Robinhood fined USD 1.25 million

Robinhood fined $1.25MM for allowing four broker dealers to frontrun orderflow. The CEO of one of Robinhood's brokers just bought a quarter billion dollar penthouse in NYC.

Robinhood has now surpassed 10 million accounts.

Makes zero sense.

 

What doesn't make sense?

 

financial lobbyist writing policy

 

I thought Robinhood was a broker? What is difference between broker, and broker-dealer?

 

Robinhood is a broker-dealer

https://brokercheck.finra.org/firm/summary/165998

 

So Robinhood is also a bank then. I did not know this.

 

That clients open more than 10 million accounts when Robinhood offer no advantages.

 

They offered "free" trades before anyone else

 

It's like, they did that consciously, and all there is 1,25 Mil ?

It's more a warning , than an actual fine.

The fine should be of a size, that would cripple them.

10 - 30 - 50 mils.

Next time would think twice.

 

I've always thought the latest "free trade" craze was about selling the customers' order flow to the middle man (eg. broker dealer "front running" your order). So what is considered to be wrong with frontrunning the orderflow?