Robinhood is a commission-free trading platform that offer different types of accounts for different purposes as per customers needs. However, users can change Robinhood account to Cash Account or Gold Account whenever they want to.
When you signup for an account with Robinhood, you will be issued an Instant account by default. Users with an Instant account on Robinhood have instant access to up to $,1000 in deposits for trading and they can trade with unsettled funds.
With time, as you gain more experience on the platform, this instant account will be limited for you. As such, you will want to go in for a Gold account which lets you make marginal trades and access all kinds of advanced features of Robinhood. The Robinhood Gold account lets users get a margin or borrow money from Robinhood.
It's a package that includes all advanced services under one roof. Although, after using it for a while, you will consider that you can operate just as well without a gold membership, as you will not have access to any additional trading tools.
Knowing how to switch or change from one Robinhood account to the other can be beneficial for your trading activities on the platform. If you want to have a taste of all account types on Robinhood, continue reading. In this article, I will show you how to switch from one Robinhood account to the other such as changing from Robinhood instant or marginal account to Cash Account. We will also see how you can easily downgrade from a Gold account to an instant account.
CHECK ALSO: How to Setup a Stop Loss On Robinhood
How to Change Your Robinhood Instant Account to a Cash Account
- Login to Robinhood app.
- Go to your "Account Profile" tab.
- On the top right corner, tap the 3 horizontal lines to access the "Menu".
- Select "Investing".
- Scroll down till you see "Day Trade Settings". This section will show you how many day trades you have used which is very important when trading with a margin account.
- Tap on the Day Trade Settings which will show you some information regarding the pattern day trader (PDT) rule which applies to all margin accounts under $25,000 in the US.
- Scroll down till you see "Turn Off Instant Settlement", click on it and you will receive a warning saying the action is permanent. Confirm that to complete the process.
For your convenience, here is a detailed guide on how to turn off instant settlement on Robinhood.
CHECK ALSO: Can You Day Trade On Robinhood Without 25K?
How to Change Your Robinhood Margin Account to a Cash Account
- Login to your Robinhood app.
- Go to your "Account Profile" tab.
- Go to your "Menu".
- Select "Investing".
- Scroll down till you see "Day Trade Settings". This section will show you how many day trades you have used which is very important when trading with a margin account.
- Tap on the Day Trade Settings which will show you some information regarding the pattern day trader (PDT) rule which applies to all margin accounts under $25,000 in the US.
- Look for an option saying "Turn Off Instant Settlement" and click on it.
- Keep in mind that this action is permanent.
Once you've downgraded to a Robinhood Cash account, keep in mind that you'll be able to trade solely with settled funds in the future. Funds can take up to three days to settle with Robinhood. At the bottom of this screen, tap Turn Off Instant Settlement once more.
It's possible that the app won't let you change your account because you have funds in your Robinhood Instant account that haven't been settled from a recent transaction. Try again once a few days have passed and all funds have been settled.
You'll need an account with a different broker if you prefer to trade on margin but don't want your owned shares to be lent out to short sellers in which case,Webull is a great alternative.
CHECK ALSO: How to Get Unlimited Day Trades On Robinhood
How to Change/Downgrade Your Robinhood Gold Account to an Instant Account
You can cancel your Robinhood Gold subscription and downgrade to an Instant account by heading to the Robinhood Gold section of your account settings and choosing Downgrade from Gold. You'll lose access to premium features immediately if you downgrade, and you'll be charged any interest accrued during the monthly period.
You prevent being charged for another 30 days of Gold, make sure to cancel your subscription before your next billing date. In the Robinhood Gold area of your account settings, you can discover the billing date. Every time you upgrade your account, your billing cycle will reset to 30 days and you will be charged the $5 monthly fee.
CHECK ALSO: What Happens If You Are Marked As A Pattern Day Trader On Robinhood?
What Are The Requirements to Downgrade from Robinhood Gold Account to Instant Account
- You aren't currently investing on margin (aka have a margin balance)
- You aren't currently using Instant Deposits over $1,000
- You don't have any pending orders that utilize margin
- You have more cash than pending accrued interest
- You have enough cash to cover your options collateral requirements
CHECK ALSO: How to Exercise A Call Option On Robinhood
What is Robinhood Gold Margin?
Robinhood margin is a premium feature available to Robinhood gold customers. It enables consumers to take a little more than they are capable of. You can borrow a set amount of money to buy stocks and securities on Robinhood if you have a Robinhood Gold account.
This amount is supplied to traders by Robinhood, allowing them to make greater trades in the event that funds are unavailable.
If you are a Robinhood gold member, you can apply for a loan on their site if you are found to be eligible. It gives traders more purchasing power, allowing them to trade and buy assets with the money they've borrowed.
To take advantage of such a benefit from Robinhood, you must first obtain a gold membership on the platform.
Margin trading, on the other hand, is not for you if you are primarily interested in trading Crypto. All crypto-related stocks' rights and securities are held by Robinhood crypto, which is a separate department.
For crypto traders, there will be no margin or loans accessible. Margin trading, on the other hand, can be quite profitable if you only want to trade stocks, mutual funds, and other similar securities.
CHECK ALSO: How to Transfer Crypto From Robinhood to Coinbase
How To Turn Off Margin On Robinhood?
You must follow different processes depending on the type of platform you are using to turn off the Margin on your Robinhood gold account. The method for turning off Margin on Robinhood is the same whether you're using IOS or Android.
In all circumstances, though, the underlying necessity is the same.
The Robinhood app, in its most recent version, is required. It is available for both iOS and Android users.
The second thing you'll need is your Robinhood account's login information.
For your convenience, here is a step by step process to turn of Margin or Share lending on Robinhood.
CHECK ALSO: How to Add Money to Robinhood Without Bank Account
Can You Use Margin On Robinhood Without Gold?
No. Every new Robinhood account is created as an instant account by default. You will be given immediate access to some starter funds with which to begin trading.
Getting a gold membership on Robinhood, on the other hand, is required if you want to use margin. The only way to benefit from margin trading is to purchase a gold membership and apply for eligibility.
CHECK ALSO: How to Transfer Buying Power From Robinhood to Bank
Final Thoughts On How to Change Robinhood to Cash Account, Instant Account, Gold Account
Robinhood offer different types of accounts to satisfy their users. Switching from one account to another shouldn't be complicated. You can change from Robinhood instant account or margin account to a cash account but keep in mind that the process is permanent. Users can downgrade from a Robinhood Gold account to an Instant account if they whenever they want to.
If you want an platform that offers a more convenient way to switch between accounts, then I will recommend you Webull.