Robinhood, Schwab Among Brokers Struck by Trading Glitches
(Bloomberg) — Robinhood Markets, Charles Schwab Corp. and other online brokerages grappled with trading and other technical problems Monday, leaving customers venting their frustrations online.
TD Ameritrade Holding Corp. and Vanguard Group also were among companies that said they were working to resolve delays in order updates and trouble accessing websites, among other disruptions. Thousands of customers lodged complaints on Downdetector.
Robinhood, which reported problems related to equities, options and cryptocurrency trading, said shortly after noon in New York that it had resolved them.
“We apologize for the inconvenience,” the company said in an emailed statement.
While online brokerages routinely experience brief outages, it’s rarer for several of them to happen simultaneously. Downdetector listed more than 2,900 problems for Robinhood and more than 7,000 for Ameritrade.
Judy Burns, a Securities and Exchange Commission spokeswoman, declined to comment, and a spokesperson for the Financial Industry Regulatory Authority didn’t immediately respond to a request for comment.
Trading Surge
Robinhood, which has helped lead a surge in online trading this year, is the subject of an investigation by regulators into its handling of an outage in March, Bloomberg News reported Monday.
It wasn’t immediately clear whether Monday’s disruptions are related. Schwab said in a statement that its website may be intermittently inaccessible for some clients. Vanguard was experiencing “intermittent connectivity issues impacting our websites and phones,” a spokeswoman said. A TD Ameritrade representative said many clients were experiencing slowness on its web and mobile platforms.
Self-guided traders stuck home during the Covid-19 pandemic have helped give online brokers a boost this year. Second-quarter retail U.S. equity trading volume surged more than 50% from the preceding three-month period, according to Larry Tabb, head of market structure research for Bloomberg Intelligence.
(Updates with Robinhood statement in fourth paragraph, Bloomberg Intelligence in last.)
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