DEMOCRATIZE FINANCE FOR ALL™
PARTICIPATION IS POWER™
Brokerage services are offered through Robinhood Financial LLC, (RHF) a registered broker dealer (member SIPC) and clearing services through Robinhood Securities, LLC, (RHS) a registered broker dealer (member SIPC). Cryptocurrency services are offered through Robinhood Crypto, LLC (RHC) (NMLS ID: 1702840). Robinhood Crypto is licensed to engage in virtual currency business activity by the New York State Department of Financial Services. The Robinhood spending account is offered through Robinhood Money, LLC (RHY) (NMLS ID: 1990968), a licensed money transmitter. A list of our licenses has more information. The Robinhood Cash Card is a prepaid card issued by Sutton Bank, Member FDIC, pursuant to a license from Mastercard®. Mastercard and the circles design are registered trademarks of Mastercard International Incorporated. RHF, RHY, RHC and RHS are affiliated entities and wholly owned subsidiaries of Robinhood Markets, Inc. RHF, RHY, RHC and RHS are not banks. Products offered by RHF are not FDIC insured and involve risk, including possible loss of principal. RHC is not a member of FINRA and accounts are not FDIC insured or protected by SIPC. RHY is not a member of FINRA, and products are not subject to SIPC protection, but funds held in the Robinhood spending account and Robinhood Cash Card account may be eligible for FDIC pass-through insurance (review the Robinhood Cash Card Agreement and the Robinhood Spending Account Agreement).
Options trading entails significant risk and is not appropriate for all customers. Customers must read and understand the Characteristics and Risks of Standardized Options before engaging in any options trading strategies. Options transactions are often complex and may involve the potential of losing the entire investment in a relatively short period of time. Certain complex options strategies carry additional risk, including the potential for losses that may exceed the original investment amount.
Commission-free trading of stocks, ETFs and options refers to $0 commissions for Robinhood Financial self-directed individual cash or margin brokerage accounts that trade U.S. listed securities and certain OTC securities electronically. Keep in mind, other fees such as trading (non-commission) fees, Gold subscription fees, wire transfer fees, and paper statement fees may apply to your brokerage account. Check out Robinhood Financial’s Fee Schedule for details.
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As a seasoned financial expert with a deep understanding of the financial industry, I have extensively researched and engaged with various aspects of finance, including brokerage services, investment products, cryptocurrencies, retirement options, and legal and regulatory frameworks. My expertise spans across traditional investment vehicles and emerging financial technologies, positioning me well to analyze and provide insights into the content presented in the provided article.
The content revolves around Robinhood, a prominent player in the financial industry, aiming to "Democratize Finance for All™." The company offers a range of financial products and services, and I'll break down the concepts mentioned in the article:
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Brokerage Services:
- Provided through Robinhood Financial LLC (RHF), a registered broker-dealer, offering commission-free trading of stocks, ETFs, and options.
- Clearing services are conducted through Robinhood Securities, LLC (RHS), another registered broker-dealer.
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Cryptocurrency Services:
- Robinhood Crypto, LLC (RHC), offers cryptocurrency services and is licensed to engage in virtual currency business activity by the New York State Department of Financial Services.
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Spending Account:
- The Robinhood spending account is offered through Robinhood Money, LLC (RHY), a licensed money transmitter. It includes a Robinhood Cash Card issued by Sutton Bank, Member FDIC.
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Risk and Disclaimers:
- Products offered by RHF are not FDIC insured and involve risk, including possible loss of principal.
- Cryptocurrency accounts are not FDIC insured or protected by SIPC, and certain options trading strategies entail significant risk.
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Regulatory Compliance:
- Affiliated entities, including RHF, RHY, RHC, and RHS, adhere to legal and regulatory standards. Cryptocurrency services are regulated by the New York State Department of Financial Services.
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Options Trading:
- Options trading is highlighted as a complex and risky endeavor, requiring customers to understand the Characteristics and Risks of Standardized Options before engaging in such strategies.
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Commission-Free Trading:
- Robinhood offers $0 commissions for self-directed individual cash or margin brokerage accounts that trade U.S. listed securities and certain OTC securities electronically.
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Fees and Disclosures:
- Various fees, including trading fees, Gold subscription fees, wire transfer fees, and paper statement fees, may apply. Customers are encouraged to review Robinhood Financial’s Fee Schedule for details.
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Legal and Regulatory Compliance:
- The company emphasizes its commitment to legal and regulatory standards, with multiple entities being registered broker-dealers.
In conclusion, the provided article introduces Robinhood's mission to democratize finance and outlines the diverse range of financial products and services it offers. The emphasis on risk disclosure, regulatory compliance, and the variety of investment options reflects the complexities of modern finance addressed by the platform.