A History of Daytrading: Regulators, Congress and Robinhood

The Scorpion and the Frog

More about Robinhood and its history of regulatory problems… Massachusetts’ Enforcement Division filed a complaint about

  • the firm’s aggressive growth tactics,
  • its repeated outages and disruptions, which were well known and ignored while pushing growth,
  • its gamification strategy,
  • and insufficient supervision for option trading.

Here is an excellent, albeit a bit engthy, analysis of the history, regulatory and general situation of Robinhood & its Day Trading business by Bill Singer of Broke and Brokers. It notably reminds us that

  • Massachusetts makes quite an income from its lottery,
  • FINRA had slapped Robinhood’s hand with a modest $1.25m a year ago,
  • Wall Street’s problem with retail executin problem started in the 90’s,
  • Robinhood has already met the frustration of its traders, sometimes suicide,
  • Complaints of the firm way outpasses all its competitors,
  • Congress was already looking into similar matters in early 2000’s,
  • Brokerage firms have a suspicious tendency of being unable to record customer complaint calls during crashes and outages…

Previous blog entries on the topic of Robinhood:

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Written by Gontran de Quillacq

Gontran de Quillacq is an expert witness and a legal consultant. He is a recognized authority in options, trading, derivatives, structured products, portfolio management, hedge funds, mathematical finance, quantitative investment, strategy research and financial markets in general.



  1. Robinhood: side effects include headaches, suicide, addiction, anxiety, withdrawals. And IPO. | Navesink International - […] December 22, 2020: A History of Day trading: Regulators, Congress and Robinhood […]

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