How to Make Money on Robinhood (2025): Complete Guide

Want to make money on Robinhood without guessing your way through trades? If you’ve ever wondered how to make money on Robinhood but aren’t sure where to start, this guide is exactly what you need.

In just a few steps, you’ll learn the smartest, safest, and most profitable ways to grow real income using Robinhood in 2025. By the end of this post, you’ll have a strategy you can use to realistically earn $500 to $5,000/month, depending on your approach and effort.

We’ll break down beginner-friendly methods, key features, how others are making money, and which tools to use. Whether you’re holding stocks, flipping crypto, or trading options, there’s a path for you here. Ready to skip the fluff and learn how real users are profiting from Robinhood? Let’s go.

Key Takeaways

• Multiple Ways to Earn – From passive dividend investing to active crypto and options trading, Robinhood offers diverse money-making methods.
• No Account Minimums Needed – Start with as little as $1 using fractional shares, ideal for beginners on a budget.
• Robinhood Gold Can Amplify Earnings – This $5/month premium unlocks margin investing, instant deposits, and premium data.
• Success Requires Strategy – Blindly trading leads to losses. Knowing when to buy, sell, and reinvest is key.
• Long-Term Investing Wins – Users holding for months or years often see more stable returns than day traders.

How to Make Money on Robinhood?

Making money on Robinhood is possible, but not necessarily easy. Success depends on your strategy, timing, risk tolerance, and discipline.

Robinhood’s intuitive app, $0 commissions, and fractional shares make it simple to start. However, while buying stocks is easy, earning profits consistently requires research, planning, and some patience.

Passive investors can profit through long-term portfolio growth or dividend payouts. Meanwhile, active traders can use volatility in options or crypto to gain short-term returns — though with higher risk.

Robinhood doesn’t guarantee earnings, but it offers all the tools to create and grow real income if used wisely.

What do you need to get started?

To make money on Robinhood, you’ll need a verified U.S. account, a smartphone or desktop, and at least $1 to begin investing. No monthly fees or minimum deposits are required. However, upgrading to Robinhood Gold (optional) unlocks tools like margin investing and advanced market data.

You’ll also need a clear strategy — whether that’s buying long-term stocks, swing trading, or earning dividends — and enough knowledge to avoid impulsive decisions.

How much money you can make on Robinhood?

Your earnings on Robinhood can range from a few dollars in dividends to several thousand per month from options or crypto trading. Passive investors who buy and hold stable ETFs or dividend stocks might see annual returns of 7%–12%, compounded over time.

Active traders with experience in options or crypto could potentially earn $100–$1,000+ per week, though the risks are much higher.

For example, one user featured in a GoBankingRates article started with $5,000 and built a dividend-paying portfolio generating $200/month in under a year. Others have used Robinhood’s crypto platform to flip altcoins during bull cycles, earning quick gains of $500–$2,000 with strategic trades.

18 Best Ways to Make Money on Robinhood

Whether you’re investing your first $100 or optimizing a seasoned portfolio, here are 18 proven strategies to Make Money on Robinhood—from long-term ETFs to options and crypto—organized by popularity, risk, and effort.

1. Invest in Stocks and ETFs on Robinhood

The simplest way to make money on Robinhood is through stock and ETF investing. This method involves buying shares of companies or exchange-traded funds and holding them while their value appreciates over time. Even if you’re a complete beginner, fractional shares let you start with as little as $1.

Most users who succeed with this approach focus on well-known companies or diversified ETFs. Over time, growth and reinvested dividends can create a strong compounding effect. For example, a $1,000 investment in a broad S&P 500 ETF historically returns around 7%–10% annually, making it ideal for long-term wealth building.

Passive investing is lower stress and doesn’t require you to stare at charts all day. It’s a great starting point for those learning how to make money with Robinhood while limiting risk.

Requirements: A Robinhood account with at least $1 and a plan to hold long-term.

How to Invest in Stocks and ETFs on Robinhood?

• Open a Robinhood account and verify your identity.
• Fund your account using a bank transfer or debit card.
• Research stable stocks or ETFs with consistent performance.
• Use fractional shares if your budget is small.
• Buy your chosen stock or ETF through the app.
• Hold for the long-term and reinvest any dividends.
• Regularly monitor your portfolio and rebalance if necessary.

Quick Tip: Focus on diversified ETFs or blue-chip stocks to reduce risk and maximize long-term growth.

2. Dividend Investing

Dividend investing is perfect for users seeking steady, passive income. This strategy involves buying shares of companies that pay regular dividends, usually every quarter. Your earnings come from cash payouts, which you can withdraw or reinvest to compound returns.

Many Robinhood users rely on dividend growth stocks like Coca-Cola, Johnson & Johnson, or high-yield ETFs. By reinvesting dividends, your shares grow over time without additional deposits. A portfolio of $10,000 in 4% yield stocks can generate $400/year, which compounds further with reinvestment.

Dividend investing is also less volatile than options or crypto, making it a safer choice for beginners learning how to make money from Robinhood without excessive risk.

Requirements: $1 minimum; a focus on dividend-paying stocks or ETFs.

How to Start Dividend Investing on Robinhood?

• Research reliable dividend-paying companies or ETFs.
• Check their yield and payout history in Robinhood.
• Buy fractional or full shares of your chosen stocks.
• Enable dividend reinvestment in your account settings.
• Hold long-term and monitor for dividend growth.
• Add new shares consistently to increase payouts.

Quick Tip: Choose companies with a long track record of increasing dividends for sustainable passive income.

3. Options Trading on Robinhood

Options trading is a high-risk, high-reward method for experienced users looking for faster profits. Options let you control large amounts of stock with a smaller upfront investment by buying contracts to call (bet up) or put (bet down) on a stock’s price.

Successful traders on Robinhood have earned thousands monthly using options strategies like covered calls, spreads, and iron condors. However, without proper risk management, you can lose your entire investment quickly. This method is best for users who fully understand market movements and want to leverage their trades.

For those mastering how to make money on Robinhood, options can be powerful — but only with research and discipline.

Requirements: Robinhood account with options approval (Tier 2 recommended).

How to Trade Options on Robinhood?

• Enable options trading in your Robinhood account settings.
• Learn key concepts: calls, puts, premiums, and expiration dates.
• Analyze stock charts and trends before opening a position.
• Start with basic strategies like buying calls or puts.
• Set clear stop-losses to protect your capital.
• Close your option or exercise it before expiration if profitable.
• Track your results and refine your strategy over time.

Quick Tip: Never risk more than 5–10% of your portfolio on a single options trade.

4. Crypto Trading on Robinhood

Robinhood allows you to trade cryptocurrencies like Bitcoin, Ethereum, and Dogecoin with zero commission. Crypto trading can be volatile, but it offers fast profit opportunities if timed correctly. Unlike stock markets, crypto trades 24/7.

Many users start with small positions and learn to ride trends during market rallies. A successful trade could turn $200 into $500 in days, though losses can happen just as fast. This is a popular method for younger traders exploring how to make money with Robinhood beyond traditional stocks.

Requirements: Crypto trading enabled in your Robinhood account; minimum $1 per trade.

How to Trade Crypto on Robinhood?

• Enable crypto trading in your Robinhood account.
• Choose a crypto to buy (start with well-known options like BTC or ETH).
• Watch price trends and news for volatility signals.
• Place buy orders when the price is low.
• Hold short-term or long-term depending on your strategy.
• Consider selling in portions to secure profits.
• Track performance and reinvest in growing assets.

Quick Tip: Stick to major cryptocurrencies with high liquidity to reduce risk and avoid rug-pulls.

5. Swing Trading Stocks

Swing trading involves buying stocks at short-term lows and selling at short-term highs, holding positions for days or weeks. It sits between day trading and long-term investing.

This method works best with volatile stocks or ETFs. Swing traders often use chart patterns, technical indicators, and market news to predict price swings. A successful swing trader on Robinhood can earn 5%–20% per trade, but it requires attention and patience.

If you want to learn how to make money from Robinhood without full-time day trading, swing trading is a solid approach.

Requirements: Robinhood account, basic understanding of technical analysis.

How to Swing Trade on Robinhood?

• Identify volatile but fundamentally solid stocks.
• Use charts to find support and resistance levels.
• Buy near support zones and sell near resistance.
• Hold trades for several days to capture price swings.
• Use stop-losses to limit risk on sudden drops.
• Track earnings reports and market news affecting your stocks.
• Rinse and repeat for consistent growth.

Quick Tip: Focus on 3–5 stocks you understand well instead of chasing random tickers.

6. Covered Call Writing

Covered call writing is an advanced but lower-risk options strategy. It involves owning shares of a stock and selling call options on those shares to collect premium income.

For example, if you own 100 shares of Apple, you can sell a covered call and earn cash upfront. If the stock rises past your strike price, you may have to sell the shares — but you still keep the premium. This method creates steady income for investors with medium to large portfolios.

It’s a strategic way to explore how to make money on Robinhood using options with less risk.

Requirements: 100 shares of a stock and options approval.

How to Write Covered Calls on Robinhood?

• Buy at least 100 shares of a stable stock.
• Enable options trading on Robinhood.
• Choose a call option slightly above current stock price.
• Sell the covered call to collect the premium.
• Hold until expiration or buy to close if needed.
• Repeat the process monthly for consistent income.

Quick Tip: Choose stocks you’re willing to sell if assigned to avoid unwanted losses.

7. Sell Cash-Secured Puts

Cash-secured puts are an income strategy where you agree to buy a stock at a lower price in the future. You sell a put option and set aside enough cash to buy 100 shares if assigned. If the stock doesn’t fall to that price, you keep the premium.

If it does, you buy the stock at a discount. This approach works best with stocks you’d happily own anyway and is a more conservative alternative to buying shares outright.

Quick Tip: Only use this strategy with cash you’re fully prepared to invest if assigned the shares.

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8. Participate in IPO Investing

Robinhood offers early access to select IPOs (Initial Public Offerings). This allows users to buy shares at the IPO price before public trading begins. While some IPOs underperform, others can offer immediate upside once trading opens.

Participating in IPOs gives users an edge, especially when demand is high. To qualify, users often need to request shares and complete a brief questionnaire. There’s no guarantee you’ll get an allocation, but it can be a great way to catch early gains.

Quick Tip: Research the IPO’s fundamentals before requesting shares—don’t rely on hype alone.

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9. Earn Interest with Robinhood Cash Sweep

Robinhood’s cash sweep program automatically moves uninvested cash into network banks, where it earns interest—currently over 4.9% for Gold members. It’s a hands-off way to earn passive income while waiting to invest. Interest accrues daily and is paid monthly. You don’t have to lift a finger, making this a great feature for those looking to monetize idle funds.

Quick Tip: Upgrade to Robinhood Gold to access the highest cash sweep interest rates with no minimum balance.

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10. Use Margin Trading

With a Robinhood Gold subscription, users can borrow money to buy more stock—this is called margin trading. It can magnify gains if the stock goes up, but losses can be just as extreme. Margin is best used by advanced traders who know how to manage risk. Borrowing power depends on your portfolio size and market conditions. This method should be approached with caution and a solid stop-loss plan.

Quick Tip: Never borrow more than you’re comfortable losing — margin amplifies both gains and losses.

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11. Build a Long-Term Retirement Portfolio

Robinhood now supports traditional and Roth IRAs with up to 1% match for contributions. Users can invest in tax-advantaged retirement accounts using the same commission-free model.

IRAs are best for buy-and-hold investors planning for the future. Contributions reduce taxable income (traditional IRA) or grow tax-free (Roth). With consistent investing and compounding, this strategy can grow to six figures over time.

Quick Tip: Max out your annual IRA contribution to take full advantage of the 1% match from Robinhood.

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12. Refer Friends and Earn Bonuses

Robinhood offers referral bonuses when you invite friends to join the platform. Once they sign up and fund their account, you both receive a stock bonus—sometimes worth up to $200. This is an easy, zero-risk way to earn small rewards, especially if you have an audience or social following.

Quick Tip: Share your referral link in finance communities or among friends interested in investing.

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13. Trade Fractional Shares of Expensive Stocks

Fractional shares allow you to buy small pieces of high-priced stocks like Amazon or Google without needing thousands of dollars.

This lowers the barrier for new investors and allows for diversified portfolios even with low capital. Fractional trading also makes dollar-cost averaging easier, helping you invest small amounts consistently over time.

Quick Tip: Use recurring investments in fractional shares to grow your portfolio gradually without timing the market.

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14. Automate with Recurring Investments

Robinhood’s recurring investment feature lets users automate weekly or monthly purchases of their favorite stocks or ETFs.

This reduces emotional decision-making and helps with dollar-cost averaging. It’s an ideal strategy for those wondering how to make money on Robinhood with a long-term, hands-off approach.

Quick Tip: Set up recurring buys on index funds or dividend ETFs to grow wealth passively and consistently.

15. Invest in Thematic ETFs

Robinhood offers access to thematic ETFs — bundles of stocks focused on emerging sectors like green energy, artificial intelligence, or space exploration.

These ETFs are a great way to align your portfolio with trends you believe in, without picking individual stocks. They’re often more volatile than broad-market ETFs but offer strong upside during bull markets. For example, ARK Invest’s ETFs surged in popularity during the 2020–2021 tech boom.

Quick Tip: Balance thematic ETFs with core holdings to reduce portfolio volatility while still capturing trend-based growth.

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16. Practice in Virtual Portfolios

Although Robinhood itself doesn’t offer paper trading, you can simulate trades using third-party apps or spreadsheets. This helps new users test investment strategies risk-free. Practicing first increases confidence and reduces losses from emotional or impulsive trading. It’s a smart first step for those researching how to make money on Robinhood without burning cash.

Quick Tip: Track every “paper” trade just like a real one — log dates, prices, rationale, and results to build discipline.

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17. Invest in IPO ETFs or SPAC ETFs

If you missed out on individual IPOs, IPO-themed ETFs or SPAC ETFs offer exposure to new listings in a diversified way. These ETFs hold companies that recently went public or are about to via SPAC mergers. Though riskier, they’re perfect for investors who want IPO exposure without picking winners and losers.

Quick Tip: Limit allocation to 5–10% of your portfolio due to high volatility and speculative nature of IPO funds.

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18. Reinvest Dividends Automatically

Robinhood’s built-in Dividend Reinvestment Plan (DRIP) lets you automatically reinvest earned dividends into more shares. Over time, this compounding effect can significantly increase your share count — and your future dividend payouts. It’s one of the simplest and most powerful wealth-building tools available to beginners.

Quick Tip: Turn on automatic dividend reinvestment in your Robinhood settings to start compounding returns immediately.

Step by Step Guide to Make Money on Robinhood

Learning how to make money on Robinhood is easier when you follow a clear plan. This step-by-step guide walks you from creating your account to earning your first profits and scaling your strategy. Follow these steps to build consistent income while managing risk effectively.

Step 1. Create and Verify Your Robinhood Account

Start by downloading the Robinhood app or visiting the website. Sign up with your personal information, Social Security number, and bank details to comply with U.S. financial regulations. Verification usually takes 1–2 days, and you’ll receive free instant deposits once your account is approved.

Step 2. Fund Your Account and Explore Fractional Shares

Deposit funds using your linked bank account or debit card. Even $1 is enough to begin investing thanks to fractional shares, which allow you to buy small pieces of expensive stocks. This feature is perfect for beginners who want to learn how to make money from Robinhood without risking large amounts upfront.

Step 3. Choose Your Investment Strategy

Decide whether you want to invest long-term, swing trade, trade options, or explore crypto. Your strategy will determine your daily activity level and potential risk. Beginners should start with ETFs or dividend stocks for stability, while advanced users can mix in options or crypto for higher returns.

Step 4. Research and Select Your First Assets

Before buying, research stocks, ETFs, or cryptocurrencies that fit your strategy. Use Robinhood’s charts, analyst ratings, and news feed to make informed decisions. Avoid chasing hype or meme stocks; focus on reliable, well-performing companies for steady growth.

Step 5. Make Your First Investment

Purchase your first asset directly through the Robinhood app. Start small, such as $20 in a fractional share or a single ETF. Watching your first investment perform in real-time will help you understand how market movements affect your balance.

Step 6. Enable Dividend Reinvestment and Monitor Performance

If you buy dividend-paying stocks or ETFs, enable automatic dividend reinvestment in your account settings. This accelerates portfolio growth without extra effort. Regularly check your portfolio performance, but avoid overreacting to small daily changes.

Step 7. Scale Up and Diversify Your Portfolio

Once comfortable, gradually increase your investments. Add more stocks, ETFs, or crypto to diversify risk. Users looking to master how to make money with Robinhood often focus on building multiple income streams, like dividends, swing trades, and occasional options plays.

