3

Robinhood is a mobile broker that charges $0 commission, but because it's unclear how their business model makes money, I have read a lot of skeptical threads about it....

My question is that is this company insured? losing all of my money/stocks is the least thing I want to see...and How much money should I keep inside Robinhood (if they are insured, they should cover until certain amount? or is there a law/regulation that keep my assets safe) or am I worrying too much? (ie it's the same with any online broker that charges commission)

thanks

  • 3
    Did you do any research at all? They cover all that on their site, and although it's extremely unlikely they'd claim to be in FINRA and SIPC and not be, you can go to FINRA's and SIPC's sites and search for them to verify their claim. – blm Feb 4 '16 at 18:40
5

robinhood is a member of finra, just like any other broker. as such, they can't legally "lose" your assets. even if they file bankruptcy, you will get your money back.

obviously, any broker can steal your assets, but i doubt robinhood is any more likely to steal from you, even if you are rich. here is a quote from an article on thestreet.com:

So, despite the name, the Robinhood philosophy isn't about stealing from rich, but rather taking perks often reserved for top-tier investors and giving them to the everyman trader

  • They're planning on making money later by selling you additional services. Whether that businesx model will actually work, nobody yet knows. – keshlam Feb 4 '16 at 23:25

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Not the answer you're looking for? Browse other questions tagged or ask your own question.