The agreement contains a predispute arbitration clause in Section 39, acknowledged at the point of account application, requiring disputes to be resolved through arbitration rather than court litigation.
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
This provision requires customers to acknowledge the existence of a predispute arbitration clause at the time of account opening, which under applicable FINRA and SEC frameworks governs the forum and procedure for resolving disputes arising from brokerage services.
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 →Under this clause, disputes with Robinhood are directed to arbitration as the contractually specified resolution forum. The agreement expressly states that customers acknowledge the arbitration clause at the point of application submission.
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Compare across platforms →"YOU ALSO UNDERSTAND THAT BY CLICKING OR TAPPING "SUBMIT APPLICATION" YOU HAVE ACKNOWLEDGED THAT THIS AGREEMENT CONTAINS A PREDISPUTE ARBITRATION CLAUSE IN SECTION 39 HEREIN.Excerpt from Robinhood's Customer Agreement (PDF)
REGULATORY LANDSCAPE: Predispute arbitration clauses in broker-dealer customer agreements are governed by FINRA Rule 12200, which requires arbitration of disputes between customers and member firms.
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This provision requires customers to acknowledge the existence of a predispute arbitration clause at the time of account opening, which under applicable FINRA and SEC frameworks governs the forum and procedure for resolving disputes arising from brokerage services.
Under this clause, disputes with Robinhood are directed to arbitration as the contractually specified resolution forum. The agreement expressly states that customers acknowledge the arbitration clause at the point of application submission.
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