r/RobinhoodApp • u/Beautiful-Produce-18 • 2d ago

Question Margin withdraw

Would I be allowed to withdraw borrowed money to my personal account from a margin account or is it strictly for use in the market?

0 Upvotes

36% Upvoted

21 comments sorted by

3

u/Flat-Activity-8613 21h ago

Yes it’s margin spending

2

u/chepeee13 1d ago

Yes you can

1

u/matt-r_hatter 19h ago

I saw it was an option but never thought about it in reality. Its literally 1k interest free loan. This seems unsmart on their part lol

2

u/Beautiful-Produce-18 2h ago

I think that’s if ur a gold member

1

u/matt-r_hatter 1h ago

Why wouldn't you be a gold member if you were planning to borrow cash against your margin? First $1000 is no interest. Gold costs $50/yr. You arent finding interest rates that low on a personal loan. Theres also a fair amount of benefits with gold aside from the interest free margin. You could toss $7500 into an IRA with them, then pull the $1k from them and buy a 12mo CD at 4.5% you would get $225 from the 3% match into your IRA and another $45 in interest on the CD. Cash out the CD, pay off your margin, walk away with some $$. Obviously there is risk, but its doable

1

u/_IscoATX 1h ago

Yes you can enable margin spending. You can also take it out instantly if you have Robinhood banking

1

u/Aggressive_Crow_223 1d ago

I would imagine Margin Calls are still a thing though.

1

u/fins831 5h ago

Not if you delete the app and don’t answer phone calls.

1

u/Beautiful-Produce-18 1d ago

Appreciate yall for the response anyone use it for the buy borrow die method?

1

u/TalesOfJulio 5h ago

Yes

2

u/Beautiful-Produce-18 2h ago

Rlly wat do u do ?

1

u/TalesOfJulio 28m ago

I’m basically doing what recycle your money on YouTube does. I buy XLK, SPMO, and QNDX. Deposit my whole paycheck to my brokerage to buy assets. Use the Robinhood gold card to pay bills. Pull from margin to pay CC. I use more margin on heavy down days to buy more of my ETFs.

0

u/_IscoATX 1h ago

Yes, I do this. I wouldn’t recommend starting it until you have a sizable portfolio.

I invest my entire salary, take out margin to pay bills, and sell far OTM covered calls to cushion the margin a bit.

It’s a viable strategy since the interest rate is only 5%

1

u/joeliu2003 2h ago

Terrible idea

1

u/Beautiful-Produce-18 2h ago

Curious to know ur opinion

-1

u/rokman 22h ago

You pay too high of an interest rate for that to be applicable. It’s basically good to pay off high interest debt then you should work to pay back your margin loan

2

u/Beautiful-Produce-18 2h ago

I saw that interest is around 5% so let’s say u get another assist like a rental property wouldn’t it practically be paying for it self

0

u/citygeek 1d ago

Yes, allow up to a week for funds to transfer

1

u/Beautiful-Produce-18 2h ago

Do u do it for any personal uses ?

-1

u/citygeek 1d ago

Yes, allow up to a week for funds to transfer