For some users, Robinhood could be a good platform for investing—but there are reasons to be wary of any platform that treats markets almost like a game. In March 2020, Robinhood experienced a series of outages that prevented users from accessing their accounts and executing trades. Now, the popular online brokerage has agreed to pay up to $10.2 million in penalties following a multistate investigation into those outages.
The settlement follows an investigation into Robinhood platform outages in March 2020 spearheaded by regulators in seven states including Alabama, California, and New York. In addition to the financial penalties, Robinhood has also agreed to improve its customer service and technological capabilities.
Robinhood offers trading for more than 5000 stocks and ETFs. Plus users can receive one free stock for referring a friend. However, the platform has faced criticism for its lack of transparency and customer service. In addition to the outages in March 2020, Robinhood has also faced criticism for its handling of the GameStop trading frenzy in January 2021.
The multi-state settlement will require Robinhood to pay up to $10.2 million in penalties for operational and technical failures by the company. The settlement will also require Robinhood to improve its customer service and technological capabilities.
State securities regulators led by Alabama have fined Robinhood's brokerage subsidiary up to $10.2M as a penalty. The settlement will see Robinhood Financial LLC pay up to $10.2 million in penalties after an investigation spearheaded by state securities regulators.
Robinhood has reached a settlement with state securities regulators regarding operational and technical failures. The settlement will require Robinhood to pay up to $10.2 million in penalties and improve its customer service and technological capabilities.
The Robinhood and Webull investing platforms are frequently discussed in the same breath; however, Webull offers more sophisticated trading features. Webull allows users to trade options, trade on margin, and access pre-market and after-hours trading.
The settlement will see Robinhood Financial LLC pay up to $10.2 million in penalties after an investigation spearheaded by state securities regulators. The penalties are in response to operational and technical failures by the company, including the outages in March 2020.
In addition to the penalties, Robinhood has also agreed to improve its customer service and technological capabilities. The platform has faced criticism for its lack of transparency and customer service, particularly during times of high market volatility.
Overall, the settlement highlights the importance of reliable and transparent customer service in the world of online investing. As more and more investors turn to online brokerage platforms, it is crucial that these platforms prioritize the needs of their users and work to ensure a smooth and seamless trading experience.
