Technology

Robinhood Outage Extends Into Second Day

Users of the popular free stock-trading app were cut out of Monday’s market rally.
Robinhood Outage Extends Into Second Day

The free stock-trading app Robinhood was down on Monday as a “system-wide outage” locked users out of their accounts during a historic market rally. On Tuesday, technical issues continued.

The company said the problem began around 9:30 a.m. Eastern on March 2 and was resolved around 2:00 a.m. on March 3, but users continued to report problems.

“Our systems are currently experiencing downtime. We’re determined to restore full functionality as soon as possible,” the company said on Twitter Tuesday morning.

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The timing of the outage coincided with biggest single-day gains in the history of Dow Jones Industrial Average. The S&P 500 gained 4.6% Monday, its biggest increase since December 2018. In total, markets gained $1.1 trillion in value while the app was down.

The company, which has about 10 million users, said it would offer compensation for yesterday’s outage, including billing credits and months of free service, on a case-by-case basis. The company’s premium-tier service is priced at $5 per month.

Robinhood said Monday’s outage was due to an infrastructure “instability” that prevented systems from communicating with each other and blocked clients from accessing its app, website, and help center. It said client funds were safe and no personal information was affected.

On Tuesday, the Federal Reserve cut interest rates by 50 basis points in a surprise move designed to curb coronavirus fears; however, users of the app were still seeing major outages.

“When it comes to your money, issues like this are not acceptable. We realize we let you down, and our team is committed to improving your experience,” Robinhood said in an email Tuesday morning.

In December, FINRA fined Robinhood $1.25 million for sending customer trading orders to broker-dealers without guaranteeing the best price.

Robinhood was valued at $7.6 billion last year after a round of Series E funding.

A Twitter account, Robinhood Class Action, had nearly 6,000 followers as of midday Tuesday.