StartupsFeb 6, 2019
GoogleLovedoo

Robinhood Scam

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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Microsoft Tillicum Feb 6, 2019

No

Amazon zviI64 Feb 6, 2019

No

Synchrony Nebula99 Feb 6, 2019

It still says Cash Management coming soon in the app. Where did you get the information?

Google Lovedoo OP Feb 6, 2019

Update the app and cash management disappears

Apple Pneumonia. Feb 6, 2019

No

General Motors Kambucha Feb 6, 2019

So if Robinhood go under, all our investment is lost? No FDIC insured?

DigitalOcean clGE17 Feb 6, 2019

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.

Google statusz Feb 6, 2019

What's the difference between SIPC insurance of cash on a brokerage account vs FDIC of cash on checking? Besides the limit

Amazon Amznnn Feb 6, 2019

I just use Robinhood to buy dem weed stocks. Would never ever put my savings there.

LinkedIn pKin88 Feb 6, 2019

No. In fact I’m pulling money out of it. Only leave play money there.

Google Lovedoo OP Feb 6, 2019

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

Capital One RE5PECT Feb 6, 2019

Fyre was not SIPC insured

Google Lovedoo OP Feb 6, 2019

Sarcasm sir. Overpromising and underdelivering a myth.

Capital One Nxhv18 Feb 6, 2019

I think bcoz of regulations they r going to withdraw

Charles Schwab EGjV76 Feb 6, 2019

The fact they announced this feature without speaking to regulators first should tell you all you need to know.