Massachusetts securities regulators filed a complaint against Robinhood Financial LLC, accusing the popular online brokerage of greediness and irresponsibility.
Massachusetts Secretary of the Commonwealth William Galvin said that the reason behind the complaint against Robinhood Financial is their gamification of investment and the failure to protect amateur investors in return. The complaint against the company is the first of its kind, after the enforcement of the Massachusetts Fiduciary Rule, which was put to work last September.
“This is a very reckless company when it comes to these investors. They’re interested in expanding their market base, they’re not interested in serving their investors,” Galvin told CNBC.
William Galvin alleged the trading app of greedy marketing, and making use of novice investors, and ignoring the fact that they can lose a lot of money since they are not protected in any way. “The worst aspect of what they do clearly is the way they are gamifying the idea of investing,” William Galvin told CNBC.
