Can I Link Cash App To Robinhood

US-based fiscal services visitor

Robinhood Markets, Inc.

Blazon	Public visitor
Traded as	Nasdaq: HOOD (Course A) Russell g component
Founded	Apr 18, 2013; 9 years ago  (2013-04-18)
Founders	Vladimir Tenev Baiju Bhatt
Headquarters	Menlo Park, California , U.S.
Key people	Vladimir Tenev (CEO) Baiju Bhatt (Primary creative officer)
Services	Stockbroker Electronic trading platform
Revenue	US$1.82 billion (2021)
Operating income	U.s.$−ane.64 billion (2021)
Cyberspace income	US$−3.69 billion (2021)
Total assets	United states$19.77 billion (2021)
Total equity	US$7.29 billion (2021)
Number of employees	3,900 (March 31, 2022)
Subsidiaries	Robinhood Crypto, LLC Robinhood Financial LLC Robinhood Securities, LLC
Website	robinhood.com
Footnotes / references [1]

Robinhood Markets, Inc.
is an American fiscal services company headquartered in Menlo Park, California,^[ii]
[3]
that facilitates committee-free trades of stocks, exchange-traded funds and cryptocurrencies via a mobile app introduced in March 2015. Robinhood is a FINRA-regulated broker-dealer, registered with the U.Southward. Securities and Commutation Commission, and is a member of the Securities Investor Protection Corporation.^[iv]
[2]
The company'southward revenue comes from three main sources: interest earned on customers' cash balances, selling order information to high-frequency traders (a exercise for which the SEC opened an investigation into the company in September 2020)^[5]
and margin lending.^{[half-dozen]
[seven]}
As of March 2022^[update], Robinhood had 22.8 million funded accounts and 15.9 million monthly active users.^[viii]
In April 2022, Robinhood rolled out a cryptocurrency wallet to more than ii million users.^[9]

History

Robinhood was founded in Apr 2013 by Vladimir Tenev and Baiju Bhatt, who had previously built high-frequency trading platforms for financial institutions in New York City.^[4]
[10]
The company'southward name comes from its mission to "provide everyone with admission to the financial markets, not merely the wealthy". Tenev noted that executing a trade price brokerages "fractions of a penny" but they typically charged fees of $5 to $10 per trade, likewise as required account minimums of $500 to $5,000.^[11]
[12]

The firm showcased its app publicly for the first time at LA Hacks, beginning published information technology on AppStore in December 2014 and then officially launched the app in March 2015.^[thirteen]

Every bit of January 2015, 80% of the firm's customers belonged to the "Millennial" demographic and the average customer age was 26.^[xiv]
Fifty percent of users who have made a trade use the app daily and ninety% utilize the app weekly.^[15]
As of 2022, Robinhood had 22.eight million funded accounts and 15.9 million monthly agile users.^[8]

In April 2017, Robinhood raised $110 1000000 at a $i.three billion valuation led by Yuri Milner of DST Global, Greenoaks Capital, and Thrive Upper-case letter.^[16]
[17]

On May 10, 2018, Robinhood closed a $363 million Series D financing round led past DST Global.^[eighteen]
Every bit of May 2018^[update], Robinhood raised a total of $539 million in venture uppercase funding, with the last valuation at $v.6 billion, up from their previous valuation of $1.3 billion.^[18]

In February 2018, the company announced that it would exist moving its headquarters from Palo Alto to the former headquarters of
Dusk
magazine in Menlo Park.^[19]

In May 2019, reports from Bloomberg and other outlets publicized Robinhood's pursuit of an additional $200 million in funding, which could value the company in the $seven billion to $10 billion range.^[20]
[xviii]
In Nov 2019, Robinhood announced its expansion to the United Kingdom.^[21]

During the 2020 stock market crash, Robinhood trading increased.^[22]
The subsequent market rise was partially attributed to Robinhood traders, simply a study indicated that Robinhood traders had little daily impact on major shares.^[23]

In May 2020, it was announced that Robinhood had raised $280 million in venture funding at a pre-money valuation of $8.3 billion led past Sequoia Capital, and 3 months later, the visitor announced a $200 million Series 1000 funding round from a new investor, D1 Capital letter Partners, on August 17.^[24]
[25]

In tardily June 2021, Robinhood was fined $57 million by the FINRA and has been ordered to pay $13 1000000 in restitution to clients affected by outages and misleading communications in March 2020. This was the largest-ever FINRA penalisation in the history of the organization.^[26]

