Robinhood Good Faith Violation: How to Fix It

Q: How long does a Good Faith Violation last on Robinhood?

A Good Faith Violation on Robinhood results in a 90-day cash account restriction. During this period, you can only purchase securities with settled cash, not unsettled funds from recent sales or deposits.

Q: Can I remove a Good Faith Violation from my Robinhood account?

Robinhood typically does not remove valid Good Faith Violations. The 90-day restriction must run its full course. However, you can contact support if you believe the violation was issued in error with supporting documentation.

Q: What happens if I get multiple Good Faith Violations?

Multiple Good Faith Violations can result in extended restrictions or account limitations. After the first violation, additional violations may lead to longer restriction periods or potential account closure in severe cases.

Q: Can I still trade during a Good Faith Violation restriction?

Yes, you can still trade during the restriction, but you can only purchase stocks with settled cash. You cannot buy stocks with unsettled funds from recent sales or pending deposits until the 90-day period ends.

Q: How do I avoid Good Faith Violations in the future?

To avoid future violations, always wait for funds to settle before selling newly purchased stock (typically 2 business days for stock sales), maintain adequate settled cash for trading, and track your settlement dates carefully before making trades.

Abstract

A Robinhood Good Faith Violation occurs when you sell stock that was purchased with unsettled funds before those funds have cleared. This triggers a 90-day restriction where you can only buy stocks with settled cash, limiting your trading flexibility until the penalty period expires.