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I'm not sure if it's possible to make that distinction. Trades are funded by brokerage cash. From the customer perspective, brokerage cash is a pool of cash ava
by acaloiar 4y ago
I'm not sure if it's possible to make that distinction. Trades are funded by brokerage cash. From the customer perspective, brokerage cash is a pool of cash available for trading or withdrawal. It may have originated from an ACH, wire, trade liquidation, or a combination of any of those things.
However, I am confident that I funded trades from deposits that were made after the withdrawal ban was put in place. I made multiple deposits over ~8 months in which the withdrawal ban was in effect, and those deposits funded multiple trades. Which means Robinhood is happy to deposit and trade funds from an account in an "unverified" state, but not allow withdrawals. If my account was truly compromised, justifying an unverified state, then I wouldn't want them funding trades from an ACH transfer from a bank account that was added when it was in a verified state.
The policy, whatever it may be, clearly serves Robinhood's purposes and not the customer's.