The company went public on the Nasdaq on July 29, 2021, under the stock ticker HOOD. The opening cost was $38, but dropped before long afterwards to a low of $33.35 before starting to recover,^[27]
[28]
reaching an all time high at $85. Subsequently, it savage sharply over again after facing growing regulatory incertitude, plunging on Q3 earnings and disclosing that a security breach affected seven million customers.^[29]
On 1 December 2021 the stock price reached all time lows below $25 and had dropped lxx% over the terminal iv months.^{[
commendation needed
]}
This rout was a boon to short-sellers of the stock.^[thirty]

Robinhood's further decline was highlighted in its 2022 layoffs, which gained widespread media attention. The commencement wave of major layoffs occurred in April, with the visitor cut its workforce by nine%. More significant were Robinhood's layoff announcement released simultaneously with its 2022 Q2 earnings on August 2, in which Tenev announced the company would layoff 23% of its workforce, mostly in operations, marketing and program direction. From January to August 2022, Robinhood'south stock has shed 48% of its value.^[31]

In August 2022, Robinhood's cryptocurrency division was fined $30 million by the New York State Section of Fiscal Services for allegedly violating anti-money-laundering and cybersecurity regulations, in the section'due south first crypto enforcement action.^[32]

In May 2022, FTX founder and CEO Sam Bankman-Fried’s trading firm, Alameda Inquiry, disclosed a 7.6% share in Robinhood. Co-ordinate to bearding sources cited by Reuters in November 2022, Alameda used Robinhood shares as part of its collateral for a transfer of at to the lowest degree $four billion from FTX.^[33]

Products and services

Stock and ETF trading

Robinhood's original product was commission-gratuitous trades of stocks and exchange-traded funds. In February 2016, Robinhood introduced instant deposits, crediting users instantly for deposits up to $1,000; previously, funds took 3 days to appear via ACH transfer.^[34]
In September 2016 they launched Robinhood Aureate, a premium subscription plan that offers up to $50,000 in instant deposits, margin trading, and more than market analytics.^[35]
As of February 2017, the company had executed over $thirty billion in trades.^[6]
In August 2017, the company began offering free stocks in commutation for referring new users.^[36]
In December 2017, options trading was introduced.^[37]
Services not offered include retirement accounts, mutual funds and bonds.^[38]
[39]

Robinhood typically simply supports trading stocks and ETFs listed on the Nasdaq and New York Stock Exchange, and normally does non support over-the-counter securities such as those traded on OTC Markets. In August 2018, Robinhood introduced back up for American depositary receipts, adding 250 highly searched international stocks.^[40]
Robinhood has prohibited its users from purchasing some high-adventure penny stocks, such as banning purchases of Helios and Matheson Analytics, the owner of MoviePass, in August 2018.^[41]

In October 2019, several major brokerages such equally E-Trade, TD Ameritrade, and Charles Schwab announced in quick succession they were eliminating trading fees. Competition with Robinhood was cited as a reason.^{[42]
[43]
[44]}
Charles R. Schwab, however, said that it was within his brokerage'due south intentions to eventually eliminate trading fees, as the house had historically been a discount broker.^[45]
Support for purchasing partial shares and automatic dividend reinvestment was introduced in December 2019.^[46]
Automatic recurring investments were introduced in May 2020.^[47]
Access to initial public offering (IPO) shares was introduced in May 2021.^[48]

In March 2022, Robinhood announced information technology was adding 4 boosted hours to extended trading for clients.^[49]
In a push to eventually provide 24/seven equities trading, Robinhood said information technology will exist available from 7:00 AM to 8:00 PM ET.^[49]
In May 2022, Robinhood announced the launch of a stock lending programme, assuasive users to give Robinhood permission to lend out whatever fully paid stocks in their portfolio.^[50]

Cryptocurrency trading

On Jan 25, 2018, Robinhood announced a waitlist for commission-gratis cryptocurrency trading.^[51]
[52]
By the end of the first mean solar day, the waitlist had grown to more than than 1,250,000.^[53]
Robinhood began offer trading of Bitcoin and Ethereum to users in California, Massachusetts, Missouri, and Montana in February 2018.^[54]
In May 2018, Robinhood expanded its trading platform to Wisconsin and New Mexico.^[55]
By 2021, cryptocurrency trading was bachelor in every state except Hawaii and Nevada.^[56]

