Exhibit B (Dkt. 409-2, S.D. Fla.)
Summary
Exhibit B (Document 409-2) in Case 1:21-md-02989-CMA, entered on the FLSD docket September 21, 2021, is the Robinhood Financial LLC Form CRS Relationship Summary effective June 30, 2020. It states that Robinhood Financial is registered with the Securities and Exchange Commission as a broker-dealer offering brokerage services to retail investors exclusively online, buys and sells securities only at the customer's direction, does not offer recommendations or monitor accounts, and custodies funds and securities with its affiliate Robinhood Securities, LLC, which services the account. The form states that Robinhood does not charge commissions for executing buy and sell orders, that the primary fees are Robinhood Gold Fees for premium features and margin interest charged by Robinhood Securities, and that the way it makes money may create some conflicts with the customer's interests.
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“Exhibit B (Dkt. 409-2).”
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Case 1:21-md-02989-CMA Document 409-2 Entered on FLSD Docket 09/21/2021 Page 1 of 3
EXHIBIT B
Case 1:21-md-02989-CMA Document 409-2 Entered on FLSD Docket 09/21/2021 Page 2 of 3
Robinhood Financial LLC Form CRS Relationship Summary
Effective June 30, 2020.
1. Introduction.
Robinhood Financial LLC (“Robinhood Financial”, “we,” “our,” or “us”) is registered with the Securities and
Exchange Commission as a broker-dealer. Brokerage and investment advisory services and fees differ; and it is
important that you understand these differences. Free and simple tools are available for you to research firms and
financial professionals at Investor.gov/CRS, which also provides educational materials about broker-dealers,
investment advisers, and investing.
2. What investment services and advice can you provide me?
Robinhood Financial offers brokerage services to retail investors. Our services involve effecting securities
transactions for investors exclusively online. We buy and sell securities only at your direction and we do not offer
recommendations of securities, strategies involving securities or securities accounts to you. We do not monitor your
account or individual investments, unless we state otherwise in writing. We do not have any account minimums. We
offer access to investment tools and education to help you make investment decisions, but this information is for
informational and educational purposes only.
Robinhood Financial is an introducing broker-dealer. Your funds and securities will be custodied by our affiliate,
Robinhood Securities, LLC (“Robinhood Securities” and together with Robinhood Financial, “Robinhood”), which
services your account by executing, clearing and settling your trades; preparing and distributing your account
statements and trade confirmations; and extending credit to margin accounts.
We offer NYSE- and NASDAQ-listed stocks, exchange traded funds (“ETFs”), options and American depositary
receipts (“ADRs”), as well as certain stocks and ADRs traded in over-the-counter markets. We also offer fractional
shares in many of the same stocks, ETFs, and ADRs. We do not offer proprietary products or limit our platform to
products that pay us revenue sharing or other compensation.
For more information about our products and services, please visit our website at robinhood.com/us/en/about.
Conversation starters: Given my financial situation, should I choose a brokerage service? Why or why not? How
will you choose investments to recommend to me? What is your relevant experience, including your licenses,
education and other qualifications? What do these qualifications mean? Responses to these questions can be found
at: rbnhd.co/crs-rs.
3. What fees will I pay?
Robinhood does not charge commissions for executing buy and sell orders. Other fees will apply. The primary fees
you should expect to pay us include:
Robinhood Gold Fees: Robinhood charges a monthly fee for access to premium features such as bigger
instant deposits, professional research from Morningstar, and Level II NASDAQ market data, as disclosed in
the Robinhood Fee Schedule.
Margin Interest: Robinhood Securities charges a percentage on funds you borrow to purchase securities in
a margin account.
You will pay fees and costs whether you make or lose money on your investments. Fees and costs will reduce
any amount of money you make on your investments over time. Please make sure you understand what fees
and costs you are paying.
For more information about fees and costs, please refer to the Robinhood Fee Schedule on the Robinhood mobile
application (“App”) and website. Fees may change without notice and any changes will be reflected in the
Robinhood Fee Schedule.
Conversation starters: Help me understand how these fees and costs might affect my investments. If I give you
$10,000 to invest, how much will go to fees and costs, and how much will be invested for me? Responses to these
questions can be found at: rbnhd.co/crs-rs.
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Case 1:21-md-02989-CMA Document 409-2 Entered on FLSD Docket 09/21/2021 Page 3 of 3
ROBINHOOD: RHF FORM CRS RELATIONSHIP SUMMARY
What are your legal obligations to me when providing recommendations? How else does your firm make
money and what conflicts of interest do you have?
We do not provide recommendations. The way we make money may create some conflicts with your interests. You
should understand and ask us about these conflicts because they can affect the services we provide you. Here are
some examples to help you understand what this means:
Cash Management - Cash Sweeps
Each bank that participates in the Robinhood cash management program (called the “Sweep Service”) that
receives sweeps of your cash awaiting investment in securities into deposit accounts (“Program Bank”) pays a fee
to Robinhood equal to a certain percentage of the daily deposit balance of your cash deposited at the Program
Bank. These fees may vary depending on the Program Bank. This creates an incentive for us to use Program Banks
that pay greater compensation to us however, all Program Banks pay the same interest rates to all customers. The
interest rates on your funds deposited at a Program Bank will be determined by the amount the Program Banks are
willing to pay minus the fees paid to Robinhood. The interest rates paid by a Program Bank may be higher or lower
than the interest rates available to depositors making deposits directly with a Program Bank or other depository
institution in comparable accounts. Over time, the interest rates provided by Program Banks may be lower than the
rate of return available through other investment options or deposit products that are not FDIC insured.
For more information about the Sweep Service, please refer to the Insured Network Deposit Sweep Program
Disclosures available in the Robinhood Disclosure Library. Specific information about your deposit accounts may be
found on the Robinhood website, App, or by e-mailing help@robinhood.com or visiting robinhood.com/contact.
Examples of other Revenue Robinhood Receives:
● Interest on uninvested cash deposited in interest-bearing bank accounts outside the Sweep Service.
● Stock loan income from lending the stocks you purchase on margin.
● Interchange fees from purchases made by you with the Sweep Service debit card.
● Rebates from market centers to which we route customer orders.
Conversation starters: How might your conflicts of interest affect me, and how will you address them? Our
response to this question can be found at: rbnhd.co/crs-rs.
For more information about conflicts of interest, please visit the Robinhood Disclosure Library.
How do your financial professionals make money?
Robinhood Financial professionals do not receive commissions or other compensation related to client assets or
clients’ investment activities. Robinhood Financial professionals receive salaries and bonuses that are based on
their overall job responsibilities and performance.
4. Do you or your financial professionals have legal or disciplinary history?
Yes. Visit Investor.gov/CRS for a free and simple search tool to research Robinhood and Robinhood Financial
professionals.
Conversation starters: As a financial professional, do you have any disciplinary history? For what type of conduct?
Our responses to these questions are found on our website: rbnhd.co/crs-rs.
5. For more information about our services or financial professionals or to request an up-to-date version
of this Form and our Written Responses, please email help@robinhood.com or visit robinhood.com/contact,
or call (650) 772-5277.
Conversation starters: Who is my primary contact person? Is he or she a representative of an investment adviser
or a broker-dealer? Who can I talk to if I have concerns about how this person is treating me? Our responses to
these questions can be found at: rbnhd.co/crs-rs.
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