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.
Robinhood to Pay $65M to Settle Charges of Misleading Customers
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Robinhood to pay $65 million fine to settle SEC charges of misleading customers
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