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Robinhood is a broker-dealer, and is subject to the same regulations as everyone else. All the major brokerages hold securities under their name ("in street nam
by atombender 5y ago
Robinhood is a broker-dealer, and is subject to the same regulations as everyone else. All the major brokerages hold securities under their name ("in street name") on behalf of the customer. You still retain legal ownership, even for fractional shares. As far as I know, Robinhood has its own clearing house subsidiary, Robinhood Securities, that handles the share bookkeeping, including the fractional share inventory you're talking about.
- matt_s 5y agoWhat I was referring to is most RH accounts are setup as margin because of instant deposits. This means they can liquidate that account without your action. IANAL but it might help to compare their TOS against other brokers. This latest fine isn’t there first fine. I wouldn’t trust them with a penny. There is too much shady stuff coming to light with RH.
- dannyw 5y agoOnly in America, mind you. In Australia, all publicly traded companies are under CHESS, which means that when you buy a share, it's directly held in your name.