As part of my $1k Tests series, I’ve been putting $1000 into various trendy investment platforms and seeing how my investment does. One of those is Robinhood. I put $1,000 into the app, and then invested in whatever it told me to buy. Note that I don’t necessarily recommend you doing this—I’m putting my own money at risk so you can enjoy the process of following along and seeing how it all goes.
By all accounts, Robinhood is pretty strong financially. But many of my readers worried: What would happen if the popular new app went out of business? Would investors lose the billions (yes, billions) that they’ve invested using the app?
I decided to explore. Note that I’m not an accountant or attorney, I’m a journalist. Always consult a professional for advice specific to your situation. In general, though, here’s what I found, in a relatively detailed article.
What Happens if Robinhood Goes Bankrupt?
One follow-on question I often get is whether Robinhood has FDIC insurance. It doesn’t. Here’s why not, and more on whether that matters:
Does Robinhood Have FDIC Insurance If It Goes Bankrupt?
And on a more fun note, here’s me putting $1k of my hard-earned cash into Robinhood’s suggested investments, for better or worse.