How you're protected | Robinhood

How you're protected

We keep your Robinhood account safe in a number of different ways.

Your securities and cash are protected by SIPC

Robinhood U.K. Ltd introduces UK customers to Robinhood Securities, LLC for various activities, including for arranging custody services. Both entities are subsidiaries of Robinhood Markets, Inc.

SIPC protection

Robinhood Securities, LLC is a member of SIPC, which protects securities for customers of its members up to $500,000 (including $250,000 for claims for cash). Explanatory brochure available upon request or at www.sipc.org.

We’ve purchased an additional insurance policy for accounts held by Robinhood Securities, LLC to supplement SIPC protection. The additional insurance becomes available to customers in the event that SIPC limits are exhausted. This additional insurance policy provides protection for securities and cash up to an aggregate of $1 billion, and is limited to a combined return to any customer of $50 million in securities, including $1.9 million in cash. Similar to SIPC protection, this additional insurance doesn’t protect against a loss in the market value of securities.

Keep in mind

SIPC coverage doesn’t protect against a loss in the market value of securities.

FDIC insurance

Robinhood UK customers join the Brokerage cash sweep program at onboarding (by default) and have their eligible uninvested cash automatically (unrestricted cash intended for investing that hasn't yet been invested) deposited at these banks where it becomes eligible for FDIC insurance up to a total maximum of $2.25 million. That’s up to $250,000 per program bank, inclusive of deposits already held at the bank in the same ownership capacity, subject to FDIC insurance coverage limits and any capacity limitations at the banks. While the FDIC insurance coverage limit at each bank is $250,000, $2,000 is reserved for accrued interest. If you opt out of one more program banks, your FDIC insurance coverage may be reduced.

Robinhood Securities, LLC provides brokerage clearing services from the US to you as a U.K. customer and therefore the U.K. Financial Services Compensation Scheme that protects U.K. brokerage customers up to £85,000 doesn’t apply.

Security measures

Our security team uses a number of industry-standard measures to protect your account and ensure your experience with us is safe and secure. We understand that you place a lot of trust in our services, and we're constantly working to ensure Robinhood is one of the safest places for you to build your financial future.

Password safety

When we store your account passwords, we hash them using the industry-standard BCrypt hashing algorithm and never store them in plain text, which means they're stored in a scrambled format that makes them difficult and time-intensive for attackers to crack.

Encryption

Sensitive information, such as your National Insurance number, are encrypted before they’re stored. In addition, our app and website securely communicate with our servers using the Transport Layer Security (TLS) protocol with up-to-date configurations and ciphers. TLS helps ensure that anything you send to our servers remains private—including your personal and account information such as your password, bank account, and more.

Once we verify your banking credentials, we’ll never access them again. We use trusted third-party integrations to access information about your bank account, such as your account number and available balance.

Two-factor authentication

Two-factor authentication (2FA) helps protect your Robinhood account by requiring 2 sources of verification to sign in to your Robinhood account: something you know (your password) and something you have (a one-time verification code or device approval request). Every time you log in or make changes to your Robinhood account, you’ll be required to verify your identity before completing the action. This step helps protect your Robinhood account, even if someone knows or guesses your password.

All Robinhood accounts are protected with 2FA for new devices. This is a layer of security applied to all Robinhood accounts—this helps us ensure it's really you signing in to your Robinhood account.

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All investing involves risk and a loss of principal is possible.

Robinhood U.K. Ltd (Robinhood UK) is authorised and regulated by the Financial Conduct Authority (FRN: 823590). Robinhood UK onboards UK customers and has the lead customer relationship with UK customers in relation to their use of the Robinhood UK app and website. Robinhood UK introduces UK customers to Robinhood Securities, LLC for order routing, execution, clearing, settlement, arranging custody services and margin lending to eligible UK customers with margin accounts. Robinhood Securities, LLC is regulated in the U.S. by the SEC and FINRA. Robinhood UK and Robinhood Securities, LLC are subsidiaries of Robinhood Markets, Inc.

Robinhood U.K. Ltd is a private limited company registered in England and Wales (09908051).

Robinhood does not provide investment advice. Individual investors should make their own decisions.

Commission-free trading of stocks refers to $0 commissions for Robinhood self-directed individual brokerage accounts that trade U.S. listed securities and ADRs. Keep in mind, other costs such as regulatory fees may apply to your brokerage account. Please see Robinhood UK’s Fee Schedule to learn more.

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© 2024 Robinhood. All rights reserved.
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All investing involves risk and a loss of principal is possible.

Robinhood U.K. Ltd (Robinhood UK) is authorised and regulated by the Financial Conduct Authority (FRN: 823590). Robinhood UK onboards UK customers and has the lead customer relationship with UK customers in relation to their use of the Robinhood UK app and website. Robinhood UK introduces UK customers to Robinhood Securities, LLC for order routing, execution, clearing, settlement, arranging custody services and margin lending to eligible UK customers with margin accounts. Robinhood Securities, LLC is regulated in the U.S. by the SEC and FINRA. Robinhood UK and Robinhood Securities, LLC are subsidiaries of Robinhood Markets, Inc.

Robinhood U.K. Ltd is a private limited company registered in England and Wales (09908051).

Robinhood does not provide investment advice. Individual investors should make their own decisions.

Commission-free trading of stocks refers to $0 commissions for Robinhood self-directed individual brokerage accounts that trade U.S. listed securities and ADRs. Keep in mind, other costs such as regulatory fees may apply to your brokerage account. Please see Robinhood UK’s Fee Schedule to learn more.

UK Privacy policy

© 2024 Robinhood. All rights reserved.