Is Robinhood Safe?
With all these bank runs, which financial institutions are safe? I have 340k (200k cash and 140k stocks) in Robinhood and 30k in BoFA. My questions is whether Robinhood is risky at the moment? TC: 250k
RH just holds your stocks and they use 6 major banks to hold your money. They don’t “invest” your stock portfolio in bonds like banks do with your cash. What exactly do you see as a risk here?
Hopefully
Not true. How do you think you get 4% on cash? They invest it in treasuries.
No risk
Your cash is insured, so long as it's actually deposits. The invested assets are not insured and wouldn't be insured anywhere else either. Don't let these clowns scare you.
Technically they’re sipc insured. Not federally backed so definitely not as dependable though
But doesn't the cash have to be in Robinhood spending account to be insured? Just plain buying power is brokerage cash which is not insured, correct?
Keep it within 250k. You never know
Yeah, I am having those thoughts. But, what is safe then?
Keep under FDIC limit, if it means splitting your $$ across multiple banks
SIPC insures up to $500k
I am worried would SIPC jump in and give the insured money of upto 500k like FDIC jumped in to save the account holders?
Your stock is owned by you. The only way for you to not get all your shares would be for there to be massive fraud at RH where they told you they executed your order but just pocketed the money. There’s nothing to worry about here
Isn't that possible if they're running CFDs and taking both sides of the order?
Money in RH should be 250k .. just diversify it with our brokerage firms ..
Does op also need to sign up for Robinhood spending account. Or Money deposited from bank as "buying power" is also insured by FDIC?
No it should fall under their cash sweep program
The app says any cash held in Robinhood spending account is FDIC insured upto $250k. Now what I am not sure is my buying power (uninvested money) is being held in their spending account which is FDIC insured or as brokerage cash which I did not find anywhere as insured. So yes, @op how do you know your $300k cash is just "buying power" or is it held in Robinhood spending account?
My 200k cash is in the cash sweep program and I regularly incur interests. In the app, it says the interest I am getting paid on the cash for the month
I mean your bigger worry is why are you OK letting 200k sit in cash when you could buy 4 week treasuries and make 8k a year on it.
I am making 8k a year with Robinhood gold
Bruh use a real brokerage that doesn’t sell order books like Fidelity. Robinhood is for those with fewer assets
Is Fidelity safe?
This is what mass hysteria looks like.