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Is Robinhood a Scam?

robinhood.comLegitimate Business
Risk Assessment
25%Risk Score
Low Risk

Summary

Robinhood is a legitimate, publicly-traded financial services company (NASDAQ: HOOD). It offers commission-free trading and is regulated by SEC and FINRA.

Robinhood is NOT a scam - it is a legitimate, regulated broker-dealer. Low ratings stem from the 2021 GameStop controversy, not fraud. Your investments are SIPC protected.

Company Information

Parent Company
Robinhood Markets, Inc.
Founded
2013
Headquarters
Menlo Park, CA
Stock
NASDAQ: HOOD
Employees
2,300+

Trust Indicators

Concerns

  • 2021 GameStop trading halt controversymedium[source]
  • $70M FINRA fine (2021) for outages and misleading infomedium[source]
  • BBB F ratingmedium[source]
BBB Rating
F
Trustpilot
1.3/5
BBB Complaints
3,200

💡 Recommendations

  • 1.Understand payment for order flow model
  • 2.Enable all security features
  • 3.Keep records of all transactions
  • 4.Consider if commission-free is worth trade-offs

📚 Sources

Robinhood SEC FilingsFINRA BrokerCheckFINRA $70M Fine Press ReleaseSEC GameStop ReportBBB Business ProfileNASDAQ Stock Info
Last updated: 2026-01-22

Disclaimer: This analysis is for informational purposes only. Information may be incomplete, outdated, or inaccurate. Our assessments should not be the sole basis for financial, legal, or personal decisions. Always conduct your own research and due diligence.