According to experts, this has become the place for many young people to buy stocks, options, and futures contracts. But some people have had the issue that they can’t buy any stock through Robinhood.
The reason you can’t buy stocks on Robinhood could be that it’s a foreign stock that is not allowed in your country. It could also be an OTC or warrant, which Robinhood does not support, or that the stock has an ongoing action within the corporation. If it’s none of these options, it could be that you’ve been marked a ”pattern day trader”.
Robinhood was created in 2013 by Vladimir Tenev and Baiju Bhatt. Two former students at Stanford University who, after graduating, went to work in the financial market, selling software to companies in the sector.
Individuals, who were unwilling to shell out any commissions to buy and sell shares. Crossed the USA and created Robinhood. This company promised to be a zero-rate technology-based broker.
On the platform, which can easily access any smartphone. It is possible to trade, without major difficulties or alerts, stocks, options, funds, gold, cryptocurrencies. Even earn a percentage for leaving the money in the account.
In this article you understand why you can’t buy stock at Robinhood.
Reasons you can’t buy stocks with Robinhood
Reason 1 – It’s a Foreign stock
These are foreign stocks. The investment made to acquire a lasting interest in companies that operate outside the investor’s economy. Although it does not function as foreign shares, the company does support some American Depository Receipts (ADRs) and some shares traded on Canadian and Israeli stock exchanges.
Robinhood does not support OTC shares; Distributions, purchases, and sales of claims are made outside the stock exchange.
Otherwise, Robinhood financially support:
- U.S. Exchange-Listed Stocks and ETFs
- Options Contracts for U.S. Exchange-Listed Stocks and ETFs
- ADRs for over 650 Globally-Listed Companies
Reason 3 – The stock has ongoing corporation action
Corporate action will only be traded again after the corporate action has ended.
Reason 4 – You’ve been marked a ‘pattern day trader’
If you are already in the stock market, you know that the standard day trading rules are defined by FINRA. One of the regulators of that market. At Robinhood you can buy and sell the same stock or open and close the same contract on the same trading day, that is, the day’s trading.
Reason 5 – Using Buying Power: Stock has a higher initial requirement
In practice, it can be used to compare the quantity of a certain product that was possible to buy, in the past, with a specific sum of money, in relation to the quantity that can be purchased now, always taking into account the same value.
Can’t buy stock and purchase limit
And why is it not possible to buy shares in Robinhood? Just follow the recent valuation of Dogecoin, the American broker Robinhood, reduced the minimum limit of cryptocurrency that customers can buy from 10 to one. The company also lowered the minimum for Bitcoin (0.000001) and Ethereum (0.0001).
The company in its history has followed Bitcoin a lot and earned about $0.40 in the year. Internet users gathered in virtual forums established a “Doge Day” to boost the asset to $ 1. However, on the same day, Dogecoin yielded 11.34%, to $ 0.344, while Bitcoin advanced to $ 56,460.