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Is this how it works?? consumer securities purchases protected by sipc robinhood bank checking format: deposit: money -> account -> robinhood backend securit
by peteradio 8y ago
Is this how it works??
consumer securities purchases protected by sipc
robinhood bank checking format:
deposit: money -> account -> robinhood backend securities purchased
withdrawal: robinhood backend securities sold -> account -> money
Is this the argument made by robinhood? Perhaps if that is laid out clearly in contract, i.e. robinhood is granted agent status to purchase and sale securities on behalf of consumer
- alehul 8y agoReceiving agent status to purchase and sell securities on behalf of the consumer would mean the consumer is consenting to possible losses from the performance of those securities.
- smileysteve 8y agoAs is the case with any money market account...
- alehul 8y agoYes, point being that's not really the bank account Robinhood is trying to offer.