Robinhood crippled by trading outage two days after data breach

abdelaziz Fathi

Clients of Robinhood are reporting problems using its trading terminals, which prevented some of them from trading as the US markets were opening.

Several users were complaining about problems logging into or using the broker’s platforms on Thursday, and complaints about reaching help phone lines also began to climb in the afternoon.

The no-fee app confirmed earlier that some clients were experiencing difficulty accessing their accounts on their site. They stated it was investigating and working to resolve the issue as soon as possible.

Robinhood tweeted that it had resolved the issue around midday. The brokerage made this announcement to its customers at approximately 04:25 GMT.

Robinhood then said the technical problems with the systems were resolved, and the service was restored to customers on a staggered basis, which is a normal procedure following an outage, a tweet from the firm’s Twitter account said around 6:35 pm.

According to Downdetector app, which offers real-time status and uptime monitoring for over 3,000 services, Robinhood users are not experiencing connection problems that involved the server connection.

Almost all major US brokers had difficulty just keeping their service online during the financial turmoil largely driven by coronavirus concerns. They often blamed the crashes on a steer trading volume and new account sign-ups, promising to improve their infrastructure and investing in additional redundancies.

As the time of writing, no other platforms reported issues though some of them were part of a similar multi-system market outage that affected the US major platforms earlier this year due to higher-than-usual trading volumes. Instead, some discount brokers bragged that its systems remained operational this morning, despite high traffic.

While online brokers routinely experience brief outages, it had not been common for several of them to happen simultaneously.

A fair number of Robinhood users were frustrated with trying to figure out how they had fared many times throughout last year. At the time, clients complained about not having access to their accounts and enduring long waiting times for customer service.

Robinhood’s CEO blamed the shutdown on volatile market conditions, record trading volume, and record new account requests, which caused stress on the company’s infrastructure.

Robinhood, which was just hit by a security breach that has exposed personal data of more than seven million people, was already the subject of an investigation by the SEC and FINRA regulators into its handling of outages on its platforms.

The probes were also extended to brokerage accounts that were compromised by an attack that gave hackers the ability to take over users’ trades and funds in 2020.

Read this next

Institutional FX

LME CEO quits to join crypto custody firm Komainu

The London Metal Exchange (LME), which is wholly owned by Hong Kong Exchanges and Clearing  (HKEx), today announced the departure of its current CEO Matt Chamberlain, who also retires from all his positions within the HKEX Group including his role at the management committee.

Digital Assets

SEC denies First Trust Advisors-SkyBridge application for Bitcoin ETF

The US Securities and Exchange Commission (SEC) has again rejected another bid to list a spot bitcoin exchange-traded fund (ETF), which is widely seen as a proxy into crypto for millions of retail investors.


Crypto fund Modus.Trade taps Gold-i to manage its technology infrastructure

Modus.Trade, which operates an investor network, online learning platform, and suite of algorithmic trading strategies, has selected FinTech company Gold-i to manage its entire technology infrastructure.

Industry News

Ripple’s “biggest victory” triggers XRP Holders’ request for unprivileged SEC meetings

“The biggest victory for Ripple and XRPHolders, from Judge Netburn’s recent decision, isn’t necessarily the email with the Draft version of the Hinman speech.”

Retail FX

Fintech Alpaca poaches Pepperstone Cyprus head Victor Zachariades

Victor Zachariades, who joined Pepperstone in 2019 to head up its Cyprus operations, has left the FX firm to join Alpaca, a stock brokerage that allows developers to build apps, services, and trading platforms.

Industry News acquires HyperCharts to improve broker’s data visualization

“One chart is worth 1,000 numbers. We built HyperCharts to make financial analysis easy, fun, and approachable for the masses by turning complex SEC filings into simple, interactive charts.”

Institutional FX

FX HedgePool launches mid-month roll cycle for better pools of peer liquidity

“By introducing this new cycle, we’re offering the buy-side greater choice with respect to accessing safe and transparent pools of peer liquidity.”

Digital Assets

Robinhood launches Beta version of crypto wallet

Wallets will allow Robinhood users to send and receive their crypto from Robinhood to external crypto wallets, fully connecting Robinhood crypto holders to the greater blockchain ecosystem for the very first time – a major milestone for the broker’s venture into crypto.

Industry News

JKO Play drops out of running to acquire Playtech

A consortium called JKO Play, led by former Formula 1 boss Eddie Jordan and gambling industry veteran Keith O’Loughlin, has pulled out of the race to acquire Playtech.