Back in 2020/21, I ended up leaving the US for a few months. It was very difficult to travel internationally at that time, but hopefully understandable why someone with the ability would stay in a country without any Covid cases yet.
Because I was outside the US for a few months, Robinhood ended up freezing my account and forced to sell all assets. I ended up losing a rather significant amount of money as practically all asset prices were going up at that time.
It's worth noting: I hadn't passed the threshold of time spent outside the US to be considered a foreign resident by the actual definition. But Robinhood has their own internal policy to determine whether you're "residing outside the US". They won't tell you how long it is.
I suppose if you're even on vacation in Mexico or Europe for few weeks, you're technically "residing outside the US" at that time?
Pretty much, this should be interpreted that Robinhood won't let you take a vacation outside the US for a longer period of time than they deem fit. They also won't tell you what this maximum period of time is for "security reasons".
Support initially cited industry regulations. When told that it contradicts the definition of tax residency, they cited internal policies. Clearly RH is just making things up as they go.
TL:DR: If anyone is planning on taking an extended trip outside the US, be aware that Robinhood has a policy of closing your account. Even if you're just on vacation and still a US resident for tax and all other purposes.
Robinhood Will Deactivate Your Account and Force Sell if You Take a Vacation
byu/Rakbauer inwallstreetbets
Posted by Rakbauer
33 Comments
How did RH find out u are outside of the states? Is the app tracking ur IP whenever u login?
You get what you pay for. Maybe use a legit brokerage the next time. 😂
Honestly seems like you’re doing some borderline legal stuff and they did ok if the only information you have is that it’s strictly legal but they’re right about everything they said.
>I hadn’t passed the threshold of time spent outside the US to be considered a foreign resident by the actual definition.
Doesn’t sound like you took a vacation and also sounds like it’s not the first time.
I feel like there is more to the story.
1. How long were you out of the US? You said “a few months” please clarify.
2. Are you a US citizen? Or just in the US on a Visa?
2b. If Visa, what type of Visa?
3. What country did you go to? (Are any of the countries you visited considered hostility zone or “enemy of the United States?
Something isn’t adding up.
And why wait 3 years before saying something?
Did you maintain a U.S. address while traveling? Did the person who checked the mail for you receive anything from Robinhood?
I was out of the country for about a year, a few years before your Covid vacation, and never had any trouble. Could be a recent policy change.
Doesn’t make sense. I’ve been living outside the US (a US citizen) and using RH for the past three years with no issues.
If anyone is wondering, the brokerages that don’t mind if you live abroad full time (as long as you are a US citizen are etrade and webull
You ever heard of a VPN?
No one cares. Use a real broker.
Just delete the app and don’t login while out of the US. Or log in using a VPN. Not that hard.
I traveled to Bali, DR, Thailand, Costa Rica in the last couple years and was still able to trade options. Never got this message
How cam they close a us citizen account who may be traveling abroad if they have a usa citizenship??? Nothing here adds up – I’m in canaduh and I am canaduh citizen mo matter where I go – in order to NOT be a citizen I would have to defect from canaduh
We can whine all we want. Unless we stop feeding shit companies and practices nothing will change. Regulators are either underprepared or in the pocket.
Something isn’t adding up here. I checked my accounts while overseas through a VPN. RH wouldn’t even let you in with one overseas, correct? I don’t use RH, but I imagine they’re no different from other American brokerages – all abide by the same regulations.
OP must’ve left out small but possibly plot-twisting details.
Brokerage like Charles Swab has 6 months policy. And they will force you to use two factor authentication and one using a US phone number. If you are overseas and don’t have access for US phone, they have alternatives authentication but it’s a hassle. I won’t be surprised if they pull the same BS RH does. These brokages are shady asf.
Can you sue them?
This makes no sense. Gotta be more to the story.
Looking at the OPs post history it suggests staying abroad in Hong Kong, and other parts of Asia, repeatedly, and for prolonged periods.
No issue there, but it speaks to Robin Hood and their policy on wanting to conduct business (real or cyber) only on US/Canadian soil. Perhaps this has something to do with restrictions and legal limitations they have by not being licensed in certain countries.
Perhaps he did too many trades in Restricted (non US) areas. Perhaps the app has a timer which logs the first non-US trade and if a US teade isn’t done within a specified time frame they assume that you do in fact live overseas.
I’m sure somewhere in the terms and conditions it says this.
Also, given that a Google search pulls up less than 10 other complaints about this policy suggests he is in a very small minority of “rule breakers” who got caught.
Whether he is a US citizen or a dual citizen, or a visa carrier, is a moot point. He seems to have gone past the “clock limit” and triggered an alarm for foreign investors.
China is enough of a concern for legal recourse that RH doesn’t want to even risk taking a loss there by way of accusations of RH conducting business in China or Hong Kong.
I’m only bringing this point up because the assertion that he was “on vacation” seems to be over the limit of what Robinhood considers vacation.
I am pretty sure that definition of US resident could be challenged in court. This is my bullshit of the day.
Something not adding up
I’ve been in Europe for about 5 months and haven’t heard anything… this has me a bit worried though
It’s like children are running Robinhood from the Bahamas.
As they should, i need your liquidity to sell my -75% options
I wonder if this would have happened had your stocks been doing poorly
Omg robin hood isn’t a safe place to put large amounts of money and isn’t very good as a brokerage. IF ONLY SOMEONE HAD SAID SOMETHING 😫
I moved to Canada 5 years back and RH still works for me
Are you on a terrorist watch list?
How would RH even know you were out of the country? You must have done something really stupid…
Someone just needs to make a pinned megathread with all these posts as a point of reference to anybody who ever asks why do you not want to use Robin Hood?
When I was a little boy in Bulgaria, Robinhood closed my account.
Now that Im back in the US its open.
Spoiler: OP is CEO of a Chinese pump and dump stock using a fake identity
How did they find out that you are outside the country?
How did Robinhood know where you were ?
U.S. citizen living internationally for years and never had an issue with my RH account. I even signed up for it while living outside the states. There’s definitely more to the story here.