Robinhood Securities receives payment for order flow from market centers to which it routes customer stock and options orders, and shares that revenue with Robinhood Financial, disclosed pursuant to SEC Rule 607.
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 discloses the payment for order flow arrangement through which Robinhood Securities receives compensation from market centers for routing customer orders, which is a material disclosure under SEC Rule 607 and relevant to understanding Robinhood's order routing incentive structure.
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, the agreement discloses that Robinhood Securities receives payment for order flow from market centers and shares that revenue with Robinhood Financial when routing customer stock and options orders. Customers may request information on the nature and source of payments received in connection with specific transactions by making a written request.
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"SEC Rule 607 requires registered broker-dealers to disclose their policies regarding the receipt of "payment for order flow" in connection with the routing of certain customer orders. "Payment for order flow" includes, among other things, any monetary payment, service, property, or other benefit that results in remuneration, compensation, or consideration to a broker-dealer from any broker-dealer or exchange in return for routing orders. Robinhood Financial routes customer orders in stock and option securities to Robinhood Securities, which routes orders in options and whole-share orders in stocks to market centers, including other broker-dealers and/or one or more national securities exchanges. Robinhood Securities receives payment for order flow from those market centers and shares revenue with Robinhood Financial.Excerpt from Robinhood's Customer Agreement (PDF)
REGULATORY LANDSCAPE: Payment for order flow is regulated under SEC Rule 607, which requires disclosure of order routing practices and payment for order flow policies.
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This provision discloses the payment for order flow arrangement through which Robinhood Securities receives compensation from market centers for routing customer orders, which is a material disclosure under SEC Rule 607 and relevant to understanding Robinhood's order routing incentive structure.
Under this clause, the agreement discloses that Robinhood Securities receives payment for order flow from market centers and shares that revenue with Robinhood Financial when routing customer stock and options orders. Customers may request information on the nature and source of payments received in connection with specific transactions by making a written request.
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