This is a red flag.
Robinhood is struggling for capital, so I wouldn't trust them with my cash investments whatsoever.
Not that anyone has trusted them for a while, but yeah.
Robinhood is struggling for capital, so I wouldn't trust them with my cash investments whatsoever.
Not that anyone has trusted them for a while, but yeah.
Why not? You're protected by SIPC for up to $500k (for securities) and $250k (for cash).
“Robinhood” my ass
...and getting price improvements. See: https://news.ycombinator.com/item?id=32325223. I don't see the issue here.
Presumably there's some delay in the recovery process during which you cannot access or trade your assets. Crypto is also explicitly not covered.
https://www.sipc.org/for-investors/investor-faqs
>Once a customer claim is filed, the trustee will research and analyze the claim and then mail to the claimant a written determination either allowing or disallowing the claim. If the claim is allowed, the trustee will satisfy the claim through the distribution to the claimant of “customer property” or advances from SIPC, or some combination of the two.
>How quickly claims are satisfied depends on the complexity of the liquidation and the condition of the failed brokerage firm’s records. Delays of several months can arise when the firms’ records are not accurate or incomplete. It also is not uncommon for delays to take place when the brokerage firm or its principals were involved in misconduct. When the records of the brokerage firm are accurate, and no misconduct occurred, deliveries of some securities and cash to customers may begin shortly after the Trustee receives completed claim forms from customers. Generally, in these cases, customers may receive at least some of their property one to three months after filing a completed claim form.
Anyways i don’t know how SIPC works but I bet it’s similar. Also if Robinhood can go under then so can lots of other neobanks so I’d be worried about money in all those accounts.