In today’s time, everyone wants to have a source of passive income. And if you are a student then you would like to have some other means by which you can earn a good income. So for similar passive income, Robinhood financial services provider offers customers an opportunity to invest in bonds, ETFs, stocks, etc. But the question here is can a student on an F1 visa trade-in Robinhood? Let’s know about this.
The government has set a few restrictions, but still, students on F1 visas can trade-in Robinhood. Even it is accepted by-laws as a passive income source. But this should not be your full-time job activity.
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Is trading in Robinhood Legal for Students on F1 Visas?
Yes..!!
Trading in Robinhood is legal for students on F1 visas. It is an authorized financial service provider by the United States government financial body that is regulated by the US Security and Exchange Commission (SEC). They regulate fair open market competition and protect public investment to maintain the market effectively and efficiently.
The students can opt for trading in Robinhood and can buy or sell their shares online. Robinhood guides its traders for better trading and investing with plenty of information on its website so that everybody can smoothly do their operations in Robinhood.
The earnings made by the students on an F1 visa through Robinhood is regarded as passive income. And it is considered as legal income until it comes under the category of full-time activity or job.
It is legal as per the regulations of F1 visa holders but for income management only. Most F1 students have full financial responsibility before entering the states. During the time you are studying as an F1 student, the state will not only treat you as a Non-Resident Foreigner but also as a person eligible to pay taxes.
And the tax declarations depend on the location from where you fill the form and your gains and losses. And if you are opting for Robinhood you must have known the fact that Robinhood charges 0% commissions. Means no brokerage fee.
Can a Student on F1 Visa Trade on Robinhood?
Yes..!
If as a student you want to earn a passive income, investing in stocks is the best way for you. You can generate extra income and can gain knowledge about the stock market which will help you in future trading.
If you are on an F1 visa and want to trade in Robinhood, you just have to go through your responsibilities as an F1 visa holder. To ensure your safety Robinhood sets up some of your responsibilities. These responsibilities can save you from getting penalized, getting in huge losses, mismanagement of funds, etc. and some of the advantages of these responsibilities include:
- The right amount of tax deductions
- Help in trading in the right ways
- No need to show the status of F1 student
- No brokerage fee
- Easy account set up
If you are an F1 student and want to day trade, you first need to consult an immigration attorney and certified accountant. Always keep in mind that you do your trading as your hobby or part-time activity in your free time because if you practice it as a business or a full-time job it will be considered as a violation of F1 rules.
How to Trade on Robinhood as a Student on F1 Visa?
Trading on Robinhood for F1 students is very easy. You just need to follow some requirements before opening your account in Robinhood.
These requirements are:
- You have a valid SSN
- You must be above 18 years of age
If you meet these requirements, you are ready to join the Robinhood community. When you sign up for your Robinhood account they offer you free stocks.
The SSN is required because of tax purposes. When you start your earnings you would need to file your taxes. At that time the government might ask you for your SSN, Date of birth, Username, etc. so that you can get every detail from Robinhood at the time when you need any form. The SSN given to you is private and confidential; you only need to provide the four digits of your number.
The identity of F1 students is recognized by the states by their social security numbers. If you expose that you have to face the brunt caused by breaking a law. Anybody can use your credentials, use your account, and can violate the rules and regulations imposed by the government and you might end up losing your visa.
And whenever you are stuck while filing the tax you can take help from various tools available in the market especially for assisting taxpayers.
Can an International Student use Robinhood?
Yes, of course..!!
An international student can enroll in Robinhood. The International students also have F1 visas. And international students also have the right to earn passive income. Everybody faces challenges when going abroad and financial challenges are the bigger ones. And in that case, if someone opts for extra income then there is nothing wrong with it.
If you are an international student you also have to meet the requirements which are similar to F1 students. Just follow the below activities:
- You must be above 18 years of age
- You must have a valid Social Security Number (SSN)
Together with these requirements, you may also require a permission letter from your high school, elementary school, your college, or university. If you are living off-campus then you have to take a letter from the immigration office.
F1 visa holders will be allowed to obtain an off-campus work permit for up to one year. This is called Optional Practical Training (OPT). Although this is temporary. Permission to work is only for twelve months.
This form permits F1 students to get training, practice, and work related to the field in which they are studying.
Under the following situations the Optional practical training is used:
Pre-study or before completion: This applies to situations where you want to work part-time while studying F1 student. Here you are only permitted to 20 hours or less when you are in session or full time during the school holidays.
After or after graduation: Post-completion is when you seek employment in a field where you have mastered your studies after graduation. Always remember, if you are allowed to work while you study, the cover duration will be removed and you can only use the rest of the duration.
Wrap up
Living abroad can be especially intimidating for F1 visa holders. You have to learn, grow, work, and earn. But this has some drawbacks. It is advisable that before proceeding with trading you need to research on your own, find out the right advisor and proceed with caution.
One way to learn the economic-financial sector is through activities in financial markets.
It is a good idea to constantly look for changes that can bring you money. It is important to find out the right information and the right mentor that you need to make the right decision.
If you are new to this field and are an inexperienced F1 student, Robinhood is the right place for you. First of all, it is commission-free, they don’t charge any fee for opening, maintaining, and for transferring funds to your account.
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