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:

• Most Robinhood day traders lose money
• Robinhood’s $65m SEC penalty and the ‘gamification’ of trading