these perks offer tangible value for your investment strategy and long-term financial goals.

Is Robinhood Gold worth it?

Robinhood Gold offers a suite of valuable features for active traders and investors, from higher APY on uninvested cash to advanced research tools.

For just $5 per month, the benefits can easily outweigh the cost, especially if you take full advantage of the IRA match, margin interest savings and bonus on taxable deposits. If you’re serious about maximizing your returns and leveraging advanced tools, Robinhood Gold is likely worth the investment.

Robinhood Gold benefits

Robinhood Gold offers a range of benefits that can significantly enhance your trading and investment experience on the platform:

• 4.5% APY on uninvested cash
• 3% IRA contribution match
• 1% bonus on taxable deposits
• Up to $50K in instant deposits
• Nasdaq Level 2 data and Morningstar insights
• First $1K of margin interest-free

Higher interest on uninvested cash

One of the most compelling features of Robinhood Gold is the 4.5% annual percentage yield (APY) on uninvested cash. This rate is significantly higher than what is typically offered by traditional savings accounts, where the national average APY often hovers around 0.46%.⁽¹⁾

For users who prefer to keep a portion of their funds in cash rather than fully invested in the market, this benefit ensures that their money continues to grow, even when it’s not actively invested.

Consider this: if you maintain an average balance of $10,000 in uninvested cash throughout the year, the 4.5% APY would yield $450 annually.

This return can easily offset the $60 annual cost of Robinhood Gold, making the subscription essentially free from an interest earnings perspective.

Additionally, in a low-interest-rate environment, having access to such a high APY can be a game-changer, turning what would typically be idle cash into a productive asset.

Higher match on IRA contributions

This match functions similarly to an employer match in a 401(k), adding 3% to every dollar you contribute to your Robinhood individual retirement account (IRA). Without Gold, Robinhood pays 1%. Over time, this can significantly boost your retirement savings, compounding your wealth more effectively.

For example, if you contribute the 2024 IRA maximum of $7,000, Robinhood Gold would add $210 to your account.⁽¹⁾ While this might seem modest, over 20 years with compounded growth, that extra contribution could grow substantially, depending on your investment returns.

However, it’s crucial to be aware of the holding period requirements tied to this match. You must maintain your eligible deposit for at least 5 years to keep the IRA match, which can help ensure you’re committed to your long-term retirement strategy.

Dive deeper: Curious what else Robinhood has to offer? Read our full review.

1% bonus on taxable deposits

Robinhood Gold users also receive a 1% bonus on taxable deposits, which can be a significant benefit for those who regularly contribute to their investment accounts. This bonus is credited directly to your account, effectively increasing your initial deposit and giving you more capital to invest right away. Over time, this bonus can compound, especially if you are consistent with your deposits.

Let’s say you deposit $10,000 into your taxable account — Robinhood will credit you with an additional $100. While this might not seem substantial at first glance, when combined with other investment returns, it can contribute to the overall growth of your portfolio.

It’s worth noting that there are holding period requirements similar to those for the IRA match, meaning you need to maintain your deposits in the account for a specific duration to qualify for the bonus. Robinhood pays out the 1% boost over 24 months, so you’ll need to hold or invest the deposit for two years to earn the full 1%.

This bonus can be particularly advantageous for those who practice dollar-cost averaging, regularly contributing to their investment accounts regardless of market conditions.

Higher instant deposits

Robinhood Gold addresses this need by offering up to $50,000 in instant deposits. This feature allows you to transfer funds into your Robinhood account and start trading immediately without the usual delay of bank transfers.

Imagine a scenario where a stock you’ve been eyeing suddenly drops in price due to market fluctuations, and you want to buy the dip. You can instantly access your funds and execute the trade, capitalizing on the opportunity before the market corrects itself. This benefit is particularly valuable for those who engage in swing trading or need to react quickly to market news.

The higher instant deposit limit also provides peace of mind, knowing that you won’t miss out on potential gains due to slow fund transfers. This benefit is particularly valuable for those who engage in day trading or are looking to day trade for a living, as having quick access to funds can be crucial for capitalizing on market volatility.

The higher instant deposit limit also provides peace of mind, knowing you won’t miss out on potential gains due to slow fund transfers.

Advanced research and analysis tools

Nasdaq Level 2 data provides deeper insights into market depth, showing you the buy and sell orders waiting to be executed at different price levels.

This information is crucial for understanding a stock’s true supply and demand dynamics, which can influence your trading strategy. If you see a large buy order at a certain price level, it might indicate strong support, making it a potentially good entry point for your trade.

