A lot of bank churners spend a lot of time trying to figure out if transfer from XYZ bank/account triggers direct deposit (DD) for ABC bank. There is a reason why this enormous collection of DP by DoC is an often referenced post by churners. But the regulars have long know that Robinhood (RH) can be used to trigger DD in almost any bank. Note that it seems like Chase recently started to not count RH as DD but vast majority of the other banks have not wizened up on this matter and/or don’t care enough to block Robinhood as a DD method.
Some people think that RH requires one to actually play with stock and thus there is a chance of losing money. While the first part is true (duh) the latter part not so much. You can buy stocks and often sell them almost immediately.
Formally speaking, buying and selling of a stock on the same trading day is called “day trade”. Unless you’ve an equity balance of 25k or higher on your RH account, you’ll be limited to 3 day trades in 5 trading day. If you exceed this limit (ie 4 or higher day trades) then your account account will not be able to make day trades for 90 days. Note that when you attempt to sell your shares RH might split up your shares into multiple transactions and this might up your day trade count higher than you think. You can read more about this by clicking here.
But 3 day trades in 5 trading day is more than enough for DD purposes so this restriction is rather moot. Also the app will warn you when you attempt to exceed the 3 day trade limit, so it is rather easy to not make this mistake.
Robinhood is one of the strongest arsenal that you can have as a bank churner. Even if you’ve 0 interest in stocks, the fact that RH often qualifies for DD and has virtually no fee, makes it a no brainier.
Both you and I get a free stock between $3 and $150.
Robinhood does not charge any money for buying or selling of stocks. It has virtually no fee.