Is Robinhood a SIPC/FDIC insured brokerage company? Does Robinhood offer insurance on customer
accounts?
Is My Money Protected with Robinhood?
If you’ve ever wondered about the safety of your money with Robinhood or whether it is covered by SIPC or FDIC, you’ve come to the right place. Continue reading to learn more about the protection available at Robinhood.
As an online brokerage, Robinhood itself is not an FDIC-insured bank. However, that does not automatically mean all cash in a regular Robinhood brokerage account is outside FDIC coverage. Eligible uninvested cash can be swept to partner banks, where it may qualify for FDIC insurance, while securities and eligible unswept brokerage cash can fall under SIPC protection within applicable limits.
However, cash held in your
Robinhood Banking
can be eligible for FDIC insurance through partner-bank arrangements, with coverage reaching
up to a total maximum of $2.5 million under current program terms.
Is Robinhood SIPC Insured?
Robinhood Financial is a member of the Securities Investor Protection Corporation (SIPC). That means eligible securities and cash in a brokerage account can be protected up to
$500,000, including a maximum of
$250,000 for cash claims, if a SIPC-member brokerage firm fails and customer assets are missing. This protection does not cover market losses, but it does provide an important layer of protection tied to brokerage insolvency.
It’s also important to note that Robinhood Financial is a member of the Financial Industry Regulatory Authority (FINRA), with an SEC# of
8-69188. In June 2021, FINRA ordered Robinhood Financial to pay a record financial penalty tied to supervisory failures and customer harm. Even so, SIPC coverage at Robinhood works the same basic way it does at other major brokerage firms.
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Are Cryptocurrencies Covered by Robinhood?
Please note that investments in cryptocurrencies through Robinhood Crypto are
not protected by SIPC.
Is Robinhood FDIC Insured?
Robinhood now offers a brokerage cash sweep setup and related cash features for eligible customers. Although Robinhood is not a bank, it can move eligible uninvested cash to partner banks. Once funds are swept there, they can become eligible for FDIC insurance, subject to program limits and the customer’s deposits at those same banks outside Robinhood. Under current brokerage cash-sweep materials, total FDIC coverage can reach
up to $2.5 million across partner banks. Robinhood Gold customers currently can also earn
3.35% APY on eligible brokerage cash.
Is Robinhood FDIC Insured Wrapping Up
In summary, your money has multiple layers of protection at Robinhood,
except when it comes to cryptocurrency
investments. When your funds are in the form of securities or eligible unswept brokerage cash, they can qualify for SIPC protection. Once eligible cash is swept to partner banks, it can fall under FDIC coverage instead.
Robinhood Promotion
Robinhood Review
Robinhood has become extremely popular in recent years as a commission-free stock trading and investing
app. Its appeal lies in its free trades, focus on meme stocks and cryptocurrencies, and its target
audience of younger investors.
But does that mean it’s a good broker choice? Maybe.
Learn more in
Robinhood Review
Updated on 4/13/2026.
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