Robinhood is a Stock buying and selling platform where you can legally buy and sell all kinds of stocks and can do options and futures. Everyone knows what Robinhood is but knowing the fact that can a student on an F-1 visa trade-in Robinhood, is a difficult question. It is normal to be passionate about the financial market from a student's age. It shows how much urge you have to earn money.
It is possible also that many students are trading and buying stock. But in general, it is legal or not let's check that out below...
Can F-1 Students Invest In Stock?
Till now there is no particular law states that F-1 students cannot invest in stock. They can. So, Yes international students on F1 visa are investing in a stock. Buying and selling stock and are earning money from there. Until and unless you are just a passive investor and not doing day trader every day it is legal. If you make a rule of doing day-to-day trading it is not legal.
Here main thing here is that when you are on an F1 visa you are enrolled in a university for certain courses for full time and you need to maintain that status. The stock market is a passive income activity and you should do it for less time, not as your main stream. So it is legal to invest in stock but not day-to-day trading. The good news is that even after applying for an H1B visa you can still work on stock for half time, not full time.
What Do I Need To Have For Doing Stock Trading As An F1 Student?
For trading mostly all the stock brokerage firms require Social Security Number (SSN). This is because the capital gain you own is required for tax purposes by IRS.
How Will You Get An SSN?
If you are working on campus then you already got SSN as a job application. If still you do not have one then just apply for it when you are eligible for it.
What Do I Have To Do From Tax Side, If I Do Stock Trading In The US As An F1 Student?
If you are doing stock trading on a daily basis you need to file taxes as an F1 student. They need to go in tax filing if you are doing day-to-day trading. You have to declare all the investment and gain of your stock related to tax purposes and you have to pay tax according to your gain.
How Much Tax Has To Be Paid On My Dividends Typically As An F1 Student?
On any of the stock-related gains, foreign nationals are subjected to pay 30% tax on the dividend. The same goes for F1 students. So while you are investing you have to keep this thing in mind as well. Plus you have to fill the form with your stock broker for IRS tax purposes, W-8BEN.
Who Are Some Of The Popular Stockbrokers That Offer Trading Accounts For F1 Students?
TradeKing is one of the best stock brokerage services. There are other companies as well like Scottrade and so more you can check on those too. Many companies have some limits for trading or may not involve or accept students of F1 visa, so you have to check with the firm.
Conclusion
So, yes you cannot do day-to-day trading on an F-1 visa but you can normally buy and sell stocks as an F1 student. If you still need to do so you first have to be eligible for everything Robinhood asks for, plus you must have SSN for stock trading and you need to file tax as an F1 student. You have to pay 30% on your gains and dividends.
So if you are thinking about stock trading so wisely and decide it well. If you just want to buy and sell the stock you can make your account and start but if you are giving stock market as a full-time job as an F1 student then it will be illegal.
In Robinhood official website it states each and every condition which has to be fulfilled when you are starting your account or trading here. You can check here for the same https://robinhood.com/us/en/support/articles/what-you-need-to-get-started/
If you need more information regarding this let us know in the comment section?
Have you still not opened your stock brokerage account as an F1 student? If you did tell us how is your experience there!