The regulators’ complaint will center on the trading app exposing users — often young and inexperienced — to “unnecessary trading risks,” the Journal reported after reviewing a final draft of the more than 20-page compliant. Robinhood has pioneered the commission-free trading model since its founding in 2013, and has seen its user base explode amid the pandemic. The app has drawn much attention from Wall Street, and stock swings in popular names like Tesla have since been attributed to these new investors in the market. Robinhood said it saw 4.3 million daily average revenue trades, or DARTs, in June, outperforming all of the publicly traded, incumbent brokers. Robinhood is widely expected to go public in 2021, and has hired Goldman Sachs to lead its IPO preparations, according to Reuters.

Source: The Standard December 16, 2020 14:03 UTC