Robinhood agrees to pay a $65 million fine for deceiving clients
Posted December 17, 2020 9:55 a.m. EST
CNN — Free stock-trading app Robinhood has agreed to pay a $65 million fine to the Securities and Exchange Commission to settle charges that it engaged in deceptive practices that hurt its clients.
Specifically, the regulator said Robinhood did not disclose "the firm's receipt of payments from trading firms for routing customer orders to them, and with failing to satisfy its duty to seek the best reasonably available terms to execute customer orders."
The regulator said that Robinhood charged inferior trade prices that, in aggregate, deprived customers of $34.1 million even after taking into account the savings from not paying a commission.
Robinhood settled the case without an admission of guilt it and it did not immediately respond to a request for comment.