Robinhood subsequently added trading for Bitcoin Cash, Dogecoin, Ethereum Classic and Litecoin.^[57]
In September 2021, automatic recurring investments was introduced and Robinhood launched a waitlist for cryptocurrency wallets.^{[58]
[59]
[60]}
CEO Vladamir Tenev stated that Robinhood may add together more coins, saying, "We feel very very good about the coins that we’re currently listing on our platform and whatever new coins that we add together nosotros want to feel equally, if non more good."^[61]
In April 2022, Robinhood announced that information technology had rolled out cryptocurrency wallets to every eligible person on its waitlist of over two million customers, and added trading for Shiba Inu, Solana, Compound, Chainlink and Polygon.^[9]
[62]
Too in April 2022, the company announced integration of Bitcoin’s Lightning Network to enable faster transactions involving the cryptocurrency.^[63]

Cyberbanking

In June 2018, it was reported that Robinhood was in talks to obtain a U.S. banking license, with a spokesperson from the company claiming the company was in "constructive" talks with the U.S. OCC.^[64]
In Dec 2018, Robinhood announced checking and savings accounts, with debit cards issued past Ohio-based Sutton Bank would be available in early 2019.^[65]
Robinhood claimed the accounts would have a three% annual interest charge per unit; at the fourth dimension of the announcement, the highest interest rate on a savings account from a licensed bank was 2.36%.^[66]
Robinhood initially claimed the accounts would be SIPC insured, which the SIPC denied.^[67]
The products were rebranded every bit "Cash Management" the next day.^[68]
In January 2019, the waitlist and sign-up page were removed from the app.^[69]

A Cash Management feature was appear in Oct 2019, with FDIC insurance from various partner banks and an annual 2.05% interest charge per unit, though lowered earlier launch to 1.8% subsequently a federal rate cut.^[70]
The characteristic launched in Dec 2019.^[71]
In March 2022, Robinhood launched the Robinhood Greenbacks Bill of fare, a debit card that allows users to automatically invest in assets like stocks and crypto when spending money. With the launch of the Cash Card, the company retired its Cash Direction debit menu.^[72]

Controversies

Payment for order flow

Bloomberg News reported in October 2018 that Robinhood had received almost one-half of its revenue from payment for order menses.^[73]
The company subsequently confirmed this on its corporate website when asked past CNBC.^[74]
The Wall Street Journal
found that Robinhood "appears to be taking more than cash for orders than rivals," past upwards to a 60-to-1 ratio, according to its regulatory filings.^[75]

The Fiscal Manufacture Regulatory Authorization fined Robinhood $1.25 meg in Dec 2019 for failing to ensure that its customers received the all-time price for orders. All of Robinhood'due south trades between October 2016 and Nov 2017 were routed to companies that paid for order flow, and the visitor did non consider the cost improvement which may have been obtained through other market makers.^[76]
Robinhood was sued in a class-activeness police suit in Dec 2020 for declining to disclose that a large portion of its revenue relied on payment for order flow.^[77]

Security breaches

In July 2019, Robinhood admitted to storing customer passwords in cleartext and in readable form beyond their internal systems, according to emails information technology sent to the affected customers. Robinhood declined to say how many customers were affected past the error and claims that it did not find whatsoever evidence of corruption.^[78]
Withal, in 2020, the firm acknowledged that almost ii,000 Robinhood Markets accounts were compromised in the hack and that the hackers had siphoned off customer funds — a sign that the attacks were more widespread than was previously known, and not forthcoming originally by Robinhood.^[79]

In early November 2021 the visitor announced that about five one thousand thousand customers had their email addresses stolen by hackers via a vocalization phishing scheme. Another 2 million customers'southward total names were likewise taken. Three hundred customers had more extensive personal data taken.^[fourscore]
Information technology is believed that the hacker "pompompurin" who was behind the 2021 FBI electronic mail hack was responsible for the breach.^[81]

Space leverage

In November 2019, a user on the WallStreetBets subreddit shared a glitch that immune Robinhood Gold users to infringe unlimited funds via selling covered calls where the shares had been bought using leverage, and the premium from the phone call was used to access additional leverage to buy more shares in order to sell more calls and and then on. The loophole was airtight shortly thereafter and the accounts that exploited it were suspended, merely not earlier some accounts recorded six figure losses past using what WallStreetBets users dubbed the "infinite coin cheat lawmaking."^{[82]
[83]
[84]}

Outages

On Monday, March two, 2020, Robinhood suffered a systemwide, all-day outage during the largest daily point proceeds in the Dow Jones' history, preventing users from performing most actions on the platform, including opening and closing positions.^[85]
During this outage the South&P 500 climbed more than 4.6 percent.^[86]
Robinhood users postulated that the outage was the effect of a coding error regarding spring year treatment for Saturday, Feb 29, 2020. Robinhood denied these claims.^[87]
Robinhood said that they will offer bounty on a case-by-case basis.^[88]
Robinhood experienced another major systemwide outage on March 9.^[89]
Robinhood is currently facing 3 lawsuits due to outages in March 2020.^[xc]

Suicide of Alexander E. Kearns

"Alex Kearns" redirects here. For the photographer, see Alex Cearns.

