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Page 10 - ஏரின் ஶ்நைடர் News Today : Breaking News, Live Updates & Top Stories | Vimarsana

There really is no such thing as a free lunch, even with online trading

James Langton The company behind popular U.S. trading app Robinhood is paying US$65 million to settle allegations that its “commission free” trading actually cost investors millions in poor trade executions. The U.S. Securities and Exchange Commission (SEC) charged Robinhood Financial LLC with violating securities rules by repeatedly failing to disclose that it receives payments for order flow, and for failing to meet its best execution obligations. According to the SEC’s order, the firm was able to offer commission-free trading to clients “due in large part to its unusually high payment for order flow rates,” which resulted in orders being executed at inferior prices.

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