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Is this how it works??

consumer securities purchases protected by sipc

robinhood bank checking format:

deposit: money -> account -> robinhood backend securities purchased

withdrawal: robinhood backend securities sold -> account -> money

Is this the argument made by robinhood? Perhaps if that is laid out clearly in contract, i.e. robinhood is granted agent status to purchase and sale securities on behalf of consumer



Receiving agent status to purchase and sell securities on behalf of the consumer would mean the consumer is consenting to possible losses from the performance of those securities.


As is the case with any money market account...


Yes, point being that's not really the bank account Robinhood is trying to offer.




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