New SEC Investigations Show Robinhood May Be an Investing Villain, Not a Hero
Robinhood was founded with the goal of making investing more accessible and it unquestionably has succeeded. Not only did Robinhood account for approximately half the new investment accounts opened in the first half of 2020, but its customers also have a median age of 31 -- much younger than most brokerages -- and nearly half are first-time investors.
While reviews of Robinhood have touted its simple trading platform, ample questions have been raised about various aspects of the start-up's business model. Now, some of those questions are coming from the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA), the two main regulators of publicly-traded companies in the US.
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Source Fool.com
