Robinhood is a one-place shop where you can invest in and earn money; it is a commission-free investing app to help you to achieve your goals. Robinhood is an American financial services company headquartered in California, launched in March 2015. Robinhood registered in the Securities and Exchange Commission and was part of the Securities Investor Protection Corporation from the beginning.
They earn revenue through three sources: interest made on customers’ cash equalizers, trading order details to high-frequency merchants, and margin lending. Robinhood had 22.8 million user-based accounts as of April 2022; they connect to more than 2 million users’ cryptocurrency wallets. Let’s explore why Robinhood needs the SSN number for any user opening an account.
Requirements to open an account on Robinhood
To apply for a Robinhood account, you’ll need to meet the following requirements as stated on their website.
- Be 18 years or older;
- Have a valid Social Security Number (not a Taxpayer Identification Number);
- Have a legal U.S. residential address within the 50 states or Puerto Rico (we may make exceptions for active U.S. military personnel stationed abroad); and
- Be a U.S. citizen, U.S. permanent resident, or have a valid U.S. visa.
Is it safe to give Robinhood your SSN?
Yes, it is safe to give your SSN (social security number) to Robinhood. Your Social Security Number is protected, and it is just for verifying your identity. Robinhood’s security and the SIPC are there to help if you have any questions. If they have your social security number then it is easy for them to provide the tax invoices of trading you made and conveyed to you and the IRS.
Can we trust Robinhood?
Yes, Robinhood is a trustworthy platform to use. It’s a gateway from where you can make trades and make money. All this methodology is safe and secure; they are registered in U.S. Securities and Exchange Commission and are a part of SIPC. They have been there since 2015 and have a very long client tail to follow.
The back-story of Robinhood!
Vladimir Tenev and Baiju Bhatt are the individuals who invested in this forum and launched it in April 2013. The company name comes from a motto, to provide a platform where everyone is equal, with no difference between the middle-class and the wealthy stakeholders. The firm first appears its idea in L.A. Hacks. An event was held in March 2015 to launch this app to the masses.
Is Robinhood only authorized in the U.S.?
No, you can access your Robinhood account in most countries except Iran, North Korea, Cuba, and the Crimea region of Ukraine. Anyone in the world can create an account on Robinhood but be mindful that one must have a valid U.S. visa.
Should I give my account detail to Robinhood?
You can safely provide your bank account details to Robinhood. It’s a safe platform to use. It is regulated by the top U.S. authorities, including Securities and Exchange Commission(SEC).
Hope, this article sets your mind at rest. Go ahead and open your account with Robinhood and start trading.