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: