The popularity of Robinhood, a commission-free trading platform, can be attributed to its user-friendly design and accessibility. You can buy and sell stocks, options, ETFs, and cryptocurrencies with Robinhood. But whether you can use a credit card to purchase shares on Robinhood is a common query.
Sadly, the response is no. Credit cards are not accepted by Robinhood as a method of payment for the purchase of stocks or any other securities. Only bank transfers, wire transfers, and deposits from banks and financial institutions that are supported are accepted by the site. This implies that you cannot use a credit card to finance your Robinhood account or to purchase stocks or any other type of security.
For TD Ameritrade, the same holds true. You can use a credit card to fund your account at TD Ameritrade, but you cannot use a credit card to purchase stocks or any other types of securities. For the purpose of purchasing securities, the platform only accepts bank transfers, wire transfers, and deposits from banks and financial institutions that are supported.
The solution is a little bit more complicated when it comes to purchasing Bitcoin. You may purchase Bitcoin using a credit card on several cryptocurrency exchanges. However, using a credit card to buy or sell Bitcoin is not yet supported by Robinhood. Instead, you are limited to using the money in your Robinhood account to buy and sell Bitcoin.
In terms of purchasing gold, there are some dealers who allow credit card purchases of gold coins or bars. Due to the potential for large fees and interest rates, this is not advised. Instead, it is typically preferable to buy gold using money from your savings or checking account. Last but not least, even while it is technically feasible to withdraw money with a credit card, it is not usually advised. This is due to the high costs and interest rates associated with cash advances, which make them a costly means of obtaining funds. It is preferable to utilize your debit card or to make an ATM withdrawal using your bank account.
In conclusion, even if using a credit card for some activities, like filling your TD Ameritrade account or purchasing gold, might be possible, you are unable to use a credit card to purchase stocks on Robinhood or any other platform. Instead, you must fill your account and purchase securities using a bank transfer, wire transfer, or deposit from a bank or other financial institution that is supported. Always thoroughly weigh the costs and interest rates involved in any financial transaction before moving forward.
Yes, several trading platforms, like eToro and TD Ameritrade, let you purchase stocks using PayPal. Robinhood does not, however, now allow customers to purchase stocks using PayPal.