Robinhood is safe for investors. The company provides security protection for its users. It also encrypts personal information to prevent hackers from stealing it. Accounts on Robinhood are protected by the Securities Investor Protection Corporation (SIPC). The SIPC was formed to help investors who struggle in their investments. It does so by restoring investor funds up to $500,000 for securities and $250,000 for cash payments. Financially troubled brokerages will appreciate this assistance. Robinhood also has up to $1.5 million for cash and $10 million for securities protection per customer by partnering with underwriters at Lloyd’s of London. This protection is triggered when SIPC coverage runs out. While these protections are in place, investors can still make financial mistakes. This can’t be blamed on Robinhood.