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This should explain it. https://www.investopedia.com/articles/investing/050515/what-happens-when-stock-broker-goes-bust.asp https://www.investopedia.com/articl

• AznHisoka 7y ago
  OK, that's sensible. So I guess there's really no need to do anything dramatic if you're a Robinhood customer, if you don't have over $500K in cash/securities.
  • brisance 7y ago
    Robin Hood customers absolutely should consider switching. These are the basics, and they can't even get it right. Would you trust a GP who didn't know how to use a thermometer? What happens if it's the other way around, and the customer's account shows a net profit but their books don't reflect that?
    • AznHisoka 7y ago
      It's a bug with a non-normal use case. Most people don't use margin, and they don't sell covered calls, let alone do both. I just buy and hold regular shares, so I don't forsee how they can mess that up in anyway. If they do, I definitely will move my account elsewhere. But for now, it's still a huge hassle to move everything to another brokerage.