Robinhood is a popular investment app used by millions of people across the world.
Robinhood is the preferred stock trading and investing app among traders and investors because it is user-friendly, quick to execute trades, and can yield significant profits if used correctly.
Because of this, most Robinhood account holders would rather not have any restrictions placed on their brokerage account, even if they know those restrictions would be eliminated in the future.
If you’ve been hit with the “Robinhood account is restricted” message, you’ve landed in the right place. Everything you can do to fix this problem will be covered in this article.
Everything you need to know about using Robinhood to trade stocks is covered in this article.
Why Does My Robinhood Account Have Limits?
There are currently quite a few causes for the Robinhood account restriction issue you’re experiencing.
As it happens, the Robinhood business is subject to the same rules and regulations that apply to all US-based brokerage houses.
During regular market hours, you can complete a variety of tasks, including crypto trading, day trading, and more.
If Robinhood suspects its users, however, it will either freeze their accounts or disable their ability to trade stocks.
Robinhood has the right to disable any of its functionalities at any time, for any reason.
Robinhood gives you the option to view your account balance at any time. If you find that access to your account has been limited, it could be due to any of the following three reasons:
- Money has been placed in your account in under a week.
- There has been more than one cash withdrawal in the last six days
- Within the past three days, you have not deposited any money into your account.
Furthermore, suspicious activity may result in a suspension of your account.
If this happens, contact Robinhood’s customer support and answer several questions so they can unblock your account.
For how Long will My Robinhood Account be Temporarily Disabled?
The length of time your Robinhood account is disabled due to a restriction is subject on the underlying cause of the restriction.
The length of any suspension for service violations is proportional to the severity of the violation and the number of prior suspensions for the same violation.
If you violate the rules more than once, you can expect to have access to your account limited or perhaps deleted.
If your account was locked to prevent fraud or due to a banking issue, you should be able to log in again in a matter of days.
Anything that necessitates additional information from you, such as a problem with your bank, could lengthen the time it takes to resolve the same.
Why can Your Robinhood Account have its Buying Privileges Revoked, and what Might have Caused this? What Sorts of Solutions can be Expected?
A restricted Robinhood account can understandably cause anxiety for regular users of the programme.
However, there is no need for alarm. In this article, you will learn everything you need to know about this issue, including its root cause and potential solutions.
Finding effective solutions for this problem, which affects both traders and investors, requires first tracing its roots. Let’s keep reading to find out more:
1: The Attempt To Make A Bank Transfer Did Not Complete
In some cases, Robinhood will provide a warning if you haven’t linked your bank account to it and transferred funds there.
This issue is prevalent in all forms of banking and credit card systems used for trading stocks and cryptocurrencies.
If that happens, you’ll need to find another means of payment. This should allow you to remove any limitations on your Robinhood account.
If you don’t fill out the Robinhood app correctly, you risk having your account frozen and being unable to trade or do anything else within the app.
2: Restricted Access to a Particular Stock
You are required to identify yourself as a control person if you are the owner or chief executive officer of a company.
When this happens, the programme will limit your access to some tools you normally use when trading.
It is possible that you will be prevented from manipulating a certain stock on all of your platforms if you have been barred from trading in that stock.
Limiting access to your Robinhood account will stop you from buying and selling shares in your company, protecting it from manipulation.
Such a ban, alas, cannot be abolished. You can start fresh with Robinhood if you like.
3: Your Account Has A Negative Balance
Running a negative Robinhood balance indicates that you are unable to meet your financial obligations to Robinhood’s broker partners.
Due to this, you will be unable to make trades in Robinhood until you deposit funds.
No amount of trying to tackle this issue will help if you can’t fund your Robinhood account.
Your first order of business is, of course, to fund your Robinhood trading account. Your Robinhood access will be limited if there are insufficient money in your account.
4: Detection of Suspicious Activity
Restrictions are a fact of life on financial platforms, and they are widespread. If you utilise a service like Coinbase and there is suspicious behaviour on your account, the service may suspend your account.
If Robinhood also discovers questionable activity, it will do the same. Temporary restrictions are usually simple to remove.
Contact the service’s help desk operators and explain the situation to them.
5: Out of Date Statistics
This is a regular problem that can severely restrict your Robinhood account. You may have limitations in the Robinhood app if you haven’t recently updated your information and data.
This could be because you are using an old bank account or credit card that has since expired.
To avoid having your Robinhood account frozen for not complying with Robinhood’s security measures, it is recommended that you update and/or correct the information in question.
The only thing left to do is log into your Robinhood account and make the necessary changes there.
Be cautious to enter the correct data because Robinhood uses an external app to verify your account information.
Why Can’t You Invest in Cryptocurrency Using Your Robinhood Account?
There are a number of reasons why you may not be able to buy or sell bitcoin using your Robinhood account. The most typical cause of this is an unverified Robinhood account.
Your name and social security number, among other pieces of identification, are needed to validate your Robinhood account.
The verification of your Robinhood account may require additional information.
Another reason you might not be able to utilise bitcoin on Robinhood is if the app’s cryptocurrency trading services are not permitted in your state. There are currently 30 states where Robinhood customers can use its cryptocurrency trading services.
To see if a platform for crypto trading is available in your region, go here.
As a final cause, your Robinhood account may have been marked for suspicious activity, which would restrict your access to the platform.
Any Suggestions on how to Get Rid of Robinhood’s Day Trading Limits?
You must provide accurate information before Robinhood will remove the day trading limits from your account.
For instance, there are three primary principles to adhere to in order to be in accordance with security regulations; nevertheless, day trading is not considered to be part of the safety strategy.
Before you can engage in day trading in the United States, you will need to provide stringent assessment by brokerage firms and some documentation in accordance with US securities law.
Doing so is crucial, as it will provide you an edge in the marketplace.
Finally, you should be aware of the dangers inherent in day trading in real time, especially around major events, times of high volatility, and the like.
Why have Restrictions been Placed on Your Robinhood Account, If not for these Reasons?
There are, of course, many other possible explanations for the suspension of your Robinhood account.
If you’ve eliminated the aforementioned possibilities and the restriction persists, you should contact Robinhood immediately.
You should keep in mind, however, that Robinhood has a rather open policy on the limitation of user accounts.
Therefore, if you wish to get those limitations removed from your Robinhood account, you’ll need to follow the guidelines very carefully.
Summary and Conclusions
Clearly, Robinhood is a cost-free trading platform where you can engage in trading activities.
However, there are a number of reasons why withdrawals or purchases might be denied to you.
The aforementioned solutions can be used if you wish to unblock your Robinhood account, increase your buy limit, or withdraw funds without any more restrictions.
You can always contact Robinhood’s customer service team for assistance if you still have trouble removing the limits from your account after using the aforementioned methods.
