Buying bonds and stocks, and investment in the share market has become easier than ever. Gone are the days when you used to go to the broker’s office or schedule an appointment with your brokerage firm who in return billed you with a hefty fee to buy shares.
Technology is getting advanced along with the competition and the investment process is becoming more flexible. Brokerage firms have started giving so much convenience that you do not need to move even an inch from your house. All work is done sitting at home.
And all this has become possible due to the evolution of smart investment firms like Robinhood. But sometimes along with convenience comes to some challenges, and the biggest challenge that investors are facing these days is the Robinhood Account restriction. People are always asking questions like why my Robinhood account is restricted?
So in this blog, we will discuss Robinhood account restriction. And together with this, we will also know the reasons behind the Robinhood account restriction.
So let’s dive right in.
Most intraday traders rely on Robinhood for its flexible services. Robinhood’s Membership program gives merchants access to most of the useful data and insights that are required for smooth trading.
But sometimes investors or traders complain about the problems they faced with Robinhood and one of the biggest problems they have asked for solutions for is the “Robinhood account is blocked” error message. It makes users’ activities limited. They can not put stocks in their portfolio. But on the good side, it doesn’t affect the selling power of the shares.
There are numerous reasons why Robinhood may suspend your account. They may be related to money transfer problems, incorrect account details, etc.
Let’s discuss all the possible reasons which give rise to the Robinhood account restriction.
Sometimes we may fail to transfer funds. In that case, your account balance goes down to negative, and due to this Robinhood will prohibit you from purchasing the funds further.
So keep in mind, whenever you start trading on Robinhood, you must transfer your funds into your brokerage account timely. Once your balance reaches the negative value you will not be able to pay the brokers on time and even your advanced money offer will also be withdrawn from you. If your account balance reaches negative again and again, you will be banned from trading on the Robinhood platform.
So always take care of the account balance and maintain it properly.
Robinhood is also known for its safety and security. They always maintain the safety of their users, and if they find an extraordinary activity in their customer’s account they immediately prohibit that account from buying and selling stocks to keep the account safe.
They never bear anything unusual in their customer’s accounts, and once they are detected, they limit or restrict that account.
However the ban is temporary, you can recover your account by the end of the ban period by contacting the Robinhood Support Team.
Outdated account information is also one of the reasons that trigger the Robinhood system to ban your account.
Sometimes users give the old account information or the information they have given at the time of registration has changed then Robinhood’s automated system capture that info and bans the user’s account on the platform.
If your account details like address, contact details, or other important details have been changed, then it’s your responsibility to update the details in the Robinhood app, if you have failed to do this you have to bear the loss of Robinhood account restriction.
And check if you have previously entered the correct account details. If you submitted those details incorrectly and Robinhood finds it, then your account will be blocked immediately.
Sometimes users face the issue of not trading for a particular stock. If you declare yourself as an identity or a person controlling the company, you will not be allowed to trade specific stock in the Robinhood. Because the controlling person is the person at the top management of the team or owner. And Robinhood has the right to prohibit that person from trading subsidiary stock belonging to that company.
After prohibiting the controlling person from trading the particular company stock, Robinhood will go deeper and investigate if any kind of manipulation has been done in the stock. So if ever you claim to be the person controlling the company or stock you will not be able to trade the stock. And finally, Robinhood will block your account.
Just like other financial service platforms, Robinhood also has many rules and regulations for its customers. If any user violates its terms and rules, Robinhood has the right to suspend the account of that user. The account will be temporarily blocked from stock purchasing on the platform.
After violating the rules and regulations, Robinhood will never block your account immediately. The first trial is the fraud if it, and till then Robinhood will not allow you to trade on the platform.
Unsuccessful Bank Transfer is another reason behind Robinhood account restriction. If you fail to transfer your funds from your bank to Robinhood account, your account will be barred from purchasing stocks on the platform.
If you don’t have a bank account or credit card attached to the Robinhood app, you immediately need to aff your bank account details, so that you can transfer money from your bank account to your Robinhood account as soon as possible. Always submit the correct details in the app. If you fail to submit the correct details you will be banned from purchasing the stock on the app.
If your account falls under the above-stated reasons, then you can expect that Robinhood will restrict your account for 90 days without any purchase. But don’t worry, the account suspension in most cases is temporary, and you can regain access easily. But you have to wait for at least 90 days. So it is advisable that whenever you face Robinhood account restriction you must call their customer support team for any assistance.
And there are some cases where your account will be banned permanently, and in that case, you will not be able to regain access to your account.
So, always take care of the above-stated reasons and enjoy uninterrupted Robinhood services.
Hey Reader, Welcome to MyQuickIdea. I am Nikhil Saini, started MyquickIdea as a passion and now it’s now covering different topics like Blogging, SEO, Marketing, Technology, Finance, Stock Market, Fintech, etc. I always prefer pushing quality content for my readers. I hope you would be liking it.