Is Robinhood Legal in Texas?

You might be aware that Robinhood is legal in Texas, but are its prediction markets available? For those unaware, Robinhood now offers event contract trading on future outcomes via a CFTC-regulated derivatives exchange that’s contained within the main app.

Despite being federally overseen by the CFTC, Robinhood has restricted access to its prediction markets in 6. Texas isn’t one of them, though, meaning that all prediction markets are available if you’re over 18 and located in the Lone Star State. TO get access, you need to create and verfiy a Robinhood account.

Are Robinhood Prediction Markets Available in Texas?

Yes, Robinhood prediction markets are available to account holders aged 18+ in Texas. As we explained above, the event contracts trading part of this app is a derivatives exchange with underlying prediction market providers.

It’s overseen federally by the Commodity Futures Trading Commission (CFTC), making it fully available in Texas. While 6 have partial or outright restrictions stipulated in the Robinhood T&Cs, there are no such rules for TX accounts.

Robinhood Prediction Markets TX – The Pros and Cons

Here is our experts’ roundup of the pros and cons of using this app for event contract trading in the Lone Star State:

Pros and Cons

• Available in Texas
• Regulated by the CFTC
• No restricted event contracts

• High risk of losing money

How to Sign Up and Trade Event Contracts at Robinhood in TX

To get started, you’ll need to sign up for Robinhood with your personal information and verify your account by uploading a photo ID. You then need to wait up to 5 business days for approval.

Here’s what you need to do:

1. Download the app

2. Sign up with your email address or another account

3. Provide your full name, residential address, and date of birth (must be over 18)

4. Enter the final four digits of your SSN

5. Upload your photo ID with a selfie (passport, driver’s license, or state ID)

6. Wait up to 5 business days to verify your account

Activating Prediction Markets on the Robinhood App

Once your account is verified, you won’t yet have access to prediction markets. This involves a couple of extra steps, including completing a financial suitability questionnaire and signing the Risk Disclosure.

You can do all of this as follows:

1. Log in to your Robinhood account

2. Tap the “Account” tab

3. Select “Investing Menu”

4. Look for the Event Contracts

5. Complete the financial suitability questionnaire

6. Read and sign the Risk Disclosure agreement

7. Link a bank account

8. Deposit and start trading

How Do Robinhood Prediction Markets Work?

As with other sports prediction market apps, Robinhood’s prediction markets allow you to trade event contracts that are tied to the outcomes of future events. The events you can trade on include outcomes for sports games, political elections, crypto prices, and economic activity.

Here’s a shortlist of the key things you need to know about event contracts at Robinhood:

• Event contracts cost between $0.01 and $0.99
• Contracts tied to correct predictions close at $1.00 after the market is resolved
• Incorrect contracts close at $0.00

Trade on outcomes of future events

Trade sports, elections, crypto, and more

Robinhood Prediction Markets in Texas – Summary and Conclusion

In summary, Robinhood’s prediction markets are offered via a CFTC-regulated derivatives exchange. The bottom line is that event contracts are available to trade on the Robinhood app for verified users aged 18+ in the Lone Star State.

Besides getting verified, you will need to complete a suitability check and sign the Risk Disclosure agreement. Make sure to read the Risk Disclosure agreement so you’re fully aware of the risk of losing money before you trade.

Is Robinhood Legal in Texas? FAQ

• 🗺️ Are Robinhood prediction markets available in Texas?
  As Robinhood prediction markets are offered through a CFTC-regulated exchange, they are federally overseen. This means that they are available to verified Robinhood account holders in Texas.
• 🚫 In what states are Robinhood prediction markets not available?
  Although Robinhood’s prediction market trading exchange is overseen by a national body (the CFTC), it isn’t available everywhere. According to the T&Cs, there are restrictions in New Jersey, Maryland, and Nevada.
• 🔧 How do I use the prediction market on Robinhood in Texas?
  Once you have a verified account, you can find and enable event contracts in the “Investing Menu”, which is located in your account. Before you can trade, you must complete a financial suitability questionnaire and sign the Risk Disclosure agreement.