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Robinhood Financial, LLC, is a wholly-owned subsidiary of Robinhood Markets, Inc. The US-based company provides brokerage and related financial services.

Robinhood Financial
Basic information
Founded 2012
Type Subsidiary
Industry Financial Services
Official website http://robinhood.com/

Public sphere

January 2021 restrictions on customer trading

On January 28, 2021, Robinhood systems restricted customer trading in certain securities for companies with heightened stock volatility,[1] including GameStop,[2] AMC Entertainment, and Bed Bath and Beyond. CNBC reported that the brokerage firm Interactive Brokers (IB) also imposed trading restrictions on the same day.[3] Additionally, CNBC noted that other brokerages, such as TD Ameritrade and Charles Schwab, had increased margin requirements the day before—a move described as less 'drastic' compared to outright trading halts.[4]

Customers should be aware that brokerages, including Robinhood, may take similar actions in the future. This poses a risk of economic harm, as investors could be artificially prevented from entering or executing trades during critical market movements.

References