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Key Points
- Robinhood has SIPC insurance for up to $500,000 worth of securities and $250,000 worth of cash for investors.
- Robinhood's Cash Management products have FDIC insurance through their partner banks.
- It is unlikely for Robinhood to go out of business, and if it were to happen, a larger brokerage platform would most likely acquire them and take over customer accounts.
- Crypto held with Robinhood is not covered by federal insurance, but the company has a separate third-party commercial insurance policy against crypto theft.
- Don't forget to grab yourfree stock from Robinhood!
Robinhood is a popular financial app.
With a few taps on your phone, you can invest in stocks, cryptos, and even options through the Robinhood app.
The company also recently launched their retirement account option for investors that features a 1% match.
So, what would happen in the unlikely event that Robinhood went out of business? Let's dive in.
Learn More: Robinhood Retirement 3% Match
Robinhood is a popular "all-in-one" investing app.
While they are most well-known for their commission free stock trading, they've recently shaken up the Retirement Investing World too.
Introducing Robinhood Retirement;home of the biggest IRA match on the market.
Here's what you need to know:
- Robinhood offers 2 types of retirement accounts - the Roth IRA and Traditional IRA
- All Robinhood investors will get a 1% Match on what they Contribute or Transfer
- Robinhood Gold members will get a 3% Match - the biggest on the market
And don't worry, this comes with a Portfolio Builder Tool. You don't have to construct your investment portfolio from scratch if you don't want to.
Lastly, you'll even get a free stock worth up to $200 when you open a new Robinhood account using our link.
Best Free Stock Promotions
Brokerage Promotion Link 
1 Free Fractional Share Worth Up To $200 Learn More 
Earn Up To 75 Free Fractional Shares Learn More 
5 Free Stocks When You Deposit $100+ Learn More 
$20 Bonus When You Invest $5+ Learn More
FDIC/SIPC Insurance
First of all, if you invest in stocks or ETFs with Robinhood, your assets have SIPC insurance.
In a nutshell, this covers you in the event that your broker loses your financial assets or cash.
Since Robinhood is a member of SIPC, you are covered for up to $500,000 worth of securities, including $250,000 which can cover cash.
So, if Robinhood somehow went out of business and lost customer assets, the SIPC would step in.
If you use the cash management products offered by Robinhood, these accounts also have FDIC insurance.
Robinhood itself is not actually a bank.It's cash management offering is actually made possible with their partner banks.
If Robinhood were to go out of business, that would have no impact on your deposits which are actually held at the partner banks.
Don't forget to grab your free stock worth up to $200 from Robinhood today!
