Robinhood · Robinhood Customer Agreement

Securities Lending Authorization

High severity
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Why it matters (compliance & risk perspective)

When your securities are lent out, you may lose certain shareholder rights (such as voting rights) and any dividends received during the lending period may be treated differently for tax purposes, potentially increasing your tax liability.

Consumer impact (what this means for users)

This agreement materially affects consumers by granting Robinhood broad authority to liquidate account holdings without prior notice in margin situations, requiring binding arbitration for all disputes while waiving the right to participate in class action lawsuits, and disclosing that Robinhood receives payment for order flow which may create conflicts with best execution obligations. Consumers who open margin accounts should understand that all securities in the account serve as collateral and can be sold at Robinhood's discretion. You can opt out of the arbitration clause by sending written notice to Robinhood within 30 days of opening your account.

How other platforms handle this

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Microsoft Medium

If you sign up for a subscription, we will automatically renew your subscription at the end of each subscription period and charge you the applicable subscription fee unless you cancel before the renewal date. You authorize us to store your payment method and automatically charge it at the start of ...

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View original clause language
You authorize Robinhood to lend, either to itself or to others, any securities held in your account. Such loans may be made without notice to you and you will not receive compensation for securities lent.

Applicable regulations

DMA
European Union

Provision details

Document information
Document
Robinhood Customer Agreement
Entity
Robinhood
Document last updated
April 29, 2026
Tracking information
First tracked
March 6, 2026
Last verified
April 27, 2026
Record ID
CA-P-002198
Document ID
CA-D-00050
Evidence Provenance
Source URL
Wayback Machine
SHA-256
42fdece1ce06bb1213691f7474d4463025e28fcf4db4d7ada943d32d7009952a
Verified
✓ Snapshot stored   ✓ Change verified
How to Cite
ConductAtlas Policy Archive
Entity: Robinhood | Document: Robinhood Customer Agreement | Record: CA-P-002198
Captured: 2026-03-06 20:25:05 UTC | SHA-256: 42fdece1ce06bb12…
URL: https://conductatlas.com/platform/robinhood/robinhood-customer-agreement/securities-lending-authorization/
Accessed: May 4, 2026
Classification
Severity
High
Categories

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Frequently Asked Questions

What does Robinhood's Securities Lending Authorization clause do?

When your securities are lent out, you may lose certain shareholder rights (such as voting rights) and any dividends received during the lending period may be treated differently for tax purposes, potentially increasing your tax liability.

Is ConductAtlas affiliated with Robinhood?

No. ConductAtlas is an independent monitoring service. We are not affiliated with, endorsed by, or sponsored by Robinhood.