Why Does Robinhood Need My SSN?
For many, the Social Security Number is one of the most sacred personal documents.
So, whenever someone asks for our personal data on the internet, we might feel insecure.
Robinhood is an enormous trading platform and online broker where you can purchase, trade, and sell stocks using the services of the company.
Being a centralized and regulated service, then they will obviously request a valid Social Security Number the moment you decide to complete the registration process.
But, why exactly do they collect this data?
You are about to find out.
In this blog post, we will review the reasons behind Robinhood asking for your personal SSN.
Keep reading to learn more about:
- Why does Robinhood need my SSN?;
- Do I really need to provide my SSN before investing?;
- Benefits of verifying your identity for using Robinhood services.
Does Robinhood Ask For SSN?
Yes, it does. The moment you sign in to the Robinhood app, the platform will ask you for your personal information.
If you want access trades features, history transactions, stock trading, crypto investments and other options, you need to comply with this rule - as simple as that.
Pro Tip: You Can’t Withdraw Money from Robinhood if you fail to verify your account identity.
Likewise, most cash-related features won’t be available without providing your Social Security Number. Thus, it’s important to complete this review process.
Why Does Robinhood Need My SSN?
Well, there are three main reasons why the Robinhood broker company needs your SSN.
Before proceeding, it’s important to mention that a Taxpayer Identification Number is not accepted on the platform.
Nonetheless, <strong>tax documents</strong> need to be reported by users according to the IRS government law, so there’s no way around taxes on this company.
Read Also: Before withdrawing money from your Robinhood account into your bank, you first need for the settlement rule to complete on the app.
If you have Unsettled Funds on Robinhood, read our related blog post to learn more about the status of your money.
1. Securities and Exchange Commission Laws
According to the TEC and government rules of the United States, no company can perform anonymous financial investing, trading, or any other kind of stocks investment operation without completing a KYC identity verification process.
A customer must be an American citizen, permanent resident, or visa holder in order to go on with businesses inside the platform.
2. Anti Money Laundering Measures
Customer identification rules are not only meant for tax report purposes, but to have a more secure platform for all users.
Money laundering is a severe issue addressed by the US government.
It’s fundamental to have all sources of income protected from this illegal activity, which might cause severe damage to everyone.
Likewise, Robinhood might as well Restrict Your Robinhood Account from Purchasing in case they notice something weird going on inside the app.
Thus, they need to collect as much account information as possible.
Better be safe than sorry when it comes to security!
3. Determine Investment Suitability
The broker must be in a good position before accepting a new account into their platform.
Therefore, they need to collect as much information from you as possible, including your Social Security Number.
As a consequence, the investment suggestions on your account will match your capability without putting your finances at risk.
These security measures are meant to protect you, not to control you.
Note: Protecting your Robinhood account it’s necessary. That’s why setting up strong passwords, and two-factor authentication is a must before starting to purchase stocks on the platform.
Learn more about these security measures here: Robinhood Two Factor Authentication.
Benefits of Providing Your Social Security Number to Your Robinhood Account
Completing this important security procedure will allow you to make everything you want to Robinhood:
- You’ll be able to Withdraw Money from Robinhood directly into your bank account;
- All trading options will be unlocked for you to use them;
- Opening a Gold or an Instant account will allow you to get even more benefits from the stocks you trade.
That being said, providing your SSN will make using Robinhood an efficient, easy, and profitable experience for you.
Is Robinhood Safe to Give SSN?
Yes, it is. All your information will be immediately encrypted after being received by the platform.
The Transport Layer Security protocol works with up-to-date configurations that will keep your data safe and sound at every time.
Final words - Robinhood is a trustable broker and financial platform that needs to comply with different laws in order to protect their community.
So, providing your SSN is necessary, and it’s totally worth it.
That’s all for today! If you want to receive more up-to-date Robinhood information, then you can always count on GrowFollowing.
Check out our other articles to learn more!
Robinhood SSN FAQ
Is Robinhood Really Commission Free?
Robinhood claims to offer a zero fees platform, but there are some fees related to deposits and trading activities.
Nonetheless, these are minimal if we compare them to other brokers.
Learn more about Robinhood Fees here.
Is it Legally Required to Provide My Social Security Number to Robinhood?
You are not entirely legally required to provide your SSN, but you can’t bypass this step on your account.
If you want to use Robinhood Financial services, then this is a must.
Steve specializes in cryptocurrency and finance. As a born researcher, he won’t leave any stone unturned when it comes to topics he covers.