Please ensure Javascript is enabled for purposes of website accessibility

Robinhood Again Goes Down on a High-Volume Trading Day

By Lou Whiteman - Mar 9, 2020 at 2:18PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The online brokerage takes another hit as markets plunge.

Robinhood Markets Inc. apparently once again buckled under the weight of a historic trading day, with the online brokerage experiencing a major outage on Monday morning as the S&P 500 traded down more than 5%.

Robinhood via Twitter on Monday morning acknowledged it was down, and said it was investigating the issue. The company's status update page on its website says the issue was identified and the trading platform is back up and running, but the outage caused a wave of user complaints on social media.

The outage is the second for Robinhood this month, with both occurring on days with heavy volume. The app on March 2 went out on a day markets were rebounding after a sharp sell-off, leading to a wave of negative publicity.

Graphic showing stock movement.

Image source: Getty Images.

Robinhood is not alone in having trouble dealing with the high volumes: Charles Schwab had issues as markets plunged. But the stakes are significant for Robinhood, a one-time fintech darling that has seen one of its primary competitive advantages, commission free trading, adopted by larger rivals.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
316%
 
S&P 500 Returns
112%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 07/05/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.