Is Robinhood Scam? | Robinhood Safety and Reliability

Introduction

Robinhood is a US-based broker with over 18 million clients that trust in it. It’s regulated by top-tier financial authorities and has client protection amounts. It also has +8 years of trading experience. Robinhood’s major instruments are stocks, options, gold, mutual funds, and cryptocurrencies. You can also use third-party services to have a Shariah-compliant investment platform. Robinhood is also famous for having good trading platforms and free deposits.

Is Robinhood Regulated?

The Robinhood broker is regulated by many financial authorities like:

• SEC: The Securities and Exchange Commissions
• FINRA: The Financial Industry Regulation Authority

Is Robinhood a Scam?

Robinhood has had a long trading journey for over 8 years. It has passed through different financial disasters up till now. The thing is that it has over 18 million active users in this period which makes Robinhood much trustworthy. The negative part is that Robinhood is not listed on the stock exchange.

Robinhood Awards

Since its foundation in 2013, Robinhood was awarded many awards including Apple Design Award

Client Protection

The Robinhood broker has a client protection amount to prevent its clients’ funds from going insolvent. As a member of SIPC, Robinhood has a $500,000 ($250,000 cash limit) on client funds.

Negative Balance Protection

On the other hand, there is no negative balance protection. This is not counted as a big deal as Robinhood doesn’t have Forex or CFD instruments that have a high risk of losing money.

Two-step Verification

Luckily, Robinhood has the two-step verification method while logging in.

FAQs

1. How long does it take to verify my account?

• It takes about 1 business day to verify your Robinhood account.

1. Can I open more than one trading account?

• No, Robinhood allows you to open only one account.

1. Does Robinhood allow bot trading?

• Yes, it does.

1. How to activate the two-factor authentication (2FA) method?

• To enable 2FA, you have 2 options: via SMS or via the authenticator app (i.e., Google Authenticator). After that, Follow these steps:

1. Tap the Account (person) icon in the bottom right corner
2. Tap the three bars in the top right corner
3. Tap Settings
4. Under Security, tap Two-Factor Authentication
5. Toggle the feature to the On position
6. Tap the authentication app you’d like to use
7. Tap Open App to add your key to the authentication app
8. Open your authentication app, and confirm that you’d like to add Robinhood
9. Copy the verification code generated by your authentication app and paste it into Robinhood when you’re prompted.
10. You’ll receive an emergency backup code from Robinhood that allows you to log in if you ever lose access to your device. We recommend saving this code in a secure place, such as within a password manager, saving a screenshot in a password-protected folder, or writing it down and locking it in a safe.

1. Can I log in to the same account through different devices?

• Yes, you can log in from the trusted devices listed on your account.

1. Does Robinhood accept payments from third parties?

• Your payments should be from a bank account that holds the same name as yours.