This clause requires you to resolve any disputes with Robinhood through FINRA arbitration rather than through the court system, and you cannot join a class action lawsuit against Robinhood.
This analysis describes what Robinhood's agreement states, permits, or reserves. It does not constitute a legal determination about enforceability. Regulatory applicability and practical outcomes may vary by jurisdiction, enforcement context, and individual circumstances. Read our methodology
The provision requires individual arbitration for all disputes, waiving the right to a jury trial and class action participation, which limits the legal options available to customers regardless of the nature or amount of a dispute.
The updated terms establish new fiduciary verification and personal liability provisions for trust and custodial accounts. Trustees are now required to complete Robinhood's identity verification and onboarding before accessing trust accounts, notify Robinhood promptly of any material changes to the trust (amendments, revocation, trustee changes), and provide the correct taxpayer identification number for the trust. The revised language states that trustees are personally liable for obligations, debts, or negative equity arising from instructions given outside the scope of their authority under the trust instrument or applicable law. Robinhood reserves the right to freeze trust accounts or request updated documentation at any time, and will rely on instructions from any onboarded trustee without requiring consent from co-trustees or verifying compliance with the trust instrument. You should consult a tax advisor regarding the appropriate taxpayer identification number for your trust and review your fiduciary authority under the applicable trust instrument before executing trades.
View change record →Customers who open a Robinhood brokerage account are required to pursue any dispute through FINRA arbitration on an individual basis; the agreement states that class, consolidated, or representative actions are not permitted under this clause.
How other platforms handle this
the arbitration provider, National Arbitration and Mediation ("NAM"), shall not accept or administer any demand for arbitration and shall administratively close any arbitration unless the Party bringing such demand for arbitration can certify in writing that the terms...were fully satisfied.
Neither you nor we may elect arbitration of any claims seeking only individualized relief asserted by you or us in small claims court, so long as the action remains in that court and is not removed or appealed de novo...
in the event that there are 100 or more individual Requests of a similar nature filed against Chegg by or with the assistance of the same law firm...within a 30 day period...the AAA (1) will administer the arbitration demands in batches of 100 Requests per batch...
"You agree that all controversies that may arise between us concerning any subject matter, issue or circumstance whatsoever (including, but not limited to, controversies concerning any account, order or transaction, or the continuation, performance, interpretation or breach of this or any other agreement between us, whether entered into or arising before, on or after the date this account is opened) shall be determined by arbitration. Any arbitration under this agreement shall be conducted only on an individual basis and not in a class, consolidated or representative action.Excerpt from Robinhood's Customer Agreement (PDF)
REGULATORY LANDSCAPE: This provision implicates FINRA Rule 12200 governing customer arbitration, the Federal Arbitration Act, and state law that may affect the enforceability of class action waivers.
Enforcement risk, jurisdiction flags, contract triggers, and due diligence action items.
Coinbase's User Agreement includes a mandatory arbitration clause that most users may not have reviewed. Here is what the clause states and how the opt-out process works.
561 arbitration provisions across 197 platforms. ConductAtlas tracks how dispute resolution is being restructured across the internet.
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The provision requires individual arbitration for all disputes, waiving the right to a jury trial and class action participation, which limits the legal options available to customers regardless of the nature or amount of a dispute.
Customers who open a Robinhood brokerage account are required to pursue any dispute through FINRA arbitration on an individual basis; the agreement states that class, consolidated, or representative actions are not permitted under this clause.
ConductAtlas has identified this type of provision across 206 platforms. See the full comparison.
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