What's Clearing by Robinhood?
We've cut more fees and made Robinhood faster and more reliable by rebuilding our systems from the ground up.
Clearing by Robinhood brings two exciting changes to the way we support customers like you:
Clearing by Robinhood will allow us to help our customers more easily and efficiently, and there are three changes you’ll notice right away:
Yes! But, there are two types of brokerage firms: introducing brokers and clearing brokers. These two types of brokers have very different regulatory oversight requirements.
Before, Robinhood was only an introducing broker, which means that we used a clearing brokerage for “back office” support, like settling the trades you placed on Robinhood. Using a clearing broker is the industry norm when a company like Robinhood wants to let its users place trades. In fact, the top five clearing firms cleared 1,310 introducing firms in 2016.
Now, Robinhood is also a clearing broker, which means we have complete control over giving you the best experience out there!
Clearing firms have three main tasks:
If you want to stay a Robinhood customer, you’ll have to use Clearing by Robinhood. If you’re not interested in using Clearing by Robinhood, you can transfer your assets to another brokerage.
We’d be sad to see you go, but hope you’ve enjoyed being a part of our journey to democratize the financial system.