Robinhood South Africa | Review of Trading Platform [$0 deposit] (2024)

FAQs

Can South Africans trade on Robinhood? ›

Is Robinhood Available in South Africa? Unfortunately, Robinhood is not yet available outside the US. It had planned to open in the UK in 2020, but it was postponed indefinitely. In early 2022, Robinhood has set aggressive goals to “open their crypto platform to customers internationally”.

The bottom line: Robinhood provides free stock, options, ETF and cryptocurrency trades, a 1% match on IRAs, and its account minimum is $0. Mutual funds and bonds aren't offered.

Investing with a Robinhood brokerage account is commission free. We don't charge you fees to open your account, to maintain your account, or to transfer funds to your account.

You may receive this message if you have an outstanding pending order for the shares of stock you'd like to sell. You'll need to cancel any outstanding orders before you can sell the shares.

In terms of the Exchange Control Laws only Authorised Dealers (ADs) and Authorised Dealers with Limited Authority (ADLAs), appointed by the South African Reserve Bank (SARB), are permitted to buy, sell, borrow or lend foreign currency.

Be 18 years or older. Have a valid Social Security Number (not a Taxpayer Identification Number) Have a legal U.S. residential address within the 50 states or Puerto Rico (exceptions may apply for active U.S. military personnel stationed abroad) Be a U.S. citizen, U.S. permanent resident, or have a valid U.S. visa*

You need to have some stock trading experience before you can trade options. You can try again after you've made some trades, and update your investment profile to make sure it's accurate and up to date.

The most common reasons are that a transfer was reversed or was over your Instant Deposit limit.

If you're looking to get started, you could start trading options with just a few hundred dollars. However, if you make a wrong bet, you could lose your whole investment in weeks or months. A safer strategy is to become a long-term buy-and-hold investor and grow your wealth over time.

There's no fee for bank transfers. However, instant withdrawals to a debit card or bank account can incur a 1.5% fee.

What bank does Robinhood use? ›

We work with partner banks to process transactions. ACH account and routing numbers may be issued by Sutton Bank or JPMorgan Chase Bank, and the Robinhood debit card is issued by Sutton Bank.

You can make money on Robinhood by holding stocks that will pay dividends. You can then reinvest the dividends to earn compound interest. Besides this, you can earn money by asset appreciation. This means you sell something for a higher price than you purchased it for.

Can a Stock Go Negative? Technically, a company that has more debts and other liabilities than assets is worth a negative amount. Shares of its stock, however, would only fall to zero and would not turn negative.

Purchase fractional shares of stock

If you prefer to pick the individual companies you want to invest in, you can still invest in stocks without a lot of money. Several new investing apps, including Robinhood and Stash, allow you to buy fractional shares of stock and ETFs.

When there are no buyers, you can't sell your shares—you'll be stuck with them until there is some buying interest from other investors. A buyer could pop in a few seconds, or it could take minutes, days, or even weeks in the case of very thinly traded stocks.

There are limits on the amount of currency you can bring into South Africa. For cash in South African Rand (ZAR), the limit is 25,000ZAR. For combinations of cash in other currencies, the limit is US$10,000 (or equivalent). You should declare any amount higher than this on entry to South Africa.

International travelers entering the United States must declare if they are carrying currency or monetary instruments in a combined amount over $10,000 on their Customs Declaration Form (CBP Form 6059B) and then file a FinCEN Form 105.

The currency in South Africa is the South African Rand (ZAR), and US dollars are not widely accepted. South African Rands can also be used easily in Namibia and eSwatini (Swaziland). If you're travelling anywhere else in Southern Africa or East Africa, the most useful currency to have with you is US dollars (USD).

Users create and fund their accounts and can start trading. Unfortunately, you cannot use Robinhood without an SSN; an ITIN is not accepted, which means you must be a U.S. citizen or permanent resident to use the app.

If you're switching off of Robinhood, you can check out apps like Webull, Stash, E*TRADE, and TD Ameritrade. All are comparable options to Robinhood, and all offer an easy-to-use app interface.

Can you buy stocks without SSN? ›

The answer is YES! Through an Individual Taxpayer Identification Number or (ITIN), people who do not have social security numbers can open investment accounts. Brokerage companies such as Vanguard, Charles Schwab, and Fidelity allow individuals with ITINs to open investment accounts. Read below to learn more.

It's a bullish, two-legged options strategy that involves buying a call option and selling another with a higher strike price. Both options have the same expiration date and underlying stock or ETF. This strategy is also known as a long call vertical, long call spread, or bull call spread.

Get Approved for Options Trading

In order to get approved for options trading in Robinhood, you'll need to enable it in your Robinhood settings. In the app, head over to Settings > Investing, and scroll down to Options. There, you will see an toggle to Enable Options Trading.

Where can I find Level II market data? You can find the Level II market data for securities traded on Nasdaq on the security's detail page. On mobile, tap the arrow next to the current trading price. On web, click Expand underneath the price chart, then click Add Data to add the Order Book and Depth Chart to your view.

On Robinhood, a withdrawable cash balance of $0 means that all of the cash in your account is currently being used to meet margin requirements or is reserved for open orders. This means you won't be able to withdraw any money from your account until your cash balance exceeds $0.

You can deposit up to $1,000 daily into any of your Robinhood accounts. You can withdraw up to $5,000 daily into any of your Robinhood accounts.

In terms of money, that means not giving up very much profit potential. For example, a part-time trader may find that they can make $500 per day on average, trading during only the best two to three hours of the day.

Investment Required To Make $1,000 In Monthly Income

However, the exact investment required will vary for every investor. Therefore, your precise amount will depend on your specific investments and your return on those investments. Thus, the money required will range from $240,000 to $400,000.

