Robinhood Offers $15 Compensation
Robinhood had a massive system outage yesterday and today that left customers unable to trade stocks. The company said that the cause of the outage was stress on its infrastructure, which struggled with unprecedented load as the market rebounded after record losses. That led to a “thundering herd” effect, triggering a failure of our DNS system.
Robinhood was offline all day Monday from 9:30am ET and then had another outage Tuesday morning from 9:30am ET until 12pm ET.
Now Robinhood has said it will provide compensation to all customers of its Robinhood Gold premium subscription for borrowing money to trade plus access to Morningstar research reports, Nasdaq data, and bigger instant deposits. It’s offering them three months of service, which is worth only $15 at $5/month.
That doesn’t seem nearly enough compnsation when considering that just on Monday the platform was down for 15 hours while the market gained $1.1 trillion. But it is something and impacted Robinhood users can contact the company here to ask for compensation. They also said that they are looking at these claims case by case, so you might get something more. But if you are looking for alternatives Moomoo is offering a $100 bonus for transferring stocks and a two free stocks for signing up. Trade Station is also a solid platform, but not fee-free.
Let me know if you were affected by these Robinhood outages, and whether you get any compensation. Also let me and other readers know what is your favorite trading platform, as those affected by outages might be looking at other options.