So many frustrated traders have shown up at Robinhood’s Silicon Valley headquarters that the stock-trading app has installed bulletproof glass, The New York Times reported earlier this week.
Robinhood has seen substantial growth over the last six months as new, youthful investors have flocked to the free trading app to take advantage of the extreme volatility within the marketplace.
The app has marketed itself as being very user friendly to new investors as it offers total commission free trading. As the app grew in popularity, they began to offer more complex, riskier trades such as options and margin accounts which offered greater returns at a lower entry price however posed a much higher risk to inexperienced user who lacked knowledge of how the market operates.
Users were also able to find glitches in Robinhood’s interface which allowed users to obtain high amounts of margin with very little physical cash deposited into their account. One user posted to Reddit that he was able to obtain close to $1 million in margin with less than $2,000 in cash deposited. Robinhood was made aware of this issue and has since corrected the problem.
Another user referenced to a Robinhood glitch that showed his account a negative six-figure balance in a suicide letter before he ultimately took his own life. His parents blamed the app for irresponsibly allowing a 20-year-old the ability to obtain such a high amount of margin without any type of screening or financial verification.
In the article posted by The New York Times Robinhood declined comment.
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