Bet on red

16 December 2020 By Lauren Silva Laughlin Follow @TheRealLSL

Massachusetts regulators filed a complaint against the trading firm saying it aggressively lures inexperienced investors. The site has impressive stats, but many amateurs are benefiting from inflated markets. Too often the government takes action after they have been burned.

This content is for Subscribers only

Context News

Massachusetts Secretary of the Commonwealth William Galvin has filed an administrative complaint against Robinhood claiming that it used “aggressive tactics to attract new, often inexperienced, investors” to trade on its platform. The complaint also says that the company used gamification strategies to entice “continuous and repetitive use” of the application.

“Robinhood has opened up financial markets for a new generation of people who were previously excluded,” the company said in a statement according to Reuters. “We are committed to operating with integrity, transparency, and in compliance with all applicable laws and regulations.”

Email a friend

Please complete the form below.

Required fields *