The company was fined $70m in July by the US Financial Industry Regulatory Authority over outages in March 2020 and for sending “false or misleading information” to its customers.Īccording to GlobalData’s intelligence centre, Robinhood has made two acquisitions since 2019. Robinhood, along with other retail brokers, restricted the trading of certain stocks and faced backlash and lawsuits from retail investors.
The company found itself at the centre of the retail investment wave in early 2021, with members of the Reddit group r/wallstreetbets using the Robinhood app to pump up the price of GameStop shares and other so-called “meme stocks” to short squeeze institutional backers who had bet on those stocks failing. However, there was no evidence at the time that any passwords were improperly accessed. Given that the app is a securities brokerage firm, Robinhood is regulated by the SEC. Robinhood is also great for beginners but offers limited cryptocurrencies. Robinhood does not charge investors any trading commissions whatsoever. Rightfully so, many investors are skeptical of whether or not Robinhood is safe to invest with based on the fact that they are free. Now, countless other brokerages have followed suit and done away with trading commissions. 2017 they released a site that they state is the finest one out there for teaching new financiers. Robinhood is known as the platform that launched commission-free trading. Their preliminary offering was a mobile app, aimed squarely at millennials, and in Nov. In 2019, Robinhood admitted to storing some customers’ passwords in cleartext instead of encrypting them. Coinbase provides a secure platform perfect for new users who wish to dip their toes into cryptocurrency. Robinhood The App Secure Robinhood’s specialty is that they do not charge commissions for stock and alternatives trading. The company’s shares fell by 3.1% in after-market trading on Monday following the news of the data breach.