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Robinhood is a SIPC member. It rarely comes into play, but my understanding is that SIPC is there to ensure securities get back to their rightful owner in the

Robinhood is a SIPC member. It rarely comes into play, but my understanding is that SIPC is there to ensure securities get back to their rightful owner in the event that something weird happens to the brokerage.

swarnie_ 6y ago
The issue is when? If that takes several weeks or months in a highly volatile market its basically life or doing a flip.
cma 6y ago
They are only covered up to $5 billion for the entire brokerage industry, it may be like 2008 and they all get turned into FDIC insured banks over night if tons of margin accounts fail.
- jjeaff 6y ago
  And a max of $100k per account.
- ummonk 6y ago
  Yeah we'd be looking at losses much bigger than that if the short-sellers go under due to a squeeze.