How long till I can withdraw money from Robinhood? ›

The financial takeaway

Most importantly, you can't take money out until five business days after you've transferred that money into Robinhood. You'll also need to wait three business days after selling stocks, ETFs, or options before you can withdraw the proceeds.

We'll also begin 24% backup tax withholding on your Robinhood Securities account. That means that all cash proceeds, including future sell orders, dividends, interest, and certain other payments that we make to your account will be subject to 24% withholding.

Deposits. Robinhood does not charge fees to deposit money into your spending or brokerage account, regardless of the type of account you're transferring from.

We only support debit cards issued by a US bank in the Visa and Mastercard networks. We don't accept prepaid or credit cards. We also limit the number of cards you can link to a single account.

Your securities and cash are protected by SIPC

Robinhood Financial LLC and Robinhood Securities, LLC are both members of SIPC, which protects securities for customers of its members up to $500,000 (including $250,000 for claims for cash).

Yes, Robinhood is SIPC-insured. Insurance from the Securities Investor Protection Corporation is great, but checking and savings accounts must be FDIC-insured.

The Instant transfers option offers you a faster way to move money. In comparison to the free option that takes 4-5 business days to complete, an instant transfer typically takes 10 minutes (sometimes longer depending on your bank).

Unfortunately, when a stock's price falls to zero, a shareholder's holdings become worthless. Yet, even before a stock reaches the bottom, major stock exchanges create thresholds that delist shares once they fall below specific price values.

How long can a stock stay below $1? ›

If a stock's share price drops below $1.00 and remains below that level for 30 days, the exchange may notify the company that it is not in compliance with listing requirements and is at risk of being delisted.

If you fail to meet your minimums, Robinhood Financial may be forced to sell some or all of your securities, with or without your prior approval. Robinhood Financial charges a standard margin interest rate of 11.75% and a margin interest rate of 7.75% for customers who subscribe to Gold.

If a stock goes negative, do you owe money? If you do not use borrowed money, you will never owe money with your stock investments. Stocks can only drop to $0.00 per share, meaning you can lose 100% of your investment but not more than that, seeing as the stock cannot be of negative value.

But you probably need at least $200 — $1,000 to really get started right. Most brokerages have no minimums to open an account and get started buying stocks.

On the other hand, a share of stock is a unit of ownership in the business. The number of shares determines how big of a piece of ownership in a business you have. If a company has 100,000 outstanding shares of stock and you own 1,000, you have a 1% equity ownership stake in the company's business.

Buy and hold is a strategy used by a large number of investors to purchase stocks or other assets and hold on to them over a long period of time. The ups and downs of the market are of little consequence under this strategy, and such investors are unflinching in the face of changes in technical indicators.

The wash-sale rule keeps investors from selling at a loss, buying the same (or "substantially identical") investment back within a 61-day window, and claiming the tax benefit.

What does that mean? In short, one common way to make money in stocks is by adopting a buy-and-hold strategy, where you hold stocks or other securities for a long time instead of engaging in frequent buying and selling (a.k.a. trading).

No specific laws prohibit South Africans (Or other non-US citizens) from investing in the different US stock markets like NYSE (New York Stock Exchange) or Nasdaq. Many investment firms cater to international clients.

Can South Africans invest in US stocks? ›

With International Stock Brokers

There are beneficial reasons for South African investors to own stocks listed in the US through an international broker's account. You can diversify your holdings and improve returns by investing in foreign stocks in South Africa.

The best trading platform in South Africa will depend on an individual's specific trading needs and preferences. Some popular options include EasyEquities, GT247 and Saxo Markets. These platforms offer features such as low fees, easy-to-use interfaces and a wide range of trading instruments.

TD Ameritrade Review South Africa – ☑️ Unbiased Pros & Cons (2023) TD Ameritrade can be summarised as a trustworthy broker with $0 USD, R0 ZAR commissions on trades, enhanced trading platforms, top-line education, and an overall full-service brokerage experience.

Regulation 14(2) provides that non-resident shareholders must ensure that the share certificates issued by the South African company are endorsed 'non-resident' within 30 days of becoming the owner of the shares.

Non-South African Citizens are allowed to open a South African Private Company and become a Director and / or Shareholder with a Valid Passport or Refugee Document.

Article summary. Foreigners (whether they be natural persons or legal entities normally domiciled or registered outside the country) can buy property in South Africa. Foreign buyers or non-residents must comply with local legislation in that regard.

US citizens who wish to retire in South Africa will need to apply for a retired person's visa. This temporary residence visa is issued for up to four years and can be renewed indefinitely.

Foreigners are free to buy property in South Africa without restrictions, subject to meeting the visa requirements to live and work in the country. Expats with a criminal record are not permitted to buy property. As in other countries, you must provide a range of documents to buy a home in South Africa.

Direct offshore Investment

South Africans, over the age of 18, are allowed to externalise up to R11 million per calendar year. The first R1 million, which we refer to as a single discretionary allowance, is available to everyone and it does not require an application.

In conclusion, South Africa is an attractive destination for those looking to invest or do business in Africa. While there are challenges, such as political instability and social inequality, South Africa's financial strengths make it a country worth considering for those looking to invest in Africa.

How to trade in South Africa? ›

AvaTrade – Overall, Best Broker in South Africa. FBS – Low ZAR Minimum Deposit. Tickmill – Quality Educational Materials with no deposit bonus. Exness – High User Trust Score 92/100 with ZAR support.

The most successful traders in South Africa are: Jabulani Ngcobo. Shaun Benjamin.