Step 8. Explore Advanced Features and Premium Tools

After gaining experience, consider upgrading to Robinhood Gold for $5/month. This unlocks instant deposits up to $50,000, margin investing, and Level II market data. Advanced tools can help you trade faster and smarter while growing your profits.

Step 9. Track Results and Adjust Your Strategy

Every few weeks, review your portfolio and trades. Identify which investments are performing well and which aren’t. Successful Robinhood investors adapt to market trends, learn from mistakes, and refine their strategy to improve long-term profitability.

Tips to Increase Revenue on Robinhood

Boosting your earnings on Robinhood requires smart planning and disciplined execution. Start by diversifying your portfolio with a mix of growth stocks, dividend payers, and ETFs. This spreads your risk and helps stabilize returns, even during volatile markets.

Consistently reinvest your dividends to compound your wealth. Small payouts can snowball into thousands over time. Monitoring market news and earnings reports will help you make timely buy and sell decisions, enhancing short-term profits without overtrading.

Another effective tactic is setting stop-loss orders to protect your portfolio from steep losses. Robinhood also provides price alerts and charts that can guide your entries and exits. Over time, adding advanced strategies like covered calls can generate extra cash flow from stocks you already own.

For beginners learning how to make money on Robinhood, start small and scale as your confidence and market knowledge grow.

Quick Tip: Review your portfolio weekly and adjust based on market conditions to consistently improve results.

Best AI Tools for Making Money on Robinhood

AI-powered tools can significantly enhance your investing success. Platforms like TrendSpider and Trade Ideas use machine learning to detect chart patterns, trend reversals, and potential breakout stocks. These tools are perfect for swing traders who want to time entries and exits more effectively.

Portfolio trackers like Kubera and Seeking Alpha Premium help investors understand portfolio health, dividends, and risk allocation in real time. For option traders, Options AI and Market Chameleon can suggest profitable trades based on probability models, reducing guesswork.

Robinhood’s in-app charts are basic, so integrating AI-driven alerts can give you an edge. These tools are especially useful for traders exploring how to make money from Robinhood with short-term trading strategies, where timing is critical.

Quick Tip: Use free trials of AI platforms before committing to see which aligns with your trading style.

Best Affiliate Platforms for Robinhood Users

Affiliate programs can create a second income stream for Robinhood users. Sites like Investopedia, Public, and Webull have affiliate programs where you can earn for referring new traders or investors. Sharing educational content about investing or Robinhood trading tips on social media or YouTube can drive sign-ups through your affiliate links.

You can also explore finance-focused affiliate networks like Impact, PartnerStack, and Rakuten Marketing, which include brokers, fintech apps, and stock tools. Combining affiliate income with your Robinhood investments allows you to scale earnings beyond just portfolio growth.

If you’re focused on learning how to make money with Robinhood, using affiliate links in finance-related content is an excellent, low-risk way to add passive income.

Quick Tip: Only promote financial products you personally use or trust to build credibility and increase conversion rates.

Best Marketing Tools for Monetizing Robinhood

If you plan to create content around your Robinhood journey, marketing tools can amplify your reach and earnings. Canva and CapCut are perfect for creating short social media videos showcasing trades, results, and tips. Buffer or Hootsuite allows you to schedule posts to stay consistent across multiple platforms.

Email marketing tools like MailerLite or ConvertKit let you build an audience for newsletters where you share portfolio updates, tips, and affiliate links. Combining content marketing with your trading experience can make your Robinhood activity a monetizable brand.

Marketing is especially powerful if you’re pursuing secondary income streams alongside trading, like YouTube or affiliate marketing. Consistent branding and clear messaging will help you maximize both audience growth and monetization potential.

Quick Tip: Post regular content about your Robinhood experience to attract followers and convert them into affiliate referrals.

Conclusion

Robinhood makes investing accessible for anyone, whether you’re starting with $1 or $10,000. By following the strategies above, from long-term investing and dividends to options and affiliate opportunities, you can steadily grow your income. Learning how to make money on Robinhood takes patience, but even small wins can snowball into thousands over time.

Start simple, stay disciplined, and expand your strategies as you gain confidence. With the right plan, 2025 can be your most profitable year yet on Robinhood.

Frequently Asked Questions (FAQs)