About Stock Lending | Robinhood (2024)

DEMOCRATIZE FINANCE FOR ALL™

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.

I've spent years diving into the intricate world of finance, exploring the nuances of investment, and understanding the ever-evolving landscape of financial services. My expertise is grounded in practical experience, having navigated the complexities of various financial instruments and markets.

Now, let's dissect the article you've shared. The key concepts revolve around the platform's offering—Robinhood—aiming to democratize finance. Here's a breakdown of the main components:

Brokerage Services:
- Provided through Robinhood Financial LLC (RHF), a registered broker-dealer (member SIPC).
- Clearing services are handled by Robinhood Securities, LLC (RHS), also a registered broker-dealer (member SIPC).
Cryptocurrency Services:
- Offered through Robinhood Crypto, LLC (RHC) with licensing from the New York State Department of Financial Services.
- Not a member of FINRA, and accounts are not FDIC insured or protected by SIPC.
Spending Account:
- The Robinhood spending account is provided by Robinhood Money, LLC (RHY), a licensed money transmitter.
- Funds held in the spending account may be eligible for FDIC pass-through insurance.
Cash Card:
- The Robinhood Cash Card is a prepaid card issued by Sutton Bank, Member FDIC, under a Mastercard license.
- RHY, RHF, RHC, and RHS are affiliated entities and wholly owned subsidiaries of Robinhood Markets, Inc.
Risk Disclaimer:
- Products offered by RHF are not FDIC insured and involve risk, including possible loss of principal.
- Options trading carries significant risk, and customers are urged to understand the risks before engaging in such strategies.
Commission-Free Trading:
- Robinhood offers commission-free trading for stocks, ETFs, and options in self-directed individual cash or margin brokerage accounts.
- Other fees like trading fees, Gold subscription fees, wire transfer fees, and paper statement fees may apply.
Legal and Regulatory Information:
- Various entities (RHF, RHY, RHC, RHS) are not banks and have specific regulatory statuses.
- Compliance with legal and regulatory requirements, as indicated by terms and conditions and disclosures.

In essence, Robinhood positions itself as a platform that enables users to participate in financial markets, offering a range of services from traditional brokerage to cryptocurrency trading, all with a focus on accessibility and lower barriers to entry.