SEC Charges Robinhood Financial With Misleading Customers About Revenue Sources and Failing to Satisfy Duty of Best Execution

As the SEC’s order finds, one of Robinhood’s selling points to customers was that trading was “commission free,” but due in large part to its unusually high payment for order flow rates, Robinhood customers’ orders were executed at prices that were inferior to other brokers’ prices.

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I love T212 and support the direction the company is going but nonetheless, in the whole Robinhood story there are lessons to be learned and I hope @Team212 is reviewing these carefully.

https://www.bloomberg.com/news/articles/2020-12-22/robinhood-user-says-300-000-restored-from-hack-then-taken-back

https://www.bloomberg.com/news/articles/2020-12-17/robinhood-to-pay-65-million-to-end-sec-probe-into-stock-orders

Have you seen this thread @phildawson

Pretty sure trading212 have said before they don’t sell order flow. (Edit: found the link Why are trades executed OTC?)

Also, pretty interesting graph on the payments Robinhood was taking in for this…