- Silicon-Valley start-up trading app said it was experienced an outage on Monday.
- The technical problems come amid the market’s attempt at a rebound from the worst week for stocks since the financial crisis fueled by investor panic surrounding the fast-spreading coronavirus.
- “We are experiencing a system-wide outage. We are working to resolve this issue as soon as possible,” the company said in a message to clients on Monday.
Robinhood, the free-trading pioneer favored by younger traders, said it was experiencing an outage on Monday.
“We are experiencing a system-wide outage. We are working to resolve this issue as soon as possible,” the company said in a message to clients on Monday.
The technical problems come amid the market’s attempt at a rebound from the worst week for stocks since the financial crisis fueled by investor panic surrounding the fast-spreading coronavirus. All three major averages opened higher on Monday, after closing in correction territory last week, down at least 10% from their most recent high. The Dow Jones Industrial Average last traded up 150 points.
The Silicon-Valley start-up gained popularity with young investors by offering free stock-trading in 2013. The Menlo Park, California-based company said in December it has 10 million users on the platform.
“Your portfolio information is not available right now. Please check back later,” read a Robinhood message to clients posted on Twitter on Monday. Many other tweets showed the app with a black, white screen.
News of Robinhood’s outages came a week after Fidelity and Charles Schwab said they had technical difficulties amid an 800-point plunge on the Dow Jones Industrial Average. TD Ameritrade also said some of its clients were experiencing technical issues at that time last week.
One factor possibly contributing to these platforms’ technical issues could be higher-than-average trading volumes. Last week, the SPDR S&P 500 ETF Trust (SPY) traded more than 200 million shares three times. On Friday, shares of the ETF changed hands more than 385 million times. Those numbers are well above the SPY’s 30-day average volume of 97.3 million shares.
Robinhood kicked off a wave of fee-slashing in the broader brokerage industry with Charles Schwab, TD Ameritrade and Fidelity dropping commission fees late last year.
“We’re experiencing downtime, and are working to resolve this as quickly as possible,” a Robinhood spokesperson told CNBC.
The company’s twitter account devoted to client help also addressed the outage.
“Our system is experiencing downtime issues that are affecting all functionalities on our platform. We are aware of the issue and are working to have all systems up and running as soon as we can. We’re so sorry this is happening!,” the tweet said.
With reporting from CNBC’s Fred Imbert and Kate Rooney.
This story was updated at 11:47am ET to reflect additional background information.