Robinhood to pay $65m to settle SEC charges over misleading investors
The firm’s chief legal officer says case relates to historical practices that do not reflect Robinhood today
17 December 2020 - 19:23
US financial services company Robinhood Markets has agreed to pay $65m to settle Securities and Exchange Commission (SEC) allegations that the broker failed to properly inform clients that it sold their stock orders to high-frequency traders and other financial firms.
Robinhood, known for its popular smartphone app that offers commission-free trading, also agreed to have an outside consultant monitor its compliance with rules that require firms to provide best execution for trades. Robinhood has gained notoriety during the pandemic by attracting a huge customer base of younger investors...
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