Popular Trading Platform Robinhood To Pay $65 Mln In Fine

On Thursday, the US Securities and Exchange Commission announced a $65 mln fine on Robinhood Financial for misleading its clients.

Robinhood's clients entered into trades at prices that included commissions, which the platform subsequently received from market makers. According to the regulator, in this way Robinhood misinformed users about the sources of their income from 2015 to 2018.

The SEC also focuses on such illegal actions of the platform, such as actively promoting the platform among young and inexperienced clients who have practically no investment experience, encouraging new users to conclude numerous transactions, sending frequent notifications in the form of pop-up windows, directing clients to lists of popular securities that may not suit them personally.

Image: Robinhood