Is Robinhood a SIPC/FDIC insured brokerage company? Does Robinhood offer insurance on customer accounts?

Is My Money Insured with Robinhood?

If you're wondering about the safety of your funds at Robinhood or whether they are protected by SIPC or FDIC insurance, this information will help clarify.





Robinhood, as an online brokerage, does not offer FDIC insurance for its standard brokerage accounts because FDIC insurance covers bank deposits and Robinhood is not a bank. This means any cash in your Robinhood account isn't protected by the FDIC.

However, cash in your Robinhood Spending account is eligible for FDIC insurance, covering up to a total of $250,000.

Is Robinhood SIPC Insured?

Robinhood is a member of the Securities Investor Protection Corporation (SIPC), which means your securities and cash are protected up to $500,000, including a $250,000 limit for cash, in case Robinhood faces financial troubles.

It's important to note that Robinhood also meets regulations set by the Financial Industry Regulatory Authority (FINRA), further ensuring its credibility as a safe brokerage.

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Are Cryptocurrencies Covered by Robinhood?

Please be aware that investments in cryptocurrencies through Robinhood Crypto are not covered by SIPC insurance.

Is Robinhood FDIC Insured?

Robinhood offers a Cash Management feature that moves uninvested cash to partner banks, making it eligible for FDIC insurance up to $1.25 million across several banks, each providing up to $250,000 in coverage. This setup means your cash in this program is protected, even though Robinhood itself isn't a bank.

Is Robinhood FDIC Insured Wrapping Up

In conclusion, your investments with Robinhood are well-protected, except for cryptocurrency investments. Securities and cash are safeguarded by SIPC, while money in the Cash Management program is covered by FDIC insurance.

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Robinhood Review

Robinhood has gained popularity as a commission-free trading platform appealing to younger investors. While it offers significant advantages like free trades and access to cryptocurrencies, whether it's the best broker for you might depend on your investment needs.

Learn more in Robinhood Review

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