Robinhood is a mobile brokerage app with its own restriction policies.
Investing in stocks and bonds nowadays became easier than ever. It isn’t new that the innovation in financial technology has made a huge transition in the financial field. To compare, we can recall the time when you had to schedule an appointment with your stockbroker, who charged a heavy fee if you wanted to buy shares. Nowadays, everything is much easier, you may start investing from the comfort place wherever you want without moving an inch. Such services as Robinhood made it possible.
Some more information about the app’s services and its account restriction policies will be below.
What is Robinhood
Robinhood is a financial services company that gives users an opportunity to invest in stocks and make funds without charging them. The service is offered both in mobile app and through the website. It is available for all major platforms and operating systems. App also gives its users an opportunity to invest in cryptocurrency.
Why is your Robinhood account is restricted
There are several reasons why your account is restricted. Here are some below:
- Any declared control person for a company will have their account restricted, as a control person in a company is a high-ranking official in the company and enjoys a lot of power. The app cites compliance as the reason behind this restriction.
- Just after you declare that you are no longer any company’s control person, the restriction will be uplifted.
- Your account will also be restricted if it contains incorrect information or if any fradulent activity is detected.
- Accounts that have an outdated information will also be restricted.
- It will not be possible to buy any stocks or cryptocurrency when a restriction is imposed on your account.
- There restriction may be temporary, for 90 days or more severe.
- You should contact customer support in order if you want to know more about restrictions or if you want to uplift them.
How to remove a Robinhood account restriction
In some cases, Robinhood restricts your account because of stock-related issues. In those cases, you may also lose access to the crypto trading service. You can correct it by adding money to your account, if the restriction is linked to the account balance value being below the required threshold, like in this case of day trading limits or margin requirements. To resolve the issue, you will need to contact the broker after adding some money to your account.
What you can do to reactivate your account
First, you should clear all your negative balance, and if then too your account is not activated still, you can contact the Robinhood support team for further information.
All in all, Robinhood is a good platform that became the first app to provide free-cost services for financial investments. It has made a new innovative step for financial investment in an app-based form and brought a new transition in the financial field.
