If your margin account falls below required levels, Robinhood can sell your investments immediately without warning you first.
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 authorizes Robinhood to liquidate all securities in a customer's account without prior notice or demand, which means customers using margin may lose positions at unfavorable prices without any opportunity to deposit additional funds or manage the liquidation.
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 →Margin account customers face the risk that Robinhood may sell securities in their account, including securities beyond those needed to cover a deficiency, without prior notice; the agreement explicitly states that customers have no right to an extension of time on a margin call.
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"In the event that your account does not meet a margin call or if we determine it to be necessary for our protection, we may sell any or all securities or other assets in your account(s) without contacting you first. You are not entitled to an extension of time on a margin call, and we may take such action without prior demand or notice.Excerpt from Robinhood's Customer Agreement (PDF)
REGULATORY LANDSCAPE: This provision engages FINRA margin rules, SEC Regulation T governing margin credit extended by brokers, and the FINRA Rule 4210 series governing maintenance margin requirements.
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This provision authorizes Robinhood to liquidate all securities in a customer's account without prior notice or demand, which means customers using margin may lose positions at unfavorable prices without any opportunity to deposit additional funds or manage the liquidation.
Margin account customers face the risk that Robinhood may sell securities in their account, including securities beyond those needed to cover a deficiency, without prior notice; the agreement explicitly states that customers have no right to an extension of time on a margin call.
ConductAtlas has identified this type of provision across 287 platforms. See the full comparison.
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