Morningstar research reports offer in-depth analysis of stocks, mutual funds and exchange-traded funds (ETFs), providing expert insights that can help you refine your investment decisions. These reports often include analyst ratings, fair value estimates and detailed assessments of a company’s financial health. By using these tools, you can better identify undervalued stocks or avoid potential pitfalls, enhancing your overall investment strategy.

First $1K of margin interest-free

Robinhood Gold offers a unique benefit for margin users by providing the first $1,000 of margin interest-free. This benefit can significantly reduce your borrowing costs, especially if you’re using margin to make strategic investments.

Let’s say you borrow $1,000 on margin to invest in a stock that you believe is undervalued. With Robinhood Gold, you won’t incur any interest charges on that amount, allowing you to potentially reap the full benefits of any price appreciation. This interest-free margin can act as a buffer, reducing the financial pressure that comes with borrowing.

However, it’s important to approach margin trading with caution, as it can also magnify losses. The interest-free benefit on the first $1,000 can make margin trading more accessible and affordable, but it’s still crucial to have a clear strategy and risk management plan in place.

Robinhood Gold

• Earn up to 4.5% APY on uninvested cash (subscription fees apply)
• Get up to a 3% match on all new IRA contributions, IRA transfers and 401(k) rollovers
• Access professional research from top-tier research provider, Morningstar

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How much does Robinhood Gold cost?

Robinhood Gold is priced at $5 per month, which totals $60 annually. Robinhood also offers a 30-day free trial for new subscribers, allowing you to test the features before committing to the monthly fee.

The 4.5% APY on uninvested cash can significantly contribute to covering the subscription cost. If you maintain a balance of $1,200 in uninvested cash, the interest earned over a year would almost cover the annual cost of Robinhood Gold. Depending on your cash balance, the APY benefit alone could make the subscription essentially cost-neutral.

Furthermore, with the 3% IRA match offered by Robinhood Gold, if you maximize your IRA contributions, the match could add an extra $210 annually to your retirement fund. Combined with the 1% bonus on taxable deposits, these benefits can effectively reduce the net cost of the subscription, potentially making it a profitable investment.

Research tools such as Nasdaq Level 2 data and Morningstar research reports also offer considerable value. For active traders, the ability to access real-time data and detailed analysis can be a significant advantage, justifying the monthly fee through improved trading outcomes.

Lastly, if you utilize margin for trading, the first $1,000 of margin interest-free can lead to substantial savings. This feature alone can make the subscription worthwhile, especially for traders who frequently borrow to leverage their investments. By reducing your margin interest costs, Robinhood Gold can effectively pay for itself, depending on how much margin you use.

What is the Robinhood Gold Card?

The Robinhood Gold Card is an exclusive credit card available only to Robinhood Gold members, offering a robust 3% cash back on all purchases and 5% cash back on travel bookings made through Robinhood’s travel portal.

The card, available in both stainless steel and a special 10-karat gold version for top-tier users, has no annual fee, foreign transaction fees or balance transfer fees. Late payment fees are $29 for the first occurrence and $40 for subsequent late payments within six months.

However, the card is currently accessible only through a waitlist that has attracted over one million users.⁽³⁾ Robinhood began rolling out the card to waitlisted users in April 2024, though a specific timeline for when all applicants will receive their cards remains uncertain.

Rewards earned with the Robinhood Gold Card can be seamlessly integrated into your Robinhood brokerage account, allowing you to invest your cash back or redeem it through various other options like travel, shopping and gift cards. The card also provides purchase protection and an auto rental collision damage waiver, making it a strong choice for those deeply integrated into the Robinhood ecosystem.

However, one more detail bears mentioning — the card’s APR ranges from 19.99% to 29.99%, making it crucial to pay off balances each month to avoid high interest charges.⁽⁴⁾

Alternatives to Robinhood Gold

Frequently asked questions

How do I update to Gold?

Upgrading to Robinhood Gold is a straightforward process. Simply open the Robinhood app, navigate to the account menu and select Robinhood Gold. Follow the prompts to begin your 30-day free trial, which allows you to explore all the premium features before committing to the $5 monthly subscription.

Can I cancel my Gold subscription at any time?

Yes, you can cancel your Robinhood Gold subscription at any time. If you decide that Gold isn’t meeting your needs, go to the account menu in the Robinhood app, select Robinhood Gold and choose the option to cancel.

Your benefits will continue through the end of your current billing cycle, after which your account will revert to a standard Robinhood account with no additional charges.