Robinhood’s options trading stopped working, and furious customers are saying they lost money

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Robinhood

  • Robinhood’s options-trading services faced significant outages on Wednesday.
  • Some Robinhood customers attempting to access options trading on Wednesday morning received a message saying their account was deactivated and directing them to the company’s support email address without a more detailed explanation.
  • Users turned to social media to voice their anger.
  • “The majority of affected accounts have had their trading ability restored, and we’re working to restore access for the other subset,” a representative said.

Robinhood, the trading app that has risen in popularity because of its no-fee brokerage business, faced significant outages in its options-trading services on Wednesday, keeping customers out of their accounts and preventing them from closing out open positions.

Some Robinhood customers attempting to access options trading on Wednesday morning received a message saying their account was deactivated and directing them to the company’s support email address without a more detailed explanation.

“We experienced an outage with options trading, affecting a smaller percentage of customers, and we limited trading for some as a precautionary measure,” a Robinhood representative said. “The majority of affected accounts have had their trading ability restored, and we’re working to restore access for the other subset.”

Users turned to social media to voice their anger. On the Robinhood subreddit, the first mention of trouble came from a thread posted at 9:04 a.m. ET in which the user said their option order was rejected.

Robinhood first directly acknowledged the issue in a response to a tweet at 10:36 a.m.

Less than 20 minutes later, Robinhood said in a tweet that it had “temporarily shut down options trading” and was “working to restore service ASAP.”

Users affected by the outage also received an email from the company:

A letter from Robinhood explaining the issue with users' accounts.

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A letter from Robinhood explaining the issue with users’ accounts.
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Dan DeFrancesco/Business Insider

Robinhood sent a follow-up email when accounts were reactivated, offering three free months of Robinhood Gold, the app’s premium service:

A letter from Robinhood after users' accounts were reactivated.

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A letter from Robinhood after users’ accounts were reactivated.
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Dan DeFrancesco/Business Insider

But many customers said they lost money from not being able to access their accounts.

Robinhood said in a tweet on Thursday morning that it worked on the issue overnight.

However, users continued to tweet at the company, describing losses they felt they faced because of the outage.

As of 1 p.m. on Thursday, Robinhood was still working to restore access to some accounts and options trading, according to its status page, though it said that “nearly all accounts have been restored.”

The outage came at an inopportune time for the app, which announced on Thursday that it would begin offering checking and savings accounts to customers as part of its overall goal to “democratize America’s financial system.”