This is Robinhood's brokerage customer agreement governing your investment account, including how your trades are executed, your rights around margin borrowing, and how disputes are handled. Most importantly, by opening an account you agree to resolve all disputes through mandatory FINRA arbitration and waive your right to sue Robinhood in court or join a class action lawsuit. You should read the margin and options risk disclosures carefully before enabling those features, as Robinhood can liquidate your positions without contacting you first if your account falls below required minimums.
Technical Summary
This document is the Robinhood Financial LLC (RHF) and Robinhood Securities LLC (RHS) Customer Agreement, governing the opening and operation of brokerage accounts, including margin accounts, options trading, and cash management services, with legal basis in FINRA and SEC broker-dealer regulations. The agreement creates significant obligations including mandatory pre-dispute arbitration administered by FINRA, a class action waiver, consent to securities lending of customer assets, and broad authorization for Robinhood to liquidate positions without prior notice. Notable provisions include a unilateral right for Robinhood to amend terms with limited notice, authorization to use customer fully paid securities in stock lending programs generating revenue not shared with customers, and a shortened contractual limitations period. The agreement engages SEC Regulation Best Interest (Reg BI), FINRA Rules 2268 and 4210 (margin requirements), SIPC coverage provisions, Regulation T, and applicable state securities laws; California residents and other state residents may have specific additional rights. Compliance considerations include the mandatory arbitration clause's consistency with FINRA Rule 12200, margin account risk disclosures required under FINRA Rule 2264, and the options agreement disclosures required under FINRA Rules 2360 and 2111.
Institutional Analysis
REGULATORY EXPOSURE: This agreement directly engages SEC Regulation Best Interest (17 CFR § 240.15l-1), FINRA Rules 2268 (arbitration disclosures), 4210 (margin requirements), 2360 (options), and 211…
REGULATORY EXPOSURE: This agreement directly engages SEC Regulation Best Interest (17 CFR § 240.15l-1), FINRA Rules 2268 (arbitration disclosures), 4210 (margin requirements), 2360 (options), and 2111 (suitability), as well as Regulation T (12 CFR § 220), SIPC coverage under 15 U.S.C. § 78aaa et se…
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By opening a Robinhood account, you agree that any dispute with Robinhood must be resolved through FINRA arbitration rather than in a court of law. This means you cannot take Robinhood to court over investment losses, account errors, or other grievances.
You agree to waive your right to participate in any class action lawsuit or class arbitration against Robinhood. All claims must be brought individually, not as part of a group.
If your margin account falls below required maintenance levels, Robinhood can immediately sell your securities or other assets without calling you first or giving you time to deposit more funds. They are not obligated to notify you before liquidating your positions.
By agreeing to this contract, you authorize Robinhood to lend out securities you own — including shares you have fully paid for — to third parties such as short sellers. Robinhood may earn revenue from this lending activity, and that revenue is not shared with you.
If you are approved for options trading, this agreement governs your options activity and requires you to acknowledge significant risks, including the possibility of losing your entire investment and owing additional funds beyond your initial deposit.
If you use Robinhood's margin feature (Robinhood Gold), you borrow money to invest and are charged interest on the borrowed amount. Interest accrues daily and you remain liable for the full borrowed amount regardless of how your investments perform.
Robinhood can change the terms of this agreement at any time, typically by posting updated terms on their website or notifying you by email. Continued use of your account after notice constitutes acceptance of the new terms.
Your Robinhood account is covered by SIPC insurance up to $500,000 (including up to $250,000 for cash claims) in the event Robinhood fails financially. SIPC coverage does not protect against investment losses or market declines.
Robinhood can close your account or restrict your trading at their discretion. When your account is closed, you have the right to transfer your securities to another brokerage (ACATS transfer), though Robinhood may charge a fee for outgoing transfers.