Dr. Ajith Kumar V.V
Robinhood Markets drew millions of users to investing with a colorful app that makes trading seem empowering instead of intimidating. Robinhood exposed Massachusetts investors to “unnecessary trading risks” by “falling far short of the fiduciary standard” that requires broker-dealers to act in their clients’ best interests, according to a 23-page administrative complaint from the office of Secretary of the Commonwealth William Galvin. It focuses on the tactics that Robinhood employs to keep consumers engaged, alleging that it encourages them to use the platform through what it calls “gamification.” One Robinhood customer with no investment experience made more than 12,700 trades in just over six months, according to the complaint.
Source: Robinhood Accused of ‘Gamification’ of Trading by Massachusetts Regulator - Bloomberg