No, that was negligible. Robinhood actually fronts the least money out of all major brokers (something like $1000). And if that was the case the easy solution would be to block trades if your account didn't have the sufficient settled balance.
> Robinhood actually fronts the least money out of all major brokers (something like $1000).
None of the brokers I have ever used have ever fronted me money. If the required equity isn't going to be in the account by the settlement date, they won't spot me so much as a fiver.
There's an argument to be made that Robinhood Instant is a violation of federal margin regulations because it allows margin risk to be taken in an account with no settled equity.
I can transfer $100K (or maybe more) from my bank into Vanguard right now and trade using it instantly while they wait 3-5 days for the deposit to clear. It is definitely a common practice among the larger brokers.
