How to sell a stock | 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.

As a seasoned financial expert with a deep understanding of the concepts presented in the provided information, I can confidently dissect and explain the key components. My extensive knowledge in finance, investments, and regulatory frameworks allows me to provide a comprehensive analysis of the terms and concepts featured in the article.

Brokerage Services:
- The article mentions that brokerage services are provided through Robinhood Financial LLC (RHF), a registered broker-dealer, and clearing services through Robinhood Securities, LLC (RHS). Both entities are members of the Securities Investor Protection Corporation (SIPC), emphasizing their commitment to investor protection.
Cryptocurrency Services:
- Robinhood Crypto, LLC (RHC) offers cryptocurrency services and is licensed by the New York State Department of Financial Services for virtual currency business activities. This demonstrates a regulatory compliance and a commitment to operating within legal frameworks in the rapidly evolving crypto space.
Spending Account and Cash Card:
- The Robinhood spending account, offered through Robinhood Money, LLC (RHY), is a licensed money transmitter. It's worth noting that the Robinhood Cash Card is a prepaid card issued by Sutton Bank, Member FDIC, with Mastercard branding, ensuring it meets industry standards and regulations.
Affiliation and Ownership:
- RHF, RHY, RHC, and RHS are mentioned as affiliated entities and wholly owned subsidiaries of Robinhood Markets, Inc. This ownership structure is crucial for understanding the corporate relationships within the Robinhood ecosystem.
Risk Disclosure:
- The article includes risk disclosures, emphasizing that products offered by RHF are not FDIC insured and involve risk. It also notes that cryptocurrency accounts are not FDIC insured, and certain options trading strategies involve significant risk. This transparency is in line with regulatory requirements and is a responsible approach to informing customers.
Regulatory Compliance:
- The article highlights the regulatory compliance of the various entities, such as being a registered broker-dealer, obtaining licenses for cryptocurrency activities, and adhering to state regulations for money transmission. This showcases a commitment to legal and regulatory standards.
Options Trading:
- The warning about options trading underscores the complexity and risks associated with these strategies. Customers are advised to read and understand the Characteristics and Risks of Standardized Options before engaging in such activities. This aligns with responsible financial practices and customer education.
Commission-Free Trading:
- Robinhood offers commission-free trading for stocks, ETFs, and options in self-directed individual cash or margin brokerage accounts. However, the article points out that other fees, such as Gold subscription fees and wire transfer fees, may apply. This transparency in fee disclosure is crucial for customer awareness.

In conclusion, the provided information from Robinhood emphasizes a commitment to regulatory compliance, transparency, and customer education. The company positions itself as a platform striving to make finance accessible to all, but it also underscores the importance of understanding risks associated with various financial products and services.