If you’re like most people, you’re probably not too familiar with Robinhood. It’s a fairly new stock trading app that’s been making waves in the investment community for its low commission rates and user-friendly interface.
While it may seem daunting to use at first, there are a few simple tricks that can help unlock all of its potentials.
In this post, we’ll show you how to enable options on Robinhood so you can start trading binary options contracts right from your smartphone.
How To Enable Options On Robinhood?
Steps to Enable Options on Robinhood:
Step 1: Login into your Robinhood account.
Step 2: Now click on the “Account“.
Step 3: Click on the “Settings” at the bottom of the Account drop-down menu.
Step 4: Click “options” from the menu located on the left side of your screen.
Step 5: At the top right-hand corner of the page click “Enable Options Trading.”
Step 6: In order to buy options with cash, you’ll have to transfer money into your Robinhood account. Once you find the account, you’re good to go.
Robinhood Options Not Available
If you want to start with options trading on Robinhood you will not find Options in Robinhood. For using the Robinhood options first you have to enable by going to Account –> Settings –> Options -> “Enable Option Trading”. Now, the Option will be available in your account.
Why Is Option Trading Not Allowed On Robinhood?
Options trading on Robinhood has been disabled because frankly, they just don’t have it working properly yet. It’s weird but it’s true. We will explain to you why; let’s first explain how to enable options trading on their platform.
Honestly, it is quite clear that Options trading on Robinhood is not allowed for the moment. This will change in the future as there are new updates being rolled out by them every day.
At this moment they do not have their options platform totally working so you can’t trade options on it yet.
However, there are other platforms that allow you to trade options. One of them is [Option Alpha ](https://optionalpha.com/), a platform that enables you to learn how to trade options, invest in strategies, and get recommendations from professional traders.
Option alpha has great customer service and the second options trading place we recommend after Robinhood if you’re looking for a place where you can buy/sell options.
Also Read: How to Exercise Option on Robinhood?
How To Trade Options In Robinhood?
Once you get options enabled on your account, it’s easy to place your first option order.
Step 1: Log in to the Robinhood account with your credentials.
Step 2: Go to the “Trade” tab located on the top of your screen.
Step 3: Click on “Option contracts.”
Step 4: Scroll down until you see the option for which you want to buy/sell and enter in how many contracts and at what price you would like to buy/sell.
Note: Keep in mind that you can only place limited orders on options. Also, Robinhood takes their fee out of the amount you’re buying/selling option for which means when placing your order make sure to take that into account.
For example, if you want to buy 1 option contract for $100 at the $5 price anytime today, Robinhood will take their fee out of that which could be about $1.95 leaving you with only $98.05 to spend on the option you just bought.
How Long Does It Take To Get Approved For Options On Robinhood?
It shouldn’t take long to get approved for options on Robinhood. Once you enable options trading, it could take a couple of days which is why if you are in a hurry to buy/sell some options, don’t forget the Option Alpha platform.
The minimum you can deposit into your account in order to qualify for trade options is $2,000. Keep in mind that you will need to be able to maintain this minimum balance or higher on your account monthly in order to continue trading options with them.
Also Read: How to Find Penny Stocks on Robinhood?
Why Do You Want To Trade Options On Robinhood?
You may be wondering why anyone would want to buy/sell options with Robinhood & the answer is very simple. It’s super easy and it works great.
You can also open an account in less than 10 minutes which means you could start trading right away if you wanted to. Trading options on Robinhood is great because you can get FREE trades which means no commissions, unlike other platforms.
The great thing about trading options with them is that you don’t have to worry about it not working properly, getting approved, or anything like that.
Robinhood is a very easy app to trade options on and they are taking care of business for their clients. The platform is very reliable and they are always looking to make it better by adding new features to it every single day.
They have an awesome customer support team that is ready to help you with any issues or questions that you might have regarding trading options on Robinhood & if for some reason, the options trading doesn’t work properly, they will contact you to make sure everything is ok.
Enabling Option Fees On Robinhood
To enable Optional Fees on your Robinhood account, you will need to click on “Settings” located at the bottom right of your screen. Once clicked, scroll down until you see Optional Fees & then toggle it to Enabled.
Please note that all commissions generated by Option trades are kept in Robin Hood’s coffers and that they will never charge you for this.
When placing an order with them, you will be able to see all the fees associated with your order before you submit it.
Once you have enabled options on your account, it’s easy to place your first option order.
- Go to the “Trade” tab located on the top of your screen & click on “Option contracts.” Scroll down until you see the option for which you want to buy/sell and enter in how many contracts and at what price you would like to buy/sell.
- If you want to buy 1 contract for $5 anytime today, put in 5 and select “Buy” tab. Remember, all orders are done as limit orders which means you only get the price that is shown on your screen when placing your order. You will not be able to purchase at a better price than what is listed on the screen.
- Once you have submitted your order, it will show up in your open orders section which can be found by scrolling to the right on “Trade” tab at the top of your screen.
- Your order should automatically get filled within 5 minutes or less if there are enough buyers & sellers on the market for that particular option.
- After Robinhood receives your order, you should see the option contract in your account.
- When you are done trading options with your account, make sure to turn off the “Enable Options” option.
Robinhood makes it easy to buy/sell options on their platform because they are very reliable and are constantly trying to make improvements in order for their clients to have a great experience while trading options.
Also Read: Why Does Robinhood Need My SSN?
Robinhood Options Approval
Robinhood options approval is very simple. In order to begin trading options with them, you will need a staff account that is free and can be opened in less than 5 minutes.
Although you cannot withdraw from your staff account, it is perfectly fine because Robinhood options approval is instant and they have a great customer support team that will help you 24/7 should anything go wrong while trading.
Robinhood options approval is very easy to do and once you have submitted your staff account, you will be able to start trading immediately!
Robinhood options approval is great because you can get started right away once you have submitted your staff account.
There are no commissions and they have a very reliable & easy options trading platform that gets the job done for their clients!
How Do I Unlock Robinhood Settings?
Unlocking your Robinhood settings is a very simple process. All you have to do first is click on “Account” at the bottom right of your screen and scroll down until you see “Settings.” Click on that and unlock your account by clicking on either phone or email.
Once unlocked, select what type of verification procedure you would like to do like phone number & email. The next step is to upload your ID & documents and wait for them to receive it.
Once they verify, you will be able to trade options! Robinhood makes it very easy to start trading because all you have to do is submit your account information once and then just wait for them to get back to you.
There are no commissions and they make it very simple for you to start trading options with ease.
Robinhood makes it easy for you to unlock your settings once you submit all the required documents that they ask of you.
Once done, all you have to do is wait patiently until they receive your information and then start trading with them. They make it very easy and simple for you to get started with options.
Also Read: Robinhood Unsettled Funds
Conclusion
In conclusion, Robinhood is a very simple platform to use when it comes to trading options. They make the entire process very easy and smooth for their clients.
All you have to do is submit your information, wait for them to receive it, and then start trading! They make the entire process very easy for their clients.
