Why is My Robinhood Account Restricted?

It is not uncommon for a person's account to be restricted on the popular stock trading app, Robinhood.

There are a variety of reasons that could get a user's Robinhood account restricted and it is important to understand each one in order to take the necessary steps to remedy the situation.

In this article, Robinhood account restrictions can be frustrating - we know! We will explore some of the most common reasons why you might be asking 'Why is my Robinhood account restricted?' and what you can do to fix them.

What is Robinhood and what does it do?

robinhood logo and phone app

The Robinhood app is an innovative online brokerage firm that allows users to trade stocks, options, ETFs, and cryptocurrencies with no commissions or fees.

Unlike traditional brokerages, Robinhood does not charge trading fees or require a minimum balance for opening an account. It also offers crypto trading services.

This makes it attractive for users who are new to investing and don’t want to be bogged down with hefty fees. Plus, Robinhood offers a variety of features like real-time market data and insights, so you can make informed decisions when trading. And with the Robinhood learning center, novice investors can get up to speed quickly. If you want to know what would happen if Robinhood went bankrupt, check out our article - What Happens To My Stocks if Robinhood Goes Under or Bankrupt?

What are the benefits of using Robinhood over other stock trading apps like E-Trade or Scottrade

trader looking at charts on phone

Robinhood is a revolutionary free trading platform that has advantages over other apps. Not only does it provide users with the ability to make investments without paying any commissions or fees, but it also offers a wide range of in-depth research and analysis tools to help them make informed decisions.

Save money on commission fees

The cutting-edge platform has become a favorite among cost-conscious investors, as it eliminates the expensive fees associated with traditional brokers and allows individuals to make stock trades without breaking the bank.

Get real-time market data

The app eliminates the need for complex financial instruments by providing a simple, straightforward way to invest in stocks in a familiar bank account style format. Robinhood provides users with up-to-date information on a variety of stocks, allowing them to make well-informed decisions.

What are some of the reasons why an account might be restricted on Robinhood?

sad wall street trader on stairs

There are a few reasons that can get your Robinhood account restricted:

It could be linked to another brokerage

One reason might be if the account is associated with another brokerage account.

If the account is associated with another brokerage account, it could cause restrictions to be placed on it. This might be because the other brokerage account may have different rules and regulations that apply to it, or the two accounts may be linked in some way.

For example, if the other brokerage account has a higher risk level than your own and you are trading with the same funds, it could cause restrictions to be placed on your account.

Your account may not be verified

Another reason might be if the account has not been verified.

Accounts that have not been verified can sometimes be subject to restrictions. This is usually the case when the platform has certain security measures in place that require users to verify their accounts before they can access certain features.

Without verification, an account may be limited in terms of the information it can view, the opportunities it can take advantage of, the bank account transfers it can make, or the trades it can make. This could happen because of a failed bank transfer, or fraudulent activity.

You may be overtrading

A third reason that might get your Robinhood account restricted is if you are found to be overtrading a particular stock or day trading.

This is a situation in which an individual is day trading too often or with too much money, or you lose too much funds by and enter a negative balance, and the platform sees this as potentially risky behaviour.

As such, they may limit your Robinhood account by making it restricted from purchasing or buying stocks until you can show that your trading activity is within acceptable limits of risk management.

You might have too many failed login attempts

A final reason for a restriction on an account might be if there have been too many failed login attempts.

If you have tried to login to your Robinhood account too many times and it hasn't worked, your account might be restricted.  

Don't worry though – it just means you have to try a different way of logging in.  Sometimes you might have to reset your password if you can't login.

If this doesn't work, don't worry! You can contact support or a control person during trading hours for help within the Robinhood app.

How can you tell if your Robinhood account has been restricted and what to do about it

How can you tell if your account has been restricted?

It can be difficult to tell if your Robinhood account has been restricted, but there are a few key signs to watch out for.

If you’re no longer able to login, it may be because the service or platform has placed a restriction on your account. Another indication is that you won’t be able to access certain features or  functions that you normally would.

If your account access is disappearing or being removed, then this is another potential sign that your account has been restricted.

Finally, if you start receiving messages from the platform’s customer service team asking why you’re using their services in a way they don’t feel is appropriate, it may be time to consider that you’ve been restricted.

Always remember that the best way to avoid getting your account restricted is to play by the rules and stick to the guidelines set out by each service or platform!  

What can you do about it?

If your Robinhood account has been restricted, it can be a worrying and confusing time. It’s important to understand why your account has been restricted and how you can potentially restore access.

First, investors should contact the customer support team at Robinhood to find out more information regarding the restriction placed on their account before they transfer money or sell s. They can explain why your account was restricted and what steps you can take to restore full access.

It may be something as simple as verifying your identity with the platform, or it could be more complicated. Regardless, the customer service team can help you get to the bottom of it.

If your Robinhood account restriction is because brokerage firms suspect suspicious activity, then they may ask you to take additional steps. This could include demonstrating that you are who you say you are and confirming financial information such as your bank account numbers or other sources of income.

Now you understand the reasons behind restrictions, you won't need to ask - 'Why is my Robinhood account restricted'.

What alternatives do you have if your account is restricted on Robinhood

example of an alternate app to robinhood

If you have a Robinhood account and find the account status is prone to account restrictions, there are several alternative stock market trading platforms you can choose from.

One option is E*Trade, which provides an easy-to-use platform that includes tools like real-time quotes, customizable watchlists, and virtual trading to help you practice before using real money .

If you're looking for a more advanced experience, TD Ameritrade is another great option. It offers 75 commission-free ETFs and over 200 commission-free stocks, plus trading tools like charts and learning resources to help you become a savvy investor.


Robinhood account might be restricted because of the company's efforts to comply with government regulations. You may be able to take some actions to help unblock your account.  For instance, you can make sure that your contact information is up-to-date and try to provide additional documentation if needed. If that doesn't help, then don't fret!

It can be quite frustrating if you're thinking 'why is my Robinhood account restricted', but it's important to remember not to worry and reach out to the customer service team for assistance. By doing so, you may be able to provide more information or additional documentation that could help unblock your account. Make sure you continue to file your taxes on Robinhood too - What Happens if You Don't File Robinhood Taxes?

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