Robinhood Financial: Difference between revisions

Line 4:

|Name=Robinhood Financial, LLC|Type=Subsidiary|Founded=2013|Industry=Financial Services|Official Website=http://robinhood.com/|Logo=Robinhood (company) logo.svg}}

~~==Background==~~

'''[[wikipedia:Robinhood_Markets|Robinhood Financial, LLC]],''' is a wholly-owned subsidiary of [[wikipedia:Robinhood_Markets|Robinhood Markets, Inc]]. The US app based brokerage company offers commission free stock and ETF trading ( exchange-traded funds ). Founded in 2013 by two former Stanford University room mates, the app was launched in 2015. Their mission is to democratize finance for all.

== Consumer impact summary ==

===Mission statement===

Line 23:

Line 24:

Critics argue that PFOF creates a conflict of interest, as they may prioritize routing orders to the highest paying firms rather than ensuring the best execution for customers.

~~===Contradictions===~~

===Negative impacts===

~~==Public sphere==~~

===Negative impacts ~~and controversies~~===

====Misleading Practices and Lack of Transparency====

Line 54:

Line 51:

====Arbitration Clauses====

Users are forced into mandatory arbitration, limiting their ability to seek legal redress.<ref name=":3" />

== Incidents ==

* Death of a trader: In 2020 a user committed suicide after misinterpreted a negative balance due to poor UI design, leading to backlash over risk disclosures.

* GameStop short squeeze: In 2021, decisions to restrict trading fueled accusations of market manipulation and hypocrisy due to it's 'for the people' branding.

==References==

@@ Line 4: / Line 4: @@
 |Name=Robinhood Financial, LLC|Type=Subsidiary|Founded=2013|Industry=Financial Services|Official Website=http://robinhood.com/|Logo=Robinhood (company) logo.svg}}
-==Background==
 '''[[wikipedia:Robinhood_Markets|Robinhood Financial, LLC]],''' is a wholly-owned subsidiary of [[wikipedia:Robinhood_Markets|Robinhood Markets, Inc]]. The US app based brokerage company offers commission free stock and ETF trading ( exchange-traded funds ). Founded in 2013 by two former Stanford University room mates, the app was launched in 2015. Their mission is to democratize finance for all.
+== Consumer impact summary ==
 ===Mission statement===
@@ Line 23: / Line 24: @@
 Critics argue that PFOF creates a conflict of interest, as they may prioritize routing orders to the highest paying  firms rather than ensuring the best execution for customers.
-===Contradictions===
+===Negative impacts===
-==Public sphere==
-===Negative impacts and controversies===
 ====Misleading Practices and Lack of Transparency====
@@ Line 54: / Line 51: @@
 ====Arbitration Clauses====
 Users are forced into mandatory arbitration, limiting their ability to seek legal redress.<ref name=":3" />
+== Incidents ==
+* Death of a trader: In 2020 a user committed suicide after misinterpreted a negative balance due to poor UI design, leading to backlash over risk disclosures.
+* GameStop short squeeze: In 2021, decisions to restrict trading fueled accusations of market manipulation and hypocrisy due to it's 'for the people' branding.
 ==References==