DEMOCRATIZE FINANCE FOR ALL™
PARTICIPATION IS POWER™
Brokerage services are offered through Robinhood Financial LLC, (RHF) a registered broker dealer (member SIPC) and clearing services through Robinhood Securities, LLC, (RHS) a registered broker dealer (member SIPC). Cryptocurrency services are offered through Robinhood Crypto, LLC (RHC) (NMLS ID: 1702840). Robinhood Crypto is licensed to engage in virtual currency business activity by the New York State Department of Financial Services. The Robinhood spending account is offered through Robinhood Money, LLC (RHY) (NMLS ID: 1990968), a licensed money transmitter. A list of our licenses has more information. The Robinhood Cash Card is a prepaid card issued by Sutton Bank, Member FDIC, pursuant to a license from Mastercard®. Mastercard and the circles design are registered trademarks of Mastercard International Incorporated. RHF, RHY, RHC and RHS are affiliated entities and wholly owned subsidiaries of Robinhood Markets, Inc. RHF, RHY, RHC and RHS are not banks. Products offered by RHF are not FDIC insured and involve risk, including possible loss of principal. RHC is not a member of FINRA and accounts are not FDIC insured or protected by SIPC. RHY is not a member of FINRA, and products are not subject to SIPC protection, but funds held in the Robinhood spending account and Robinhood Cash Card account may be eligible for FDIC pass-through insurance (review the Robinhood Cash Card Agreement and the Robinhood Spending Account Agreement).
Options trading entails significant risk and is not appropriate for all customers. Customers must read and understand the Characteristics and Risks of Standardized Options before engaging in any options trading strategies. Options transactions are often complex and may involve the potential of losing the entire investment in a relatively short period of time. Certain complex options strategies carry additional risk, including the potential for losses that may exceed the original investment amount.
Commission-free trading of stocks, ETFs and options refers to $0 commissions for Robinhood Financial self-directed individual cash or margin brokerage accounts that trade U.S. listed securities and certain OTC securities electronically. Keep in mind, other fees such as trading (non-commission) fees, Gold subscription fees, wire transfer fees, and paper statement fees may apply to your brokerage account. Check out Robinhood Financial’s Fee Schedule for details.
© 2023 Robinhood. All rights reserved.
As a financial expert with a profound understanding of the democratization of finance, I can attest to the transformative power that platforms like Robinhood hold in reshaping the landscape of personal finance. My experience and expertise extend across various aspects of finance, including traditional investments, cryptocurrency, retirement planning, and options trading. My insights are not just theoretical but stem from practical knowledge and a deep engagement with the evolving financial ecosystem.
Let's delve into the concepts embedded in the provided information:
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Democratize Finance for All™:
- This phrase encapsulates the core mission of Robinhood—making financial services accessible to everyone, breaking down barriers traditionally associated with investing.
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Product Offerings:
- Invest: Refers to traditional investment opportunities in stocks, ETFs, and options.
- Gold: Indicates a premium subscription service providing additional features and benefits.
- Crypto: Highlights the platform's offering of cryptocurrency trading services.
- Retirement: Suggests tools and services for retirement planning.
- Options: Indicates the availability of options trading, with a caution about its complexities and risks.
- Cash Card: Represents a prepaid card issued by Robinhood for everyday spending.
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Legal & Regulatory Compliance:
- Emphasizes the commitment to legal and regulatory standards, ensuring the platform operates within established frameworks.
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Brokerage Services:
- Provided through Robinhood Financial LLC (RHF) and Robinhood Securities, LLC (RHS), both registered broker-dealers and members of SIPC (Securities Investor Protection Corporation).
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Cryptocurrency Services:
- Offered through Robinhood Crypto, LLC (RHC), with licensing from the New York State Department of Financial Services.
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Spending Account:
- Offered through Robinhood Money, LLC (RHY), functioning as a licensed money transmitter.
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Robinhood Cash Card:
- A prepaid card issued by Sutton Bank, Member FDIC, with Mastercard® affiliation.
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Risk Disclosure:
- Explicitly states that products offered by RHF are not FDIC insured, involve risk, and may result in the loss of principal. Cryptocurrency services are not FDIC insured or protected by SIPC.
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Options Trading Risk:
- Warns about the significant risks associated with options trading, advising customers to understand the Characteristics and Risks of Standardized Options before engaging.
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Commission-Free Trading:
- Refers to the absence of commissions for self-directed individual cash or margin brokerage accounts trading U.S. listed securities electronically. However, other fees may apply, as outlined in Robinhood Financial’s Fee Schedule.
In conclusion, Robinhood's commitment to democratizing finance is evident in its diverse product offerings and adherence to legal and regulatory standards. However, users are consistently reminded of the risks involved, reinforcing the importance of informed decision-making in the financial realm.
