The charges stem from an investigation by the SEC into how Robinhood disclosed its arrangements with high-speed traders. Regulators also concluded that Robinhood provided inferior prices for trades on its platform, depriving its customers of US$34.1 million even after taking into account savings from commission-free trading. “Robinhood provided misleading information to customers about the true costs of choosing to trade with the firm,” said Stephanie Avakian, director of the SEC’s Enforcement Division. “The settlement relates to historical practices that do not reflect Robinhood today,” said Dan Gallagher, Robinhood’s chief legal officer. A year ago, the Financial Industry Regulatory Authority fined Robinhood US$1.25 million after accusing it of not doing everything it should to find the best prices for customers trading stocks.

Source: The Standard December 18, 2020 02:45 UTC