tl;dr - Something may or may not be happening at Robinhood, but I'd suggest you transfer off if you still have the choice. I can't withdraw cash or transfer stock off of Robinhood, and I haven't received any emails from them after weeks of waiting. I do not have unsettled funds or any failed deposits.
On Jan 31, for the first time in the 5 years of being a customer, I attempted to withdraw half of the "Withdrawable Funds" listed on my Robinhood account: roughly 1-2% of my total stock portfolio value. This transaction was declined, and the error message was listed as "Account withdrawal disabled." with no other reasoning given. I had not made any deposits to Robinhood since Jan 14, and I had no pending trades or unsettled funds. Again, these funds were listed as "Withdrawable Funds". I attempted this transaction again on Feb 1st, 5th, 8th, 12th, 13th, 15th, and 16th. I did not deposit any funds, or make any trades during this time. For 5 years I have never had a failed deposit to Robinhood, I've never traded on margin, I don't hold crypto, and I've never had a negative balance.
I reached out to Robinhood about this on January 31st, February 5th, February 8th, February 12th, and 15th, and have received zero correspondence back as of February 16th.
As a result of being unable to withdraw my money, on February 8th I initiated a full account ACATS transfer to TD Ameritrade. On February 12th, that transfer was rejected by Robinhood. According to TD Ameritrade, the reasoning given by RH was that I needed to contact RH support to lift a restriction on my account. The TD Ameritrade rep told me they've been seeing a lot of Robinhood rejections lately.
I've received zero communication from them via email, which is the only way to contact them as they have no support phone line. My funds and my holdings are fully restricted from leaving the Robinhood platform in any way for almost three weeks now, and I have nobody to communicate with to fix this problem or receive any additional information about why this is happening. I've filed a complaint this week with the SEC, CFPB, and BBB in hopes of getting some resolution.
I suspect they're having liquidity issues after the recent backlash but I'm not sure. You may or may not be having the same issues, but I'd highly recommend getting out of Robinhood if you have the choice.
Submitted February 16, 2021 at 11:04PM by fernook https://ift.tt/3dj878f