Robinhood faced controversy in June 2020 subsequently Academy of Nebraska pupil Alexander E. Kearns committed suicide after seeing a negative cash balance of
US$730,000
(equivalent to $764,355 in 2021) in his Robinhood margin trading account. It was later on discovered that this was a temporary^{[
clarification needed
]}
negative balance due to unsettled trading activity.^[91]
[92]
In his suicide note, Kearns, who was xx years onetime at the time of his decease, accused Robinhood of assuasive him to pile on too much risk.^[93]
In a press release, Robinhood promised considering additional criteria and pedagogy for customers seeking level three^{[
clarification needed
]}
options authority.^{[94]
[95]
[96]}
Kearns' family filed and later settled a wrongful death lawsuit with the company.^[97]

2020 SEC probe

On September ii, 2020, the
Wall Street Journal
reported that Robinhood was under SEC investigation for declining to fully disclose selling clients' orders to high-speed trading firms, with a potential $10 million-plus fine.^[five]
Robinhood paid $65 million to settle the SEC investigation on December 17, 2020.^[98]

Gamification in Massachusetts

On December sixteen, 2020, the Securities Partition of the Massachusetts Secretarial assistant of the Commonwealth filed an administrative complaint alleging violation of state securities laws by "marketing itself to Massachusetts investors without regard for the best interests of its customers and failing to maintain the infrastructures and procedures necessary to run into the demands of its apace growing customer base."^[99]
As a result of their gamified interface allowing new investors to participate in short selling and advanced derivatives trading (i.east. options), the Massachusetts Securities Division contended that Robinhood exploits novice investors, since these types of trades are ordinarily considered "out of premises" for new investors due to the high take chances involved in them.^[100]
In March 2022, Suffolk County Superior Court declared that the new fiduciary duty rule underlying parts of the instance was invalid. The decision did not negate all enforcement action from country regulators, which could yet pursue some claims against the company.^[101]

2021 brusk squeeze

On January 28, 2021, Robinhood and other retail brokers, including Webull,^[102]
restricted the trading of sure stocks following an effort past users of r/wallstreetbets subreddit to drive up their price.^[103]
Robinhood restricted trading in these stocks in order to meet collateral requirements at their clearinghouse, the National Securities Clearing Corporation.^[104]
[105]
This decision attracted condemnation from internet users on the subreddit and on Twitter,^[106]
[107]
besides equally politicians.^{[108]
[109]
[110]}
The Business firm Committee on Financial Services questioned Robinhood CEO Vlad Tenev during a hearing on February 18, 2021.^[111]

Post-obit the controversy, the app suffered an influx of one-star reviews on the Google Play app store.^[112]
Google deleted at to the lowest degree 100,000 such reviews, calling them "coordinated or inorganic".^{[113]
[114]
[115]}
All the same, subsequently some other round of negative reviews on the app dropping it to a 1.one-star rating, Google confirmed that the new reviews do not violate Google policies and will non exist removed.^[116]
Protesters also showed upwardly outside Robinhood headquarters in Menlo Park, California, at the Securities and Exchange Commission headquarters in Washington, D.C., and the New York Stock Exchange.^[117]
On Jan 28, a class-action lawsuit against Robinhood for declared market manipulation was filed in the Southern Commune of New York. The lawsuit alleges that the app “purposefully, willfully, and knowingly removing the stock ‘GME’ from its trading platform in the midst of an unprecedented stock rise [...] deprived retail investors of the ability to invest in the open up-market place and manipulating the open-market.”^{[118]
[119]
[120]}
Afterward that day, the company announced that information technology would reallow limited buys of the stocks on January 29.^[121]

References

External links

• 
  Official website
  
  
• Business concern information for Robinhood Markets, Inc.:
  • Bloomberg
  • Google
  • Reuters
  • SEC filings
  • Yahoo!