Robinhood Margin Account Rules

This is Robinhood's Margin Account Agreement, which governs the terms under which customers can borrow funds and trade on margin through Robinhood Financial and Robinhood Securities. The agreement grants Robinhood a security interest over all customer securities across all accounts and authorizes Robinhood to liquidate positions, cancel orders, or close accounts without advance notice when it determines margin is insufficient. Additionally, the agreement discloses that customer margin securities may be pledged or lent to third parties, and that short positions incur a daily Stock Borrow Fee calculated at Robinhood's discretion based on market borrow rates.

This document is the Robinhood Customer Margin Account Agreement governing the terms under which Robinhood Securities, LLC and Robinhood Financial LLC extend margin credit and maintain margin accounts for customers, operating under California law and incorporating the broader RHF/RHS Customer Account Agreement by reference. The agreement states that Robinhood holds a first and prior lien and security interest over all customer securities and property across all accounts, authorizes liquidation of customer positions without prior notice or demand in Robinhood's sole discretion, and permits hypothecation, pledging, and re-hypothecation of customer margin securities to third parties without notification. Section 7 discloses that loaned securities positions generate substitute dividend payments taxed differently than qualified dividends, and Section 10 establishes a daily Stock Borrow Fee calculated on the largest short position held open each day multiplied by end-of-day market price and a quoted borrow rate divided by 360, subject to daily change at Robinhood's discretion. The agreement's no-notice liquidation authority, combined with a broad security interest covering all customer accounts including jointly held accounts, is operationally distinct from some retail brokerage agreements that provide advance margin call notice, though FINRA rules and Regulation T impose regulatory floors that may constrain how broadly these discretionary liquidation rights apply in practice. This document engages FINRA margin rules, Regulation T under the Securities Exchange Act, SEC broker-dealer regulations, and California contract law; compliance teams should evaluate whether the agreement's discretionary liquidation and no-notice provisions align with applicable FINRA Rule 4210 obligations and whether the hypothecation disclosures satisfy SEC Rule 15c3-3 customer protection requirements.

The agreement establishes a first and prior lien and security interest over all securities and property held across any Robinhood account the customer holds, individually or jointly, and authorizes Robinhood to liquidate positions, cancel orders, or close accounts without advance notice in Robinhood's sole discretion. Under these terms, customers are liable for any deficiency remaining after liquidation, as well as attorneys' fees and collection costs incurred by Robinhood in recovering unpaid balances. You can review the Margin Disclosure Statement incorporated by reference into this agreement, which governs interest charges on debit balances, and you can designate sell orders as short sales at the time of order entry to ensure accurate classification and fee calculation.