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I use non bank financial service companies such as Wealthfront and Robinhood. It's incredibly important that they manage data (such as account balance) correctly. I'd be inclined to trust major banks more since they can put more resources into data security, hire specialists, etcetera. How are small financial services regulated, and can they be trusted?

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Both Robinhood and Wealthfront are SEC-regulated brokerages, just like the Big Guys (Vanguard, Fidelity, Charles Schwab, JPMorgan, etc, etc), and a myriad of little guys, so they must follow the same data security rules as all the companies that you normally think of as brokerages.

Thus, asking if "small financial services" are trustworthy is thus a matter of opinion which we can't factually answer. (My money is with three of the Big Guys, though...)

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  • Can you name an SEC document that exemplifies digital data security?
    – philn
    Dec 23, 2019 at 2:10
  • @philn Goggle "SEC data security requirements". One of the links I found was corpgov.law.harvard.edu/2019/01/02/…
    – RonJohn
    Dec 23, 2019 at 5:10

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