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They are legally prohibited from using the customer's funds for the deposit requirements.
by swampthing 6y ago
They are legally prohibited from using the customer's funds for the deposit requirements.
- amluto 6y agoDo you have a citation for this? I found an relatively old FINRA document that sort of seemed to say the opposite, but it wasn’t obviously in reference to stocks and I think it also predated Dodd-Frank.
- swampthing 6y agoNot a primary source, but: https://stu2b50.dev/posts/why-robinhood-d3580b https://stu2b50.dev/posts/why-robinhood-d3580b > Brokers cannot use client money to satisfy their clearing fund obligation. So whether or not the accounts had a settled balance didn't matter - as you can see from the other brokers which halted buys and did not have "instant transfers".