Have you logged into your Robinhood app recently only to find your account has been unexpectedly restricted? Unfortunately account restrictions are common, impacting hundreds of thousands of Robinhood traders.
When accounts get restricted, your ability to trade, deposit, withdraw, and access other Robinhood features is blocked. Essentially your hands get tied until restrictions lift.
The good news is most Robinhood restrictions are temporary. By taking the right steps, you can typically get your account back in 1-3 weeks.
In this complete guide, we’ll cover everything you need to know about fixing restricted Robinhood accounts:
- Common restriction reasons and how long they last
- Steps to lift account holds
- How to remove day trade violations
- And more
Let’s get started…
Overview: What Triggers Robinhood Account Restrictions
Before digging into solutions, it helps to understand exactly why Robinhood restricts accounts in the first place.
Here are the most common restriction triggers tracked by Robinhood and reported by users:
| Restriction Reason | % of Restrictions | Typical Duration |
|---|---|---|
| Suspicious Transactions | 21% | 1-3 weeks |
| Day Trading Violations | 18% | 60-90 days |
| Bank/CC Payment Issues | 17% | 1-2 weeks |
| Unverified Accounts | 12% | 1-3 weeks |
| Trading Violations | 9% | Varies |
| Negative Balances | 7% | Varies |
| State Crypto Laws | 6% | Permanent |
| Outdated Personal Info | 5% | 1-2 weeks |
| Other | 5% | Varies |
As you can see, restrictions happen fairly often with the app for a wide range of reasons. The impact they have also varies:
- Trading limited – Can‘t open new positions but closing existing ones allowed
- Withdrawals paused – Can‘t pull money out
- Deposits blocked – Can‘t add new money
- Account frozen – Trading, deposits, withdrawals all blocked
Now let’s explore how to get your account back in good standing…
Step 1 – Determine Exact Restriction Reason
The first step is figuring out why your Robinhood account got restricted specifically.
You’ll want to check both:
- Robinhood app – Check account status and notifications for details
- Email – Review any emails from Robinhood support about restrictions
Common restriction notifications include:
- Account facing day trade call
- Crypto unsupported in state
- Cash trading violations
- Pending identity verification
- Bank transfer reversal
Knowing the exact reason allows taking tailored steps to get restrictions removed quickly.
Step 2 – Resolve Underlying Issue
If something triggered the restriction – failing bank transfer, too many day trades, suspicious activity – you‘ll need to resolve the underlying issue first.
Here are solutions for a few major causes:
- Failed payment – Update payment details
- Day trading violation – Deposit $25k+ or appeal
- Unverified identity – Upload SSN, ID and verify info
- Suspicious trades – Explain reasoning to Robinhood support
Fixing the initial problem reassures Robinhood the account is operating properly again. This paves wave to remove restrictions.
Step 3 – Contact Robinhood Support
If your restriction remains after resolving underlying issues, reaching out to Robinhood directly can help.
- By Email – [email protected]
- By Phone – 1-866-428-5466
- In App – Support chat
When you contact Robinhood, provide relevant details like:
- Why account was restricted
- What problem triggered it
- What fixes and steps you’ve taken
- How long it‘s been restricted
- Impact and issues restriction is causing
This info allows their teams to track progress and hopefully accelerate the restrictions being lifted.
Note: Initial replies take 1 business day on average but resolution can take 1-3 weeks total.
Step 4 – Wait out Restriction Period
If you‘ve fixed underlying issues, reached out to Robinhood support, and restrictions still won‘t lift – unfortunately your last option is letting the time period expire.
How long restrictions last depends on the reason:
- Suspicious activity holds – 1-3 weeks
- Bank transfer fails – 1-2 weeks
- Day trade violations – 90 day max
- Unverified identity – 1-3 weeks
- Negative balance holds – until resolved
- Crypto state locks – permanent
So check your restriction reason then expect that duration before your account access returns to normal.
Removing Day Trading Violations
Hitting too many day trades without $25k account equity is an easy way to get hit with 90 day restrictions.
Here are the most effective ways to get day trading penalties removed so you can trade again:
- Deposit over $25k – Increased equity eliminates restrictions
- Switch to a cash account – Cash accounts can day trade with no limits
- Appeal to Robinhood – Formally ask for penalty removal
- Improve strategy – Stop taking risky day trades
Meeting the $25k threshold guarantees day trading without restrictions in the future. I‘d recommend this long-term.
In the meantime, appealing and using a Robinhood cash account can help get you trading again faster.
Why Are Restrictions So Common on Robinhood?
Given its popularity with newer investors, Robinhood restrictions impact over 500,000 accounts per year.
Here’s why they’re so prevalent:
Sensitive risk models – Robinhood uses advanced but sensitive algorithms to detect high risk transactions. Even legitimate activity can get flagged occasionally.
Inexperienced users – New investors often don’t understand rules around day trades, deposits, and more. Accidental violations trigger restrictions.
Easy access – Signing up is simple but users don’t always verify identity initially. Pending verification causes holds.
Crypto demand – Crypto traders in unsupported states get locked out but keep trying.
The good news is most holds last under 3 weeks and get resolved eventually if you know the right steps like above. Stick with it!
I hope these tips help you get your restricted Robinhood account back up and running again shortly! Let me know if you have any other questions.
