Robinhood will not permanently close your account
If you follow their instructions on closing your account, your account will not be closed as requested. All they do is add a message at the bottom of your main screen that says this account is deactivated. Anyone that can log into your account can reactivate the account at any time just by clicking a single link on that page. That is not permanently closed. Deactivating and closing an account are TWO different things.
We verified that Robinhood is the ONLY broker that will not close accounts.
We created an account with Robinhood but never used it. We deactivated the account per their instructions and sent emails to support asking them to close the account. We were told by their customer support multiple times the account was closed. However, we went to log in to see if the account was actually closed as they claimed, NO it was not. We were able to easily log back in to that account and all our information on the account was still online like nothing had even happened. We were also able to fully reactivate that supposedly closed account on the same day. So what does that tell you, the account was never closed as they claimed.
Go ahead, try it yourself. Ask them to close your account. After it is confirmed closed, go log back in, you will have no problem. It will still exist because they never actually closed it.
We opened a trading account with several well known brokers. After several months, we requested our account closed with them. Broker #1 closed the same day. Broker #2, closed immediately. Broker #3, closed as soon as they responded to our email. When trying to log back in to any other these 3 brokers, we received messages saying the account or user id does not exist. These accounts were permanently closed as requested. Is Robinhood required to follow a different set of rules than other regulated brokers, of course not.
On their close my account page, Robinhood has a regulations link at the bottom of that page which makes it appear they are being forced to keep your information online and they use this as an excuse not to delete your account. The TRUTH is, all regulated brokers are required to retain certain account related records for a period of time and this is for ARCHIVAL PURPOSES ONLY. Every other broker will remove the online account and keep the information they are required to keep in their database securely offline and delete it when their legal obligation is up. No government organization is forcing Robinhood to keep your account online if you want it permanently closed. Ask the SEC and FINRA, we did.
Why you should close your account if not using it
Withdrawing funds and leaving an account open and online is not a good idea. Any open account could be used fraudulently and if you never plan on using the account, you certainly would not want it kept online. Cybercrime is an issue. Robinhood is probably the best example of why you should always take steps to prevent activity in an account that you don’t plan to use. Closing an online account could prevent unauthorized use. Robinhood claims they take fraud seriously but unlike every other broker, they appear not to take it seriously at all.
We asked Robinhood, have you ever deleted and removed ANY account from a customer since you have been in business? They will not confirm it has actually been done. This means anyone that may have requested their account closed years ago may still have their information accessible online whether they even know it or not. We can confirm our account that has never been used and opened years ago still exists.
Privacy and security issues
Customers online have claimed their accounts have been stolen, money has been transferred out of their accounts, some claim they lost their entire savings, been locked out of their accounts and cannot get anyone at the company to respond. Robinhood has been fined millions of dollars by the SEC for misleading their customers, fined by the FINRA in 2019, fined again by the FINRA in 2021, class action lawsuits were filed and the list could go on. Just search around, you will find a lot of complaints from actual customers. Everyone knows about the recent experiences with GameStop GME and AMC with Robinhood customers not being able to trade and claims of selling their stocks without a their consent. Just from our own experience, customer service is something that really is lacking with them. Many just cut and paste the same prewritten responses and it appears that is all they are allowed to do. It also appears many of their reps do not even understand the information they send you if you question it based on their responses.
Something simple as changing your email address is even a security issue and still not fixed as of this posting. We changed the email address on our account to another email address. Now we can log in with both email addresses even though the old email address is listed no where on the account, the same account they claim is closed. So much for taking security seriously.
Being a so called tech company, why does Robinhood still have an issue with something as basic as closing an account? Is there a reason they want to keep a customer’s account online when the customer wants it closed and removed? No other company we are aware of has this issue, just them. There are probably many customers that no longer use their account and requested it closed and yet their account information is still accessible online.
If you had a bad experience with Robinhood, file a complaint with the SEC if it is something that would require immediate action.
This article is based on our own experience, point of view and from others we have spoken to about Robinhood that share similar experiences. If anyone feels anything is incorrect, email.