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 for customers of its members up to $500,000 (including $250,000 for claims for cash). 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 to any customer of $50 million in securities, including $1.9 million in cash. Similar to SIPC protection, this additional insurance doesn’t protect against a loss in the market value of securities.
Keep in mind
SIPC coverage doesn’t protect against a loss in the market value of securities. Crypto positions through Robinhood Crypto aren’t protected by SIPC and that Robinhood Crypto isn’t a member of FINRA or SIPC.
FDIC insurance
Brokerage customers who opt in to the Brokerage cash sweep program have their eligible uninvested cash automatically (unrestricted cash intended for investing that hasn't yet been invested or spent) deposited at these banks where it becomes eligible for FDIC insurance up to a total maximum of $2.25 million. That’s up to $250,000 per program bank, 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 more program banks, your FDIC insurance coverage may be reduced.
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. Two-factor authentication (2FA) helps protect your Robinhood account by requiring 2 sources of verification to sign in to your Robinhood account: something you know (your password) and something you have (a one-time verification code or device approval request). Every time you log in or make changes to your Robinhood account, you’ll be required to verify your identity before completing the action. This step helps protect your Robinhood account, even if someone knows or guesses your password. All Robinhood accounts are protected with 2FA for new devices. This is a layer of security applied to all Robinhood accounts—this helps us ensure it's really you signing in to your Robinhood account.Password safety
Encryption
Two-factor authentication
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Reference No. 3161808
Still have questions? Contact Robinhood Support
As someone deeply immersed in the world of financial security and online brokerage platforms, I want to underscore the importance of safeguarding your investments, and the article you provided from Robinhood highlights several key concepts in ensuring the protection of your financial assets. Let's delve into these concepts:
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SIPC Protection:
- The Securities Investor Protection Corporation (SIPC) is a crucial player in ensuring the safety of securities held by brokerage customers. As the article mentions, both Robinhood Financial LLC and Robinhood Securities, LLC are members of SIPC.
- SIPC provides protection up to $500,000, including $250,000 for claims in cash. It's important to note that this coverage doesn't protect against losses in the market value of securities.
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Additional Insurance Policy:
- Robinhood has taken an extra step to fortify the protection of its users' assets by purchasing an additional insurance policy for Robinhood Markets, Inc., Robinhood Financial LLC, and Robinhood Securities, LLC.
- This additional insurance kicks in when SIPC limits are exhausted and provides coverage for securities and cash up to an aggregate of $1 billion, with a combined return to any customer capped at $50 million in securities and $1.9 million in cash.
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FDIC Insurance:
- For cash held in brokerage accounts, the article mentions the FDIC insurance. Customers who opt into the Brokerage cash sweep program have their uninvested cash automatically deposited in banks participating in the program.
- FDIC insurance covers eligible uninvested cash up to a total maximum of $2.25 million, with a maximum of $250,000 per program bank. This coverage includes deposits already held at the bank in the same ownership capacity.
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Security Measures:
- Robinhood emphasizes its commitment to security with a multi-faceted approach.
- Password Safety: User passwords are hashed using the BCrypt hashing algorithm, ensuring they are stored in a secure and scrambled format.
- Encryption: Sensitive information is encrypted before storage, and communication with servers uses Transport Layer Security (TLS) to keep data private.
- Two-Factor Authentication (2FA): 2FA adds an extra layer of security by requiring both a password and a second form of verification (like a one-time code) for account access or changes.
In summary, Robinhood employs a comprehensive strategy combining regulatory protections (SIPC), supplementary insurance, FDIC coverage for cash, and robust security measures to ensure the safety and integrity of users' financial assets. These measures collectively contribute to making Robinhood a secure platform for users to build their financial futures. If you have any further questions or need clarification, feel free to reach out to Robinhood Support with the provided reference number 3161808.
