How you're protected
We keep your Robinhood account safe in a number of different ways.
Robinhood Financial LLC and Robinhood Securities, LLC are both members of SIPC, which protects securities and cash for customers of its members up to $500,000 (including a $250,000 limit for cash only) for each account type. Accounts held in the same type of account are combined for purposes of the SIPC protection limits. Examples of account types include: individual investing accounts, joint investing accounts, traditional individual retirement accounts (IRAs), and Roth IRAs. Explanatory brochure available upon request or at www.sipc.org.
We’ve purchased an additional insurance policy for Robinhood Markets, Inc., Robinhood Financial LLC, and 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 per customer of $50 million in securities, including $1.9 million in uninvested cash. Similar to SIPC protection, this additional insurance doesn’t protect against a loss in the market value of securities.
Brokerage customers who opt in to the Brokerage cash sweep program have their eligible uninvested cash (unrestricted cash intended for investing that hasn't yet been invested or spent) automatically deposited at these banks where it becomes eligible for FDIC insurance up to a total maximum of $2.5 millionfor individual investing accounts and $5 million for joint investing accounts. For example, that’s up to $250,000 per program bank across all your individual investing accounts and $500,000 for a joint investing account, 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 or more of the program banks, your FDIC insurance coverage may be reduced. Robinhood is not an FDIC-insured bank. Deposit insurance covers the failure of an insured bank. Products other than the cash sweep program are not insured by the FDIC, are not deposits, and may lose value. Certain conditions must be satisfied for pass-through FDIC deposit insurance coverage to apply.
The cash in your Robinhood Money, LLC spending account that’s held at or transferred to JP Morgan Chase Bank, N.A., which is an FDIC-insured institution. While there, your cash is insured up to $250,000 by the FDIC.
The money held in your Robinhood Cash Card account through Sutton Bank is eligible for FDIC insurance up to $250,000 and will not accrue or pay any interest. The availability of FDIC insurance is contingent upon Robinhood maintaining records acceptable to the FDIC, as the receiver, if Sutton Bank should fail. FDIC insurance limits apply collectively to all of your deposits held at Sutton Bank.
Robinhood’s 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.
When we store your account passwords, we hash them using the industry-standard BCrypt hashing algorithm and never store them in plaintext—which means they're stored in a scrambled format that makes them difficult and time-intensive for attackers to crack.
Sensitive information, such as your Social Security 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. Check out Verifying it's you for more information.