Investing Simple Logo
m1 finance
Get Started on M1 Finance With up to a $500 Bonus!
M1 Finance is offering readers a $30 to $500 bonus when they open a new brokerage account and deposit/transfer $1,000 or more.
Written by J. Thomas on October 20, 2021
FTC Disclosure

Why Does Robinhood Need Your Social Security Number?

Today, many of us raise an eyebrow when someone asks for our Social Security number. Whether it's online or in physical form, people have become much more skeptical about giving out personal information.

In this article, we will provide a review on Robinhood as well as answer the question regarding whether or not Robinhood really needs your social security number.

Fraud On The Rise

This practice is completely understandable when you look at the growth of identity theft cases over the past decade. In 2020 alone, there were over one million cases of identity theft, more than double the numbers from 2019.

On the other hand, some services genuinely need your important data in order to help you. A good idea is to always understand why you need to provide that information, especially when it comes to your Social Security Number.

In the wrong hands, this number can be used to open credit cards or impersonate you in other ways. Always be wary of giving it out to people or businesses that you don't know.

Does Robinhood Really Need My SSN?

If you recently tried opening an account with Robinhood, you may remember being asked to provide your SSN. So, do you have to give them the number? Why do they need it?

The answer to the first question is pretty straightforward. If you want to proceed with opening a Robinhood account, providing your SSN is mandatory. There are a couple of reasons why it's required.

First, in order to open a Robinhood account, you need to be a U.S. citizen, permanent resident, or visa holder. A Social Security Number can help prove that you are one of these.

Second, the United States Government requires that brokerages like Robinhood know who their customers are. This helps to prevent fraud, money laundering, and tax evasion schemes. Social Security Numbers are unique to each individual, which makes them a great tool for monitoring income and ensuring taxes are paid.

By having your SSN, Robinhood can easily track who you are and report your financial dealings to the government if necessary.

Best Free Stock Promotions

Robinhood Logo1 Free Stock (Up To $225)Download
Webull Logo2 Free Stocks (Up To $1,850)Download
Firstrade trading platform2 Free Stocks (Up To $400)Download
M1 Finance Robo AdvisorGet $30 When You Deposit $1,000Download
Acorns LogoFree $10 BonusDownload
SoFi Robo Advisor1 Free Stock Up To $1,000Download

Robinhood Tax Filing Help

This is actually helpful when tax season comes around. Robinhood will create the necessary tax documents you need to complete your tax filings. The generated forms will detail all of your portfolio income as well as your realized gains and losses.

Some tax return services are even compatible with Robinhood and enable you to automatically download your 1099 information straight to your tax filing. Completing your annual tax return can become much simpler and faster with this feature.

Robinhood Free Training

We put together a free 30 minute video training that walks you through the entire process, step by step. This training will help you get up and running in no time at all.


About Robinhood

Robinhood is an online investment platform that charges no commissions or fees for its basic service. The company first started in 2014 and now has over 13 million users. The easy-to-use mobile app is well-liked by many and makes it a great option for beginners. In addition to stocks and ETFs, Robinhood also offers members access to options, margin, and cryptocurrency. It's no wonder the app is so popular.

For more information on how to use Robinhood, check out our FAQ article or visit the Robinhood homepage.

Final Thoughts

While it's good to keep your guard up, providing your SSN to Robinhood is necessary to open an account. The U.S. government itself is responsible for this rule, which may put your mind at ease.

Your Social Security Number is used to prove your identity, track your income, and make sure you are paying your taxes.

Still, be sure you are on a secure network when entering sensitive information and double-check that you're on the real Robinhood website or app. Scammers often use fake websites to trick people into entering their data.

Article written by J. Thomas
JT graduated with a degree in Personal Finance from a Big Ten university. Since then he has worked as a Financial Planner with a nationally recognized RIA. In his free time, he enjoys playing basketball, spending time outdoors, and traveling abroad.

Platform Reviews

Power Your Investing

Choosing the right product and service is essential for your investing. Here are some of the tools and services to help your portfolio grow.
Robinhood provides an easy-to-use free trading platform for beginner investors. Robinhood has $0 account minimums. Get a free stock when you open an account below.
Try Robinhood
M1 Finance
M1 Finance offers a free investing platform where users can build portfolios of stocks and ETFs. Users can also choose from a variety of pre-built portfolios offered for free.
Try M1 Finance
Passively invest in private real estate deals with as little as $10. Fundrise allows you to own residential and commercial real estate across the U.S. starting at a 1% annual fee.
Try Fundrise
© Copyright 2018 - 2020 Investing Simple LLC. All Rights Reserved. Investing Simple is a financial publisher that does not offer any personal financial advice or advocate the purchase or sale of any security or investment for any specific individual. Members should be aware that investment markets have inherent risks, and past performance does not assure future results. Investing Simple has advertising relationships with some of the offers listed on this website. The information on Investing Simple could be different from what you find when visiting a third-party website. All products are presented without warranty. For more information, please read our full disclaimer.
Developed by Stallion Cognitive
linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram
Copy link
Powered by Social Snap