Before I start, I am obliged to remind our viewers that this is not advice only general commentary from my extensive research in this area.
The popular Trading platform Robinhood experienced an unfortunate day-long system wide outage, leaving users unable to log on or conduct a trade on Monday. Robinhood had released a statement at 11:30 EST, that they had identified the issue with their platform, however were unable to fix the issue by 4pm EST (Business Insider). Unfortunately for Robinhood, the same day markets bounced back with the biggest gain since 2009 – upsetting many users unable to capitalise on the upswing. Robinhood took to twitter to inform users –
“We are still experiencing system-wide issues. Our team is continuing to work to resolve this and we’ll provide updates as they become available.
We apologize again for the trouble this has caused and appreciate your patience with us as we work to resume service.”
— Robinhood Help (@AskRobinhood) March 2, 2020
Robinhood are yet to come out with a statement regarding the precise error that occurred, however many speculate that the heavy volumes were the reason why the platform went dark. Other brokerages have had similar issues such as Charles Schwab, which users have taken to twitter to voice their concern :
Yikes, @CharlesSchwab is having a S1 production outage. Just tried logging in and it told me my password was invalid, which was alarming.
Called customer service; they clarified that core authentication systems are down and that no one can log in. “Check back in a few hours.” 😬
— John Feminella 🌠 (@jxxf) February 9, 2020
We will continue to update this story in the coming hours. If as speculated, the volume is the concern. Then we will see at 10pm EST how Robinhood adapts to the influx in investors ready to capitalise on the market rebound.
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The information above should not be taken as financial advice. Youth Investment Group has no liability for personal financial interests or investment decisions. You should make your own investment decisions based upon your own research and what you believe is best for you.
Written by Tyger Fitzpatrick, Founder of YIG.