Robinhood · Robinhood Margin Account Rules · View original document ↗

Cash Sweep Program FDIC Pass-Through Insurance

High severity Unique · 0 of 343 platforms
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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

ConductAtlas Analysis

Why it matters (compliance & governance perspective)

The cash sweep mechanism operationalizes deposit insurance protection for account cash holdings by routing funds through FDIC-insured channels rather than holding uninvested cash at the broker. This structure determines the regulatory protections and institutional arrangements governing cash management within margin accounts.

Consumer impact (what this means for users)

Users' uninvested cash balances receive FDIC pass-through insurance coverage through automated deposit placement at partner banks, subject to standard FDIC limits per institution. The sweep occurs without affirmative user action and establishes the default custodial arrangement for cash held in the account.

How other platforms handle this

ConvertKit Medium

To the maximum extent permitted by applicable law, Kit shall not be liable for any indirect, incidental, special, consequential or punitive damages, or any loss of profits or revenues, whether incurred directly or indirectly, or any loss of data, use, goodwill, or other intangible losses, resulting ...

Windsurf Medium

We have implemented appropriate technical and organizational security measures designed to protect the security of any Personal Information we process. However, despite our safeguards and efforts to secure your information, no electronic transmission over the Internet or information storage technolo...

Grammarly Medium

THE SERVICES ARE PROVIDED 'AS IS' AND 'AS AVAILABLE' WITHOUT WARRANTIES OF ANY KIND, EITHER EXPRESS OR IMPLIED, INCLUDING, BUT NOT LIMITED TO, IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, TITLE, AND NON-INFRINGEMENT. GRAMMARLY DOES NOT WARRANT THAT THE SERVICES WILL BE UN...

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Applicable regulations

FTC Act Section 5
United States Federal

Provision details

Document information
Document
Robinhood Margin Account Rules
Entity
Robinhood
Document last updated
May 5, 2026
Tracking information
First tracked
March 15, 2026
Last verified
May 12, 2026
Record ID
CA-P-000450
Document ID
CA-D-00052
Evidence Provenance
Source URL
Wayback Machine
Content hash (SHA-256)
71437511b2ed24920093d597ba4748833f9cd349af943fefda81a8347e5b73c1
Analysis generated
March 15, 2026 10:58 UTC
Methodology
Evidence
✓ Snapshot stored   ✓ Hash verified
Citation Record
Entity: Robinhood
Document: Robinhood Margin Account Rules
Record ID: CA-P-000450
Captured: 2026-03-15 10:58:05 UTC
SHA-256: 71437511b2ed2492…
URL: https://conductatlas.com/platform/robinhood/robinhood-margin-account-rules/cash-sweep-program-fdic-pass-through-insurance/
Accessed: June 10, 2026
Permanent archival reference. Stable identifier suitable for legal filings, compliance documentation, and research citation.
Classification
Severity
High
Categories

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Frequently Asked Questions

What does Robinhood's Cash Sweep Program FDIC Pass-Through Insurance clause do?

The cash sweep mechanism operationalizes deposit insurance protection for account cash holdings by routing funds through FDIC-insured channels rather than holding uninvested cash at the broker. This structure determines the regulatory protections and institutional arrangements governing cash management within margin accounts.

How does this clause affect you?

Users' uninvested cash balances receive FDIC pass-through insurance coverage through automated deposit placement at partner banks, subject to standard FDIC limits per institution. The sweep occurs without affirmative user action and establishes the default custodial arrangement for cash held in the account.

Is ConductAtlas affiliated with Robinhood?

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