Consumer complaint received 2021-02-08
Company: ROBINHOOD MARKETS INC.
State: LA
Product: Money transfer, virtual currency, or money service
Sub-product: Domestic (US) money transfer
Issue: Fraud or scam

Complaint:
Please read below. Robinhood lied in 2 responses. 1. Was that this had nothing to do with their financial ill will, the 2nd time they tried to say it was about their financial ill will. BUT, I gave them cash and never asked to use their margins. Please read : My Name is XXXX XXXX XXXX XXXX and I am a victim of the Robinhood disaster and Market Manipulation Scheme that occurred on Thursday XX/XX/XXXX. In the end, this Manipulation of the market and denial of my ability to purchase shares cost me a real loss of {$4200.00}. I am telling my story and circumstances here for both, the Attorneys in charge of the Class Action Lawsuit and to the Congress Members that will be involved, as Lawmakers and Defenders of the small individual that can't possibly defend themselves against these giant billion dollar corporations. Please help me and the people of the USA. 
After hearing about, and reading many reviews ( both good and bad ) of Robinhood, when I searched for a trading platform that I could trust, I opened an account with Robinhood on XX/XX/XXXX. I wanted to test the water before I placed more funds with Robinhood and see if their platform met my expectations and coincided with a stock trading class I was taking. I transferred {$1000.00} USD to them from my bank account. 

On XX/XX/XXXX, I transferred another {$5000.00} to Robinhood. I started making small trades through their platform from XX/XX/XXXX until XX/XX/XXXX. One of the reasons I selected this platform was because of their optional " Fractional Shares '' of a stock, and the ability to buy and sell Bitcoin with ease. However, before I was about to invest more of my cash into them, I wanted to test if what I had been told in reviews was true. I had read in a posts they are difficult to withdraw your own funds from. On XX/XX/XXXX, XXXX I decided to test them. I closed most of my positions, some at a little loss, some at a small gain. I had to leave {$1000.00} in stocks to continue. I withdrew {$5000.00} from my trading account. I was satisfied that my funds were in my bank account within 48 hours. Perfect situation. I then added these funds to my account with XXXX XXXX, where I had another {$20000.00} of funds and I had learned more complicated trading. I was doing okay with XXXX XXXX and enjoyed the trading, experience and trusted them. However, they lacked " fractional trading ''. 

After I had experienced a positive trusting relationship with Robinhood, I decided to switch back to them. At this time, I had started to study bigger stock trades and also wanted to be able to buy " fractional shares of XXXX, as an example. Realizing I had some pretty heavy goals coming up in XXXX, I started to realize I would need to meet the requirements of Robinhood. Robinhood, as other platforms require a client to have a min of {$25000.00} on hand to " day trade '', as I planned day trading in near future, I transferred {$5000.00}. back to Robinhood on XX/XX/XXXX. Then I transferred another {$1000.00} to Robinhood on XX/XX/XXXX with the intent to make sure I had the entire {$26000.00}. in funds and in time enough for Robinhood to release the funds for trading. Then, on XX/XX/XXXX, I took the big plunge and deposited another {$20000.00} ACH transfer from my XXXX XXXX  account. I was eagerly waiting for Robinhood to " clear to go '' of my {$20000.00} deposit. I did every single thing in proper order and did not plan to use any of Robinhood 's " Margin trading '' or any other form of credit. I basically gave Robinhood my entire {$27000.00} available for me in cold hard cash and trusted them with clearing my money so I could " freely trade '' within their own guidelines. At no time did Robinhood inform me that I could be denied making a " cash account '' only stock buying!!! I can understand " Margin Buying '' rules being changed- but, I clearly covered that and more importantly I trusted this platform with my entire account of {$27000.00} USD. 

