About Robinhood Clearing | Robinhood

About Robinhood Clearing

Clearing firms like Robinhood Clearing do a number of tasks, including the following.

  • Clearing: This is how brokerages make sure that the price and number of shares you expect to give or receive when you place a trade matches the price and number of shares the other person expects to give or receive. Most of this is automated, but every once in a while the numbers don’t quite match, and a human from each clearing firm will step in to iron out the details. This all happens behind the scenes, so you don’t have to worry about it.

  • Settlement: After a trade clears, and both the buyer and seller agree on which assets need to exchange hands, the clearing firm oversees the transaction and makes sure each side fulfills their obligation. Again, this all happens on your behalf by the clearing firm.

  • Custody: When the cash or shares settle from a trade, someone needs to account for where the assets go by keeping extremely detailed records. Clearing firms have specific oversight from regulators to enable this. There are safeguards that make sure your asset records exist no matter what. We’ve got your back.

  • Account statements: Provides account statements, trade confirmations, and tax documents relating to your 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.

UK Privacy policy

© 2024 Robinhood. All rights reserved.