Massachusetts securities regulators reportedly plan to file a criticism towards common stock-trading app Robinhood. The criticism accuses the corporate of aggressively advertising and marketing to unexperienced buyers and exposing buyers to “pointless buying and selling dangers,” in accordance with a report Wednesday from The Wall Street Journal, which reviewed a draft of the criticism.
Robinhood, which reportedly has greater than 13 million buyer accounts, has confronted regulatory scrutiny earlier than. The US Securities and Alternate Fee reportedly launched a probe into the company for not absolutely disclosing offers with high-speed merchants, and final yr Robinhood paid $1.25 million to settle claims from the Monetary Trade Regulatory Authority for pricing violations.
The corporate says it disagrees with the allegations within the criticism.
“Robinhood is a self-directed broker-dealer and we don’t make funding suggestions,” stated a spokesperson for the corporate in an emailed assertion on Wednesday. “Over the previous a number of months, we have labored diligently to make sure our methods scale and can be found when folks want them. We have additionally made important enhancements to our choices providing, including safeguards and enhanced academic supplies.”
The Massachusetts Securities Division did not instantly reply to requests for remark.