Terms Robinhood
Robinhood Class Action Service: auto-enrollment on Nov 18, 2026 and a 20% fee (how to opt out)
Robinhood's Customer Agreement (revised October 1, 2026) adds Section 36A, a "Class Action Service" whose terms take effect "on or after November 18, 2026." It reads: "Your Account is automatically enrolled in Robinhood's Class Action Service (the "Class Action Service"), unless you unenroll as described in this Section 36A." Robinhood and a third-party vendor will automatically file claims for you in securities class-action settlements involving stocks held in your account, and the RHF Fee Schedule sets the Class Action Service Fee at "20% of the class action settlement proceeds received on your behalf." Enrollment lets Robinhood appoint the vendor "as your agent and attorney-in-fact," binds you to the settlement's releases, and means "you cannot separately bring a lawsuit, at any time, against any named defendant" in a case where a claim was filed for you. You also can't submit your own claim form for that settlement. Robinhood says it will notify you before each filing. You get seven business days to exclude that case, and you can unenroll from the service at any time through the app or Robinhood Customer Service. The September 1, 2026 version of the agreement had no such section. Settlement administrators don't usually charge anything to file your own claim form, so staying enrolled by default costs you a fifth of any payout. Other brokers run similar auto-enrolled services, but the cut varies: E*TRADE from Morgan Stanley's vendor deducts 6% of payments (etrade.com class action terms), Edward Jones' administrator Broadridge deducts 15% (Edward Jones service disclosure), and Interactive Brokers charges a 20% contingency fee (IBKR Securities Class Action Recovery page), so Robinhood's 20% sits at the top of that range. Checked October 16, 2026.
Who it affects
Robinhood brokerage customers, especially anyone holding individual stocks that later become part of securities class-action settlements
Source
Detected on the Robinhood terms page: https://cdn.robinhood.com/assets/robinhood/legal/Robinhood-Customer-Agreement.pdf. Always check the source; this summary is not legal or financial advice.
More
Full Robinhood change history · All terms of service changes · Report for October 16, 2026 · All reports