It is no secret that innovation in the financial market is having a major impact on the traditional financial services industry.
Every next day of the financial market starts with the new strategies of thinkers that give rise to new ways of getting profit from the market. And in this race, many new investments apps, savings apps, robot investment plans, budget apps, cryptocurrencies, and new online brokerages take active participation to mutually earn profit from the market.
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To attract young customers or investors, many investment apps come forward. And to win this cutthroat competition they reduce the minimum deposit criteria and commissions are reduced to zero.
And whenever we talk about commission-free trading, Robinhood is the name that first comes to every investor’s mind.
Robinhood is a pioneer in this innovation in the financial services industry. Just as Uber changed the way people use taxis, Robinhood changed the way people invested. It aims to be “easy, friendly, and accessible” to its 21 million customers and more than $ 102 billion in assets and its customers.
With that number of users, you might ask, how long does Robinhood take to review your application?
Let’s find out.
Around 5-7 days.
Robinhood for a process to review your application status. To review your profile and content to activate the account takes approximately 5-7 days. This process applied to those applicants who submit the information required to set up their accounts.
After successfully submitting the required details within a working day on the Robinhood app or as per the requirement needed to submit the extra information for approval the users will receive a confirmation mail.
The review process sometimes does not go as smoothly as we want to, you may face some problems during the application review process, which may extend the time taken in acceptance of the account. Always remember to submit your complete documents otherwise Robinhood may deny your access.
What are the Issues in Robinhood Application Review?
Let’s know the issues in Robinhood Application Review:-
Fails to Submit Proper Personal Information
Sometimes users fail to submit the information that is required as per US government laws and FINRA regulations. If you are a trader you must submit specific personal data including Financial and Tax information.
Robinhood comes under the SEC Customer Identification Regulation of the USA Patriot Act 2001. As per the rule, Robinhood has to establish procedures to verify the identities of those users who want to open an account on their platform.
Robinhood collects all the information to assure that you meet all the regulatory requirements stated on the website.
If you lack some information, Robinhood may take some time for your account to begin submitting this required data.
Fails to Connect with Customer Support
For those who have trouble submitting important information and need to contact Robinhood Customer Support, you need to have waited in the queue.
It is very frustrating to get customer support via mobile phone for many new customers who want to open an account with Robinhood.
Every financial institute tries to provide the best customer service, but at Robinhood, there is a shortage of customer support staff. Whenever you call customer support you have to wait for so long with the pre-recorded message that redirects you to submit important information to your email or other channels, such as the app.
You can never directly connect with a customer support system instead you have to go through long procedures.
Why is the Robinhood Platform Unique?
Despite a lot of issues, Robinhood has a lot more to offer and that is the reason it claims to have millions of active investors.
Sometimes you might be wondering why you need to wait for days before getting approved even on the platform with millions of investors. Wait buddy, Robinhood offers some amazing features that make it one of the best platforms for investing.
Before investing every investor should be confident and assured about his investment.This thing applies to both new and old investors.
For the customers who choose the cash management option while participating in IntraFi Network Deposits (INDs), also known as Deposit Sweep Programs, the invested cash is automatically transferred to or through traditional banks. The deposits can be transferred through the network.
For the customers who choose the cash management option, Robinhood allows them to deposit their cash in conventional banks. Those customers were then provided with FDIC insurance up to a maximum of $1.25 million.
customers should understand that Robinhood is not a bank, but offers cash management features. It is a part of the brokerage account program they have started by collaborating with banks.
As per the calculations, these are around $ 250,000 per bank, including existing deposits with the same proprietary bank.
Besides, Robinhood guarantees customer protection as it is a member of SIPC. And with this, it saves around $ 500,000 which includes even claims of around $ 250,000 in cash
Always remember that the SIPC protection given by Robinhood is only effective when cash is swept to a program bank rather than deposited in a program bank. You will also get the debit card issued by Sutton Bank.
Smooth and Flexible Interface
If you are a first-time Robinhood user, you must agree on the point that Robinhood has a very smooth and flexible interface. Even a beginner can easily understand the app and its features, its usage, etc.
And if you are an advanced user you will also be attracted by its interface. You will get a list of advanced stocks and if you hover over that option and click it once you will get a green button stating “Trade”. These all things make this app an exceptional one.
For customers who want to trade, some questions need to be answered before proceeding.
Is the Robinhood app friendly to both experienced traders of beginners?
Let me clear here, Beginners are generally barred from trading, due to some legal options. But at Robinhood if you choose the beginner option you will not be barred, instead, you will be provided with the proper training and they will take care of your privacy and investment too.
Robinhood has a Bigger Community
Robinhood claimed that they have more than 13 million registered accounts, and its biggest rival Schwab has around 12.5 million accounts. Now you might understand the difference.
Robinhood has attracted many venture capitalists including bigger names such as New Enterprise Associates and Sequoia Capitalists. They invest around $1.3 billion in Robinhood.
What are the Downsides of Robinhood?
Together with lots of eye-catching features, Robinhood also has some downsides. Let’s take a look at them.
Robinhood always claims that they have the best software, but in 2018 they have faced a problem with their software. They have released a software update that changed the direction of trading options. Which resulted in opposite outcomes. Consumers were getting the opposite results as per their expectations. Just after that, in 2019 they have also faced a software glitch that allowed the customers to bet on an infinite amount of money, which results in high gains and losses.
Since march the Robinhood website faced around 47 collapses. Even in August 2020, they have faced another similar break and the company was freed from all the challenges faced by customers through the terms and conditions and signed electronically by each of its clients who were using their platform.
To remain in competition businesses must adopt the new technologies, and the same goes with these financial apps. Creating a trading platform requires a thorough understanding of customer requirements. And when customers face glitches they likely move towards other apps.
Robinhood also needs to reduce its application review time. But if we left this point, we will find some amazing features offered by Robinhood as we have discussed in this blog.
Hope you like the information we have discussed. If you still have any query just comment below we will try to solve them out.
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.