Is Robinhood Safe to Use?
So, we've told you about what Robinhood is and how it works… but is Robinhood secure?
YES–Robinhood is absolutely safe. Your funds on Robinhood are protected up to $500,000 for securities and $250,000 for cash claims because they are a member of the SIPC. Furthermore, Robinhood is a securities brokerage and as such, securities brokerages are regulated by the Securities and Exchange Commission (SEC). Also, I was one of the first 100,000 to open a brokerage account with Robinhood in 2014. I put in a few $100 dollars and made some trades just to test it out. I wanted to make sure that the stocks were priced correctly and that my orders were executed properly. And yes, my trades were made properly and they were commission free!
