What Is Robinhood?
Robinhood is a fintech company that helps people invest, trade and even plan for retirement. It’s a one stop finance shop that offers everything you could possibly need, including online banking, cryptocurrency purchases and even venture capital opportunities.
In March 2025, the platform also began offering prediction markets, which are the focus of this guide. My article is purely a Robinhood prediction markets review – I won’t be discussing any other aspect of the site.
Is Robinhood a Legal and Legit Business?
Yes, Robinhood is definitely a legitimate business. It operates in compliance with US law, under the watchful eye of bodies like the Securities and Exchange Commission, Commodity Futures Trading Commission and the Financial Industry Regulatory Authority.
You can use the banners on this page to visit Robinhood and get more details. In the footer, you’ll find a whole host of legal and regulatory information confirming the legitimacy of this platform.
Something to note is that some markets may be restricted in some US states. The situation is in flux, but for example, the states of New Jersey, Nevada, and Maryland have placed restrictions on trading sports-related events contracts at the time of writing.
Do I Need a Separate App for Robinhood Prediction Markets?
No, you don’t need a separate app to get involved with prediction markets at Robinhood. All of the platform’s services are available from a single Robinhood Derivatives account.
Keep reading this review for a detailed breakdown of how to install the app and create your account. But first, let’s discuss the prediction markets.
How Do Event Contracts Work at Robinhood?
Prediction markets run on binary “Yes” or “No” event contracts. The question might be as simple as “Will the US confirm that aliens exist before 2027?” – don’t laugh, this is a real market in which people are trading yes and no contracts!
Most Robinhood event contracts, though, offer multiple options. Take the Oscars, for example – at the time of writing this review, the “Oscar for Best Picture?” market featured 11 potential contracts, including movies like One Battle After Another and Sinners. At one point, you could choose from 19 possible options.
Despite there being several possible outcomes, each individual contract remains a binary choice. The question effectively becomes “Will One Battle After Another win the Oscar, yes or no?”
Buying Contracts
If you feel the answer is likely to be yes, you can buy that outcome – it’s currently trading at 75 cents. As time passes, and the situation changes, that price may increase or decrease, just like stocks and shares.
This presents trading opportunities. However, there’s no obligation to trade – you can simply wait it out for the final outcome. If your prediction was correct, each event contract settles at $1. Naturally, incorrect choices settle at $0.
Robinhood Trading Explained – a Quick Example
Looking at the Robinhood sports prediction markets right now, I see an NBA game between the Knicks and the Jazz. New York is available to buy at 88c, with Utah priced at 12c per contract.
If I buy 100 Knicks contracts, that will cost $88. If they are the champions, those 100 contracts settle at $1 each, so $100 in total. After subtracting my initial investment, I’ll make $12 – in theory, anyway, as Robinhood fees also apply.
It’s $0.01 commission per trade, plus a $0.01 exchange fee. So my $0.88 purchases cost $0.90 in reality, making my total payment $90, rather than $88.
What Are the Various Robinhood Prediction Markets?
You can predict the outcome of more than 1,000 real world events across a wide variety of topics. Robinhood election predictions are among some of the most popular, but sport and economics are right up there.
The table below provides some examples of what you can do. All markets are accessible through the responsive website, which is really easy to use, as well as the sleek-looking mobile app.
| Category | Prediction Examples |
|---|---|
| Politics | -Who will leave the Trump administration in 2026? -How much will the US acquire Greenland for? -Will Americans receive tariff stimulus checks? |
| Sport | -#1 overall NFL pick in 2026 -NASCAR Cup Series champion -College baseball D1 champion |
| Technology | -Will Elon Musk win his case against OpenAI? -Best AI at the end of 2026 -Will the US confirm that aliens exist before 2027? |
| Economics | -US dollar to Japanese yen exchange rate on date X -Palladium price on date Y -Gas prices in the US on date Z |
| Entertainment | -Oscar for best actor -Who will host Saturday Night Live Season 51? -Who will headline Lollapalooza Chicago 2026? |
Deposits and Withdrawals
You can fund your Robinhood account using any Mastercard or Visa debit card, selected cryptocurrencies and several bank transfer options. It’s normally free to deposit, though card payments may cost up to 1.75%.
Withdrawals are also free, but your bank may have charges of its own. It usually takes 72 hours for an ACH transfer to hit your account, but this varies by financial institution. If your bank can receive instant payments, the money will arrive in a matter of minutes
Earlier in my Robinhood prediction markets review, I mentioned trading fees. These are deducted at the point of making the contract purchase.
What If I Have a Problem With My Robinhood Account?
The Robinhood website features a comprehensive support page, complete with FAQ and detailed descriptions of how event contracts work. In the event of a problem, this should be your first port of call.
If you require further assistance, get in touch with the friendly support agents via email, telephone or live chat. The latter is available 24/7, which is always great to see, but you do have to go through a chatbot first. Just ask for an agent to save yourself the headache.
I didn’t try the phone service, but I noticed it’s actually a callback option, rather than you reaching out directly. I prefer that setup, actually – it doesn’t cost me anything, and I’m not waiting on hold. Oh, it’s also worth mentioning that callbacks are only available during weekdays, from 7am until 9pm ET.
Ready to Trade Some Predictions at Robinhood?
If my Robinhood prediction markets review has whet your appetite to get started, here’s how to get involved.
- Visit the Robinhood website using a banner on this page
- Click the “Get app” button at the top of your screen
- Install the software via Google Play or the App Store
- Once installed, open the registration form and provide your personal details
- Complete the identity verification process
- Apply for a Robinhood Derivatives account (required for predictions markets)
- Once approved, deposit funds and start browsing the available markets
- Click a contract to purchase – the order is filled when someone else takes the other side
That’s all there is to it. You can create your account in a matter of minutes, though you will need to wait on identity verification before you can start trading. Don’t expect any sort of Robinhood welcome bonus – there isn’t one.
Join the Fun of Prediction Markets With Robinhood
Robinhood is a well-established, respected and legal fintech app that began offering prediction markets in May 2025. With 1,000+ contracts available, it’s one of the bigger platforms operating in this exciting new space.
It’s possible to trade predictions on anything imaginable. From simple sporting contests and election outcomes, to weird and wonderful markets like the existence of aliens, prediction markets are redefining the trading world.
To get involved with this popular new trend, click a link on this page to download the Robinhood app.
