Robinhood will pay $ 65 million to resolve the conflict with the SEC

The Robinhood trading platform will settle its conflict with the US Securities and Exchange Commission (SEC) out of court by paying the regulator $ 65 million. The main complaint against the marketplace was that it hid information about commission fees from its users.

According to a study by the regulator, misinformation continued between 2015 and 2018, while national legislation prohibits brokerage companies from receiving income from market makers, while noting that transactions should be carried out at the best prices for clients. Robinhood’s duty-free trading was a “gimmick,” the SEC notes, and allowed the company to generate up to 80% of its profits this way.

We add that the Robinhood platform has attracted a large audience this year. Users noticed a number of advantages, the main ones being the absence of commissions, ease of navigation and the user interface in general.