BrokAIr Reviews

Robin Hood Review

"Robin Hood is the perfect example of a company that has been able to win over customers with its unique approach to the stock market, but are there hidden costs that customers should be aware of?"

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Overview of Robin Hood

Robin Hood is an online brokerage that provides free stock trades and a free, easy-to-use platform. Founded in 2013 by Baiju Bhatt and Vlad Tenev, the company has become one of the most popular brokerages in the United States. Robin Hood has seen tremendous growth in recent years and now serves over 13 million customers.

Pros of Robin Hood

Cons of Robin Hood

Public Opinion of Robin Hood

Public opinion of Robin Hood is generally positive. Many users appreciate the free stock trades and simple user interface. However, some customers have expressed concerns about the lack of customer service and advanced trading features. Additionally, some users have been critical of the company's decision to restrict certain stocks during high volatility periods.

Newsworthy Events Around Robin Hood

In December 2020, the U.S. Securities and Exchange Commission (SEC) charged Robinhood with misleading its customers about the source of its revenue and failing to disclose that it received payments from trading firms for routing orders to them. The SEC also charged two executives with aiding and abetting violations. In response to the charges, Robinhood said it had improved its disclosures and made changes to its order routing system. In January 2021, the Financial Industry Regulatory Authority (FINRA) fined Robinhood $65 million for failing to properly supervise its customers' trading activity from October 2016 to December 2018. In addition to paying the fine, Robinhood was also required to implement a series of remedial measures including improving its customer training. In March 2021, Robinhood announced Cash Management, a new feature that allows customers to earn interest on uninvested cash held in their accounts. Cash Management offers an annual percentage yield (APY) of up to 0.30%.