Startups

Robinhood Scam

Google / MgmtLovedoo
Feb 6

Robinhood quietly withdraws ‘Cash Management’, the renamed 3% checking account that they released with so much fanfare. Can you trust the company after pulling a stunt like that? Apparently they didn’t have insurance and lied about having it. Thoughts? Can this company still be trusted to keep your investments safe?

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  • General Motors / Eng
    Kambucha

    General MotorsEng

    PRE
    Boeing, Lockheed Martin, General Motors
    BIO
    Full stack developer with 6+ years of experience. I enjoy problem-solving, learning, and knowledge sharing.
    Kambuchamore
    So if Robinhood go under, all our investment is lost? No FDIC insured?
    Feb 63
    • DigitalOcean clGE17
      Robinhood is SIPC insured which protects your brokerage account and the funds / value in it. They claimed they were going to offer a checking and savings account and declared that SIPC would protect it as well. The CEO of SIPC immediately said no fucking way, we only insure brokerage accounts and Robinhood said 'oops jk we're gonna do some more research'.

      Whole thing was concerning because it was a very stupid mistake to make and they did a whole PR blitz around it.
      Feb 6
    • Google / Engstatusz
      What's the difference between SIPC insurance of cash on a brokerage account vs FDIC of cash on checking? Besides the limit
      Feb 6
    • 👆🏼lol yeah! And they even rolled out refer-your-friend and what not. Wonder how can such a colossal-level fuckup happen!
      Feb 6
  • Google / MgmtLovedoo
    OP
    Considering it’s a bunch of kids who do not even bother to consult a good SEC lawyer, I would only put money that I am ok losing. They might wake up one day and say oops sorry, fyre festival
    Feb 62
    • Capital One RE5PECT
      Fyre was not SIPC insured
      Feb 6
    • Google / MgmtLovedoo
      OP
      Sarcasm sir. Overpromising and underdelivering a myth.
      Feb 6
  • Synchrony Nebula99
    It still says Cash Management coming soon in the app. Where did you get the information?
    Feb 62
  • Capital One XBom05
    The cash in your brokerage account would be the only part of your Robinhood account that might be at risk if the company fails. It is those cash funds that are SIPC insured. Your stocks are safe no matter what. SIPC is a pretty good safety net as it is a pooled insurance policy that all brokers pay into.
    Feb 60
  • Charles Schwab EGjV76
    The fact they announced this feature without speaking to regulators first should tell you all you need to know.
    Feb 60
  • Amazon / ProductAmznnn
    I just use Robinhood to buy dem weed stocks. Would never ever put my savings there.
    Feb 60
  • Apple Pneumonia.
    No
    Feb 60
  • Amazon zviI64
    No
    Feb 60
  • Microsoft / EngTillicum
    No
    Feb 60
  • OpenTable Meliodas
    Didn’t trust them before. Finance is a heavily regulated industry, there are no surprises, just incompetence.
    Feb 60
  • Capital One Nxhv18
    I think bcoz of regulations they r going to withdraw
    Feb 60
  • LinkedIn
    pKin88

    LinkedIn

    PRE
    Goldman Sachs
    pKin88more
    No. In fact I’m pulling money out of it. Only leave play money there.
    Feb 60

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