Robinhood Account Restricted From Purchasing? Here’s Fix
Investing money in stocks on Robinhood is something that millions of users all around the world do every day.
Investors understand that selling, trading, and buying stocks in Robinhood is efficient, easy, and profitable if you know what you are doing.
That’s why no one wants to have their brokerage account limited, not even during a short period of time.
If you are facing a Robinhood account restriction, then we need to find a solution for it.
In this blog post, we are going to give you all the info you need so you can trade, sell, and buy stocks again in no time using Robinhood’s service.
Keep reading this article on our website so you can learn more about:
- Why is your Robinhood account restricted from purchasing;
- Common reasons that can limit your ability to perform trades in Robinhood;
- How to solve issues when Robinhood restricts your account.
Understanding Robinhood Account Restrictions
There are a few reasons why your Robinhood account could be blocked.
The Robinhood company, as it happens with each company in the United States, needs to follow certain lays for brokerage firms.
Normally, users can simply perform day trading, crypto trade, and other operations such as Withdrawing Money from Robinhood during trading hours.
Nonetheless, as soon as Robinhood detects something off in users’ accounts, they might as well get their funds blocked or remove the Trade Stocks feature.
Thus, the company broker is on its right to restrict a user’s Robinhood account due to different reasons.
Robinhood Account Restricted from Purchasing: Reasons and Fixes
If you use the Robinhood app broker on a daily basis and your account is restricted, you should not wait any longer - let’s find out what’s happening.
Understanding the reasons behind your account restricted will lead you to find a proper fix so you can access the platform’s services again, both for investors and trading users.
Read Also: Are your Binance Withdrawals Suspended? Your Binance account might as well face a withdrawal restriction due to many reasons.
If you can’t use Binance’s withdrawing service, read our related blog post on our website so you can get your funds sooner than later.
1. Failed Transfer from Your Bank Account
A failed bank transfer from your bank account to Robinhood might have triggered a service warning on the platform.
This can happen with different bank accounts or credit cards restricted to make crypto or stock operations.
In any case, changing your payment method might as well lift the restrictions that your account is facing.
2. You Have Been Blocked from a Particular Stock
If you have declared your identity as a control person (a control person is the top manager or owner of a company), Robinhood might impose a restriction in some day trading features.
Blocking certain stocks from trades happens due to Robinhood controlling that it doesn’t exist a possible manipulation of one stock in their platforms.
This restriction can’t be lifted on your account - in that case, you would need to use a new one.
3. There’s a Negative Balance on Your Account
If you have a negative balance on your account, you won’t be able to pay the brokers.
Thus, your account will simply be restricted until you solve this problem.
In case you fail to address this problem, the restrictions won’t be fixed by any means.
So, go and get that negative balance paid as soon as you have a chance!
4. Fraudulent Activity Detected in Your Account
Facing a restriction is not something uncommon on financial platforms.
For instance, having a Coinbase Account Restricted is something that might as well happen from time to time.
If Robinhood detects that your account performed any kind of suspicious activity, it will face a restriction without further notice.
Nevertheless, this kind of restriction on your account is usually temporary.
You need to contact the customer service in order to understand what’s really happening.
5. Robinhood Account is Restricted due to Outdated Information
This issue is pretty common and might get your account restricted in no time.
Maybe your credit card expired and you forgot to update it, or perhaps you are no longer using that old bank account.
In any case, correcting and updating the data is part of Robinhood’s Security Measures for all their users.
Simply go to your restricted account and make sure that all your info is good to go and up to date!
Robinhood Account is Restricted due to Other Reasons
If none of the previously mentioned reasons led to your account being restricted, then you need to talk to Robinhood’s support team as soon as you can.
However, keep in mind that Robinhood will always be as clear as water when it comes to your account being restricted, so you need to follow their instructions in order to recover it.
Robinhood Account Restricted From Purchasing FAQ
How Long Will I Be Unable to Access Robinhood Services due to a Restriction?
It can take up to 90 days, but, sometimes, it’s unlocked within just a week.
It really depends on the reason that led your account to be locked on the platform.
Why Can’t I Withdraw Cash via a Bank Transfer using Robinhood?
Account restriction is one of the main reasons why you can’t move your funds on Robinhood.
If this issue persists, read our Can’t Withdraw Money from Robinhood blog post to learn how to solve it.
Steve specializes in cryptocurrency and finance. As a born researcher, he won’t leave any stone unturned when it comes to topics he covers.