Robinhood · Robinhood Customer Agreement

Unilateral Trading Restriction

High severity
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Why it matters (compliance & risk perspective)

This clause was the center of massive controversy in January 2021 when Robinhood restricted trading in GameStop (GME) and other meme stocks, causing customers to suffer significant losses when they could not sell their positions.

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

Redfin Medium

You hereby assign to the applicable Redfin Company all of your right, title, and interest in and to the Feedback. To the extent applicable law does not permit assignment of the Feedback, you hereby grant the Redfin Companies a perpetual, irrevocable, worldwide, exclusive, transferable, sublicensable...

Netflix Medium

We may assign or transfer our agreement with you including our associated rights and obligations at any time and you agree to cooperate with us in connection with such an assignment or transfer.

Microsoft Copilot Medium

Additionally, there may be times when we need to remove or change features or functionality of the Service or stop providing a Service or access to Third-Party Apps and Services altogether. Except to the extent required by applicable law, we have no obligation to provide a re-download or replacement...

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View original clause language
Robinhood reserves the right to restrict or limit trading in any security at its sole discretion, including during periods of market volatility or operational necessity, without prior notice to customers.

Applicable regulations

DMA
European Union
DSA
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-002200
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-002200
Captured: 2026-03-06 20:25:05 UTC | SHA-256: 42fdece1ce06bb12…
URL: https://conductatlas.com/platform/robinhood/robinhood-customer-agreement/unilateral-trading-restriction/
Accessed: May 4, 2026
Classification
Severity
High
Categories

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Frequently Asked Questions

What does Robinhood's Unilateral Trading Restriction clause do?

This clause was the center of massive controversy in January 2021 when Robinhood restricted trading in GameStop (GME) and other meme stocks, causing customers to suffer significant losses when they could not sell their positions.

Is ConductAtlas affiliated with Robinhood?

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