How you're protected
We keep your Robinhood account safe in a number of different ways.
Robinhood Financial LLC and Robinhood Securities, LLC are both members of SIPC, which protects securities for customers of its members up to $500,000 (including $250,000 for claims for cash) for each investing account, including IRAs. Explanatory brochure available upon request or at www.sipc.org.
We’ve purchased an additional insurance policy for Robinhood Markets, Inc., Robinhood Financial LLC, and Robinhood Securities, LLC to supplement SIPC protection. The additional insurance becomes available to customers in the event that SIPC limits are exhausted. This additional insurance policy provides protection for securities and cash up to an aggregate of $1 billion, and is limited to a combined return per customer of $50 million in securities, including $1.9 million in uninvested cash. Similar to SIPC protection, this additional insurance doesn’t protect against a loss in the market value of securities.
Brokerage customers who opt in to the Brokerage cash sweep program have their eligible uninvested cash automatically (unrestricted cash intended for investing that hasn't yet been invested or spent) deposited at these banks where it becomes eligible for FDIC insurance up to a total maximum of $2.5 million. That’s up to $250,000 per program bank for each individual investing account and $500,000 for a joint investing account, inclusive of deposits already held at the bank in the same ownership capacity, subject to FDIC insurance coverage limits and any capacity limitations at the banks. While the FDIC insurance coverage limit at each bank is $250,000, $2,000 is reserved for accrued interest. If you opt out of one or more of the program banks, your FDIC insurance coverage may be reduced. Robinhood is not an FDIC-insured bank. Deposit insurance covers the failure of an insured bank. Products other than the cash sweep program are not insured by the FDIC, are not deposits, and may lose value. Certain conditions must be satisfied for pass-through FDIC deposit insurance coverage to apply.
The cash in your Robinhood spending account that’s held at or transferred to JP Morgan Chase Bank, N.A., which is an FDIC-insured institution. While there, your cash is insured up to $250,000 by the FDIC.
Robinhood’s security team uses a number of industry-standard measures to protect your account and ensure your experience with us is safe and secure. We understand that you place a lot of trust in our services, and we're constantly working to ensure Robinhood is one of the safest places for you to build your financial future.
When we store your account passwords, we hash them using the industry-standard BCrypt hashing algorithm and never store them in plaintext—which means they're stored in a scrambled format that makes them difficult and time-intensive for attackers to crack.
Sensitive information, such as your Social Security number, are encrypted before they’re stored. In addition, our app and website securely communicate with our servers using the Transport Layer Security (TLS) protocol with up-to-date configurations and ciphers. TLS helps ensure that anything you send to our servers remains private—including your personal and account information such as your password, bank account, and more.
Once we verify your banking credentials, we’ll never access them again. We use trusted third-party integrations to access information about your bank account, such as your account number and available balance. Check out Verifying it's you for more information.