The agreement states that Robinhood may sell securities, close transactions, and liquidate account positions without prior notice or demand, including whenever the equity level in the account falls below required minimums, ACH transfers are reversed, or the account is closed. Robinhood selects which securities to liquidate and determines the timing and method of sale.
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 customer securities positions without advance notice in a range of circumstances including margin deficiency, ACH reversal, bankruptcy petition, account closure, or customer death. Robinhood also retains discretion over which securities are sold and the timing and method of liquidation, and the agreement states customers may not hold Robinhood liable for liquidation choices.
Under this clause, Robinhood may sell any or all securities in a customer's account without prior notice in circumstances including margin calls, ACH reversals, account closure, and customer incapacity. The agreement states that customers may not hold Robinhood liable for the selection, timing, or method of liquidation.
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Compare across platforms →"You understand and agree that Robinhood reserves the right to take any such action without prior notice or demand for additional collateral, and free of any right of redemption, and that any prior demand, call or notice will not be considered a waiver of our right to sell or buy without demand, call or notice.Excerpt from Robinhood's Customer Agreement (PDF)
(1) REGULATORY LANDSCAPE: Margin account liquidation rights are governed by Regulation T, FINRA Rule 4210, and applicable exchange margin rules.
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This provision authorizes Robinhood to liquidate customer securities positions without advance notice in a range of circumstances including margin deficiency, ACH reversal, bankruptcy petition, account closure, or customer death. Robinhood also retains discretion over which securities are sold and the timing and method of liquidation, and the agreement states customers may not hold Robinhood liable for liquidation choices.
Under this clause, Robinhood may sell any or all securities in a customer's account without prior notice in circumstances including margin calls, ACH reversals, account closure, and customer incapacity. The agreement states that customers may not hold Robinhood liable for the selection, timing, or method of liquidation.
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