To most people, a Social Security Number is one of the most private things. And any app, platform, or program asking for it is deemed suspicious. Unfortunately, some services are limited, and we can’t get access to them if we are hesitant to provide the SSN.
If you have tried creating an account on Robinhood, you have probably realized that you must provide your SSN to complete your account set up. If you are wondering why you have to, this article has all the answers to your Robinhood SSN (Social Security Number) questions.
What is an SSN Number
Before talking about Robinhood SSN (Social Security Number), let’s handle the basics first. What is an SSN?
In the US, this is a nine-digit number provided to all the citizens and permanent residents as an identifier for social security, and to track income and other determining benefits.
Getting an SSN is quite easy; all you have to do is visit your local SSA office to file for an application. You must, however, be ready to provide all your legal and original documents to prove things such as identity, work-authorized status, and age, among others.
If you have it already, you can get the number from your social security card. You will also find it on other of your important documents such as tax returns, bank statements, W-2s, and such.
What You’ll Need to Get Started With Robinhood
Robinhood Social Security Number (SSN) is amongst the many things you will need to provide before you can sign up on Robinhood.
Here are other requirements;
- You must be 18 years and older
- Must be a US citizen or permanent resident
- Must have a US residential address
- Must have a valid SSN
- A picture of your SSN.
Why Robinhood Social Security Number (SSN) is an Important Requirement
The government requires all financial companies and trading platforms to get to “know their customers well.” That’s why you would expect these companies to ask for some information you consider most confidential or sensitive.
This is because while it was initially created to track US citizens’ earnings, it serves more than just that today, and works mostly as your identifier. Here are some reasons Robinhood will need your Social Security Number before you can register and set up your account;
1. Proof of Identity
Robinhood needs some sort of “proof of identity” to know who its customers are. Before you get started you must prove that you are a US citizen, a Visa holder, or a permanent resident.
2. Knowing their Clients
Knowing who their clients are is an essential practice for the company. This ensures security overall and helps prevent tax evasion schemes, money laundering, and fraud, among other crimes. It will also enable them to report any suspicious financial dealings if need be.
3. It is a Requirement by the Government
This should have probably been number one on this list. Collecting SSN is a requirement by the government to Robinhood and all other platforms and organizations of the sort. It is also a recommended practice for self-regulating organizations operating in the financial industries, such as the FINRA (Financial Industry Regulatory Association).
4. Prevention of Frauds and Money Laundering
Money Laundering and fraud are both serious issues in the US. Customer identification is an important process that is used for tax reporting purposes and helps provide a more secure platform for traders, in the case of Robinhood and the likes.
It helps Robinhood protect all sources of income and report any suspicious activities and accounts.
Is it Safe to Give My SSN to Robinhood
Being a sensitive piece of information, you would probably raise a brow if someone asked you to give them your SSN. And that does not exclude Robinhood. So is giving out your SSN on Robinhood a wise idea for you?
The simple answer is yes. You can rest easy knowing that your SSN is completely safe alongside other information you give to Robinhood to create your account. The company has put in place highly technological systems to ensure all their customers’ information is safe.
Can I Use Robinhood Without SSN
If you wonder whether you can use Robinhood without providing your SSN, then the answer is no. An SSN is one of the most important requirements before setting up your Robinhood account.
If you are not quite comfortable giving out your SSN, then you might want to check out other brokerages that do not require it for you to use. Beware, though, that this will be quite a search for you for the simple fact that Robinhood is not the only platform that would ask for your SSN. If anything, most, if not all, platforms will require your SSN.
Conclusion
As seen in this article, Robinhood Social Security Number (SSN) is important in many different ways, not just for the company but all its investors. While it is a requirement by the company and the government, it helps protect your money and assets from fraud, as well as make your activities such as trading and withdrawing money easy.
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