Robinhood is one of the oldest cryptocurrency exchanges in the market and easily among one of the mainstream platforms. Robinhood financials has been operating with cryptocurrency treading since 2013 when the company was founded, processing thousands of trading orders since. However, Robinhood has been mentioned in a negative connotation as of the latest, starting with an SEC charge in December 2020. Why is Securities and Exchange Commission charging Robinhood and what are the reasons why crypto enthusiasts and traders might want to avoid using Robinhood exchange?
SEC is Charging Robinhood Exchange for Trade Orders Misstatements
Back in December 2020, Sec announced in an official PR that the US government agency is charging Robinhood for misstatements and not disclosing the company’s receipt from trading firms, and for not satisfying its duty to seek the best available ways to execute their customer’s orders. The exchange agreed to pay 65 million dollars on the account of the SEC charges. Robinhood also used false statements in their website FAQ, misleading customers when it came to the information on its greatest source of revenue. Robinhood was also executing orders at rates that were inferior to other brokers’ rates, which also accounts for misleading their customers. These events took place between 2016 and 2018, while the Robinhood exchange wasn’t charged until December 2020.
Robinhood Limiting Positions on GameStop
Robinhood becomes a part of another trading drama with GameStop enthusiasts wanting to push the price of GameStop on wall Street, that way “punishing” WS brokers who bet against the stocks. GameStop enthusiasts chose Robinhood App to push the returns to over 14,000% up in the past few months. However, Robinhood is now manipulating the choice of these traders, limiting their orders to selling their positions and not allowing them to buy new positions in GameStop. It seems that users can’t have the financial freedom they are seeking with Robinhood financials as the company is meddling with traders’ choices as well as statements.
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