During my time and trades with Robinhood, I had a good experience, I traded Bitcoin, various stocks both whole shares and fractions of. Here came the day that I had planned to make a large purchase of XXXX stock and XXXX stock on the morning of XX/XX/XXXX. XXXX. I woke at XXXX that day, and started to study charts and graphs, made coffee and was waiting the morning bell with eagerness. After all, I had done everything in proper order. I had transferred the cash in plenty of time, I was with a reliable broker - just a happy regular guy excited to make 2 big trades. I had already logged into my XXXX XXXX account to see the " Pre Market " price of XXXX. It was down all the way to {$260.00}. I sat there waiting for the bell, and was going to be completely ready to place a {$5000.00} Stock Purchase of XXXX and a {$2000.00} purchase of XXXX right after. Imagine my shock, when the entire stock ticker from XXXX had magically vanished off the Robinhood Platform!!! I couldn't believe my eyes. I wiped my eyes twice, I typed in the letters XXXX XXXX XXXX so many times, you would think I had lost my mind, all that came up was another stock called XXXX, for XXXX XXXX! I was in a state of shock. 

What could I do at that exact moment, it was XXXX XXXX ET. I felt like the kid who saved up all year for his Mothers XXXX Gift and had used a layaway plan at a retail store, only to arrive XX/XX/XXXX at closing to find they had sold my gift to another customer who paid cash for it an hour before my arrival. I felt like the guy who had made deposits in his account for a year to buy his new car when it came on sale, and the bank would not release the funds for a 48 hour period. I was beyond feeling robbed by Robinhood. 

This moment, this exact moment at XXXX XXXX, is when I felt the entire impact of the XXXX  and manipulation XXXX has behind it and that I I had heard and learned so much about.. I felt that the SEC had failed me, I felt Congress and our Government had failed me. After all, these agencies are in place to protect the common people from being robbed by big money corporations. I can't tell you the anger and sadness mixed inside me that day. I still have zero trust in any part of our Stock Market and the ability for the " Retail Customer " to be allowed to play in this arena. This jacked up system that has been allowed to operate by our Government is NOTHING but an illegally operated by billionaires robbery foundation designed to surpress the common every day man. 

Since this day, my eyes have been made wide open. I understand that Robinhood and other platforms can change some rules on margins and have certain credit clearing they need to do with investors- BUT, I was a " cash account " trying to buy a stock with my cash!! How wrong is this event? What Agency is going to protect me from a Company like Robinhood who is allowed to be so corrupt, to be so disorganized with their own funds, that are allowed to cut me off from using my own money? I could have understood if I was buying on a margin account, then cut me off from the trade making- BUT, I wasn't, I had trusted them with my cash- yet, I suffered under a policy decision they made earlier that day. Simple for them- rob everyone at the same time by making the product " vanish '' off the shelves! It's ludicrous, outrages and should absolutely be stopped. 

I later found out that this same SEC, designed to protect the American People from this, is the same SEC that is going to let Robinhood become an IPO! This is crazy. Is the SEC and all the Billionaires behind XXXX and our Government in cahoots to rob the American People that are less fortunate then them from the little we have? 

Upon further investigation, and realize I am not alone in this feeling- with blatant displays of public hate for Robinhood, I see people spending money to fly planes around XXXX XXXX with banners telling everyone the injustice we just got served. Will Robinhood get away with tis? Will myself and others robbed in their greedy hands that are held by Billionaire Hedge funds- be allowed to rob me and others? I learned more. That the Hedge Fund behind all these controls is controlling the stock with over 200 % of shorted sells that don't even exist! That these big wigs in XXXX are allowed to short stock shares that are not even in existence and can provide enough -or in this case hold back enough- funds from the platforms they work with to keep the little guy in control. Is this our system? Is this America? Is this still Trump 's America where the Billionaires control us? Have we not made a statement in our last election to stop this madness? It is this time at night I get down on my knees and I pray for the people like XXXX XXXX and the XXXX to finally put a foot down on this corruption. Please I beg to you- HEAR my prayer. Hear me- please make me whole again! 

Stop Robinhood from robbing the people with a license Stop the billionaires from having the exclusive right to control our Stock Market, Please, make it a free market that all can partake. This madness has to end. let this practice be exposed, let Robinhood and others like, be seen for what they are- crooks of the common everyday American trying to make it work! 

Sincerely, XXXX XXXX XXXX XXXX XXXX XXXX XXXX

Company response to consumer: Closed with explanation