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Basically because they cannot provide real time trades to them so they can monitor if you are in compliance of their policies. All major brokers do this for big companies. Robinhood can’t or refuse to do
I had to close down my Robinhood when I became an RR early 2022 for the same reason. I had checked at the time and Robinhood said they actually were able to send the data feed to our firms but my firm at least wasn’t interested in hearing that.
I think there are other relevant factors though. For example Robinhood does not allow “professional users” to trade options (or view options on Robinhood), and of course not IPOs either. Also, if a Robinhood user is an RR somewhere else and gets referral stock bringing someone to Robinhood that sounds like “selling away”, and they might not have written supervisory procedures to stop that.
This is a normal compliance issue at any major brokerage firm. Basically, if you have brokerage accounts with the ability to trade stocks, bonds, options, etc., where you have the ability to make your own investment decisions, they have to be at the firm you work for.
Never been at Goldman, but from my understanding companies want to protect themselves. Risk management and avoiding conflicts of interest, Robinhood is still seen as new and very different from more traditional platforms. I think there are actually multiple companies that do not allow them as an approved broker.
Not approved at JPM too. I think it’s more because we cannot track activities on Robinhood somehow so they don’t allow people to trade there at all.
GS is mandating I close the account or transfer to fidelity (no other broker is allowed)… does this sound accurate to anyone at GS?
This was the same for me at BofA
Pretty standard. And if you’re coming from consulting make sure to preclear trades and/or follow whatever your roles trading compliance rules are
JPMorgan did this to me
i am 99% sure it has to do with monitoring your personal trading accounts. Investment banks have deals with consumer brokerage providers to share data on employee orders, trades, and positions. That data will be fed to the control room to screened again restricted lists to identify potential insider trading. Either Goldman didn’t want to pay Robinhood for this data feed, Robinhood doesn’t have those capabilities, or some combination of the two.
It's not approved by fidelity neither.....I think it has to do with them offering crypto and regular investments all on 1 platform
Also not approved at my bank, had to close my robinhood account
Because it is a brokerage firm and 407 liable
Same happened here at BofA
Thanks all. I understand if RH is not an approved broker (although it was approved at my previous bank), but the issue here is that Fidelity is the only broker that GS is allowing.
Can anyone at GS confirm this?
Dude you work there, listen to compliance or ask your manager vs asking randos on an anonymous app
Why would you disclose it?
I am registered with FINRA..
If you have a Series 7 & 66, Robinhood would not be approved at any brokerage. UNLESS, you have investments that the brokerage you work for does not sell, such as alt coins. One can still have a HOOD account holding even a de minimis amount of alt coins. Same applies if you have proprietary investments at a hedge fund company or a PE firm. BE SMART, STAY SHARP
Probably because they can’t track your real time trading activities like they can for the brokers they approve. This is standard practice.
Politicians should be subject to same thing. Tbh.