Robinhood has already won over 3 million investors because of its intuitive platform and free stock trades, and now Robinhood is adding free options trading is its latest plan to attract even more users.
The California-based financial services company first announced it will support options trading back in December 2017, and the options feature is slowly rolling out in waves.
"When we look at the landscape right now, we see a lot of room for improvement. It's extremely expensive to trade options," Robinhood co-founder Baiju Bhatt said in a December 2017 Bloomberg report.
And Bhatt is absolutely right...
Commissions from options trading can range from $3 to $9.99 per trade, and contract fees run from $0.15 to $1.25 or more, according to NerdWallet.com.
Investors who make 10 trades per month could pay up to $1,348 per year in options fees.
But thanks to this innovative firm, your options trades - along with the rest of the trades on Robinhood - are completely free.
That's why, today, we're going to show Money Morning readers exactly how to set up options trading for a Robinhood account to take advantage of these zero-fee trades...
Step 1: Sign Up for Early Access
To trade options with Robinhood, you need to request early access.
It's still not an automatic feature of a Robinhood account, and it appears you can only use it through the mobile app.
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The company doesn't say when the next round of options will be approved, but it will show you how many traders are waiting for approval.
Once you are approved, it's time to make a trade...
Step 2: Search for a Stock
After you receive access, you can then search for the stock symbol of a stock you want to purchase options on.
Because Facebook Inc. (Nasdaq: FB) has made headlines all week, let's take a look at FB stock.
Step 3: Hit Trade
To trade options, touch the green "Trade" button.
That will send you to a new screen that looks like this:
When you get to this screen, tap the "Trade Options" button.
After that, you will then be able to search for calls and puts on Facebook stock.
Now that you know how to use your Robinhood account for options trading, we also had to make sure Money Morning readers know the best trades to make...
Tom Gentile is one of the world's foremost authorities on stocks, futures, and options trading.
With nearly 30 years' experience in the securities industry, Tom is regarded as America's No. 1 Pattern Trader. Known as a master of developing rules-based trading strategies, he has invested millions of dollars to develop the most technologically advanced investing tools in the world.
And his readers have benefited from this breakthrough programming by being introduced to trades worth millions of dollars in profits...
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