The Robinhood mobile app for newcomers with no experience or capital was the optimal choice: it was simple, freeware, and with the help of proven SMM techniques, caused persistent habituation in the user.
Robinhood Brief Overview
Robinhood was positioned not as a broker but as an investment startup that gives access to an exchange. Through a simple application: everyone can invest without special knowledge – primarily under 30 years old (millennials), the average deposit of $1000-2500. And the possibility of investing from $1 and no commissions at all.
The business consists of Robinhood Financial LLC (stock and options trading) and Robinhood Crypto LLC.
Robinhood Financial LLC has licensed by FINRA and has SEC approvals: and participates in the SIPC investor protection program; The company declares maximum investor protection of up to $500,000, subject to a cash limit of $250,000. There is no precedent for such guarantee payments yet. The Federal Deposit Insurance Corporation (FDIC) has insured deposits ranging from $250,000 to $1.25 million. The broker does not have a bank guarantor. There is no protection against negative balance.
Robinhood Crypto LLC does not have a FINRA license and does not participate in the SIPC program, which means that crypto-asset transactions have no guarantees.
Headquartered in the U.S., it employs 1,281 people in 2021. The company declares that it has been working in the market as a CFD broker since 2013, but the actual activity is noticeable only since 2015.
After receiving a full-fledged license, Robinhood offers to trade stocks (and shares), ETF assets, options, and crypto. There are no forex assets. The official website www.robinhood.com was launched in 2017; before that, the Robinhood trading platform functioned only as a universal mobile application for transactions on NASDAQ and NYSE.
The portfolio of trading assets is practically limited to the USA stock market. It also offers European and Canadian stocks, but they will have to pay a full trading fee. Everybody can trade stock options and stock indexes. Cryptocurrency trading is only available in some USA states. Support response is slow; there is no online service, only e-mail, social media, or application.
There is no demo account, but you can test the platform for free after registration. The minimum balance is $0 (it is possible to receive borrowed funds, in broker’s terms – Buying Power).
Advertisements claim that Robinhood is so good – it doesn’t charge you for trading, withdrawals, and account maintenance at all. However, since 2016, the broker has consistently offered a Robinhood Gold premium account ($60-200 monthly fee), which allows you to place orders during off-exchange hours and access borrowed funds. They subject a fee for all transactions but don’t inform customers of this immediately.
Robinhood generates revenues from market makers’ fees or PFOF; it also uses Limited Ameritrade’s famous ThinkOrSwim, as well as E-Trade, Schwab, and others. Market makers create large orders, which exports to an interbank trading platform to recoup the broker’s costs. And when you as a customer buy a stock for $100, the application gets 2-3 cents in revenue.
As a result, the client receives a far from optimal price because Robinhood and its partners (Citadel Securities, Virtu Financial, G1X Execution, and others) share this “spread” between them. Robinhood received about 4-15 times more than similar competitors from this system.
Reasons to deactivate Robinhood account.
There is no ownership – neither of your keys nor the cryptocurrency. Buying cryptocurrency on Robinhood negates the whole purpose of cryptocurrency. When you buy BTC or DOGE on Robinhood, you don’t get these coins. What they are giving you is just a promissory note of the current value of the coins. You don’t own or control the coins you buy, which destroys the entire decentralized nature of cryptocurrency.
There are no cryptocurrency transfers to other exchange accounts. Robinhood makes it easy to sign up, transfer money and start trading cryptocurrencies. The company has zero transaction fees, and that’s all it is available. It is worth noting that Robinhood does not allow you to transfer coins to another exchange or your wallet.
With Robinhood, you don’t own or control the cryptocurrency. So if you want to transfer them, you need to sell your BTC, DOGE to Robinhood, transfer them to your bank account, and use Fiat elsewhere. This way, you will incur a financial loss.
Limit commerces. Robinhood doesn’t levy a transaction fee, so you can commerce cryptocurrencies all day long as long as they don’t block assets in your account or commerce in general. Robinhood can stop trading on at any time, especially during volatile times. In such cases, you will not be able to buy or sell coins.
When there is a massive collapse in the market due to any news or other events of the cryptocurrency world, you can incur huge losses even if you have an open stop-loss order.
Price Differences. There is often a price difference on Robinhood compared to other cryptocurrency exchanges. There is also a big gap between the sale price and the buy price, even for coins with high trading volume.
You will not be able to delete your account with impunity. This script is not interested in letting those who feed it go. It will cost you $75 to remove your user account. They will take that money from your account balance. If it’s not there, they will take it from the brokerage account.
What happens if you deactivate your Robinhood account?
Two scenarios are possible:
- You could see your history: bank and revenue records, transactions, and bank invoices. You could not make transactions. It is the case if you have locked the stance in Robinhood;
- You will lose access to your Robinhood account. It will not be possible for you to manage your commerce.
Prepare your account
The Robinhood account has escaped from the settings section. There you take to delete one. Instructions will appear on the screen. You have to make them all. Your score has to be $0.
Steps to delete Robinhood account
You have to delete your account after the preparation of it. If it does not work: write the e-mail. Next, you have to unlink your bank account from Robinhood. Click the unlink button in the linked accounts. Do you have a question about how to delete a Robinhood account forever? It’s impossible. Your data will remain on the application server after you have escaped your account.
A modern-day Robin Hood takes money from the poor, gives it to the rich, and gets paid for it by the rich.