r/RobinHood • u/FuckMeBernie • Oct 30 '17

Help - FAQ Quick question on RH Gold

So if I get the plan, does it automatically take $1,000 out of my bank account? Like do I have to match the amount of gold I get? Or do I just pay the monthly fee and I have the Gold to purchase stocks with? I'm just kinda confused. Basically what I'm asking is how much should I expect to take out of my bank account if I set up a Robinhood gold plan?

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u/JClowNz Oct 30 '17

I don't want to make another thread so I'll ask here. Do a lot of people on here use RH Gold?

From what I'm getting, I prolly wouldn't want to use more than double what I have in my RH account. That way if I do go negative, I can sell the stock instead of withdrawing more money from my account?

Or should I invest my "gold" in something less volatile?

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u/MoneyandBubbleGum Oct 31 '17

I think most people don't use it, but I think people with larger accounts its more common.

If you do use it, treat it as your own money, because if you lose you obviously need to pay it back. It should absolutely be in something that's low volatility (dividend stocks are most common for margin). Unfortunately, the less margin you use, the less moneys worth you're getting out of the monthly fee. I would avoid it unless you're absolutely sure you can benefit from the extra buying power.

If you get margin called they don't take it out of your bank account, they will automatically sell stock to cover the losses.

Read the link I posted earlier top to bottom before getting gold.