Robinhood is an investing platform geared to millennials to make investing look so easy, fun, and sexy… The New York Times reports: “the company has also faced intense scrutiny for its practices.”
“The app has become a favorite of young and inexperienced investors, enticed by no-fee trading, offers of free stocks and an engaging user interface that uses what a New York Times report in July described as the ‘Silicon Valley playbook of behavioral nudges and push notifications.'” i.e., you are being manipulated.
“Last week, the Securities and Exchange Commission charged the company with “misleading customers about revenue sources,” citing “repeated misstatements that failed to disclose the firm’s receipt of payments from trading firms for routing customer orders to them.” Robinhood agreed to pay a $65 million fine. And on Wednesday, Bloomberg News reported that a complaint filed in San Francisco against Robinhood Financial could become a class-action lawsuit.”
Source: Robinhood Recaps From a Volatile Year… And you thought your Spotify Wrapped was a bummer.
by Ezra Marcus
Source: Financial Planning for Women