Robinhood is a popular financial app.
With a few taps on your phone, you can invest in stocks, cryptos, and even options through the Robinhood app.
So, what would happen in the unlikely event that Robinhood went out of business? Let's dive in.
Robinhood is a popular "all-in-one" investing app.
While they are most well-known for their commission free stock trading, they've recently shaken up the Retirement Investing World too.
Introducing Robinhood Retirement; home of the biggest IRA match on the market.
Here's what you need to know:
And don't worry, this comes with a Portfolio Builder Tool. You don't have to construct your investment portfolio from scratch if you don't want to.
Lastly, you'll even get a free stock worth up to $200 when you open a new Robinhood account using our link.
First of all, if you invest in stocks or ETFs with Robinhood, your assets have SIPC insurance.
In a nutshell, this covers you in the event that your broker loses your financial assets or cash.
Since Robinhood is a member of SIPC, you are covered for up to $500,000 worth of securities, including $250,000 which can cover cash.
So, if Robinhood somehow went out of business and lost customer assets, the SIPC would step in.
If you use the cash management products offered by Robinhood, these accounts also have FDIC insurance.
Robinhood itself is not actually a bank. It's cash management offering is actually made possible with their partner banks.
If Robinhood were to go out of business, that would have no impact on your deposits which are actually held at the partner banks.
Don't forget to grab your free stock worth up to $200 from Robinhood today!