Robinhood Financial has determined that it takes a regulator to deal with the regulators.
The online trading platform’s popularity has skyrocketed over the last several months, as people use its app and website to buy and sell investments often for the first time.
But its fast growth also has generated increased regulatory scrutiny.
In December, Robinhood agreed to pay $65 million to settle Securities and Exchange Commission charges that it did not execute trades at the best prices for its customers because of agreements to send its order flows to certain firms.
In a separate action, Massachusetts Secretary of the Commonwealth William Galvin charged Robinhood with violating the state’s new fiduciary rule by the way it targets users, entices them to trade and fails to maintain the platform’s infrastructure.
Synopsis
The rate cut is part of the company s overall goal to lower the cost of investing, Robinhood said in a statement, and is the latest competitive move by the popular trading app.
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It has seen business boom during the coronavirus pandemic as more homebound consumers took to buying and selling stocks online. The app now counts more than 13 million users.
LONDON: Online brokerage Robinhood Markets Inc has cut its annual margin interest rate for premium customers in half to 2.5%, the company said on Monday, making it one of the cheapest in the sector. The rate cut is part of the company s overall goal to lower the cost of investing, Robinhood said in a statement, and is the latest competitive move by the popular trading app.
Robinhood cuts margin interest rate to 2 5% katcountry989.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from katcountry989.com Daily Mail and Mail on Sunday newspapers.
Robinhood execs concealed how the app makes money after best-selling book revealed controversial practises hurt inexperienced investors, US regulators find
Robinhood stopped revealing how it made money in 2014 after best-selling book claimed its practises hurt inexperienced investors, US regulator said today
Author Michael Lewis exposé Flash Boys: A Wall Street Revolt not named by Securities and Exchange Commission (SEC)
However it is believed to be book that sparked concern around popular trading app s business model
The SEC fined Robinhood $65million on Thursday for misleading customers over how it makes its money
It was also charged with failing to deliver customers with the best execution of trades as they were promised
Robinhood agrees to pay $65M fine to settle SEC investigation - San Francisco Business Times bizjournals.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from bizjournals.com Daily Mail and Mail on Sunday newspapers.