Everyone nowadays wishes to have a source of passive income. And if you are a student, you would like to have another way to earn a decent living. So, for similar passive income, Robinhood financial services company provides users with the option of investing in bonds, ETFs, equities, and so on. But the question here is whether or not a student on an F1 visa can trade in Robinhood. Let’s talk about it.

The government has imposed some restrictions, but students on F1 visas can still use Robinhood. Even by-laws recognize it as a source of passive income. However, this should not be your full-time job.

Trading in Robinhood is permissible for F1 visa students. It is a financial service provider authorized by the United States government and regulated by the US Securities and Exchange Commission (SEC). To keep the market functioning successfully and efficiently, they regulate fair open market competition and protect public investment.

Students might choose to trade in Robinhood and buy or sell their shares online. Robinhood encourages its traders for better trading and investing by providing a wealth of information on its website, allowing everyone to conduct their transactions in Robinhood with ease. Earnings made by students on an F1 visa through Robinhood are considered passive income. And it is regarded legal revenue until it is classified as a full-time activity or employment.

It is permissible under F1 visa requirements, but solely for income management. Before entering the United States, the majority of F1 students are fully financially responsible. During your time as an F1 student, the state will treat you not just as a Non-Resident Foreigner, but also as a person eligible to pay taxes.

And the tax declarations vary depending on where you fill out the form and your gains and losses. And, if you’re using Robinhood, you’re probably aware that it costs 0% commissions. This means there will be no brokerage fees.

If you want to generate a passive income as a student, investing in stocks is the greatest option. You can earn extra money while learning about the stock market, which will help you in future trading.

Read Also: What Are the Financial Documents Required for F1 Visa

If you are on an F1 visa and wish to trade in Robinhood, you must first understand your rights as an F1 visa holder. Robinhood delegated some of your responsibilities to guarantee your safety. These responsibilities can spare you from being penalized, incurring large losses, mismanaging cash, and so on. Some of the benefits 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 interested in day trading, you must first speak with an immigration attorney and a qualified accountant. Always remember that you are trading as a hobby or part-time activity in your spare time because doing so as a business or full-time employment will be regarded a breach of F1 rules.

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 match these criteria, you are eligible to join the Robinhood community. When you join up for a Robinhood account, you will be given free stocks.

The SSN is essential for tax purposes. When you begin earning money, you must file your taxes. At that time, the government may ask you for your SSN, date of birth, username, and other information so that you may receive every detail from Robinhood when you need a form. The SSN assigned to you is private and confidential; all you need to do is supply the four digits of your number.

States recognize F1 students’ identities through their social security numbers. If you disclose it, you must bear the consequences of breaking the law. Anyone can use your credentials and account, and you could wind up losing your visa if you violate the government’s rules and regulations.

And if you get stuck while submitting your tax, you can get assistance from a variety of resources designed specifically for assisting taxpayers.

Can an International Student use Robinhood?

Robinhood is open to international students. International students are also granted F1 visas. Furthermore, overseas students have the right to earn passive money. When traveling overseas, everyone has obstacles, the most significant of which are financial ones. And in that scenario, there is nothing wrong with opting for more income.

If you are an international student, you must also meet the same requirements as F1 students. Simply carry out the following activities:

• You must be above 18 years of age
• You must have a valid Social Security Number (SSN)

You may also need a permission letter from your high school, elementary school, college, or university in addition to these prerequisites. If you live off-campus, you must obtain a letter from the immigration office.

F1 visa holders will be able to receive an off-campus work authorization for a period of up to a year. This is referred to as Optional Practical Training (OPT). This, however, is just transitory. The work permit is only valid for a year.

This form allows F1 students to receive training, practice, and work in fields linked to their studies.

Optional practical training is utilized in the following situations:

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.

Living abroad might be particularly daunting for F1 visa holders. You must learn, develop, work, and earn. However, there are some downsides to this. Before you begin trading, it is recommended that you conduct your own study, select the suitable advisor, and proceed with care.

Financial market activities are one way to learn about the economic-financial sector. t is a good idea to be on the lookout for developments that will bring you money. It is critical to locate the proper information and the right mentor to help you make the right decision.

Robinhood is the place to be if you are fresh to this field and an inexperienced F1 student.