Infotech

Robinhood to pay $ 65 million to end SEC investigation



Posted on Dec. 2020 at 19:38Updated Dec 17. 2020 at 19:57

The Millennials’ favorite brokerage app has just pulled a big thorn in its head, ahead of a possible IPO in 2021. Robinhood has agreed to pay a $ 65 million fine to end the market policeman’s accusation Americans according to which the broker did not correctly inform its clients about the execution of their orders, in particular via high-frequency trading companies.

The Securities and Exchange Commission (SEC) criticizes the American online broker for not offering its clients the best execution. Robinhood emphasizes that transactions are “commission-free”, but these were often executed on the basis of a less favorable price than that offered by competitors. The shortfall was often greater than the commission that customers would have paid to another provider.

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